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TC Resolution 20-15 Implementing the Avon Deed Restriction Purchase ProgramAvon COLORADO TOWN OF AVON RESOLUTION 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM WHEREAS, Section E.1.1 of the Town of Avon Comprehensive Plan encourages the Town of Avon (the "Town") to achieve a diverse range of housing densities, styles and types, including rental and for sale, to serve all segments of the populations; and WHEREAS, Section E.1.3 of the Town of Avon Comprehensive Plan provides the Town should achieve such housing goals through the adoption and implementation of deed restrictions; and WHEREAS, the Town of Avon Community Housing Plan provides the Town should seek to add deed restricted units to the Town's housing inventory; and WHEREAS, the Town of Avon Community Housing Plan provides a program to buy down attainable market rate units with a permanent deed restriction, similar to the Vail InDeed program, is an effective mechanism by which the Town can preserve affordability with respect to those units; and WHEREAS, pursuant to Resolution 20-14, the Town Council has appropriated $650,000 from the Community Housing Fund for the purchase of deed restriction units the Avon Deed Restriction Program; and WHEREAS, the Avon Town Council desires to implement the Avon Deed Restriction Program, set parameters for such program and authorize the Mayor, Town Manager and Town Attorney, respectively to execute deed restrictions on behalf of the Town; and WHEREAS, the Avon Town Council hereby finds, determines and declares that this Resolution will promote the health, safety and general welfare of the Avon community. NOW THEREFORE, BE IT RESOLVED, BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. The Town Council hereby delegates to the Town Manager, Finance Director and the Town Attorney (the "Evaluation Committee") the authority to evaluate offers to sell and negotiate the purchase of deed restrictions subject to the conditions set forth herein. Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Page 1 of 4 Section 2. The Town Council hereby delegates to the Mayor, Town Manager and Town Attorney the authority to execute purchase and sale agreements, deed restrictions, documents, instruments, papers and other forms necessary for the purchase of deed restrictions. Section 3. The purchase of deed restrictions shall be made subject to the following requirements: a. Deed restrictions shall only be purchased from "Qualified Owners" which shall be defined as a natural person who is an Eagle County Employee. b. Qualified Owners cannot own any other residential property in Eagle County at the time of purchase of the property upon which a deed restriction will be placed. c. The Town may purchase a deed restriction to be placed on any residential property regardless of price or location within the Town of Avon. d. Qualified Owners shall use the residence as a primary residence for a period of at least three (3) years from the date of acquisition of the property by the Qualified Owner. Primary residence shall be determined per the same definition and verification process as used for Real Estate Transfer Tax primary exemptions. On and after the third anniversary of acquisition of the property upon which the deed restriction is placed by the Qualified Owner, the Qualified Owner may rent on a long term basis the property to Eagle County Employees. e. The maximum purchase price for any deed restriction shall not exceed seventy-five thousand dollars ($75,000.00). The purchase price shall range from eight percent (8%) to twelve percent (12%) of the purchase price of the home. f. Qualified Owners shall notify their lender and appraiser and title company of their intent to place a deed restriction on the property to be acquired. g: Qualified Owners must contribute at least three percent (3%) of their own funds towards the purchase price of the property to be acquired, which funds shall not include any third party down payment assistance funding. h. The Evaluation Committee shall consider applications for the purchase of deed restrictions on a first come, first serve basis, which will be queued by complete applications. A complete application requires a fully executed purchase and sale agreement. Section 4. Staff has provided, and Town Council has reviewed and hereby approves, in substantially the form of the Deed Restriction, Deed Restriction Purchase Agreement, Deed Restriction Application and Staff Review Form, all attached hereto an incorporated herein as Exhibits A, B, C and D, respectively. Section 5. The Town Council may, by motion, modify the criteria set forth herein. Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Page 2 of 4 [SIGNATURE PAGE FOLLOWS] Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Page 3 of 4 ADOPTED this 26th day of May 2020. 4�"' By. Attest. Sarah Smith-Hymes, Wyor Brenda Torres, Town Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Page 4 of 4 0 :SES Exhibit A (Deed Restriction) Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Exhibit A TOWN OF AVON - RESIDENT OCCUPIED DEED RESTRICTION NON -PRICE CAPPED THIS DEED RESTRICTION PURCHASE AGREEMENT (the "Deed Restriction") is entered into this —day of , 2020 (the "Effective Date") by and between the Town of Avon, Colorado, a Colorado home rule municipality with an address of 100 Mikaela Way, P.O. Box 975, Avon, Colorado 81620 (the "Town"), and , individuals with an address of , Avon, Colorado 81657 (collectively "Declarant") (each individually a "Party" and collectively the "Parties"). WHEREAS, Declarant is purchasing the real property and the improvements situated thereon, located at , Avon, Colorado 81620 and more particularly described in Exhibit A hereto (the "Property"); and WHEREAS, in exchange for compensation as set forth in a Deed Restriction Purchase Agreement, Owner has agreed to place certain restrictions on the use of the Property for the benefit of the Town by requiring occupancy of the Property by at least one qualified resident, as defined below. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: COVENANTS 1. Restriction and Recording. The Property is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The Town shall record this Deed Restriction against the Property at Declarant's expense. 2. Definitions. The following definitions shall apply to terms used in the Deed Restriction: a. Buyer means a Qualified Owner who purchases the Property from an Owner. b. Eagle County Employee means an employee working in Eagle County who works an average of at least thirty-two (32) hours per week for at least eight (8) months in each calendar year or earns seventy-five percent (75%) of his or her income and earnings by working in Eagle County; or a retired individual, sixty (60) years or older, who has worked a minimum of five (5) years in Eagle County for an average of at least thirty-two (32) hours per week for at least eight (8) months in each calendar year; or a person who derives income from self-employment whose business is situated in Eagle County; or a person who works for an employer outside Eagle County if that person can demonstrate that such residence is the primary residence for that person. C. Owner means any person who acquires an ownership interest in the Property, subject to the conditions contained herein, and may include either a Qualified Owner or Non - Qualified Owner, as the context requires. Page 1 of 12 Town of Avon — Deed Restriction L Qualified Owner means a natural person(s) who is an Eagle County Employee as defined in Section 3.12.020 of the Avon Municipal Code, as amended. ii. Non -Qualified Owner means any person who does not meet the definition of Qualified Owner including persons who originally qualified as a Qualified Owner but whose circumstances change and who no longer meet the definition of Qualified Owner. d. Primary Residence means the occupation and use of a residence as the primary residence, which shall be determined by the Town Manager by taking into account the following circumstances: voter registration in Avon, Colorado (or signing an affidavit stating that the applicant is not registered to vote in any other place); stated address on Colorado driver's license or Colorado identification card; stated address on motor vehicle registration; ownership or use of other residences not situated in Avon, Colorado; stated residence for income and tax purposes; and such other circumstances as well as such processes for verification and investigation deemed appropriate by the Town Manager to determine that the applicant is continuously occupying and using the residence as a primary residence. Primary residence status may be maintained if unforeseen circumstances arise that requires the resident Eagle County Employee to temporarily leave the residence for a period not to exceed nine (9) months with the intent to return, and the residence is leased to another Eagle County Employee(s) after receiving written approval from the Town Manager. e. Second Home shall mean the status of the Property when used by any person who has a primary residence that is other than the Property. L Short Tern: Rental shall mean the rental or lease of the Property for a period of time that is fewer than thirty (30) days. g. Town shall include employees of the Town of Avon or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. 3. Ownership and Use of the Property. a. Notice. Prior to acquiring the Property, Declarant acknowledges Declarant is required to notify any lender, appraiser and title company engaged by Declarant, or otherwise assisting Declarant, in connection with the acquisition of the Property of Declarant's intent to enter into this Deed Restriction and cause such Deed Restriction to be recorded against the Property. b. Ownership. Ownership of the Property shall be limited to a Qualified Owner (who may take title with such Qualified Owner's spouse or civil union partner [if the Qualified Owner is a natural person who is an Eagle County Employee]. C. Occupancy and Use. During the first three (3) years of ownership by the Owner, the Owner shall occupy and use the Property as the Owner's Primary Residence. On and after the third anniversary of the Owner's acquisition of the Property, occupancy and use of the Page 2 of 12 Town of Avon — Deed Restriction Property may include, but shall be limited to, (1) the Qualified Owner for their occupancy and use as a Primary Residence or (2) one or more Eagle County Employees for occupancy and use as a Primary Residence. Permitted occupancy and use shall include immediate family members of the Qualified Owner or such Eagle County Employee or Employees and temporary invitees who do not provide compensation for temporary residence at the Property. Any lease of the Property by the Owner shall be to an Eagle County Employee or Employees for use as a Primary Residence for periods of thirty (30) days or longer. Use or lease of the Property as a Second Home or for Short Term Rental is prohibited. Any use or lease of the Property which is not allowed or is prohibited by this Deed Restriction shall constitute a default and shall be subject to the enforcement provisions and remedies contained in this Deed Restriction. d. It shall not be deemed a violation of Sections 3(a) or (b) above if. L The resident Eagle County Employee becomes disabled and is no longer able to work as determined by the Town in its sole exclusive discretion; or ii. The resident Eagle County Employee has lost full-time employment and is actively seeking reemployment, not to exceed ninety (90) days after loss of employment; or W. The Property is unoccupied and the Owner of the Property is actively seeking to sell or lease the Property to an Eagle County Employee, provided that the period of vacancy of the Property shall not exceed twelve (12) months. e. Owner covenants that the Owner shall not permit any occupancy, use or lease of the Property in violation of this Section 3. f. Owner covenants that any lease of the Property shall include a reference that such lease is subject to the terms and conditions of this Deed Restriction, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eagle County Employee and Primary Residence status. g. No later than February 1 st of each year, the Owner of the Property shall submit to the Town a certification setting forth evidence establishing that the Property's occupancy and use complies with this Deed Restriction on a form provided by the Town, which form shall be sent to the address of record of the Owner according to the Eagle County Assessor's Office. 4. Re -Sale Controls. The Property may not be sold or otherwise transferred to any person other than a Qualified Owner in accordance with the procedures for prior verification contained in this Section 4. a. Owner shall deliver to the Town a written notice of intent to sell the Property which notice shall include the name(s) of the Buyer(s) and all information required to determine whether the Buyer(s) meets the definition of Qualified Owner. Page 3 of 12 Town of Avon — Deed Restriction b. Buyer(s) shall submit an administrative fee in the amount of TWO HUNDRED AND FIFTY DOLLARS ($250.00) to the Town to pay for the cost of reviewing and rendering a determination as to whether a prospective Buyer(s) meets the definition of a Qualified Owner. The administrative fee may be increased by the Town Council over time by an amount equal to annual increases in the Consumer Price Index for All Urban Consumers for the Denver -Aurora -Lakewood, Colo., metropolitan area as defined by the United States Bureau of Labor Statistics (or such other Consumer Price Index as may be adopted by the United States Bureau of Labor Statistics for Colorado) to cover the Town's costs associated with processing the application. C. Once the Town has received complete information concerning the prospective Buyers(s) and has received the administrative fee, the Town shall review the information and make a written determination as to whether the Buyer(s) meets the definition of a Qualified Owner within a reasonable time and not to exceed thirty (30) days. d. The Town may require the Buyer to reimburse the Town for any additional costs that are incurred in the review and determination of whether a Buyer(s) meets the definition of a Qualified Owner, including but not limited to legal costs, title review costs, and investigation costs if reasonably required by the Town to complete its investigation. e. The Owner may sell and convey the Property to the Buyer(s) that is determined in writing by the Town to be a Qualified Owner. L Upon sale and conveyance of the Property by Owner to a Buyer, the Buyer shall be subject to the same occupancy and use requirements set forth in Section 3(c) herein. 5. Default by Owner. If the Town has reasonable cause to believe that the occupancy or use of the Property is in violation of any provision of this Deed Restriction, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner and occupants with at least twenty four (24) hours written notice. Notice to the occupants may be given by posting notice on the door to the Property. This Deed Restriction shall constitute permission to enter the Property during such times upon such notice without further consent. A default by Owner shall include breach of the covenants set forth in this Deed Restriction, including without limitation any of the following: a. Transfer or conveyance of the Property to a person or entity that is not a Qualified Owner. b. Acceptance of the Property by a person or entity that is not a Qualified Owner. C. Transfer or conveyance of the Property to a person who is a Qualified Owner prior to obtaining certification from the Town that such person is a Qualified Owner. d. Any ownership, use or occupancy of the Property in violation of Section 3 above, including, without limitation, any lease of the Property to a person or entity that is not an Eagle County Employee. e. Failure to submit an annual certification of occupancy and use as described in Section 3.f above. Page 4 of 12 Town of Avon — Deed Restriction L Failure to make payments and comply with the terms of any deed of trust placed on the Property. g. Any action by the Owner to encumber the Property in a manner that conflicts with the terms of this Deed Restriction or renders compliance with the terms of this Deed Restriction impossible or impractical. h. Permitting the use of the Property as a Short Term Rental or Second Home. 6. Notice and Cure. In the event a violation of this Deed Restriction is discovered, the Town shall send a written notice of default to the Owner detailing the nature of the default and providing sixty-five (65) days for the Owner to cure such default. Notwithstanding the foregoing or any other term of this Deed Restriction, a default for lease or use of the Property as a Short Term Rental or a Second Home shall be cured by the Owner immediately. The notice shall state that the Owner may request an appeal of the violation finding in writing within ten (10) days of such notice, in which event the Town shall administratively review the finding and, if the violation finding is upheld, the Owner may request in writing within ten (10) days of such administrative decision a hearing before the Avon Town Council. A decision of the Avon Town Council may only be judicially appealed in the District Court of Eagle County pursuant to C.R.C.P. 106. If no administrative or Town Council appeal is timely requested in writing and the violation is not cured within sixty-five (65) days of mailing the notice of default, the Owner shall be deemed to be in violation of this Deed Restriction. If an administrative or Town Council appeal is requested, the decision of the Avon Town Council (or administrative decision if such decision is not timely appealed to the Town Council) shall be final for the purpose of determining if a violation has occurred and, if such violation is not cured within sixty-five (65) days of such final determination, the Owner shall be deemed to be violation of this Deed Restriction. If a decision of the Avon Town Council is judicially appealed, an order of the Court confirming the violation shall be final for the purpose of determining if a violation has occurred and, if such violation is not cured within sixty-five (65) days of such final determination, the Owner shall be deemed to be violation of this Deed Restriction. In the event of any lease to a person who is not an Eagle County Employee or use of the Property as a Short Term Rental or Second Home, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as a material requirement of curing the notice of default. 7. Remedies. In the event of violation, non-performance, default or breach of any term of this Deed Restriction by the Owner, Town shall have the right to enforce Owner's obligations herein by an action for any equitable remedy, including injunction or specific performance, as well as pursue an action to recover damages. In addition, any amount due and owing to the Town shall bear interest at the rate of one and one half percent (1.5%) per month (eighteen percent [18%] per annum, compounded annually) until paid in full. The Town shall be entitled to recover any costs related to enforcement of this Deed Restriction, including but not limited to attorney's fees, court filing costs and county recording costs. In addition to any other remedy provided by law or equity, the Town may attach a lien for any amount due to the Town upon the Property and enforce the lien in the manner and according to the procedures set forth in Colorado Revised Statutes, Section 31 - Page 5 of 12 Town of Avon — Decd Restriction 20-105, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. In the event of a transfer or conveyance of the Property which violates the terms of this Deed Restrictions and constitutes a violation of this Deed Restriction, both the grantor and grantee shall be jointly and severally liable for any damages and costs due under this Deed Restriction. 8. Liquidated Damages. The parties acknowledge and agree that in the event of a violation of this Deed Restriction by the Owner, the determination of actual monetary damages would be difficult to ascertain. Therefore, the Town and Owner hereby agree that liquidated damages shall be calculated and applied in the amount of THREE HUNDRED DOLLARS ($300.00) per day for each day that the Owner is in violation of this Deed Restriction after having failed to timely cure the violation of this Deed Restriction. Liquidated damages shall be in addition to the Town's ability to recover costs as stated in Section 7 above. Liquidated damages shall be in addition to the Town's right to seek equitable remedies of injunction and/or specific performance. In the event of any lease or use of the Property as a Second Home or Short Term Rental, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as liquated damages as demanded by the Town (in lieu of the $300 daily liquidated damages), including such amounts collected or received by Owner prior to receipt of a Notice of Default and prior expiration of a sixty-five (65) day period to cure, and such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 9. Release of Deed Restriction in Event of Foreclosure or Deed in Lieu. a. An Owner shall notify the Town, in writing, of any notification received from a lender of past due payments or defaults in payments or other obligations within five (5) days of receipt of such notification. b. An Owner shall immediately notify the Town, in writing, of any notice of foreclosure under the first deed of trust or any other subordinate security interest in the Property, or when any payment on any indebtedness encumbering the Property is required to avoid foreclosure of the first deed of trust or other subordinate security interest in the Property. C. Within sixty (60) days after receipt of any notice described herein, the Town may (but shall not be obligated to) proceed to make any payment required to avoid foreclosure. Upon making any such payment, the Town shall place a lien on the Property in the amount paid to cure the default and avoid foreclosure, including all fees and costs resulting from such foreclosure. d. Notwithstanding any other provision of this Deed Restriction (but subject to Section 9.f below), in the event of a foreclosure, acceptance of a deed -in -lieu of foreclosure, or assignment, this Deed Restriction shall remain in full force and effect, including without limitation Section 4 hereof, restricting Transfer of the Property. e. The Town shall have thirty (30) days after issuance of the public trustee's deed or the acceptance of a deed in lieu of foreclosure by the holder in which to purchase by tendering to the holder, in cash or certified funds, an amount equal to the bid price or the redemption price paid by the holder, interest in the amount of eight (8) percent per annum from the Page 6 of 12 Town of Avon — Deed Restriction date of the issuance of the public trustee's deed or the recording of a deed in lieu of foreclosure through the date of the Town's purchase. L Notwithstanding Section 9.d above, in the event that the Property is encumbered by a mortgage or deed of trust insured by the U.S. Department of Housing and Urban Development ("HUD") and representing a purchase money first priority mortgage or deed of trust, this Deed Restriction shall automatically and permanently terminate upon foreclosure of such mortgage or deed of trust, upon acceptance of a deed in lieu of foreclosure of such mortgage or deed of trust, or upon assignment of such mortgage or deed of trust to HUD. 10. Option to Purchase. In the event of default by the Owner which is not cured, or upon receipt of a notice of foreclosure or other notice of default provided by the holder of a deed of trust, lien or other encumbrance as provided in Section 9 above (whichever is earlier), the Town shall have the option to purchase ("Option to Purchase") the Property in accordance with the procedures and terms set forth as follows: a. The Town shall have an Option to Purchase for sixty-five (65) days ("Option Period") b. The Town shall have right of entry onto and into the Property during the Option Period to inspect the Property. C. The Town shall have the right to purchase the Property for the amount due to the holders of any deeds of trust, liens or other encumbrances up to the maximum amount defined in Section 5.g. above (together with interest, fees and costs expressly chargeable under deed of trust, lien or other encumbrance instrument), which amounts shall be paid in order of priority of the holders of such deeds of trusts, liens or other encumbrances provided that this Deed Restriction shall remain in effect and burden the Property after acquisition by the Town and upon re -conveyance to a subsequent Qualified Owner. d. The Town shall have the right to assign the Town's right to purchase the Property to any Qualified Owner provided that this Deed Restriction shall remain in effect and burden the Property. e. Upon payment by Town or assigns, Owner shall convey title to the Property by a special warranty deed in accordance with Colorado Revised Statute §38-30-115 and shall include the words, "and warrant title against all persons claiming under me." L Normal and customary closing costs shall be shared equally between the Owner and Town or Town's assigns. The Town or assigns shall be responsible, at its cost, for any and all title insurance fees, document fees, and recording fees of the deed. Taxes shall be prorated based upon taxes for the calendar year immediately preceding closing. g. If the Town or assigns do not exercise the Option to Purchase during the Option Period, then the holder of a deed of trust shall nonetheless remain subject to this Deed Restriction as provided in Section 9.d above, subject, however, to Section 9.f above. In the event that Town's Option to Purchase arises from a default by Owner and not a notice of foreclosure Page 7 of 12 Town of Avon — Deed Restriction or notice of default submitted by the holder of a deed of trust to the Town, then the Town may unilaterally extend the Option Period until such time as Town, or assigns, exercise the Option to Purchase or the Owner cures any and all defaults. 11. Tax Sale. In the event of a tax sale this Deed Restriction shall remain in full force and effect, shall run with and burden the land, and shall constitute a condition of the subdivision and land use approval which shall survive and sale of the Property through a tax lien sale process. 12. General Provisions. a. Severability. If any term, provision, covenant or condition of this Deed Restriction is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Deed Restriction shall continue and remain in full force and effect. b. Counting Days. If the final day of any notice, default or other event falls on a Saturday, Sunday, legal holiday recognized by the State of Colorado or day upon which the Avon Town Hall is closed for any reason, then the final day shall be deemed to be the next day which is not a Saturday, Sunday, legal holiday or day that the Avon Town Hall is closed. C. Waiver. No waiver of one or more of the terms or provisions of this Deed Restriction shall be effective unless provided in writing. No waiver of any term or provision of this Deed Restriction in any instance shall constitute a waiver of such provision in any other instance. The Town Council may provide a waiver along with any conditions of the waiver with regard to any of the terms and provisions in this Deed Restriction where unusual or unforeseen circumstances exist and the Owner is diligently seeking to cure a default and such waiver, with conditions if any, supports the purpose and intention of this Deed Restriction. d. Amendment. This Deed Restriction may only be amended in writing by the mutual agreement of the Owner and the Town and recorded with the Clerk and Recorder's Office of Eagle County, Colorado. e. Recording. The Owner shall record this Deed Restriction in the Property Records of Eagle County, Colorado and the original executed and record documents must be returned to the Town. E Assignment. The Town may assign this Deed Restriction and all rights and obligations, without consent of the Owner, to any other public entity, non-profit corporation or other entity which is organized and exists for the purpose to provide and promote affordable housing for full time residents. g. No Third -Party Beneficiaries. Nothing contained in this Deed Restriction is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party. h. Choice of Law. This Deed Restriction shall be governed and construed in accordance with the laws of the State of Colorado. Venue for any legal action arising from this Deed Restriction shall be in Eagle County, Colorado. Page 8 of 12 Town of Avon — Deed Restriction L Successors. Except as otherwise provided herein, the provisions and covenanted contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The covenants shall be a burden upon and run with the Property for the benefit of the Town or the Town's assigns, who may enforce the covenants and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. j. Section Headings. Paragraph or section headings within this Deed Restriction 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. k. Gender and Number. Whenever the context so requires in this Deed Restriction, 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. 1. Notice. Any notice, consent or approval, which is required to be given hereunder, shall be given by either depositing in the U.S. Mail with first class postage pre -paid; mailing by certified mail with return receipt requested; sending by overnight delivery with a nationally recognized courier service that delivers to the physical address of the Property; or, by hand - delivering to the intended recipient. Notices shall be provided to the Town of Avon at P.O. Box 975, 100 Mikaela Way, Avon, CO 81620. Notices shall be provided to Owner at the address provided by the Eagle County Assessor's office. [signature page follows] Page 9 of 12 Town of Avon — Deed Restriction IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. DECLARANT: IM Name: Its: STATE OF COLORADO ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this day of , 2020, by as the owner of the real property described above. Witness my hand and official seal. Notary Public My commission expires: Page 10 of 12 Town of Avon — Deed Restriction TOWN OF AVON, COLORADO: By: Eric Heil, Town Manager STATE OF COLORADO ) ss. COUNTY OF EAGLE ) Attest: Brenda Torres, Town Clerk Subscribed before me this day of , 2020, by Eric Heil, as Town Manager, and Brenda Torres, as Town Clerk of the Town of Avon, a Colorado home rule municipal corporation. Witness my hand and official seal. Notary Public My commission expires: Page 11 of 12 Town of Avon — Deed Restriction Exhibit A [Insert Property Legal Description] Page 12 of 12 Town of Avon — Deed Restriction Exhibit B (Deed Restriction Purchase Agreement) Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Exhibit B DEED RESTRICTION PURCHASE AGREEMENT THIS DEED RESTRICTION PURCHASE AGREEMENT (the "Agreement") is entered into this _ day of , 2020 (the "Effective Date") by and between the Town of Avon, Colorado, a Colorado home rule municipality with an address of 100 Mikaela Way, Avon, Colorado 81620 (the "Town"), and , individuals with and address of (collectively, "Purchaser") (each individually, a "Party" and collectively the "Parties"). WHEREAS, Purchaser is purchasing the real property and the improvements situated thereon, located at , Avon, Colorado 81620 (the "Property"); and WHEREAS, in exchange for compensation as set forth herein, Purchaser has agreed to place certain restrictions on the use of the Property for the benefit of the Town by requiring occupancy of the Property by at least one qualified resident, as set forth in the Deed Restriction Agreement executed contemporaneously herewith (the "Deed Restriction"); and WHEREAS, the Deed Restriction is of value to the Town, and the Town is willing to compensate Purchaser for the value of the Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: 1. Convey. Purchaser agrees to convey, sell, transfer and assign to the Town, and the Town agrees to purchase from Purchaser, the Deed Restriction, on the terms and conditions of this Agreement. 2. Purchase Price. The purchase price for the Deed Restriction shall be $ (the "Purchase Price"), delivered to Purchaser at closing in funds which comply with all applicable Colorado laws, which include electronic transfer funds, certified check and cashier's check, at the Town's option. 3. Purchaser Contribution. As a condition of the Town acquiring the Deed Restriction, Purchase agrees it will contribute three percent (3%) or more of Purchaser funds towards the purchase price of the Property, which funds to not include any third party down payment assitance funding. 4. Closing. The closing will occur at a mutually agreeable location, at a date agreed upon by the Parties within 14 days of the Effective Date. 5. Notice and Consent. Purchaser certifies that Purchaser has notified every person or entity holding a lien or other encumbrance on the Property as well as every person or entity Purchaser reasonably believes will hold a lien or encumbrance on the Property of the proposed purchase of the Deed Restriction by the Town, and if necessary, obtained each of their consent to the recording of the Deed Restriction against the Property. Should Purchaser not provide such notice or obtain such consent, and Purchaser's failure to do so causes the Deed Restriction to become unenforceable, invalid or void for any reason, Purchaser shall reimburse the entire Purchase Price to the Town within 30 days of receipt of written notice from the Town. 6. Purchaser's Representations and Warranties. Purchaser hereby represents and warrants that the following statements are now, and will be as of the closing date, true and correct, to the best of Purchaser's knowledge, and Purchaser shall give the Town prompt written notice if any of the representations or warranties made by Purchaser in this Agreement are no longer true or correct in any material manner: a. There is no action, suit or proceeding pending, or to the best of Purchaser's knowledge threatened, against or otherwise affecting Purchaser or the Property in any court of law or equity, or before any governmental authority, in which an adverse decision might materially impair Purchaser's ability to perform its obligations under this Agreement. b. There is no pending or threatened condemnation or similar proceeding affecting the Property. 7. Town's Remedies. In the case of any breach of this Agreement by Purchaser, the Town may terminate this Agreement by written notice to Purchaser, and the Town shall have all remedies available at law or equity for such breach. In addition to all other remedies, in the case of a breach of this Agreement by Purchaser, the Town shall have the right to recover the entire Purchase Price from Purchaser, in addition to all costs and fees, including attorney fees, incurred by the Town. 8. Miscellaneous. a. Entire Agreement. This Agreement contains the entire agreement of the Parties. There are no other agreements, oral or written, and this Agreement can be amended only by written agreement signed by the Parties. b. Agreement Binding; Assignment. This Agreement, and the terms, covenants, and conditions herein contained, shall inure to the benefit of and be binding upon the heirs, personal representatives, successors, and assigns of the Parties. C. Notice. Any notice under this Agreement shall be in writing, and shall be deemed sufficient when directly presented or sent pre -paid, first class United States Mail to the Party at the address set forth on the first page of this Agreement. d. Governing Law and Venue. This Agreement shall be governed by the laws of the State of Colorado, and any legal action concerning the provisions hereof shall be brought in Eagle County, Colorado. e. Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be unlawful or unenforceable for any reason, the remaining provisions hereof shall remain in full force and effect. f. Third Parties. There are no intended third -party beneficiaries to this Agreement. g. Subject to Annual Appropriation. Consistent with Article X, § 20 of the Colorado Constitution, any financial obligation of the Town not performed during the current fiscal year is subject to annual appropriation, shall extend only to monies currently appropriated, and shall not constitute a mandatory charge, requirement, debt or liability beyond the current fiscal year. h. Governmental Immunity. The Town and its officers, attorneys and employees, are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations or any other rights, immunities or protections provided by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq., as amended, or otherwise available to the Town and its officers, attorneys or employees. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. TOWN OF AVON, COLORADO Eric Heil, Town Manager ATTEST: Brenda Torres, Town Clerk STATE OF COLORADO ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this day of , 20, by Witness my hand and official seal. Notary Public (SEAL) My commission expires: PURCHASER Name: STATE OF COLORADO ) SS. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this day of , 20_, by Witness my hand and official seal. Notary Public (S E A L) My commission expires: Exhibit C (Deed Restriction Application) Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRAM Exhibit C AVO n Avon Deed Restriction Program Application 100 Mikaela Way Finance Department Avon, Colorado 81620 970.748.4020 Date: Your name: Provide name(s) as title to property will be or is held Your current mailing address: Your e-mail: Your phone: Amount of money requested: $ Avon property address to be deed restricted: Property Type: ❑ Single Family ❑ Condo ❑ Townhouse ❑ Duplex Number of bedrooms/bathrooms: Bedrooms Bathrooms Number of unit parking spaces; total property parking spaces: Are you under contract? Contract or list price: Closing date or date decision is needed: Is there a Home Owner's Association? ❑ Yes, there is an HOA ❑ No, there is no HOA Is there any pending or upcoming special assessments (SA's)? ❑ Pending SA ❑ Upcoming SA ❑ No SA Is there a right of first refusal? The Town cannot place a deed restriction on property with right of first refusal Name of Lender: Name of Real Estate Agent: Name of Title Company: Name of Eagle County Employer: Have you notified your Lender, Title Company and Appraiser of your intent to place a Deed Restriction on the Property? Is there additional property information You wish to share? (optional): Exhibit D (Staff Review Form) Res 20-15 IMPLEMENTING THE AVON DEED RESTRICTION PURCHASE PROGRA`I Exhibit D Avon 100 Mikaela Way Avon, Colorado 81620 Applicant: Property Address: Avon Deed Restriction Review Date: Program Staff Review Finance Department 970.748.4020 YIN Supports and maintains a permanent year- round resident population that grows a diverse community where a wide range of demographics, economics, occupations and family household sizes are served. Y 1 N Amplifies "missing middle" in Avon. Y 1 N Demonstrated demand exists within the resident housing market for the type of residential product (studio, flat, townhome, duplex, single family, etc.) that is to be deed restricted Y 1 N Fulfills a demonstrated need within a defined segment (i. e. for rent, for sale, owner occupied, etc.) of the residential property market. Y 1 N The market value of the deed restriction is comparable in value to other existing deed restrictions within the community as demonstrated by a licensed real estate appraiser. Y 1 N Most cost effective and efficient use of the Town's limited supply of financial resources Y / N Fair market value is paid for the deed restriction relative to current market conditions (i. e. supply & demand) Y / N Site Visit Y / N Verification of applicant's intent to contribute at least three percent (3%) towards the purchase price, which does not include any third party down payment assistance funding. Y / N Verification of applicant's Eagle County employment. Unit Condition: Current Unit Use: Neighborhood Sales Search Town of Avon Offer: Applicant Counter: Agreed Amount: