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HomeMy WebLinkAbout3.0 Affordable Housing Information11111 111111 1101 111111 11111 1111 • 642775 12/11/2003 01.36P 81548 P60 M ALSDORF 1 a 16 R0 00 D 0.00 GARFIELD COUNTY CO SUPPLEMENT TO DECLARATION OF MASTER DEED RESTRICTION AND AGREEMENT CONCERNING THE SALE, OCCUPANCY AND RESALE OF PROPERTY IN BLUE CREEK RANCH SUBDIVISION, GARFIELD COUNTY, COLORADO THIS SI [PPLEMENT TO DECLARATION OF MASTER DE11) RESTRICTION AND AGREEMENT CONCERNING THE SALE, OCCUPANCY AND RESALE OF PROPERTY IN 13U JE CREEK RANCH SUBDIVISION. GARFIELD COUNTY. COLORADO (-Supplement to Blue Creek Ranch Master Deed Restrictiorn, is made and entered into this g ri!.- day of Te 2003. by Blue Creek Land Holdings. LLC. a Colorado limited liability compan (the -Declarant"). for the benefit of the parties and entbrceable by the Garfield County Housing Authority ("GCHK), a duly constituted housing authority established pursuant to Colorado law. and the Board of County Commissioners of Garfield County (the "Count!.. " RECITALS WHEREAS. Declarant is the owner and Developer of a residential community known as Blue Creek Ranch. Garfield County. Colorado; and WHEREAS. the Declarant and the County have entered into that certain Subdivision Improvements Agreement for Blue Creek Ranch ‘%. hich was recorded in the records of Garfield County on March 25, 2003 at Reception No. 623536 (the "SW.): and WHERI...:AS. in furtherance of applicable provisions of the SIA. the Declarant. GCHA, and the County have previously entered .into that certain Declaration of Master Deed Restriction and Agreement Concerning, the Sale. Occupancy and Resale of Property in Blue Creek Ranch Subdivision, Garfield ( ounty, Colorado (-Blue Creek Ranch Master Deed Restriction"); and WHEREAS. the Blue Creek Ranch Master Deed Restriction is intended by the parties to regulate and control the sale. occupancy and resale °fa minimum of four (4) lots thin Blue Creek Ranch upon which the Declarant is first going to cause the construction of a dwelling unit, and thereafter to sell the same in accordance with all terms and conditions of the Blue Creek Ranch Master Dced Restriction and as required by Section 4.07.11 et. leq. of the Garfield County Zoning Resolution of 1978. as amended. and the Garfield Count!, Affordable I lousing Guidelines of 1999 (collectively, the "Affordable Housing Regulations"); and. WHEREAS, in furtherance of applicable prmisions of the SIA. the parties intend. by their execution of this Supplement to Blue Creek Ranch Master Deed Restriction. to enable the Declarant • • . to make an initial sale of additional. affordable housing lots within Blue Creek Ranch as unimproved lots i.e., without causing the construction ofa dwelling unit thereon prior to such sale ("Unimproved Lot"), all as provided in this Supplement to Blue Creek Ranch Master Deed Restriction. NOW. THEREFORE. For value received, the receipt and sufficiency of which is hereby acknowledged. Declarant hereby declares, covenants, and agrees as follow s: SECTION 1 DECLARATION l .1. Declarant, for itself and its successors and assigns. hereby declares that the lot(s) within Blue Creek Ranch. and each dwelling unit to be constructed thereon (collectively. the "Lot") which is described on Exhibit A attached hereto and incorporated herein by this reference. shall be owned. transferred. conveyed. sold and improved subject to the covenants, conditions, restrictions and rights set forth herein. until such time as this Supplement to Blue Creek Ranch Master Deed Restriction is terminated in accordance with the provisions of Sections 2.2.1 or 2.2_ hereinbelow. 1.2 Simultaneously with the recording of this Supplement to Blue Creek Ranch Master Deed Restriction, the Declarant shall also record the Blue Creek Ranch Master Deed Restriction as an encumbrance against the Lot. For so long as this Supplement to Blue Creek Ranch Master Deed Restriction remains an encumbrance upon the Lot, the terms and conditions hereof shall take precedence and control over any inconsistent or conflicting provisions in the Blue Creek Ranch Master Deed Restriction. Capitalized terms contained herein shall have the meaning set forth herein. or. if undefined. shall have the meaning given to them in the Blue Creek Ranch Master Deed Restriction. Upon the termination of this Supplement to Blue Creek Ranch Master Deed Restriction as to any particular Lot by the execution and recording of the instrument described in Sections 2.2.1 or 2.2.2 below. this Supplement to Blue Creek Ranch Master Deed Restriction shall automatically terminate as to such Lot without further action of any party and thereafter the ownership, use and occupancy of such Lot shall be controlled by the terns and conditions of the Blue Creek Ranch Master Deed Restriction. 1.3 By the acceptance of any deed conveying any Lot subject hereto, the grantee of such deed shall accept all of the terrns. conditions, limitations, restrictions and uses contained in this Supplement to Blue Creek Ranch Master Deed Restriction and the Blue Creek Ranch Master Deed Restriction. In addition. prior to the delivery of a deed conveying any Lot to a grantee. such grantee shalt execute a Memorandum of Acceptance evidencing grantee's acknowledgment and agreement. to the terms, conditions, limitations, restrictions, and uses contained in this Supplement to Blue Creek Ranch Master Deed Restriction and the Blue Creek Ranch Master Deed Restriction. Supplement to Declaration (4' Master Deed Restriction Slue Creek Ranch E PCS'•U i- fln,l1Wi id Peer+si1Frlmurcnl lu O..SIn carni of Ala t t Deed Rranrniio 4.M.UI um" �� SECTION 2 SALE OF UNIMPROVED LOT 2.1 Any Lot within Blue Creek Ranch subject to this Supplement to Blue Creek Ranch Master Deed Restriction may be sold by Declarant as an Unimproved Lot subject to the initial maximum sales price (the "Affordable Price") calculated in accordance with this paragraph. The Affordable Price for ;al Unimproved Lot sold by the Declarant shall not exceed one-third C/3) of the maximum allowable price for which the Lot. together with a dwelling unit constructed thereon, could be sold as affordable to a household earning eighty percent (800/0) of the then current Garfield County Area Median Income calculated utilizing the assumptions so forth in Section 4.07.15.03(2) of the Garfield County Zoning Resolution, 2.2 Subject to the Affordable Price set forth above, Declarant may make the initial sale of an Unimproved Lot to either a business entity that does not satisfy the definitional provisions of the Affordable Housin6, Regulations (a "Non -Qualified Buyer")or to a person 'who does satisfy the definitional provisions of the Affordable Housing Regulations (a -Quail fied 13u!4er"). In either case. Declarant may make such initial sale of an Unimproved Lot directly to a Non -Qualified Buyer or a Qualified Buyer of Deciaranes choice. without following the lottery provisions of the Affordable Housing Regulations. provided such sale complies with one of the following,: 2.2.1 Sale to a Non -Qualified Buyer. Declarant may make the initial sale ofari Unimproved Lot to a Non -Qualified Buyer provided that: (i) such Non -Qualified Buyer is a business entity (for profit or not for profit) with facilities or offices located in Garfield County. Colorado, and (ii) the Non -Qualified Buyer by an obligation set forth in its purchase contract of the Unimproved Lot which is acceptable to the GCE IA, shall agree to construct a dwelling unit upon such Unimproved Lot, and thereafter to sell the Lot, together with the completed dwelling unit (the "Improved Lot"), to one of its employees or some other individual to be designated by the Non -Qualified Buyer. either of whom shall be in every respect a Qualified Buyer. The Maximum Resale Price that such Non -Qualified. Buyer may obtain for the Improved Lot in its resale to the designated Qualified Buyer after construction. of the dwelling unit shall be calculated as of the date of recording the deed for the transfer of the Unimproved Lot from the Declarant to the Non -Qualified Buyer. Such Maximum Resale Price shall be the maximum allowable price at that time fir such size of unit under the then current Affordable Housing Regulations to a household earning eighty percent (80%) of the Garfield County Annual Median Income calculated utilizing the assumptions set forth in Section 4.07.15.03(2) of the Garfield County Zoning Resolution. The Maximum Resale Price shall he determined as set forth in the preceding sentence regardless of the. actual cost to the Non -Qualified Buyer of purchasing the Unimproved Lot and the cost that will be incurred in the construction of the dwelling unit on the Lot. At .the closing of the sale of the Unimproved Lot from the Declarant to the Non-Qu.aliiied Buyer, the said Non - Qualified Buyer shall execute a Memorandum of Acceptance in the form attached hereto as Exhibit B. evidencing its acknowledgment and agreement to the terms. conditions. Supplement to Declaration of !Waster Deed Restriction Blue Creek Ranch onwersu—n I iva flrIpftIwrm u iM41141 Digigi • limitations and restrictions contained in this Supplement to Blue Creek Ranch Master Deed Restriction. The sale transaction between the Noon-Qualitied Buyer and the designated. Qualified Buyer shall be exempt from the lottery prep isiuns of the Affordable Housing Regulations. At the time of the closing of the sale from the Nim-Qualitied Buyer to the Qualified Buyer, the Non -Qualified Buyer, the Qualified Buyer. the GCHA, and Garfield County. shall all sign and record an instrument in the form of the Memorandum attached hereto as Exhibit C terminating this Supplement to the Blue Creek Ranch Master Deed Restriction as to such Lot and acknowledging that from such time forward the sale, occupancy and use of such Lot, including the rights and obligations of the Qualified Buyer who signs the instrument, will thereafter be governed and controlled by the Blue Creek Ranch Master Deed Restriction and the Affordable Housing Regulations. 2.2.2 Sale to Qualified Buyer. Declarant may make the initial sale of an Unimproved Lot to a Qualified Buyer who intends to construct a dwelling unit on such Unimproved 1..ot provided that said Qualitied Buyer's ownership. use and occupancy of the Lot shall be governed and controlled by the Blue Creek Ranch Master Deed Restriction and the Maximum Resale Price that said Qualified Buyer may obtain for the lmproved Lot shall be calculated pursuant to Section 3.2 of the Blue Creek Ranch Master Deed Restriction, except that for purposes of making such calculation. "the purchase price for the Unit paid by the Owner selling the Unit" (the "`Deemed Purchase Price") shall conclusively be deemed to he the maximum allowable price for which such size of Unit could have been sold. as of the date of recording of the deed by which the said Qualified Buyer took title to the Unimproved Lot, as affordable to a household earning eighty percent (80%) of the Garfield County Annual Median Income calculated utilizing the assumptions set forth in Section 4.07,15.03(2) of the Garfield County Zoning Resolution that were current and in effect as of that date. The Deemed Purchase Price shall he determined as set forth in the preceding sentence regardless of the actual cost to said Qualified Buyer of purchasing the Unimproved Lot and the actual cost that will be incurred in constructing the dwelling unit on the Lot. Prior to selling an Unimproved Lotto a Quali tied Buyer whose Maximum Resale Price will he restricted as aforesaid. Declarant shall provide an express written notice to said prospective Qualified Buyer of the restriction. requesting that the prospective Qualified Buyer provide the Declarant and the GCI -IA a written response to the notice indicating that the Qualified Buyer is aware of and understands that his maximum resale price shall be determined without regard to his cost of constructing a dwell ing unit on the Lot. and offering an explanation as to why the Qualified Buyer is able or willing to undertake that risk. Upon GCI -IA's approval that the Qualified Buyer fully understands the risks and Limitations associated with his purchase of the Unimproved Lot. then such transaction between the Declarant and the Qualified Buyer may proceed to closing. At the closing of the sale of the Unimproved Lot from the Declarant to the Qualified Buyer. the said Qualitied Buyer shall execute a Memorandum of Acceptance in the form of Exhibit D evidencing his acknowledgment and agreement to the terms. conditions. limitations and restrictions contained in this Supplement to Blue Creek Ranch Master Deed Restriction. Thereafter. at Supplement is Declaration a/ aster Deed Revtrstik,, Blue Creek Ranch fi 41'.11,00. ar. Cnnrc.VNuul /OM' .44m4[116 i.4 Alancr IICeet{tcla 11p1 -4- the closing of the sale of the improved Lot by the Qualified Buyer who constructs the improvement. such Qualified Buyer. the transferee Qualified Buyer. the .iCHA and Garfield County shall all sign and record an instrument in the form of Exhibit C terminating this Supplement to the Blue Creek Ranch Master Deed Restriction ts to such Lot and acknowledging that from such time forward the sale, occupancy and use of such Lot. including the rights and obligations of the transferee Quali lied Buyer who signs the instrument, will thereafter be governed and controlled by the Blue Creek Ranch Master Deed Restriction and the Affordable Housing Regulations. SECTION 3 GENERAL PROVISIONS 3.1 Administration of this Supplement to Blue Creel: Ranch Master Deed Restriction. The Declarant and GCI -IA shall work together to assure that all sales of Lots authorized by and conducted pursuant to Section 2 hereof shall satisfy each and every requirement contained in this Supplement to Blue Creek Ranch Master Deed Restriction.. Final authority to determine that a proposed sale of a Lot satisfies the requirernents of this Supplement to Blue Creek Ranch Master Deed Restriction shall be in the discretion of the GCHA. Declarant shall reimburse the GCHA for its actual administrative and other costs in reviewing and approving all sales of Lots subject to this Supplement to Blue Creek Ranch Master Deed Restriction. Reimbursement to the GCHA for all of its costs related to the review and approval of the sale of a particular I.ot shall he made at or prior to the time of the closing of such sale. 3.2 Modifications. The parties hereto agree that the Lots which are made subject to this Supplement to Blue Creek Ranch Master Deed Restriction are being provided by Declarant in excess of its minimum affordable housing requirements for Blue Creek Ranch as required by the Affordable Housing Regulations. Said Lots are being sold as Unimproved Lots subject to the provisions of this Supplement to Blue Creek Ranch Master Deed Restriction as a means of providing an additional opportunity for affordable housing in Garfield County which is not directly addressed by the Affordable Housing Regulations. It is Ligreed and understood that this Supplement to Blue Creek Ranch Master Deed Restriction may only be modified by a writing signed by all parties and recorded in the Garfield County records. Notwithstanding the foregoing. in the event that it is determined by any of the parties that the provisions of this Supplement to Blue Creek Ranch Master Deed Restriction are inadequate to meet the intention of the parties as stated herein. whether by omission.. conflict, or otherwise, the parties agree that they shall work together in good faith to agree upon an appropriate amendment to this Supplement to Blue Creek Ranch Master Deed Restriction which will address. clarify or correct the omission. conflict, or other deficiency. Supplement to Declarcurcut ty- Waster Deed Restriction Blue Creek Ranch i!,1001,b()CF,L.trn. Coreu4tud.111./....Sa1plianciti i r MAIO ItsaitONinn "4 -5- • IN WITNESS WHEREOF. the parties hereto have executed this instrument on the day and year fiat written above. DECLARANT: BLUE CREEK LAND HOLDINGS, LLC. a Colorado limited liability company By: Lane Investment Limited Partnership_. an Illinois limited partnership. its sole Member By: Lane Industries. Inc.. a Delaware corporation, General Partner By. s: C'g-N Ka_ STATE OFto r ) )ss. COUNTY OF jpte_cio1k The foregoing foreping instrument was acknowledged before me this 411, day of 2003. by as ' Act cr i r_tcf e. '- for Lane industries. Inc.. a Delaware corporation. General Partner of Lane Investment Limited Partnership. an Illinois limited partnership. Manager of Blue Creek Land Holdings. LLC. a Colorado limited liability company. Witness my hand and official seal. My commis:,ion expires: tilt) Coioracto Avenue Glenwood Springs, CO 81601 My Commission Expires May 1, 2005 Sufrl'h+nne■nl to Declaration of filmier Deed Restriction Bina C'ree'k Ranch 'WMIEEX x1.41r, EMMAI.WIwl Nwrr'R.ty Lk r,iro r�� ttiU r�ru.nr..a M.o-ler. Med Resfc1m01b.Md11 .,,r -6- • • tiI \H t11 l+!IMADO ) )ss a l ti FY OF GARFIELD ) (iAR1-IELD COUN 1 1 1LOUSING AUTHORITY By Title: lite 4 04, it. AMMO v.e sfill 1 Fie above and foregoing document was acknowledged helorc me this \ r day of ,1.1 , w �_� • 2003. by \ ,' , , . , 1 as IA' ,. M k LI 'ALY„�� +i4.! Witness my hand and official seal. Notary Public My commission expires: r t31�� l C.Li My address is: t: f r, w_1A BOARD OF COUNTY COMMISSIONERS OF �GARFIELD I.1NTY By John a;rlin,'t'iit rnaan !Iitest: Mi F red A Isdorf. Clerk of the . and Supplement to Declaration rf Master Deed RestricYron Blue ['reek Ranch LW'P.IXW% I ijrh Wl,ld NA I't N I1.pk i,u,Y I,r k {.Illi 1 LIC 411,4” -7- i:xilliill .ti Legal Description ref Property Lots 47 and 48. Blue Creek Ranch. according to the Final Plat thereof recorded March 25, 2003 as Reception No. 623535 and according to the Declaration of Covenants, Conditions. and Restrictions for Blue Creek Ranch recorded March 25. 2003 in Book 1450 at Page 129 as Reception No. 623540. County of Garfield State of Colorado • • EXHIBIT B MEMORANDUM OF ACCEPTANCE OF DEED RESTRICTION (NON-QUALIFIED BUYER) RECITALS A. 'Che undersigned. . the Buyer is purchasing. Brum Blue Creek. Land Holdings, LLC. certain real property located within Blue Creek Ranch Subdivision, Garfield County, Colorado, described as l.,ot . according to the Final Plat of Blue Creek Ranch. recorded in the records of Garfield County on March 25. 2003, as Reception No. 623535 (the "Lot""). 13. The Lot is subject to the Declaration of Master Deed Restriction and Agreement Concerning the Sale, Occupancy and Resale of Property in Blue Creek Ranch, Garfield County. Colorado. as recorded in the Garfield County records on , as Reception No. (the "Master Deed Restriction"). and the Supplement to Declaration of Master Deed Restriction and Agreement Concerning the Sale. Occupancy and Resale of Property in Blue Creek Ranch Subdivision. Garfield County. Colorado, as recorded on . as Reception No. (the "Supplement to Master Deed Restriction").. C. It is a requirement of both the Master Deed Restriction and Supplement to Master Deed Restriction that prior to the delivery ofa deed conveying the Lot. the Buyer execute the within Memorandum of Acceptance evidencing Buyer's acknowledgment and agreement to the terms. conditions. limitations, restrictions, and uses set forth in the Master Deed Restriction and the Supplement to Master Deed Restriction. NOW. THEREFORE, as an inducement to the Seller to sell the Lot to Buyer, the Buyer: 1. Acknowledges that the undersigned Buyer has carefully read the entire Master Deed Restriction and the Supplement to Master Deed Restriction. has had the opportunity to consult with legal and financial counsel regarding both documents. and fully understands and agrees to be bound by the terms of both such documents. Hereby accepts the Master Deed Restriction and the Supplement to Master Deed Restriction, in their entireties. including ail exhibits. as the same are defined herein and as they are recorded in the Garfield. County records. 3. Hereby acknowledges and agrees to the following: a. That the closing of Buyer's acquisition of the Lot and the date of recording of the Deed For the Lot to Buyer occurred on b. That the purchase price that Buyer paid for the Lot in its unimproved condition k S c. That the Maximum Resale Price as defined in the Supplement to Master Deed Restriction that the undersigned Buyer may obtain for the Lot. including any improvement that Buyer shall construct upon the Lot, is $ d. That any notice to the Buyer as required by the Master Deed Restriction or the Supplement to Master Deed Restriction Nilo Id he sent to: e. Directs that this Memorandum of Acceptance he recorded in the real estate records of Garfield Countv. Colorado. IN WITNESS WHEREOF, the undersigned Buyer has executed this Memorandum of Acceptance and the date set forth opposite its signature. Date: BUYER: \ TE OF COLORADO ) ) ss c()LNT'? OF The above and foregoing document was acknowledged before me this day 01 .200 .bv Witness my hand and official. Notary Public My commission expires: My address is: Memorandum of Accemance of Deed Restriction !Blue Creck /And ll/Jung. LLC 111.1}.Ni.s,,ifff•rOlii1140.4.4 NMI 0.1 Ow r•Jilawro 116441,44... II ri. Page 2 4'2 EXHIBIT C TERMINATION OF SUPPLEMENT TO DECLARATION OF MASTER DEED RESTRICTION THIS TERMFNATION OF SUPPLEMENT TO DECLARATION OF MASTER DEED RESTRICTION ("Termination") is made and entered into this day of '0____ by ("Seller"). (-Buyer"), the GARFIELD COIJJNTY HOUSING AUTHORITY ("GCHA''), a duly constituted housing authority established pursuant to Colorado law: and the BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY (the "County"). RECITALS A. On even date herewith Seller is selling and conveying to Buyer certain real property located within Blue Creek Ranch Subdivision, Garfield County, Colorado, described as Lot according to the Final flat of Blue Creek Ranch recorded in the records of Garfield County on March 25. 2003 as Reception No. 623535 (the tot"). B. The Lot is subject to the Declaration of Master Deed Restriction and Agreement Concerning the Sale, Occupancy and Resale of Property in Blue Creek Ranch, Garfield County. Colorado, as recorded in the Garfield County records on , as Reception No. (the "Master Deed Restriction"). and the Supplement to Declaration of Master Deed Restriction and Agreement Concerning the Sale, Occupancy and Resale of Property in Blue Creek Ranch Subdivision, Garfield County. Colorado, as recorded on , as Reception No. (the "Supplement to Master Deed. Restriction"). C. The purposes of the Supplement to Master Deed Restriction as it relates to the Lot have now been satisfied and in accordance with applicable provisions of the Supplement to Master Deed Restriction the parties wish to terminate the Supplement to Master Deed Restriction as it applies to the Lot. NOW. THEREFORE. the parties hereto agree as follows: 1. All purposes of the Supplement to Master Deed Restriction as it relates to the Lot have now been satisfied and the Supplement to Master Deed Restriction is hereby terminated as to the Lot. ?. When this Termination is signed by all parties it shall be recorded in the real property records of Garfield County. Colorado, and this Termination shall be immediately effective upon its recording. From and after the recording of this Termination, all terms and conditions of the Supplement to Master Deed Restriction shall be automatically and forever removed as burdens, limitations, or restrictions upon the Lot. • 111 parties agree that nom ithstanding this l ertnination, the Lot shall remain subject to all of the grans. conditions, limitations, restrictions and uses contained in the Master Deed Restriction. IN WITNESS 'WHEREOF. the parties have executed this 'i'etmination on the date set forth opposite their respective signature. SELLER: ST1 A 1'I: 01. COLORADO ) ) ss (_'(R IN EY OF The above and foregoing document was acknowledged bete+re me this day of .200 . by Date: Witness my hand and official. \11' commission expires: 11address is: Notary Public BUYER: Ter ton r4 Supplement to Declaration of Masser Deed Restriction /Blue Creek Land lloldur,t;s, I. /,c Page ? of 11 hon 4 n. <u.rr, *Id • • I. ! IT OF COLORADO ) ) ss EJ( NI -TY OF ) The above and foregoing document was acknowledged before me this day of .200 . by Witness my hand and official. Date: Notary Public My commission expires: My address is: STATE OF COLORADO ) ss COUNTY OF GARFIELD) GARFIILD COUNTl It )1 SING AUTHORITY By: l'itIL: The above and foregoing document was acknowledged before me this day of 2003. by as Witness my hand and official seal. Notary Public My commission expires: My address is: Termination Supplement 10 Declaration «I Mosier Deed Ream:non Blue ('reeA Land I. C N'T.uV 'AIMilGMv 7HWowuirn Iin44 I n. v.+n .;.! Pager 3 (If 4 • BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY Date: John Martin. Chairman Attest: Mildred Alsdorl. Clerk of the Board I Wan of Supplement to Declaration of Master Deed Restriction 'Blue Creek Land Holdings, LLC PagL 4 of 4 N or, 1.•• ef 1, .4.oho 10 MO gra • • EXHIBIT D MEMORANDUM OF ACCEPTANCE OF DEED RESTRICTION (QUALIFIED BUYER) RECITALS A. The undersigned, , the Buyer is purchasing from Blue Creek Land Holdings. LLC. certain real property located within Blue Creek Ranch Suhclrvision. Garfield County, Colorado, deserihed as Lot , according to the Final Plat of Blue Creek Ranch. recorded in the records of ( Earl ield. County on March 25, 2003, as Reception No. o23535 (the "Lon. B. The Lot is subject to the Declaration of Master Deed Restriction and Agreement Concerning the Sale. Occupancy and Resale of Property in Blue Creek Ranch. Garfield County. Colorado. as recorded in the Garfield County records on , as Reception No. (the "Master Deed Restriction"), and the Supplement to Declaration of Master Deed Restriction and Agreement Concerning the Sale. Occupancy and Resale of Property in Blue Creek Ranch Subdivision. Garfield County. Colorado, as recorded on , as Reception No. _ (the "Supplement to Master Deed Restriction`.). C. It is a requirement of both the Master Deed Restriction and Supplement to Master Dred Restriction that prior to the delivery of a deed conveying the Lot, the I3uyer execute the within. Memorandum of Acceptance evidencing Buyer's acknowledgment and agreement to the terms, conditions. limitations. restrictions, and uses set forth in the Master Deed. Restriction and the Supplement to Master Deed Restriction. NOW. THEREFORE, as an inducement to the Seller to sell the 1,ot to Buyer. the Buyer: 1. Acknowledges that the undersigned Buyer has carefully read the entire Master Deed Restriction wend the Supplement to Master Deed Restriction. has had the opportunity to consult with legal and 1 inancial counsel regarding both documents. and fitlty understands and agrees to be bound f . the terms of both such documents. 2. I lereby accepts the Master Deed Restriction and the Supplement to Master Deed Restriction, in their entireties, including all exhibits, as the same are defined herein and as they are recorded in the Garfield County records. Hereby acknowledges and agrees to the following: a. That the closing of Buyer's acquisition of the Lot and the date of recording of the Deed for the Lot to Einer occurred on • b. That the purchase price that Buyer paid for the Lot in its unimproved condition is $ c. That the Deemed Purchase Price as defined in paragraph 2.2.2. of the Supplement to Master Deed Restriction that the undersigned Buyer is paying for the Lot and which shall be used as the starting point to calculate the Maximum Resale Price that the Buyer may obtain for the Lot together with an improvement to be constructed by Buyer, is d. That any notice to the Buyer as required by the Master Deed Restriction or the Supplement to Master Deed Restriction should be sent to: e. Directs that this Memorandum of Acceptance be recorded in the real estate records of Garfield County, Colorado. IN WITNESS WHEREOF. the undersigned Buyer has executed this Memorandum of Acceptance and the date set forth opposite its signature. Date: BUYER: STATE OF COLORADO ) ) ss COUNTY OF The above and foregoing document was acknowledged before me this day of ,200 ,by Witness my hand and official. My commission expires: My address is: Notary Public Memorandum of Acceptance of Deed Restriction !Blue Creek Land Holdings. LLQ' Page 2 q12 F 117'- .5.l,uri Hew, ;V 01.0..11111 IAA 1./1 form' -:.f 1'r AO, 1'fh-;n.•ii„1„t 410 411041,, z/ DECLARATION OF MASTER DEED RESTRICTION A ND AGREEMENT CONCERNING THE SALE, OCCUPANCY AND RESALE OF PROPERTY IN BLUE CREEK RANCH SUBDIVISION, GARFIELD COUNTY, COLORADO THIS DECLARATION OF MASTER DEED RESTRICTION AND AGREEMENT CONCERNING THE SALE. OCCUPANCY AND RESALE OF PROPERTY IN BLUE CREEK RANCH SUBDIVISION, GARFIELD COUNTY. COLORADO ("Agreement") is made and entered into this day of , 2003, by Blue Creek Land lloldings, LLC, a Colorado limited liability company (the "Declarant"), for the benefit of the parties and enforceable by the Garfield County Housing Authority ("GCHA"), a duly constituted housing authority established pursuant to Colorado law, and the Board of County Commissioners of Garfield County (the "County"). RECITALS AND DEFINITIONS WHEREAS. Declarant is the owner of and is in the process of developing and platting a residential community known as Blue Creek Ranch. Garfield County. Colorado; and WHEREAS. Declarant desires to set aside certain Lots within Blue Creek Ranch. for the purpose of providing affordable housing for residents of Garfield County, Colorado (the "County"). which Lots are described on Exhibit "A" attached hereto and incorporated herein by this reference. For purposes of this Agreement, such real property and all dwellings. appurtenances. improvements and fixtures associated therewith shall hereinafter be collectively referred to as the "Property"; and WHEREAS, the Declarant has or will enter into ane or more business relationships with a general contractor experienced in the construction of residential dwelling units for the purpose of constructing one (1) residential housing unit upon each of the lots comprising the Property, which lots, together with all improvements thereon and appurtenances thereto, shall hereinafter be referred to as "Units"; and WHEREAS, after completion o f constructi on. each Unit. together with the completed homes and other improvements thereon and appurtenances thereto, shall be conveyed to "Qualified Buyers" as that term is defined in this Agreement: and WHEREAS, the term "Qualified Buyers", as used herein. are natural persons meeting the income. residency and all other qualifications contained in Section 4,07.11, et, seq. of the Garfield County Zoning Resolution and in the Garfield County Allbrdable Housing Guidelines of 1999 collectively, "the Affordable Housing Regulations"). as adopted and in effect at the time of the closing of the sale of the Unit to Qualified Buyers. %.‘ ho must represent and agree pursuant to thi Agreement to occupy the Unit as their sole place of residence, not engage in any business aetivit -1- • within the Unit other than that permitted in that zone district or by applicable ordinance, and not sell or otherwise transfer the Unit for use in a trade or business; and WHEREAS. the term `.Owner", as used herein shall mean the person(S) who acquire an ownership interest in a Unit in compliance with the terms and provisions of this Agreement. it being understood that such person(s) shall be deemed an "Ow ner" hereunder only during the period of his. her or their ownership interest in the Unit and shall be obligated hereunder for the full and complete performance and observance of all covenants, conditions and restrictions contained herein during such period. It is expressly understood that the tem "Owner" as used in this Agreement does not include the Declarant. NOW, THEREFORE, for value received, the receipt and sufficiency of which is hereby, acknowledged, Declarant hereby declares, covenants, .titcl agrees a; Hollows: SECTION 1 DECLARATION 1.1 For the purposes set forth herein. Declarant. for itself and its successors and assigns, hereby declares that the Property, and each Unit within the Property, shall be owned. held. transferred, conveyed, sold, leased, rented, hypothecated, encumbered. used, occupied. improved, altered and enjoyed subject to the covenants, conditions, restrictions, privileges. rights and other provisions herein set forth, for the duration hereof, and all of which shall run with the land and be binding upon all. Owners, occupants and other persons having or acquiring any right. title or interest in or to the Property or any Unit thereof, and their respective heirs, personal representatives, successors and assigns and shall be binding upon and inure to the benefit of the County and GCHA. and their respective successors and assigns. All persons who purchase Units shall be Qualified Buyers, as such terns is defined in this Declaration. 1.2 Declarant hereby restricts the acquisition or transfer unite [,snits to Qualified Buyers, as that term is defined in this Agreement, who fall within the qualifications and income range established and adopted by the GCHA or the County from time to time in its Affordable Housing Regulations, In addition, Declarant agrees that this Agreement shall constitute a resale agreement setting Borth the maximum resale price for which the Units may be sold (.'Maximum Resale Price"). the amount of appreciation, and the terms and provisions controlling the resale of the Units. Declarant restricts the Property and Units against use and occupancy inconsistent with the terms of this Agreement. 1.3 By the acceptance of any deed convey i ng any Unit subject hereto. the grantee of such deed shall accept all of the terms. conditions, limitations, restrictions and uses contained in this Agreement. In addition, prior to the delivery ofa deed conveying any Unit to a grantee. such grantee shall execute a Memorandum of Acceptance evidencing grantee's acknowledgment and agreement to the terms, conditions, limitations, restrictions. and uses contained in this Agreement. -2- • • IA Notwithstanding any provision of this agreement to the contrary. it is expressly agreed and acknowledged that the terms, conditions. and restriction of this Agreement with respect to the use and occupancy of the Property or any Unit thereof shall not apply to Declarant during its ownership thereof prior to the issuance ofa Certificate of Occupancy for dwelling units constructed thereon; provided. however that upon issuance of Certificate of Occupancy the Declarant shall be subject to all terms and conditions of this Agreement and provided further that the Declarant shall make no transfer of any Unit except to a Qualified Buyer as defined in this Agreement; and provided further, that Declarant shall not grant any deed of trust. or mortgage upon all or any portion of the Property. or otherwise allow the Property to be encumbered by any matter which could extinguish this Agreement, unless such deed of trust, mortgage, or other encumbrance is subordinate to this Agreement.. 1.5 Notwithstanding any provision of this Agreement to the contrary. i n order to faeilit.,tc provision ofaffordable housing in Garfield County, it is expressly agreed and acknowledged that the GCHA, or the County as an agent of the GCHA, may acquire and transfer the Unit(s) to Qualified Buyer(s) as that term is defined herein or rent the Unit(s) to qualified tenants who meet the income. occupancy and all other qualifications established by the GCHA or the County in its Affordable Housing Regulations until a sale to a Qualified Buyer is effected. SECTION 2 USE AND OCCUPANCY OF PROPERTY 2.1 Except as otherwise provided herein, the use and occupancy of any Unit shall henceforth be limited exclusively to housing for natural persons who meet the definition ofQualilied Buyer(s) and their families. 2.2 An Owner. in connection with the purchase of a Unit. must: (a) occupy the Unit within this Property as his or her sole place of residence during the time that such Unit is owned; (h) not engage in any business activity on or in such Unit, other than as permitted in that zone district or by applicable ordinance; (c) sell, convey, or otherwise transfer such Unit only in accordance with this Agreement and the Affordable Housing Regulations. 23 It shall be a breach ofthis Agreement for an Owner who defaults in payments or other obligations due or to be performed under a promissory note secured by a first lien deed of trust or mortgage encumbering a Unit to fail to notify the GCHA, in writing, of any not i lication received from a lender, or its assigns, ofpast due payments or default in payment or other obligations due or to be performed under a promissory note secured by a first lien deed of trust or mortgage. as described herein. within five (5) calendar days of Owner's notification from lender. or its assigns. of said default or past due payments. 2.4 Upon receipt of notice as provided in subsection 2.3, GCHA shall have the right, in it's sole discretion, and with the agreement of the Owner, to cure the default or any portion thereof In such event, the Owner shall be personally liable to GCHA for past due payments made by the GCHA together with default interest thereon at the rate specified in the existing promissory note(s) -3- • • secured by the first lien deed of trust or mortgage. and all actual expenses of the GCHA incurred in curing the default. The Owner shall be required by GCHA to execute a promissory note secured by a deed of trust encumbering the Unit in favor of the GCHA for the amounts expended by the GCHA as specified herein, including future advances made for such purposes. The Owner may cure the default and satisfy its obligation to the GCHA under this subsection at any time prior to execution ofa contract for sale, upon such reasonable terms as specified by the GCHA and, if applicable, any such satisfaction shall comply with Fannie Mac's community seconds program requirements. Otherwise, an Owner's indebtedness to the GCHA shall be satisfied from the Owner's proceeds at closing. SECTION 3 SALE OF UNIT: MAXIMUM RESAI.F PRICI, 3.1 In the event that an Owner desires to sell his Unit the Owner shall consult with GCHA. or its agent, to review the requirements of this Agreement, including the method for determining the Maximum Resale Price. Following approval of the Maximum Resale Price by GCHA, the Owner shall list such unit for sale with the Garfield County Housing Authority, or as otherwise provided in Garfield County Affordable Housing Regulations or Guidelines then in effect, for a sales price not exceeding the Maximum Resale Price. If Fannie Mae or similar financing (as solely determined by GCHA) is used, there may be a fee charged by GCHA based on the amount financed. The amount of such fee is to be paid by the borrower and shall be set forth in the current Affordable Housing Regulations and will be distributed to the GCHA Mortgage Fund Account. 3.2 In no event shall a Unit be sold for an amount in excess of the Maximum Resale Price as determined in accordance with this paragraph. The Maximum Resale Price shall equal the purchase price for the Unit paid by the Owner selling the Unit plus the cost of Permitted Capital Improvements as defined on Exhibit B attached hereto and incorporated herein by this reference ( and as limited in paragraph 3.3 hereof) divided by the Consumer Price Index. All Items. Denver/Boulder, Urban Wage Earners and Clerical Workers (Revised). published by the LI.S. Department of Labor. Bureau of Labor Statistics (-Consumer Price index") published at the time of. Owner's purchase as stated on the settlement sheet. multiplied by the Consumer Price Index current at the date of intent to sell. In no event shall the multiplier be less than one (l ). For the purposes of this subsection. "date of intent to sell" shall be the date of exe+ ut ion of a listing contract, or if a listing contract is not used. the date shall be the date when the l nit is first offered for sale. In no event shall the Maximum Resale Price be less than the Owner's purchase price. plus Permitted Capital Improvements, plus an increase of three percent (3%) of such price per year from the date of purchase to the date of Owner's notice of intent to sell. NOTHING HEREIN SHALL 13E CONSTRUED TO CONSTITUTE A REPRESENTATION OR GUARANTEE BY 1 IE DECLARANT, GCHA OR GARFIELD COUNTY THAT UPON RESALE THE OWNER SHALL OBTAIN THE MAXIMUM RESALE PRICE. -A- 3.3 In order to qualify as Permitted Capital ltnprovements. the Owner must furnish to the GCHA the following information with respect to the improvements which the Owner seeks to include in the calculation of Maximum Resale Price: a Original or duplicate receipts to verify the actual costs expended by the Owner for the Permitted Capital Improvements; and b Owner's affidavit verifying that the receipts tendered are valid and correct: and c 'True and correct copies of any building permit or certificate of occupancy required to be issued by the County with respect to the Permitted Capital Improvements. Notwithstanding anything else contained herein, the total cost of Permitted Capital Improvements shall not exceed ten percent (10%) of the initial sales price of that particular unit. 3.4 For the purpose of determining the Maximum Resale Price in accordance with this Section, the Owner may also add to the amounts specified in subsections 3.2. the cost of any permanent improvements constructed or installed as a result of any requirement unposed by any governmental agency, provided that written certification is provided to the GCHA of both the applicable requirement and the information required by subsection 3.3. 3.5 In calculating the costs under subsection 3.2 and 3.3 only the Owner's actual out-of- pocket costs and expenses shall he eligible for inclusion. Such amount shall not include an amount attributable to Owner's "sweat equity" or to any appreciation in the value of the improvements. 3.6 An Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the Owner to sell to such prospective buyer. 3.7 Prior to Owner entering into a sales contract for the sale of his Unit to a prospective buyer, such potential buyer shall be qualified by GCHA pursuant to the requirements of the Affordable Housing Regulations then in effect. Documented proofofqualilication shall be provided by the potential buyer, as requested by GCHA, prior to purchase. An Owner shall neither enter into a sales contract for the sale of his Unit with any person other than a Qualified Buyer nor any contract which provides for a sales price greater than the Maximum Resale Price established in accordance with this Section. The Owner may reject any and all offers; provided, however, offers in excess of the 1vlaxitnum Resale Price shall be rejected. Prior to closing, all sales contracts for the sale of a Unit subject to this Agreement shall be submitted to the GCHA for its review and approval of the contract for consistency with this Agreement. 3.8 In the event that title to a Unit vests in individuals or entities who are not Qualified Buyers as that term is defined herein, (hereinafter referred to as "Non -Qualified Transferee(s)"), and such individuals are not approved as Qualified Buyer:, till I, thirty (30) days after obtaining title to -5- the Unit, in the manner described in this Section, the Unit shall immediately be listed for sale or advertised for sale by the Non -Qualified Transferee(s) in the same manner as provided for Owners in subsection 3.1 above; provided such action does not otherwise conflict with applicable law. The highest bid by a Qualified Buyer, for not less than ninety-five percent (95%) of the Maximum Resale Price or the appraised market value, whichever is less, which satisfies all obligations under any existing first lien deed of trust or mortgage, shall be accepted. if all such bids are below the lesser of ninety-tive percent (95%) of the Maximum Resale Price or the appraised market value, the Unit shall continue to be listed for sale or advertised for sale by the Non -Qualified Transferee(s) until a bid in accordance with this subsection is made, which bid must be accepted. The cost of any appraisal shall be paid by the Non -Qualified Tran.sferee(s1. In the event the Non -Qualified Transferee(s) elect to sell the Unit without the assistance ofa real estate broker or agent, such Non- Qual i i ied Transferee(s) shall advertise the subject Unit for sale in a manner approved by GCHA and shall use due diligence and make all reasonable efforts to accomplish the sale of the Unit. In the event GCHA finds and determines that such Non -Qualified Iran sl.:ree(s) have failed to exercise such due diligence. GCHA may require the Non -Qualified Transl""ercc f s) to execute a standard listing contract on forms approved by the Colorado Real Estate Commission, or its successor, with a licensed real estate broker or agent. a Non -Qualified Transferee(s) shall join in any sale, conveyance or transfer of the Unit to Qualified Buyer(s) and shall execute any and all documents necessary to effect such conveyance. l+ Non -Qualified Transferee(s) shall not: (1) occupy the Unit: (2) rent all or any part of the Unit, except in strict compliance with Section 5 hereof; (3) engage in any other business activity on or in the Unit; (4) sell,convey or otherwise transfer the Unit except in accordance with this Agreement and the Affordable Housing Regulations: or (5) sell or otherwise transfer the Unit for use in a trade or business. c Where the provisions ofthis subsection 3.8 apply. the. GCHA may require the Non -Qualified Transferee(s) to rent the Unit in the same manner as provided for Owners in Section 5, below. d Until sale to a Qualified Buyer is effected. Non -Qualified Transferee(s) shall comply with all obligations of Owners set forth in this Agreement.. 4.1 Owner. SECTION 4 OWNER RESIDENCY REQUIRED Each Unit shall be utilized only as the sole and exclusive place of residence of an 4.2 In the event an Owner ceases to utilize a Unit as his sole and exclusive place of residence, the Unit shall be offered for sale pursuant to the provisions of subsection 3.8 of this Agreement. The Owner shall be deemed to have ceased utiIirlag the t.Init as his sole and exclusive -6- • • place of residence by becoming a resident elsewhere or by residing on the Unit for fewer than nine (9) months per calendar year without the express written approval of the GCHA. Where the provisions of this subsection 4.2 apply, the GCIIA may require the Owner to rent the Unit in accordance with the provisions of Section 5, below. 4.3 Ilan Owner of a Unit must leave Garfield County for a limited period of time, and desires to rent the Unit during such absence, a leave of absence may be granted by the GCHA for up to one (I) year upon clear and convincing evidence demonstrating a bona fide reason for Ieaving and a commitment to return to Garfield County. A letter must be sent to the GCHA at least thirty (30) days prior to leaving, requesting permission to rent the Unit during the leave of absence. Notice of such intent, and the ability to comment, shall be provided to any applicable homeowners' association at the time of request to the GCHA. The leave of absence shall be for one (1) year and may, at the discretion of the GCHA be extended for an additional one (1) year; but in no event shall the leave exceed two (2) years. The Unit may be rented during the one (1) or two (2) year period in accordance with Section 5, below. SECTION 5 RENTAL OF UNIT 5.1 An Owner may not, except with prior written approval of the GCHA, and subject to GCHA's conditions of approval, rent the Unit. Prior to occupancy, any tenant must be approved by the GCHA in accordance with the income, occupancy and all other qualifications established by the GCHA in the Affordable Housing Regulations. The GCFIA shall not approve any rental if such rental is being made by Owner to utilize the Unit as an income producing asset, except as provided below, and shall not approve a lease with a rental terns in excess of twelve (12) months. A signed copy of the lease must be provided to the GCHA prior to occupancy by any tenant. The rental amount under any such lease approved by the GCHA shall be "Owner's cost". "Owner's cost" as used herein, includes the monthly expenses for the cost of principal and interest payments, taxes, property insurance, homeowner's assessments, utilities remaining in Owner's name, plus an additional twenty dollars ($20) per month and a reasonable (refundable) security deposit. The requirements of this subsection shall not preclude the Owner from sharing occupancy ofa Unit with non -owners on a rental basis provided Owner continues to meet the obligations contained in this Agreement. including Section 4. 5.2 NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THE GCHA. TO PROTECT OR INDEMNIFY THE OWNER AGAINST ANY LOSSES ATTRIBUTABLE TO THE RENTAL, INCLUDING (NOT BY WAY OF LIMITATION) NON-PAYMENT OF RENT OR DAMAGE TO THE PREMISES; NOR TO REQUIRE THE GCHA TO OBTAIN A QUALIFIED TENANT FOR THE OWNER IN THE EVENT THAT NONE IS FOUND BY THE OWNER. -7- • • SECTION 6 BREACH OF AGREEMENT: OPPORTUNITY TO CURE 6.1 In the event that GCHA has reasonable cause to believe the Owner is violating the provisions of this Agreement, the GCHA, by its authorized representative, may inspect a Unit between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner with no less than 24 hours written notice. 6.2 The GCHA, in the event a violation of this Agreement is discovered, may send a notice of violation to the Owner detailing the nature of the violation and allowing the Owner fifteen (15) days to cure. Said notice shall state that the Owner may request a hearing before GCHA within fifteen (15) days to determine the merits of the allegations. If no hearing is requested and the violation is not cured within the fifteen (15) day period, the Owner shall be considered in violation of this Agreement. Ifa hearing is held before the GCHA it shall be conducted in accordance with the hearing procedures set out in Section 7, below, and the decision of the GCHA based on the record of such hearing shall be final for the purpose of determining if a violation has occurred. 6.3 The failure of the GCHA to insist upon the strict and prompt performance of any of the tenets, conditions and restrictions of this Agreement shalt not constitute or be construed as a waiver or relinquishment of the GCHA's right or rights thereafter to enforce any term, condition or restriction and the same shall continue in Full force and effect. SECTION 7 GRIEVANCE PROCEDURES 7.I A grievance is any dispute that a tenant or Owner may have with the GCHA with respect to action or failure to act in accordance with the individual tenant's or Owner's rights. duties. welfare, or status. A grievance may be presented to the GCHA Board of Directors (hereinafter referred to as Board under the following procedures). 72 Filing a Grievance. a Any grievance must be presented in writing to the GCI -IA. It may be simply stated, but shall specify the particular ground(s) upon which it is based; the action requested; and the name, address, and telephone number of the complainant, and similar information about his/her representative. if any. b Upon presentation of a written grievance, a hearing before the GCHA Board of Directors shall be scheduled for the next scheduled Board meeting. The matter may be continued at the discretion of the Board. The complainant shall be afforded a fair hearing providing the basic safeguard ofdue process, including notice and an opportunity to be heard in a timely, reasonable manner. -8- • • c The complainant and the GCHA shall have the opportunity before the hearing, and at the expense of the complainant, to examine and to copy :all documents. records. and regulations of the GCHA that are relevant to the hearing. Any document not made available after written request may not be relied upon at the hearing. d The complainant may be represented by counsel at their own expense. 7.3 Conduct of the Hearing. a if the complainant fails to appear at the scheduled hearing. the Board may make a determination to postpone the hearing or snake a determination based upon the written documentation and the evidence submitted.. b The hearing shall be conducted by the Board as follows: oral or documentary evidence may be received without strict compliance with the rules of evidence applicable to judicial proceedings. c The right to cross-examine shall be at the discretion of the Board and may be regulated by the Board as it deems necessary for a fair hearing. d Based on the records of proceedings, the Board will provide a written decision and include therein the reasons for its determination. The decision of the Board shall be binding on the GCHA which shall take all actions necessary to carry out the decision. SECTION 8 REMEDIES 8.1 This Agreement shall constitute covenants running with the real property. described in Exhibit "A". as a burden thereon, for the benefit of, and shall be specifically enforceable by the GCI -IA. Garfield County. and their respective successors and ;rs;i ns, as applicable. by any appropriate legal action including but n.ot limited to specific perk }riHance. injunction, reversion, or eviction of non -complying Owners and/or occupants, 8,2 In the event the parties resort to litigation with respect to any or all provisions of this Agreement, the prevailing party shall be entitled to recover damages and costs. including reasonable attorney's fees. 8.3 In the event of any sale. transfer or conveyance of the Property or any Unit thereof in violation of this Agreement, such sale, transfer or conveyance shall he wholly null and void and shall confer no title whatsoever upon the purported transferee(s). Each and every conveyance of the Property or Unit. for all purposes, shall be deemed to include and incorporate by this reference the covenants, conditions, limitations. and restrictions herein contained. even without reference therein to this Agreement. 8.4 in the event that the Owner or occupant fails to cure any breach, the GCHA may resort to any and all available legal action. including. but not limited to, specific performance of this Agreement ora mandatory injunction requiring sale of the Unit Owner as specified in subsection. 3.8. 'I he costs of such sale shall be taxed against the proceeds of the sale with the balance being paid to the Owner. 8.5 In the event of a breach of any of the terms or conditions contained herein by the Owner, his heirs, successors or assigns, the Owner's purchase price of the Unit as referred to in Section 3 of this Agreement shall, upon the date of such breach as determined by GCHA, automatically cease to increase as set out m Section 3 of this Agreement, and shall remain fixed until the date of cure of said breach. SECTION 9 FORECLOSURE 9.1 Except as may otherwise be specifically provided in a written, recorded Option to Purchase between a lender, GCHA and a borrower. the form of which is attached hereto and incorporated herein by this reference as Exhibit -C", any purchaser acquiring any rights in the Property or a Unit by virtue of foreclosure ofa lien shall be deemed to be a Non -Qualified Transferee subject to the provisions of Section 3.8 of this Agreement. In the event of a foreclosure. nothing herein shall be construed to create a release or waiver of the covenants, conditions, limitations and restrictions contained in this Agreement except upon the terms and conditions specified in that certain Option to Purchase, as referenced above. The Declarant expressly consents and agrees to the terrns of that certain Option to Purchase; including, without limitation. the release provisions of paragraph d. The covenants, conditions, limitations and restrictions contained in this Agreement shall otherwise survive any foreclosure proceeding. 9.2 In the event that GCHA or any agent of GCHA, exercises the option pursuant to the terms of that certain Option to Purchase, as referenced above, the GCI IA and/or its agent, may sell the Unit (s) to Qualified Buyers as that term is defined herein, or rent the Unit(s) to qualified tenants who meet the income, occupancy and all other qualifications established by the GCHA in its Affordable Housing Regulations until sale to a Qualified Buyer is effected. SECTION 10 GENERAL PROVISIONS 10.1 Notices. Any notice, consent or approval which is required to be given hereunder shall be given by mailing the same, certified mail, return receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the party as long as prior written notice of the change o I address has been given to the other parties to this Agreement. Said notices. consents and approvals shall be sent to the parties hereto at the following addresses unless otherwise notified in writing: -10- 1 u Declarant: To GCHA: To County: Blue Creek Land Holdings. LLC 3220 County Road 100 Carbondale, CO 81623 Garfield County Housing Authority Attn: Garfield County Affordable Housing Corporation 2128 Railroad Avenue Rifle, CO 81650 Garfield County Commissioners 109 81h Street. Suite 300 Glenwood Springs, CO 11601 To Owner: [To be set forth in a subsequent recorded Memorandum of Acceptance for each individual Unit] 10.2 Severability. Whenever possible, each provision of this Agreement and any other related document shall be interpreted in such a manner as to be valid under applicable law. but if any provisions of any of the foregoing shall be invalid or prohibited under said applicable law, such provisions shall he ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of this Agreement or other related document. 10.3 Choice of Law. This Agreement and each and every related document is to be governed and construed in accordance with the lase, of. the State of Colorado. 10.4 Successors. Except as otherwise pro% ided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. 10.E Sect ion I lead ings. Paragraph or section headings within this Agreement are inserted solely for convenience of reference, and are not intended to, and shall not ,govern, limit or aid in the construction of any terms or provisions contained herein. 10.6 Perpetuities Savings Clause. If any of the terms, covenants. conditions, restrictions, uses, limitations, obligations or options set forth in this Agreement shall be tutilanv ful or void for violation of: (a) the rule against perpetuities or some analogous statutory provision. (b) the rule restricting restraints on alienation. or (c) any other statutory or common law rules imposing like or similar time limits. then such provision shall continue only for the period of the lives of the current duly elected and seated Board of County Commissioners for Garfield County. Colorado, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. 10.7 Waiver. No claim of waiver, consent or acquiescence with respect to any provision of this Agreement shall be valid against any party hereto except on the basis of a written instrument -11- • executed by the panics to this Agreement_ However, the party for whose benefit a condition is inserted herein shall have the unilateral right to waive such condition. 10.8 Gender and Number. Whenever the context so requires herein. the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. 10.9 Personal Liability. Owner agrees that he or she shall be personally liable for any of the transactions contemplated herein. 10.10 Further Action. The parties to this Agreement, incl uding any Owner. agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent of this Agreement or any agreement or docurne nt relating hereto or entered into in connection herewith. 10.11 Modifications. The parties to this Agreement agree that any modifications of this Agreement shall be effective only when made by writings signed by the parties. approved by the County, and recorded with the Clerk and Recorder of Garfield County, Colorado. Notwithstanding the foregoing, the GCHA reserves the right to amend this Agreement unilaterally when deemed necessary to effectuate the purpose and intent of this Agreement. when such unilateral action does not materially impair an Owner or lender's rights under this Agreement. and when such amendment has been approved by the County. IN WITNESS WHEREOF. the parties hereto have executed this instrument on the day and year first above written. DECLARANT: BLUE CItt:1 K LAND HOLDINGS. LLC. a Colorado limited liability company By: Lane Investment Limited Partnership. an Illinois limited partnership, its sole Member 13y: Lane Industries, Inc.. a Delaware corporation. General Partner By A~ r Its: Vie; . ',„ fa+C.?M,c'k -12- STATE OF C ioractn ) )ss. COUNTY OF Cat-ta1c[) 1 The foregoing instrument was acknowledged before me this le day of,ebruary. 2003, by hi L. h It r as for Lane Industries, Ine., a Delaware corporation. General Partner of Lane Investment Limited Partnership. an Illinois limited partnership, Manager of Blue Creek Land Holdings, LLC. a Colorado limited liability company. l"scial seal. My commission expires: 818 Colorado Avenue Glenwood Springs, CO 81601 My Commission ExmirPs lune 13.2005 -13- ACCEPTANCE BY THE GARFIELD COUNTY HOUSING AUTHORITY AND THE BOARD OF COUNTY COMMISSIONERS OF GARI=IWI_I) COUNTY The foregoing Declaration of Master Deed Restriction and Agreement Concerning the Sale, Occupancy and Resale of Property in Blue Creek Ranch Subdivision. Garfield County, Colorado and its terms are hereby adopted and declared by the Garfield County 1 lousing Authority aiid the Board of County Commissioners of Garfield County. GARFIELD COUNTY HOUSING AUTI TORI f Y By: Title: STATE OF COLORADO f )ss COUNTY OF GARFIELD } The above and foregoing document was acknowledged before me this day of , 2003. by as Witness my hand and official seal. Notary Public Niv commission expires: \ I \ address is: BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY By John \iarcin. Chairman Attest: Mildred Alsdorf, Clerk of the Board -14- • • EXHIBIT "A" Legal Description Lots 41. 43.45 and 46. Blue Creek Ranch. according to the Final Plat thereofrecorded on March 25. 2003 as Reception No. 623535. County of Garfield State of Colorado • • EXHIBIT "B" Permitted Capital liitpro» 4ntcitts I. The term "Permitted Capital Improvements' as used in the Agreement shall only include the following: a. Improvements or fixtures erected, installed or attached as permanent, functional, non - decorative improvements to real property, excluding repair. replacements and/or maintenance improvements; b. Improvements for energy and water conservation: c. Improvements for the benefit of seniors and/or handicapped persons; d. Improvements for health and safety protection devices; e. Improvements to add and/or finish permanent/fixed storage space; f. Improvements to finish unfinished space: g. Garages; h. The cost of adding decks and any extension thereto. i. Landscaping; j, Jacuzzis, spas, saunas, steam showers and other similar items; 2. Perm itted Capital improvements as used in this Agreement shall NOT include the fallowing: a. tlpgrades/replacements ofappliarices, plumbing and mechanical fixtures, carpets and other similar items included as part of the original construction of the unit: b. Improvements required to repair. replace and maintain existing fixtures, appliances. plumbing and mechanical fixtures, painting, carpeting and other similar items; c. Upgrades or addition of decorative items. including lights, window coverings. boor coverings and other similar items. 3. All Permitted Capital Improvement items and costs shall be approved by the GCHA prior to being added to the Maximum Resale Price as defined herein. -16- EXHIBIT "C" OPTION TO PURCHASE In the event ofa foreclosure by the holder (including here and hereinafter assigns of the holder) of the promissory note secured by a first lien deed of trust or mortgage on the property described as * , also known as * (hereinafter the "Property"), and subject to the issuance ofa public trustee's, sheriffs, or other foreclosure deed to the holder following the expiration of all statutory redemption rights, the Garfield County Housing Authority (the "GCHA"), and the Board of County Commissioners of Garfield County. Colorado (the "County") shall have the option to purchase the Property which shall be exercised in the following manner: a. Notice. The holder shall give such notice to the GCHA and the County as is required under Colorado law in the foreclosure proceeding. Said notice shall be sent by certified mail. return receipt requested, and addressed, as set forth below. or to such other address as may be directed in writing by GCHA or the County: Garfield County Housing Authority 2128 Railroad Avenue Rifle, CO 81650 Board of County Commissioners of Garfield County ATTN: County Manager I08 81'' Street, Suite 300 Glenwood Springs, CO 81601 b. Option to Purchase. The County and the GCHA,as the agent of the County, shall have 30 days after issuance of the public trustee's, sheriffs or other foreclosure deed in which to exercise this option to purchase by tendering to the grantee of the public trustee's, sheriffs or other foreclosure deed (the '`Foreclosure Deed Grantee"), in cash or certified funds, an amount equal to the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Foreclosure Deed Grantee during the option period which are directly related to the foreclosure; provided, that exercise of the option by one optionee shall terminate the right of the other to exercise the option. c. Title. Upon receipt of the option price, the Foreclosure Deed Grantee shall deliver to either the GCHA or the County. as designated by the County, a special warranty deed, conveying the Property to either the GCHA, or the County, as designated. The Foreclosure Deed Grantee shall convey only such title as it received through the public trustee's, sheriffs or other foreclosure deed and will not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustee's, sheriff's or other foreclosure -17- • deed to the holder. The Foreclosure Deed Grantee shall not be liable for any of the costs of conveyance to the GCHA or its agent. d. Release. In tate event that the Foreclosure Deed Grantee is issued a public trustee's, sheriff's or other foreclosure deed and neither the GCHA nor the Comity exercise the option to purchase, as provided herein. the GCHA and the County shall cause to be recorded in the records ofthe Clerk and Recorder ofGarfield County a full and complete release of the Property from the Declaration of Master Deed Restriction and Agreement affecting the Property which appear in said records in Book at Page . Such release shall be placed of record 1\ i thin 14 days after expiration of the option and a certified copy of the release shall be mailed to the Foreclosure Deed Grantee upon its recordation. e. Perpetuities Savings Clause. [fang ut'the terms, covenants. conditions, restrictions, uses. limitations, obligations or options created by this option to purchase shall be unlawful or void for violation of: (a) the rule against perpetuities or some analogous statutory provision, (b) the rule restricting restraints on alienation. or (c) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period ofthe lives of the current duly elected and seated Board of County Commissioners for Garfield County. Colorado, their now living descendants, if any, and the survivor (Willem, plus twenty-one (21) years. f. Successors and Assigns. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs. successors and assigns of the parties hereto. g. Modifications. The parties hereto agree that any modification 10 this option to purchase shall be effective only when made by a writing signed by the parties and recorded with the Clerk and Recorder ofGarfield County, Colorado: provided, however. no modification affecting the rights of the County shall be effective without the prior written consent of the County. -18- IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year written below. HOLDER OF FIRST DEED OF TRUST/MORTGAGE: BY: (Authorized Officer) (Date) TITLE: MAILING ADDRESS: STATE OF COLORADO ) ss COUNTY OF GARFIELD The above and foregoing document was acknowledged before me this day of , 2003, by Witness my hand and official Notary Public My commission expires: My address is: THE GARFIELD COUNTY HOUSING AUTHORITY: BY: (Authorized Officer) (Date) TITLE: -19- • • STATE OF COLORADO ) ) ss COUNTY OF GARFIELD ) The above and foregoing document was acknowledged before nie this day of , 2003, by Witness my hand and official Notary Public My commission expires: My address is: BORROWER: (Date) (Date) fATE OF COLORADO) ) ) ss COUNTY OF GARFIELD ) The above and foregoing document was acknowledged before me this day of , 2003,. by - Witness my hand and official NotaPublic My commission expires: My address is: -20- EDWARD MULHALL JR Scott BALCOMB LAWMEMCE R. GREEN T+MOTHv A THULSON DAvi¢ C. HALLVORD CHIRSTOPRER L CDYL£ THOMAS J MARTERr CHFnSToPHER L GE+oER MINE MARIE MCPHEE AMAf1OA M. MAURER DEBORAH DAvis• DAVID P JONES • *L50 Acp.rt D t wI+C1K:i Ir N(* YOAA AND MIA70VMI VIA HAND DELIVERY TO: .C,C'OMU fk GHEE 7.."„ E 1). PH NW I.E: 7610 Rim GhEr;rr'ii't.vr) r sE.++r; itr'o M 1 f302 Telephone 970 945 6546 FacsrrnI a 970 945 9769 Januar., 8. 2004 I•red Jarman, Senior Planner Garfield County Building and Planning Department 108 8t°' Street. Suite 201 Glenwood Springs. CO 81601 Re: Blue Creek Ranch Master Deed Restriction Dear Fred: OF COUNSEL KENNETH BALCOME! JOHN A T++uL. iO$1 We are enclosing herewith duplicate originals of the Declaration of Master Deed Restriction and Agreement Concerning the Sale, Occupancy and Resale of Property in Blue Creek Ranch Subdivision ("Master Deed Restriction") signed by 13lue Creek Land i Ioldings (the "Developer-) 4ind the Garfield County Housing Authority. Per your request. this letter will also explain why we Are asking the Board !'County Commissioners to sign the enclosed Master Deed Restriction. As you will recall. the Blue Creek Ranch Subdivision Improvements Agreement provides that the Developer of Blue Creek Ranch will provide a total of nine (9) deed restricted affordable housing units. Four of these units are provided to satisfy the requirements of the Garfield County. Affordable Housing Regulations and are to be subject m every respect to those regulations. In satisfaction of this obligation. the Developer. the 1 louse leg Authority and the County Commissioners previously signed the Master Dred Restriction. recorded on December 11. 2003 as Reception No. 642774, which subjected Lots 41, 43, 45 and 46. blue Creek Ranch. to its terms. The other II%e affordable housing lots in Bloc Creek Ranch are in addition to the required affordable units. As such, the County granted the Developer the flexibility to scl I the additional lots in the first instance as unimproved land to a "non-qualified buyer." provided that after a house was built and the unit was sold. it would thereafter become subject to all provisions of the Garfield County !lousing Regulations. In order to accomplish this, we created. and the County previously pp roved. the Supplement to Declaration of Master Deed Restriction and Agreement Concerning the aIle. Occupancy and Resale of Property in Blue Creek Ranch Subdivision ("Supplement to Master I )eed Restriction"). Under the provisions of the Supplement to Master teed Restriction, the lots to I .LT,c'tl1[Ii Ok (;1:1.1.:‘, P.C. Fred Jarman, Senior Planner January 8. 2004 Page 2 be subject to that document were also to be made subject to the i Liter Decd Restriction. so that when the purposes of the Supplement were fulfilled, it would he terminated and the affected lots would automatically be subject to the terms of the Master Deed Restriction. In early December 2003. the Board of County Conimissioners signed the Supplement to Master Deed Restriction affcctine Lots 47 and 48. Blue Creel: Ranch. That document was recorded on December 1 1. 2003 as Reception No. 642775. At that time we 111so should have recorded the Master Deed Restriction against Lotti 47 and 48. However. we neglected to do so. In order to correct that omission. and to prevent that omission from occurring again, the Master Deed Restriction submitted herewith ('see Exhibit A) will subject lots 47 and 48. plus 1,ots 40.42 and 44. Blue Creek Ranch Subdivision to the terms of the Master Deed Restriction. The enclosed document is identical to the Master Deed Restriction previously approved and signed by Garfield County except for the description in Exhibit A of the lots to be affected by the document. lay signing and recording the enclosed. all nine (9) of the atTordable housing hots at Blue Creek Ranch will he subject to the terms of the Muster Deed Restriction. If in the future the Developer wants to take advantage of the flexibility to sell Blue Creek Ranch affordable housing lots as unimproved land, we will be asking the Board at that time to sign a Supplement to Master Deed Restriction which would affect one or more of Lots 40.42 or 44,. hich are the other three "extra" affordable housing Tots within Blue Creek Ranch and which are eligible to be sold as unimproved land. \Ye hope this letter adequately explains the reasons why we are requesting the Board of County Commissioners to execute the enclosed Master Deed Restriction. Of course. I am at your convenience to answer any additional questions you may have about this matter.. LRGibc Encls. xc: Gavin Brooke (w/out encls.) Very truly yours, BALCOMB & GREEN. P.C. ,//7 La Tt..111X R. (green DECLARATION OF MASTER DEED RESTRICTION AND AGREEMENT CONCERNING THE SALE, OCCUPANCY AND RESALE OF PROPERTY IN BLUE CREEK RANCH SUBDIVISION, GARFIELD COUNTY, COLORADO THIS DECLARATION OF MASTER DEED RESTRICTION AND AGREEMENT CONCERNING THE SALE, OCCUPANCY =\NL) RESALE OF PROPERTY IN BLUE CREEK RANCH SUBDIVISION, GARFIELD COUNTY, N 1 Y, COLORADO ("Agreement") is made and entered into this day of January, 2004, by Blue Creek Land Holdings. LLC, a Colorado limited liahility company (the '"Declarant"), for the benefit of the parties and enforceable by the Garfield County Housing Authority t" GCHA" ), a duly constituted housing authority established pursuant to Colorado law. and the Board of County Commissioners of Garfield. County (the "County"). RECITALS AND DEFINITIONS WHEREAS, Declarant is the owner of and is in the process of developing and platting a residential community known as Blue Creek Ranch, Garfield County, Colorado; and WHEREAS, Declarant desires to set aside certain Lots within. Blue Creek Ranch. for the purpose of providing affordable housing for residents of Garfield County, Colorado (the "County"), which Lots are described on Exhibit -"A- attached hereto and incorporated herein by this reference. For purposes of this Agreement, such real property and all dwellings, appurtenances, improvements and Fixtures associated therewith shall hereinafter be collectively referred to as the "Property"; and 'WHEREAS. the Declarant has or will enter into one or more business relationships with a general. contractor experienced in the construction of residential dwelling units for the purpose of constructing one (1) residential housing unit upon each of the tots comprising the Property. which Lots, together with all improvements thereon and appurtenances thereto, shalt hereinafter be referred to as "Units"; and WHEREAS. after completion ofconstruction. each Unit, together with the completed homes and other improvements thereon and appurtenances thereto, shall be conveyed to "Qualified Buyers" as that term is defined in this Agreement; and WHEREAS, the term `'Qualified Buyers", as used herein. are natural persons meeting the income. residency and all other qualifications contained in Section 4.07.11. et.sem. of the Garfield County Zoning Resolution and in the Garfield County Affordable Housing Guidelines of 1999 (collectively, the Affordable Housing Regulations"). as adopted and in effect at the time of the closing of the sale of the Unit to Qualified Buyers, who must represent and agree pursuant to this Agreement to occupy the Unit as their sole place of residence. not engage in any business activity within the Unit other than that permitted in that zone district or by applicable ordinance. and not sell or otherwise transfer the Unit for use in a trade or business; and WHEREAS, the term "Owner". as used herein shall mean the person(s) who acquire an ownership interest in a Unit in compliance with the terms and provisions of this Agreement, it being understood that such person(s) shall be deemed an '`Owner" hereunder only during the period of his, her or their ownership interest in the Unit and shall be obligated hereunder for the full and complete performance and observance of all covenants_ conditions and restrictions contained herein during such period. It is expressly understood that the terra "Owner" as used in this Agreement does not include the Declarant. NOW, THEREFORE, for value received, the receipt and sufficiency of which is hereby acknowledged, Declarant hereby declares, covenants, and agrees as follows: SECTION 1 DECLARATION 1.1 For the purposes set forth herein, Declarant. for itself and its successors and assigns, hereby declares that the Property, and each Unit within the Property, shall be owned, held, transferred, conveyed, sold, leased, rented, hypothecated. encumbered, used, occupied. improved, altered and enjoyed subject to the covenants, conditions, restrictions, privileges, rights and other provisions herein set forth, for the duration hereof. and all of which shall run with the land and be binding upon all Owners, occupants and other persons having or acquiring any right. title or interest in or to the Property or any Unit thereof, and their respective heirs. personal representatives, successors and assigns and shall be binding upon and inure to the benefit of the County and GCHA, and their respective successors and assigns, All persons who purchase Units shall be Qualified Buyers. as such term is defined in this Declaration. 1.2 Declarant hereby restricts the acquisition or transfer of the Units to Qualified Buyers, as that term is defined in this Agreement, who tall within the qualifications and income range established and adopted by the GCHA or the County from time to time in its Affordable Housing Regulations. In addition, Declarant agrees that this Agreement shall constitute a resale agreement setting forth the maximum resale price for which the I..nits may be sold ("Maximum Resale Price"), the amount of appreciation. and the terms and provisions controlling the resale of the Units, Declarant restricts the Property and Units against use and occupancy inconsistent with the terms of this Agreement. 1.3 By the acceptance of any deed conveying any Unit subject hereto, the grantee of such deed shall accept all of the terrns, conditions, limitations, restrictions and uses contained in this Agreement. In addition. prior to the delivery ofa deed conveying any Unit to a grantee, such grantee shall execute a Memorandum of Acceptance evidencing grantee's acknowledgement and agreement to the terms, conditions, limitations, restrictions, and uses contained in this Agreement. 1.4 Notwithstanding any provision of this Agreement to the contrary. it is expressly agreed and acknowledged that the terms, conditions. and restriction of this Agreement with respect to the use and occupancy of the Property or any Unit thereof shall not apply to Declarant during its ownership thereof prior to the issuance of a Certi l icate of Occupancy for dwelling units constructed thereon; provided, however that upon issuance of Certificate of Occupancy the Declarant shall be subject to all terms and conditions of this Agreement and provided further that the Declarant shall make no transfer of any Unit except to a Qualified Buyer as defined in this Agreement; and provided further, that Declarant shall not grant any deed of trust. or mortgage upon all or any portion of the Property, or otherwise allow the Property to be encumbered by any matter which could extinguish this Agreement, unless such deed of trust, mortgage, or other encumbrance is subordinate to this Agreement. 1.5 Notwithstanding any provision ()lib is Agreement to the contrary, in order to facilitate provision of affordable housing in Garfield County, it is expressly agreed and acknowledged that the GCHA, or the County as an agent of the GCHA, may acquire and transfer the linit(s) to Qualified Buyer(s) as that term is defined herein car rent the Units t to qualified to tints Who meet the income, occupancy and all other qualifications established by the GCHA or the County in its Affordable Housing Regulations until a sale to a Qualified Buyer is effected. SECTION USE AND OCCUPANCY OF PROPERTY }I'ERTY 2.1 Except as otherwise provided herein. the use and occupancy of any Unit shall henceforth be limited exclusively to housing for natural persons who meet the definition ofQualified Buyer(s) and their families. 2.2 An Owner. in connection with the purchase of a Unit, must'. (a) occupy the Unit within this Property as hitt or her sole place of residence during the time that such Unit is owned; (b) not engage in any business activity on or in such Unit. other than as permitted in that zone district or by applicable ordinance; (c) sell, convey. or other.% ise transfer such Unit only in accordance with this Agreement and the Affordable Housing Regulations, 2.3 It shall be a breach of this Agreement for an Owner who defaults in payments or other obligations due or to be performed under a promissory note secured by a first lien deed of trust or mortgage encumbering a Unit to fail to notify the GCHA, in writing, of any notification received from a lender, or its assigns, of past due payments or default in pay ment or other obligations due or to be performed under a promissory note secured by a first lien deed of trust or mortgage, as described herein, within five (5) calendar days of Owner's notification from lender, or its assigns, of said default or past due payments. 2.4 Upon receipt of notice as provided in subsection 2.3, GCHA shalt have the right, in it's sole discretion, and with the agreement of the Owner, to cure the default or any portion thereof In such event, the Owner shall be personally liable to GCHA for past due payments made by the GCHA together with default interest thereon at the rate specified in the existing promissory note(s) -3- secured by the first lien deed of trust or mortgage, and all actual expenses of the GCHA incurred in curing the default. The Owner shall be required by GCI -LA to execute a promissory note secured by a deed of trust encumbering the Unit in favor of the GCHA for the amounts expended by the GCI -IA as specified herein, including future advances made for such purposes. The Owner may cure the default and satisfy its obligation to the GCI -Lk under this subsection at any time prior to execution of a contract for sale, upon such reasonable terms as specified by the GCHA and. if applicable. any such satisfaction shall comply with Fannie Mae's community seconds program requirements, Otherwise, an Owvner's indebtedness to the GCHA shall be satisfied from the Owner's proceeds at closing. SECTION 3 SALE OF UNIT:, MAXIMI_IN1 RESALE PRICE 3.1 In the event that an Owner desires to sell his Unit the Owner shall consult with GCHA. or its agent, to review the requirements of this Agreement. including the method for determining the Maximum Resale Price. Following approval of the Maximum Resale Price by. GCHA, the Owner shall list such unit for sale with the Garfield County Housing Authority, or as otherwise provided in Garfield County Affordable Housing Regulations or Guidelines then in effect. for a sales price not exceeding the Maximum Resale Price. If Fannie Mae or similar financing (as solely determined by GCIIA) is used, there may be a fee charged by GCHA based on the amount financed. The amount of such fee is to be paid by the borrower and shall be set forth in the current Affordable Housing Regulations and will be distributed to the GCHA Mortgage Fund Account. 3.2 In no event shall a Unit be sold for an amount in excess of the Maximum Resale Price as determined in accordance ww ith this paragraph. The Maximum Resale Price shall equal the purchase price for the Unit paid by the Owner selling the l_rnit plus the cost of Permitted Capital Improvements as defined on Exhibit B attached hereto and incorporated herein by this reference (and as limited in paragraph 3.3 hereof) divided by the Consumer Price Index, All Items. Qenver[Boulder. Urban Wage Earners and Clerical Workers (Revised), published by the U.S. Department of Labor, Bureau of Labor Statistics ("Consumer Price Index") published at the time of Owner's purchase as stated on the settlement sheet. multiplied by the Consumer Price Index current at the date of intent to sell. In no event shall the multiplier be less than one (1). For the purposes of this subsection, :,date of intent to sell" shall be the date of execution of a listing contract, or if a listing contract is not used. the date shall be the date when the Unit is first offered for sale. In no event shall the Maximum Resale Price be less than the Owner's purchase price. plus Permitted Capital Improvements, plus an increase of three percent (3%) of such price per year from the date of purchase to the date of Owner's notice of intent to sell. NOTHING HEREIN SHALL BE CONSTRUED TO CONSTITUTE A REPRESENTATION OR GUARANTEE BY THE DECLARANT, GCHA OR GARFIELD COUNTY TILAT UPON RESALE THE O'0,'NER SHALL OBTAIN THE MAXIMUM RESALE PRICE. -t- 3.3 In order to qualify- as Permitted Capital Improvements, the Owner must furnish to the GCIIA the following information with respect to the improvements which the Owner seeks to include in the calculation of Nlaximunt Resale Price: a Origi nal or duplicate receipts to veri fythe actual costs expended by the Owner for the Permitted Capital Improvements: and b Owner's affidavit verifying that the receipts tendered are valid and correct; and True and correct copies of any building permit or certificate of occupancy required to be issued by the County with respect to the Permitted Capital Improvements. Notwithstanding anything else contained herein, the total cost of Permitted Capital Improvements shall not exceed ten percent (10%) of the initial sales price of that particular unit. 3.4 For the purpose of determining the Maximum Resale Price in accordance with this c, tion, the Owner may also add to the amounts specified in subsections 3,2, the cost of any permanent improvements constructed or installed as a result of any requirement imposed by any goveruncntal agency, provided that written certification is provided to the GCHA of both the applicable requirement and the information required by subsection 3.3. 3.5 In calculating the costs under subsection 3.2 and 3.3 only the Ow ner's actual out-of- pocket costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to Owner's "sweat equity" or to any appreciation in the value of the improvements. 3.6 An Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the Owner to sell to such prospective buyer. 3.7 Prior to Owner entering into a sales contract for the sale of his Unit to a prospective buyer, such potential buyer shall be qual i l led t}v GCHA pursuant to the requirements of the Affordable Housing Regulations then in effect. Documented proof of qualification shall be provided by the potential buyer. as requested by GCHA, prior to purchase. An Owner shall neither enter into a sales contract for the sale of his Unit with any person other than a Qualified Buyer nor any contract which provides for a sales price greater than the Maximum Resale Price established in accordance with this Section. The Owner may reject any and all offers; provided, however, offers in excess of the Maximum Resale Price shall be rejected. Prior to closing, all sales contracts for the sale of a Unit subject to this Agreement shall be submitted to the GCI -IA for its review and approval of the contract for consistency with this Agreement. 3.8 In the event that title to a Unit vests in individuals or entities who are not Qualified Buyers as that term is defined herein. (hereinafter referred to as "Non -Qualified Transferee(s)"), and such individuals are not approved as Qualified Buyers within thirty (30) days after obtaining title to -5- the Unit, in the manner described in this Section, the Unit shall immediately be listed for sale or advertised for sale by the Non -Qualified Transferee(s) in the same manner as provided for Owners in subsection 3.1 above; provided such action does not otherwise conflict with applicable law. The highest bid b. a Qualified Buyer, for not less than ninety-five percent (95°✓a) ofthe Maximum Resale Price or the appraised market value, whichever is less. which satisfies all obligations under any existing first lien deed of trust or mortgage. shall be accepted. If all such bids are below the lesser of ninety -live percent (95%) of the Maximum Resale Price or the appraised market value. the Unit shall continue to be listed for sale or advertised for sale by the Non -Qualified Transferee(s) until a bid in accordance with this subsection is made. which bid must be accepted. The cost of any appraisal shall be paid by the Non -Qualified Transfereet;s). In the event the Non -Qualified Transferee(s) elect to sell the Unit without the assistance ofa real estate broker or agent, such Non - Qualified Transferee(s) shall advertise the subject Unit for sale in a mariner approved by GCHA and shall use due diligence and make all reasonable efforts to accomplish the sale of the Unit. In the event GCHA finds and determines that such Non -Qualified I ransferee(s) have failed to exercise such due diligence, GC HA may require the Non -Qualified Transferees) to execute a standard listing contract on forms approved by the Colorado Real Estate Commission. or its successor, with a licensed real estate broker or agent_ a Non -Qualified Transferee(s) shall join in any sale, conveyance or transfer of the Unit to Qualified Buyer(s) and shall execute any and all documents necessary to effect such conveyance. R b Non -Qualified Transferee(s) shall not: ( I ) occupy the Unit; (2) rent all or any part of the Unit. except in strict compliance with Section 5 hereof; (3) engage in any other business acti. it) on or in the Unit; (4) sell, convey or otherwise transfer the Unit except in accordance with this Agreement and the Affordable Housing Regulations; or (5) sell or otherwise transfer the Unit for use in a trade or business. e Where the provisions of this subsection 3.8 apply, the GCHA may require the Non -Qualified Transferee(s) to rent the tJnit in the same manner as provided for Owners in Section 5, below. d Until sale to a Qualified Buyer is effected, Non -Qualified Transferee(s) shall comply with all obligations of Owners set forth in this Agreement. 4.1 Owner. SECTION 4 OWNER RESIDENCY REQUIRED Each Unit shall be utilized only as the sole and exclusive place of residence of an 4.2 In the event an Owner ceases to utilize a Unit as his sale and exclusive place of residence, the Unit shall be offered for sale pursuant to the provisions of subsection 3.8 of this Agreement. The Owner shall be deemed to have ceased utilizine the Unit as his sole and exclusive -6- place of residence by becoming a resident elsewhere or by residing on the Unit for fewer than nine (9) months per calendar year without the express written approval of the GCHA. Where the provisions of this subsection 4.2 apply, the GCI IA may require the Owner to rent the Unit in accordance with the provisions of Section 5, below. 4.3 Ilan Owner of a Unit must leave Garfield County fora limited period of time. and desires to rent the Unit during such absence, a leave ofabsence may be granted by the GCHA for up to one (1) year upon clear and convincing evidence demonstrating a bona fide reason for leaving and a commitment to return to Garfield County. A letter must be sent to the GCHA at least thirty (30) days prior to leaving, requesting permission to rent the Unit during the leave of absence. Notice of such intent, and the ability to comment. shall be provided to any applicable homeowners' association at the time of request to the GCHA. The leave of absence shall be for one (1) year and may, at the discretion of the GCIIA be extended for an additional one (1) year; but in no event shall the leave exceed two (2) years. The Unit may be rented during the one (1) or two (2) year period in accordance with Section 5, below. SECTION 5 RENTAL OF UNIT 5.1 An Owner may not, except with prier w ritten approval of the GCHA. and subject to GCHA's conditions of approval, rent the Unit. Prior to occupancy, any tenant must be approved by the GCHA in accordance with the income, occupancy and all other qualifications established by the GCHA in the Affordable Housing Regulations. The GCHA shall not approve any rental if such rental is being made by Owner to utilize the Unit as an income producing asset, except as provided below, and shall not approve a lease with a rental term in excess of twelve (12) months. A signed copy of the lease must be provided to the GCHA prior to occupancy by any tenant. The rental amount under any such lease approved by the GCI -IA shall be "Owner's cost". "Owner's cost" as used herein, includes the monthly expenses for the cost of principal and interest payments. taxes, property insurance, homeowner's assessments, utilities remaining in Owner's name, plus an additional twenty dollars ($20) per month and a reasonable (refundable) security deposit. The requirements of this subsection shall not preclude the Owner from sharing occupancy ofa Unit with non -owners on a rental basis provided Owner continues to meet the obligations contained in this Agreement, including Section 4. 5.2 NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THE GCHA TO PROTECTOR INDEMNIFY THE OWNER AGAINST ANY LOSSES ATTRIBUT.ABLE TO THE RENTAL, INCLUDING (NOT BY WAY OF LIMITATION) NON-PAYMENT Of RENT OR DAMAGE TO THE PREMISES; NOR TO REQUIRE THE GCHA TO OBTAIN A QUALIFIED TENANT FOR THE OWNER IN THE EVENT THAT NONE IS FOUND BY THE OWNER. -7- SECTION 6 BREA, i i i !l AGREEMENT: OPPORTUNITY TO CURE 6.1 In the event that GCHA has reasonable cause to believe the Owner is violating the provisions of this Agreement, the GCHA, by its authorized representative, may inspect a Linit between the hours of 8:00 a.m. and 5:00 p.m.. Monday through Friday. after providing the Owner with no less than 24 hours tiwritten notice. 6.2 The GCHA, in the event a violation of this Agreement is discovered, may send a notice of violation to the Orkner detailing the nature of the violation and allowing the Owner fifteen (15) days to cure. Said notice shall state that the Owner may request a hearing before GCHA within fifteen (15) days to determine the merits of theallegations. If no hearing is requested and the violation is not cured within the fifteen (15) day period, the Owner shall be considered in violation of this Agreement. If a hearing is held before the GCHA it shall be conducted in accordance with the hearing procedures set out in Section 7, below, and the decision of the GCHA based on the record of such hearing shall be final for the purpose of determining if a violation has occurred. 6.3 The failure of the GCHA to insist upon the strict and prompt performance of any of the terms, conditions and restrictions of this Agreement shall not constitute or be construed as a waiver or relinquishment of the GCHA's richt or rights thereafter to enforce any term, condition or restriction and the same shall continue in full force and effect. SECTION 7 GRIEVANCE PROCEDURES 7.1 A grievance is any dispute that a tenant or Owner may have with the GCI -IA with respect to action or failure to act in accordance with the individual tenant's or Owner s rights, duties. welfare, or status. A grievance may be presented to the GCI -IA Board of Directors (hereinafter referred to as Board under the following procedures). 7.2 Filing a (:irk•\ 2nce. a Any grievance must be presented in writing to the GCHA. It may be simply stated, but shall specify the particular ground(s) upon which it is based; the action requested; and the name, address, and telephone number of the complainant. and similar information about his!her representative, if any. b Upon presentation of written grievance, a hearing before the GCHA Board of Directors shall be scheduled for the next scheduled Board meeting. The matter may be continued at the discretion of the Board. The complainant shall be afforded a fair hearing providing the basic safeguard ofdue process, including notice and an opportunity to be heard in a timely., reasonable manner. -8- c The complainant and the GC FIA shall have the opportunity before the hearing.. and at the expense of the complainant, to examine and to cop! all documents, records, and regulations of the GCHA that are relevant to the hearing. Anw document not made available after written request may not be relied upon at the hearing. d The complainant may be represented by counsel at their own expense. 73 Conduct of the Hearing. a If the complainant fails to appear at the scheduled hearing, the Board may make a determination to postpone the hearing or make a determination based upon the written documentation and the evidence submitted. b The hearing shall be conducted by the Board as follows: oral or documentary evidence may be received without strict compliance with the rules of evidence applicable to judicial proceedings. c The richt to cross-examine shall be at the discretion of the Board and may be regulated by the Board as it deems necessary for a fair hearing. d Based on the records ofproceedings, the Board will provide a written decision and include therein the reasons for its determination. The decision of the Board shall be binding on the GCI -IA which shall take all actions necessary to carry out the decision. SECTION 8 REMEDIES 8.1 This Agreement shall constitute covenants running with the real property, described in Exhibit "A", as a burden thereon. for the benefit of, and shall be specifically enforceable by the GCHA. Garfield County, and their respective successors and assigns, as applicable, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction of non -complying Owners and/or occupants. 8.2 In the event the parties resort to litigation with respect to any or all provisions of this Agreement, the preN ailing party shall be entitled to recover damag,es and costs, including reasonable attorney's fees. 8.3 In the event of any sale, transfer or conveyance of the Property or any Unit thereof in violation of this Agreement, such sale, transfer or cony ance shall be wholly null and void and shall confer no title whatsoever upon the purported transferee( s). Each and every conveyance of the Property or Unit, for all purposes, shall be deemed to include and incorporate by this reference the covenants, conditions, limitations, and restrictions herein contained, even without reference therein to this Agreement. -9- 8.4 In the event that the Owner or occupant fails to cure any breach. the GCHA may resort to any and all available legal action, including, but not limited to, specific performance of this Agreement or a mandatory injunction requiring sale of the Unit by Owner as specified in subsection 3.8. The costs of such sale shall be taxed against the proceeds of the sale with the balance being paid to the Owner. 8.5 In the event of a breach of any of the terms or conditions contained herein by the Owner. his heirs, successors or assigns, the Owner's purchase price of the Unit as referred to in Section 3 of this Agreement shall, upon the date of such breach as determined by GCHA, automatically cease to increase as set out in Section 3 of this Agreement, and shall remain fixed until the date of cure of said breach. SECTION 9 FORECLOSURE. 9.1 Except as may otherwise be specifically provided in a written, recorded Option to Purchase between a lender, GCHA and a borrower, the form of which is attached hereto and incorporated herein by this reference as Exhibit "C", any purchaser acquiring any rights in the Property ora Unit by virtue of foreclosure ofa lien shall be deemed to be a Non -Qualified Transferee subject to the provisions of Section 3.8 of this A�,2reement. in the event of a foreclosure, nothing herein shall be construed to create a release or waiver of the covenants, conditions, limitations and restrictions contained in this Agreement except upon the terms and conditions specified in that certain Option to Purchase. as referenced above. The Declarant expressly consents and agrees to the terms of that certain Option to Purchase; including. without limitation, the release provisions of paragraph d. The covenants, conditions, limitations and restrictions contained in this Agreement shall otherwise survive any foreclosure proceeding. 9.2 In the event that GCHA or any agent of GCHA, exercises the option pursuant to the terms of that certain Option to Purchase, as referenced above, the Gal./. and/or its agent, may sell the Unit (s) to Qualified Buyers as that term is defined herein, or rent the Unit(s) to qualified tenants who meet the income, occupancy and all other qualifications established by the GCHA in its Affordable Housing Regulations until sale to a Qualified Buvcr is effected, SEC I1ON 10 GENIR.atl. PROVISIONS 10.1 Notices. Any notice. consent or approval which is required to be given hereunder shall be given by mailing the same, certified mail, return receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the party as long as prior written notice of the change of address has been given to the other parties to this Agreement. Said notices, consents and approvals shall be sent to the parties hereto at the following addresses unless otherwise notified in writing: -10- To Declarant: To GCHA: To County: Blue Creek Land Holdings, LLC 3220 County Road 100 Carbondale, CO 81623 Garfield County Housing Authority Attn: Garfield County Affordable Housing Corporation 2128 Railroad Avenue Rifle, CO 81650 Garfield County Commissioners 109 8t Street, Suite 300 Glenwood Springs, CO 81601 To Owner: [To be set forth in a subsequent recorded Memorandum of Acceptance for each individual Unitl 10.2 Se%erabilit+. Whenever possible, each provision of this Agreement and any other related document shall be interpreted in such a manner as to be valid under applicable law, but ifany provisions of any of the foregoing shall he invalid or prohibited under said applicable law, such provisions shall be ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of this Agreement or other related document. 10.3 Choice of Law. This Agreement and each and every related document is to be governed and construed in accordance with the lags of the State of Colorado. 10.4 Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. 10..E Section Headings. Paragraph or section headings ww i 1 this Agreement are inserted solely for convenience of reference, and are not intended to, and shall not govern. limit or aid in the construction of any terms or provisions contained he Will. 10.6 Petpetuijies Savings Clause. if any of the terms, covenants, conditions, restrictions, uses. limitations, obligations or options set forth in this Agreement shall be unlawfill or void for violation of: (a ) the rule against perpetuities or some analogous statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated Board of County Commissioners for Garfield County. Colorado, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. 10.7 WaiveE. No claim of waiver, consent or acquiescence with respect to any provision of this Agreement shall be valid against any party hereto except on the basis of a written instrument -11- executed by the parties to this Agreement. However. the party for whose benefit a condition is inserted herein shall have the unilateral right to waive such condition. 10.8 Gender and Number. Whenever the context so requires herein. the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. 10.9 Personal Liability. Owner agrees that he or she shall be personally liable for any of the transactions contemplated herein. 10.10 Further Action. The parties to this Agreement. including any Owner, agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent o f this Agreement or any agreement or document relating hereto or entered into in connection herewith. 10.11 Modifications. The parties to this Agreement agree that any modifications of this Agreement shall be effective only when made by vbritings signed by the parties. approved by the County, and recorded with the Clerk and Recorder of Garfield Count:.. Colorado. Notwithstanding the foregoing, the GCHA reserves the right to amend this Agreement unilaterally when deemed necessary to effectuate the purpose and intent of this Agreement, when such unilateral action does not materially impair an Owner or lender's rights under this Agreement, and when such amendment has been approved by theCounty. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. E-WT-POClL. r Omni*. artr(hsa. off %Wm Gy:M -0•04 yy DECLARANT: BLUE CREEK LAND HOLDINGS, LLC, a Colorado limited liability company By: Lane Investment Limited Partnership. an Illinois limited partnership, its sole Member Ry: Lane Industries, Inc., a Delaware corporation, General Partner By: y}r. Its:-14y1Ca .s' -_g �•+ ,�!' STATE OF COLORADO COUNTY OF GARFIELD ) SS The foregoing instrurnent was acknowledged before me this day 2f January. 2004, by ct r�fyiSrinnk as AxzH or\for Lane Industries. Inc., a Delaware corporation, General Partner of Lane Investment Luted Partnership, an Illinois limited partnership, Manager of Blue Creek Land l loldings. LLC. a Colorado limited liability company. My commission expires: 818 Colorado Avenue Glenwood Springs, CO 81601 My Commission Expires June 13, 2005 -13- ACCEPTANCE BY THE GARFIELD COUNTY HOUSING AUTHORITY AND THE BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY The foregoing Declaration of Master Deed Restriction and Agreement Concerning the Sale. Occupancy and Resale of Property in Blue Creek Ranch Subdivision. Garfield County. Colorado and its terms are hereby adopted and declared by the Garfield County Housing Authority and the Board of County Commissioners of Garfield County. GARFIELD COUNTY HOUSING AUTHORITY By: ,&7-4J.? Title: STATE OF COLORADO ) ) ss COUNTY OF GARFIELD ) The above and foregoing document was acknowle&ed hfore me this 7 0 tk1\ LI V PCLL . 2004. by reokt r Witness m, nd and o , • 11 10 otkur• 818 Colorad Avenue My cornrniss -tenwood_Springs, CO 81601 My address is: My Commission Expires June 13, 2005 erieuct day of as alb 4 Notary Public BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY By John Martin. Chairman Attest: Mildred Alsdorf, Clerk of the Board -14- EXHIBIT "A" Legal Description Lots 40, 42, 44, 47 and 48, Blue Creek Ranch. according to the Final Plat thereof recorded on March 25, 2003 as Reception No. 623535. County of Garfield State of Colorado EXHIBIT "B" Permitted Capital Improvements 1. The term -Permitted Capital Improvements" as used in the .Agreement shall only include the following: a. Improvements or fixtures erected, installed or attached as permanent, functional. non- decorativ a improvements to real property, excluding repair, replacements and/or maintenance improvements; b. Improvements for energy and water conservation; c. Improvements for the benefit of seniors and/or handicapped persons: d. Improvements for health and safety protection devices: c. Improvements to add and/or finish permanent/fixed storage space; f. Improvements to finish unfinished space; g. Garages; h. The cost of adding decks and any extension thereto. i. Landscaping; j. Jacuzzis, spas, saunas, steam showers and other similar items; �. Permitted Capital Improvements as used in this Agreement shall NOT include the following: a. Upgrades/replacements of appliances, plumbing and mechanical fixtures, carpets and other similar items included as part of the original construction of the unit; b. Improvements required to repair. replace and maintain existing fixtures. appliances, plurnbing and mechanical fixtures, painting, carpeting and other similar items; c. Upgrades or addition of decorative items, including lights, window coverings, floor coverings and other similar items. 3. All Permitted Capital Improvement items and costs shall be approved by the GCHA prior to being added to the Maximum Resale Price as defined herein. -16- EXHIBIT "C„ OPTION TO PURCHASE In the event ofa foreclosure by the holder (including here and hereinafter assigns ofthe holder) of the promissory note secured by a first lien deed of trust or mortgage on the property described as * , also known as * (hereinafter the "Property"), and subject to the issuance of a public trustee's. sheriff's, or other foreclosure deed to the holder following the expiration of all statutory redemption rights, the Garfield County Housing Authority (the '`GCHA"), and the Board of County Commissioners of Garfield County. Colorado (the "County") shall have the option to purchase the Property which shall be exercised in the following manner: a. Notice. The holder shall give such notice to the GCHA and the County as is required under Colorado law in the foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed, as set forth below, or to such other address as may be directed in writing by GCHA or the County: Garfield Cow ty Housing Authority 2128 Railroad Avenue Rifle. CO 81650 Board of County Commissioners of Garfield County ATTN: County Manager 108 8th Street. Suite 300 Glenwood Springs, CO 81601 b. Option to Purchase. The County and the GCHA,as the agent of the County, shall have 30 days after issuance of the public trustee's, sheriffs or other foreclosure deed in which to exercise this option to purchase by tendering to the grantee of the public trustee's, sheriffs or other foreclosure deed (the "Foreclosure Deed Grantee"), in cash or certified funds, an amount equal to the redemption price which %.v ould have been required of the borrower or any person who might be liable upon a deficiency on the last day ofthe statutory' redemption period(s) and any additional reasonable costs incurred by the Foreclosure Deed Grantee during the option period which are directly related to the foreclosure; provided, that exercise of the option by one optionee shall terminate the right of the other to exercise the option. c. Title. Upon receipt ofthe option price, the Foreclosure Deed Grantee shall deliver to either the GCHA or the County. as designated by the County, a special warranty deed, conveying the Property to either the GCHA, or the County, as designated. The Foreclosure Deed Grantee shall convey only such title as it received through the public trustee's, sheriffs or other foreclosure deed and will not create or participate in the creation of any additional liens or encumbrances against the Property follow ing issuance of the public trustee's, sheriffs or other foreclosure -17- deed to the holder. The Foreclosure Deed Grantee shall not be liable for any of the costs of conveyance to the GCHA or its agent.. d. Release. In the event that the Foreclosure Deed Grantee is issued a public trustee's, sheriffs or other foreclosure deed and neither the GCHA nor the County exercise the option to purchase, as provided herein, the GCHA and the County shall cause to be recorded in the records ofthe Clerk and Recorder ofGarfield County a full and complete release ofthe Property from the Declaration of Master Deed Restriction and Agreement affecting the Property which appear in said records in Book at Page . Such release shall be placed of record ►within 14 days after expiration of the option and a certified copy of the release shall be mailed to the Foreclosure Deed Grantee upon its recordation. e. Perpetuities Savings Clause. If any of the terms, covenants, conditions, restrictions, uses, 1 imitations, obligations or options created by this option to purchase shall he unlawful or void tor violation of: (a) the rule against perpetuities or some analogous statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing like or similar time limits. then such provision shall continue only for the period of the lives of the current duly elected and seated Board of County Commissioners for Garfield County, Colorado, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. f. Successors and Assigns. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties hereto. g. Modifications. The parties hereto agree that any modification to this option to purchase shall be effective only when made by a writing signed by the parties and recorded with the Clerk and Recorder of Garfield County, Colorado; provided, however, no modification affecting the rights of the County shall be effective without the prior written consent of the County. -18- IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and %L,dF 1.vritten below. HOLDER OF FIRST DEED OF TRUST/MORTGAGE: BY: (Authorized Officer) TITLE: (Date) MAILING ADDRESS: S 1 ATE OF COLORADO ) ) ss COL vry OF GARFIELD ) The above and foregoing document was acknowledged before me this day of . 2004, by Witness my hand and official Notary Public ly commission expires: Nly address is: 1:1 IE GARFIELD COUNTY HOUSING AUTHORITY: BY: (Authorized Officer) (Date) TITLE: -19- S 1 \TE OF COLORADO ) ) ss CULNTY OF GARFIELD ) flie above and foregoing document was acknowledged before me this day of , 2004, by Witness my hand and official My commission expires: N1y address is: BORROWER: Notary Public (Date) S I ATE OF COLORADO COUNTY OF GARFIELD) ) ) ss (Date) The above and foregoing document was acknowledged before me this day of , 2004. by Witness my hand and official Notary Public My commission expires: My address is: -20-