(a) In this section, “fair market value” means the price that a willing buyer would pay a willing seller, neither under any compulsion to buy or to sell, for a residential rental project, assuming:

(1) the highest and best use under current zoning; and

(2) no requirements to rent to low-income tenants other than the requirements of any federal law, § 7-214 of this subtitle, or other State law, local law, governmental program, agreement, covenant, or restriction that will continue to affect the project after sale or conveyance.

(b) (1) Except as required under § 7-204(b) of this subtitle, if the owner receives an offer to purchase the assisted project in the form of a binding purchase contract from an unrelated bona fide purchaser, the terms of the owner’s offer shall be substantially the same as those offered by the bona fide purchaser, including purchase price, terms of payment, financing contingencies, and assumable or purchase money financing.

(2) If the owner has not received an offer that qualifies under paragraph (1) of this subsection:

(i) the purchase price of the owner’s offer shall be the lesser of:

1. the purchase price of any offer that does not qualify under paragraph (1) of this subsection; and

2. the fair market value of the property as determined under subsection (d) of this section;

(ii) the owner’s offer shall be accompanied by a written appraisal of the fair market value of the assisted project prepared in accordance with subsection (d) of this section; and

(iii) the remaining terms of the purchase contract:

1. shall be as required under § 7-204(b) of this subtitle;

2. shall otherwise conform to terms that are accepted as reasonable in that market; and

3. are subject to final review by the Department.

(c) (1) (i) Any party identified in § 7-204(a) of this subtitle may accept the owner’s offer within 120 days after the date of the owner’s offer.

(ii) If more than one party submits a timely acceptance of the owner’s offer, the Secretary shall select as purchaser the party that, in the Secretary’s discretion, the Secretary determines will most benefit the assisted households.

(iii) The owner shall return the entire deposit made by each party whose offer was not accepted.

(2) If a party that has accepted the owner’s offer withdraws the acceptance, any remaining party identified in § 7-204(a) of this subtitle may accept the owner’s offer in accordance with paragraph (1) of this subsection within:

(i) 120 days after the date of the offer; or

(ii) 60 days after the acceptance is withdrawn.

(3) The acceptance shall be followed by settlement of the purchase of the assisted project by the owner’s stated closing date or any extension agreed to by the owner.

(d) (1) (i) If the owner is required by subsection (b)(2) of this section to submit an appraisal, acceptance of the owner’s offer made under this subtitle may state an adjusted purchase price based on an alternate fair market value.

(ii) The alternate fair market value shall be supported by a written appraisal prepared by an appraiser selected by the purchaser and delivered to the owner.

(2) If the owner objects to the adjusted purchase price, the owner and the purchaser may:

(i) set the purchase price at the average of the fair market values each party has obtained by appraisal; or

(ii) have the two appraisers select a third appraiser, whose fee shall be shared equally, and whose fair market value shall be binding.

(3) Each appraiser who submits an appraisal under this subtitle must be a member in good standing of the American Institute of Real Estate Appraisers or the Society of Real Estate Appraisers.