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DHCA explains buy-right pilot is not freely assignable; county requires regulatory agreement for transfers
Summary
DHCA told the committee the buy-right pilot is not directly assignable; when a property with a pilot is sold, the county will accept an assignment of the regulatory agreement or enter a new regulatory agreement with the purchaser that preserves material terms to satisfy state and county eligibility.
Robert Love of DHCA told the committee the buy-right (buyer) pilot is not assignable in the sense of a simple transfer. He explained the county will either accept an assignment of the existing regulatory agreement or negotiate a new regulatory agreement with the purchaser that includes substantially the same terms as the seller's agreement and meets state and county eligibility requirements.
Love told the committee staff is collaborating with OCA to develop a buy-right pilot template that would include an assignability clause for cases where a purchaser accepts an assignment of the regulatory agreement. The approach is intended to ensure continued affordability commitments after a change of ownership while meeting both state and county legal requirements.
Councilmember Friedson summarized the point in plain language: a PILOT is an agreement between the county and the property owner and "is not assignable" without a new agreement or an accepted assignment; a change in property owner requires either a new agreement or terms that meet the county's legal authority.
