TC Resolution 23-20 Approving the Addition of Chapter 4.D. - Resale Lottery of the Avon Community Housing Policies DocumentA
Avon
C O L O R A D O
RESOLUTION 23-20
APPROVING THE ADDITION OF CHAPTER 4.D. - RESALE LOTTERY
OF THE AVON COMMUNITY HOUSING POLICIES DOCUMENT
WHEREAS, The Avon Community Housing Policies were enacted on September 12, 2023, with Chapter
4.13. as Reserved, and
WHEREAS, at the Town Council ("Council") meeting on September 12, 2023, the Council considered all
comments, testimony, evidence, and reports provided by the Town Staff prior to deciding on the request to
enact the Policies with further discussion needed for any resale lottery provisions; and
WHEREAS, as the Policies were enacted via Resolution 23-11, and this document is purposefully
updatable and to be maintained as a living document via resolution; and
WHEREAS, in approving the language for Chapter 4.D. in Resolution 23-20, the Policies will be updated
accordingly, specific to this section; and
WHEREAS, the Town of Avon Community Housing Policies document supports and conforms to Avon
Municipal Code, Town of Avon Comprehensive Plan, the Avon Community Housing Plan, and other
Community Housing programs and policies set forth by the Town of Avon.
NOW THEREFORE, BE IT RESOLVED, BY THE TOWN COUNCIL OF THE TOWN OF
AVON, COLORADO that the Town Council approves Chapter 4.13. of the Avon Community Housing
Policies document that supports Community Housing programs and projects in the Town of Avon.
ADOPTED this 241' day of October 2023.
AVON WN COUN
By:
Amy ftillipl, ay
Res 23-20 ACHP Chapter 4.D.
October 24, 2023
Page 1 of 1
Attest:
Miguel Jau
j0 OFA
LX
ueva, Tow lerk
AVON COMMUNITY
HOUSING POLICIES
2023
Avon Community Housing Policies
2023
Avon Community Housing Policies
October 24, 2023
Page 1
PURPOSE: The general purpose of the Avon Community Housing Policies is to establish policies which will help
the Town of Avon acquire, develop, and manage housing which meets the needs of the Avon community.
"Community Housing" is broader than workforce housing and contemplates providing housing for all segments of
the Avon community which cannot otherwise afford free market rental and ownership prices. Community Housing
includes housing for the workforce, seniors, retirees, aging in place, and disabled members of the community who
may not be able to work.
These Avon Community Housing Policies (also referred to as "Policies" in this document) are intended to promote
predictability in the process of executing and enforcing Community Housing Deed Restrictions and uniformity in the
establishment and administration of various Community Housing Deed Restrictions and describe the authorization to
perform certain tasks and transactions administratively. These Policies may be updated from time to time as
determined appropriate by the Avon Town Council.
INTRODUCTION: These Policies address housing that is sponsored, operated, managed or partnered with the Town
of Avon. Community Housing commitments include but are not limited to: Community Housing Deed Restrictions;
project agreements with terms and conditions by state, federal and third party housing partners; and, housing
obligations in various development agreements and Planned Unit Development approvals.
These Policies replace the 1990/1991 Avon Housing Policies in its entirety and shall be used as the official policy
document for administration and enforcement of all Community Housing Deed Restrictions held by the Town of Avon.
This includes those deed restrictions created through the development entitlement process or created independent of
a development process, like the iMi Casa Avon! or similar program. These provisions apply to both price -capped and
resident occupied deed restrictions, for sale, or rental units.
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October 24, 2023
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TABLE OF CONTENTS
CHAPTER1.................................................................................................................................................................5
INTRODUCTION..........................................................................................................................................................5
A. Introduction...........................................................................................................................................................5
B. Adoption and amendments...................................................................................................................................5
C. Types of community housing deed restrictions: .................................................................................................... 5
D. Interpretation.........................................................................................................................................................5
E. Administration.......................................................................................................................................................5
F. Authorization:........................................................................................................................................................5
G. Area medium income: ........................................................................................................................................... 5
H. Income limits.........................................................................................................................................................5
I. Council to approve form of deed restrictions: ....................................................................................................... 6
J. Employee housing mitigation:...............................................................................................................................6
K. Conversion of rental to for -sale restricted: ............................................................................................................ 6
L. Owners associations: ............................................................................................................................................ 6
M. Acronyms: ............................................................................................................................................................. 6
N. Definitions.............................................................................................................................................................7
CHAPTER2...............................................................................................................................................................12
PRICE CAPPED COMMUNITY HOUSING...............................................................................................................12
A. Initial Pricing of Priced Capped Community Housing: ......................................................................................... 12
B. Maximum Rental Rates for Rent Capped Community Housing: ......................................................................... 12
C. Form of Deed Restrictions: ................................................................................................................................. 12
CHAPTER3...............................................................................................................................................................12
NON -PRICE CAPPED COMMUNITY HOUSING......................................................................................................12
A. Pricing of Non -Price Capped Community Housing: ............................................................................................ 12
B. Form of Deed Restriction: ........... ............. ......................................................................................................... 12
CHAPTER4...............................................................................................................................................................12
REQUIREMENTS OF BUYERS, OWNERS OR RENTERS......................................................................................12
A. Employment Qualification...................................................................................................................................12
B. Restriction on Owning Other Real Estate...........................................................................................................13
C. Application Process for Price Capped Community Housing Units: ..................................................................... 13
D. Selection Process For Price -Capped Community Housing Units: ...................................................................... 14
E. Rules For Selection Process For Price -Capped Community Housing Units: ...................................................... 14
F. Application Process For Purchasing Non -Price Capped Community Housing Units: ......................................... 15
E. Rental Of A Community Housing Unit By Qualified Employers For Employees: ................................................ 16
F. Maintaining Occupancy: ............................................................ ......................................................................... 16
G. Compliance.........................................................................................................................................................16
I. Leave Of Absence — All Community Housing Units: ........................................................................................... 16
Avon Community Housing Policies
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CHAPTER5...............................................................................................................................................................17
INFORMATION FOR PROPERTY MANAGERS OF RENTAL UNITS.....................................................................17
A. Application Process............................................................................................................................................17
B. Annual Verification..............................................................................................................................................17
CHAPTER6...............................................................................................................................................................17
ALL COMMUNITY HOUSING UNITS........................................................................................................................17
A. Trust Ownership: ................................................................................................................................................ 17
B. Short Term Rentals: ............................................................................................................................................ 18
C. Foreclosures: ...................................................................................................................................................... 18
D. Other Title Transfers: .......................................................................................................................................... 18
E. Tax Sale..............................................................................................................................................................18
F. Previous Policies................................................................................................................................................18
CHAPTER7...............................................................................................................................................................19
SALE OF COMMUNITY HOUSING UNITS...............................................................................................................19
A. Sales Of Price -Capped Housing Units: ............................................................................................................... 19
B. Maximum Resale Price For Price -Capped Housing Units: ................................................................................. 20
C. Increases To Base Price And Permitted Capital Improvements For Price Capped Housing Units: .................... 20
CHAPTER8...............................................................................................................................................................22
COMPLIANCE AND ENFORCEMENT......................................................................................................................22
A. Required Documents..........................................................................................................................................22
B. Non -Qualified Transferee: ...................................................................................................................................
22
C. Failure To Comply..............................................................................................................................................22
D. Uncured Violations..............................................................................................................................................22
E. Required Rental..................................................................................................................................................23
F. Preservation Of Deed Restricted Unit.................................................................................................................23
APPEALPROCEDURES..........................................................................................................................................23
CHAPTER9...............................................................................................................................................................23
APPENDIX A— DEED RESTRICTION TEMPLATES...............................................................................................25
Price Capped Community Housing Deed Restriction
Rent Capped Community Housing Deed Restriction
Owner Occupied Community Housing Unit (Mi Casa Avon Deed Restriction)
Resident Occupied Community Housing Unit
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Avon Community Housing Policies
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AVON COMMUNITY HOUSING POLICIES
A. INTRODUCTION: The Avon Community Housing Policies ("Policies" or "ACHP") establish minimum
requirements and procedures for developing, purchasing, owning, selling, and renting Community Housing and
are to be read and applied in conjunction with the Avon Municipal Code and the various, established Deed
Restrictions. These Policies should be updated periodically based on current real estate market, area median
income, and the most recent affordable housing data, affecting the Avon community.
B. ADOPTION AND AMENDMENTS: These Policies shall be adopted by the Avon Town Council by Resolution,
after first conducting a public hearing, and may be amended by adoption of a Resolution after first conducting a
public hearing.
C. TYPES OF COMMUNITY HOUSING DEED RESTRICTIONS: There are five primary types of Community
Housing Deed Restrictions used for Community Housing projects in Avon, which are described below. The
Avon Town Council may approve other types of Community Housing Deed Restrictions or variations of the form
of Community Housing Deed Restrictions included with these Policies in the sole discretion of the Avon Town
Council.
1. Price Capped Community Housing
2. Rent Capped Community Housing
3. Owner Occupied Community Housing
4. Resident Occupied Community Housing
D. INTERPRETATION: These Policies shall be liberally interpreted to achieve the purpose stated in this Policy.
The Community Development Director has the authority to interpret these Policies.
E. ADMINISTRATION: These Policies shall be administered by the Avon Community Development Department,
or such other Department or personnel as the Town Manager may delegate and assign.
F. AUTHORIZATION: The Town Manager, Town Clerk and Town Attorney, and respective designees, shall have
the authority to execute all documents related to transactions contemplated in these Policies, including but not
limited to Community Housing Deed Restrictions, documents related to closing on real estate (e.g., settlement
statements, disclosure statements, etc.), and purchase and sales agreements. New Community Housing
projects approved by the Avon Town Council should include an approval of the terms, conditions and any forms
of Community Housing Deed Restrictions or other documents if different from the standard forms in these
Policies, which may then be used and executed administratively.
G. AREA MEDIUM INCOME: There are many references to Area Median Income orAMI throughout these Policies.
The Town of Avon shall use county -wide AMI data as provided by the State of Colorado or federal government
or may use an AMI based on Avon's Zip Code or AMI based on another more localized geographic area in the
discretion of the Town of Avon.
H. INCOME LIMITS: When maximum household incomes limits are used, the 1 Person" limit shall be used for one
person and the 'A Person" limit shall be used when there are two to four income earners in the household.
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October 24, 2023
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Households which are initially eligible for Price Capped Community Housing units based on Maximum Income
Limits shall not become in -eligible, disqualified or non -compliant if the household income exceeds the Maximum
Income Limit during occupancy of that specific Price Capped Community Housing unit.
COUNCIL TO APPROVE FORM OF DEED RESTRICTIONS: All forms of Community Housing Deed
Restrictions must be approved by the Avon Town Council prior to use. All forms of Community Housing Deed
Restrictions must include these minimum terms and conditions:
Runs with the land and burdens future Buyers/Owners;
2. Expressly names the Town of Avon as a beneficiary of the Deed Restriction;
3. Any eligibility and primary residence requirements are verified annually by the Town of Avon;
4. Short -Term Rental use shall be prohibited;
5. Town must receive a minimum 60 days formal written notice of foreclosure prior to foreclosure; Town has
the right to cure the foreclosure; Town has option to purchase prior to foreclosure and Town has a first
right of refusal post foreclosure;
6. Restriction on owning other improved residential property, which includes a procedure and timeframe for
sale of existing residential property.
EMPLOYEE HOUSING MITIGATION: New development is required to provide Employee Housing Mitigation.
See AMC Section 7.20.100
K. CONVERSION OF RENTAL TO FOR -SALE RESTRICTED: No Rent Capped Community Housing or Resident
Occupied Community Housing Unit shall be converted in the future to For -Sale Community Housing through
subdivision, the cooperative form of ownership, condo conversion, or some similar form of ownership
inconsistent with its rental purpose, unless approved in writing in advance by the Town of Avon.
L. OWNERS ASSOCIATIONS: Any documents creating an owners' association should require that association
dues or assessments levied against Community Housing Units be prorated to a maximum of 75% of the
association dues or assessments levied against market rate units for mixed use projects consisting of 75% or
more unrestricted market rate residential (Short Term Rentals or second homes) or interval housing units
(Timeshares) (e.g. The Westin or Frontgate properties).
M. ACRONYMS:
ACHP - Avon Community Housing Policies
AMC- Avon Municipal Code
AMI — Area Median Income
CHU - Community Housing Unit
EC — Eagle County
ECAHGAP — Eagle County Affordable Housing Policies Administrative Procedures
FHA — Federal Housing Administration.
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00 - Owner Occupied
RO — Resident Occupied
TOA — Town of Avon
N. DEFINITIONS:
Adiusted Gross Income — The total income derived from a business, employment, and from income producing
property, less deductions for depreciation, taxes, and similar allowances related to the business or income producing
property.
Affordability Gap — The difference between the median home price in each Eagle County community (as defined by
zip code) and the average buying power of a typical household in that community, as provided for in the
Administrative Procedures.
Applicant — A prospective renter, an owner of Real Property, the owner's representative, owner of an option to
acquire the property or portion thereof, who is authorized to represent and/or act upon any application or submittal.
Area Median Income ("AMI")— The estimates of median household income compiled and released annually by the
United States Department of Housing and Urban Development, which may be modified on a Zip Code basis or other
geographic basis as determined by the Town of Avon.
Attainable Housing —All Deed Restricted Housing Units regardless of price. Units include Price Capped For -Sale
Housing, Price Capped Rental Housing, Resident Occupied For -Sale Housing, and Resident Occupied Rental
Housing.
Assets — Anything owned by an individual, which has commercial or exchange value. Assets consist of specific
property or claims against others, in contrast to obligations due others. See also definition for Gross Assets and Net
Assets.
Avon — The Town of Avon home rule municipality located in Colorado.
Avon Resident — Person living and/or working within the Town of Avon, or persons having a job commitment with a
Town of Avon employer.
Bedroom — That portion of a dwelling Unit intended to be used for sleeping purposes, which may contain closets,
may have access to a bathroom and which meets Building Code requirements for egress, light, and ventilation.
Capital Improvements — Any fixture erected as a permanent improvement to Real Property or that which adds to the
value of the Real Property.
Co -Signer— A joint signer of a promissory note who may not be listed on the deed of ownership on the housing unit
unless required by the Program Administrator.
Commercial Development — Any development that is not a Residential Development for which a Development
Permit is required. Institutional uses such as government buildings, schools, hospitals, churches and other religious
institutions, and facilities operated by non-profit service agencies are considered Commercial Development for
purposes of these Policies.
Commercial Mitigation — See AMC Section 7.20.100 Emolovee Housina Mitigation
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Community Housing —Residential housing which is subject to a deed restriction that limits use to long-term
residential use as a primary residence by qualified persons and which deed restriction may impose other restrictions
and limitations and may include terms deemed appropriate in the Council's sole discretion, including but not limited to
controls on the resale price of such residential property, and which deed restriction is enforceable by the Town. See
AMC Section 3.14.20 - Definitions
Comprehensive Plan — As defined in Avon Municipal Code Chapter 7 Development Code, as may be amended
from time to time.
Consumer Price Index X.P.L)' — The Consumer Price Index (C.P.I.) as published by the Bureau of Labor statistics
in the U.S. Department of Labor, for All Urban Wage Earners and Clerical workers (CPI.W) U.S. average all items.
Cost Burdened Household — A Household that is paying more than 30% of its income for housing costs.
County Resident — Person living and or working within Eagle County.
Debt/Income Ratio — The ratio of the monthly debt serviceable as a percentage of Gross Income.
Development Permit— Any preliminary or final approval of an application for rezoning, Planned Unit Development,
amendment of an existing Planned Unit Development, special use permit, subdivision, or similar application for new
construction. Applications for a building permit where no previous condition of approval required housing mitigation.
Disabili — A physical or mental impairment that substantially limits one or more of the major life activities of such
for an individual.
Displaced Tenants — Any person who is removed from his/her residence due to conversion or reconstruction of a
project.
Eagle County Administrative Procedures — The Eagle County Affordable Housing Policies Administrative
Procedures.
Eagle County Employee — Eagle County Employee as defined in Section 3.12.020 Definitions. This section States:
Eagle County employee means an employee working in Eagle County who works an average of at least thirty (30)
hours per week on an annual basis 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 (30) hours per week on an annual basis; 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 the residence for which such person seeks an exemption
under this Chapter is the primary residence for that person.
Eligible Household — A Household that includes an Eagle County Employee and meets qualifying criteria used in
establishing occupancy.
Emergency Worker— An employee or volunteer of a community -based organization that provides immediate
response health and safety services, including, but not limited to the following: Fire Department Workers; Mountain
Rescue; Sheriffs Deputies; Police Officers'; Hospital Emergency Room technicians; Social Service workers (mental
health and abuse case workers); ambulance drivers and EMT's.
Employee — Employee means a person employed in a building or on a property during normal periods of use.
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Employer— A business whose business address is located within Eagle County whose business employs
employees (as defined herein) within Eagle County, and whose business taxes are paid in the Town of Avon and/or
Eagle County.
Employee Housin_g — That housing used exclusively for persons employed in Eagle County.
Equity — That interest or value remaining in property after payment of all liens or charges on the property or the
monetary interest the owner has over and above the mortgage indebtedness.
Essential Worker —An employee who performs front-line work with public infrastructure or services, including but
not limited to street maintenance, water, waste water, schools, day care, and Emergency Workers.
Financial statement —A statement detailing all personal Assets, liabilities, and net worth (the difference between
Assets and liabilities) as of a specific date.
Gross Assets — Anything which has tangible or intangible value. Property of all kinds, real and Personal, tangible
and intangible, including, inter alia, for certain purposes, patents and causes of action which belong to any person
including a corporation and the estate of a decedent. The entire property of a person, association, corporation, or
estate that is applicable or subject to the payment of their to its debts.
Gross Household Income — Total amount of income a Household earns in one year from all sources before taxes.
Gross Income — The total income derived from a business, employment and from income producing property, before
deductions for expenses, depreciation, taxes and similar allowances.
Household — All individuals who will occupy a Unit regardless of legal status or relation to the owner or lessee.
Household Income Combined —Adjusted Gross Income of all individuals who will be occupying the Unit regardless
of legal status.
Housing Plan — A written plan submitted to the Town of Avon describing how an Applicant will satisfy the minimum
recommendations of the Avon Municipal Code or as required through a Development Agreement as approved by
Town Council.
Inclusionary Housing — The provision of Affordable Housing in Residential Developments to ensure adequate
housing stock for local residents and to maintain or increase the current ratio of primary to secondary home
ownership.
Initial Sales Price — The maximum price for which a Price Capped For -Sale Housing may be initially sold
Joint Tenancy — Title in real estate owned by two or persons with right of survivorship, which upon the death of one,
vests in the remaining joint tenant or tenants.
Drawing — A drawing of qualified households needed to select a winner from equal Applicants, who are tied for
highest priority.
Maxi -Bid Price — Calculation of purchase price multiplied by the appreciation (as identified in the Resale Agreement)
plus capital improvement costs including labor, if professionally provided, and for which verification of the expenditure
is provided.
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Maximum Rental Rate — The maximum monthly rent payment for a Price Capped Rental Housing Unit, as provided
for in the Administrative Procedures. All ongoing fees required to be paid by the resident (including but not limited to
utilities and mandatory parking fees) must be included within the Maximum Rental Rate.
Maximum Resale Price — The maximum amount an owner can sell the Housing Unit for per the deed restriction
requirements.
Mi Casa Avon — iMi Casa Avon! is a Deed Restriction program that assists Avon's workforce in purchasing homes
within the Town of Avon with the intention of preserving the Unit for full-time residents in perpetuity.
Minimum Occupancy— One person (with a leasehold/ownership interest) per bedroom. A minor child or dependent
shall be granted equal status.
Net Assets — Gross Assets minus Liabilities.
Non -Eligible Household —A Household that does not qualify as an Eligible Household.
Occupancy and Resale Deed Restriction and Covenant — A contract entered into between Town and the
purchaser at time of closing identifying conditions of occupancy resale.
Owner— The Owner of record of the CH according to the Clerk and Recorder of Eagle County during their period of
ownership interest.
Owner Occupied Community Housing —Housing subject to a Deed Restriction requiring that the Housing be
owned and occupied by an Eligible Household as its Primary Residence as set forth in this document.
Payment in Lieu —A payment made to the Town of Avon to satisfy a Project's recommended Housing mitigation.
Price Capped Community Housing — Collectively refers to For Sale Price Capped Community Housing and Rental
Price Capped Community Housing. Price Capped Community Housing is subject to a Deed Restriction requiring that
the Housing meet Initial Sales Prices, resale price appreciation limits, rental restrictions, quality, and other criteria set
forth in this document.
Primary Residence — 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 buyer is continuously occupying and using the residence as a Primary Residence.
Program Administrator— The Administrator of the Avon Community Housing Policies. The Program Administrator
shall be the Community Development Director, or designee, or such person appointed by the Town Manager.
Qualified Person — a person who has provided sufficient information for review and verification that such person
meets the minimum requirements for a qualified buyer or qualified resident by the Program Administrator.
Real Property — Property other than personal property as defined by the statutes of the State and does not include
trailers or mobile homes, except trailers or mobile homes, which, by way of a foundation, have become attached as
fixtures to the land on which they are located.
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Rent Capped Community Housing — Rental housing subject to a Deed Restriction requiring that the Housing meet
Rental Rate Restrictions, quality, annual compliance and other criteria set forth in this document.
Rental Rate Restrictions — The maximum Rental Rate for which a Rent Capped Community Housing unit may be
leased, as provided for in this document or deed restriction.
Retired Person or Older Person — a person at least 60 years of age or more at the time of initial occupancy.
Resale Agreement — A contract entered into between the Town and the purchaser at the time of closing identifying
the conditions of occupancy and resale.
Short Term Rentals — Any room or rooms, apartment, condominium, boardinghouse, hotel room, guesthouse, lodge,
campground site, recreational vehicle space, bed and breakfast, residence or similar accommodation generally used
for sleeping and made available for a fee or other consideration to guests on an overnight basis for a period fewer
than thirty (30) days, excluding any Unit classified as commercial property by the Eagle County Assessor.
Tenancy -in -common — Ownership of property between two or more Persons who have an undivided interest in the
whole property; no right of survivorship, when one of the owners dies, the interest passes to their heirs or
beneficiaries and not to the surviving tenants in common.
Transfer —Any grant, conveyance or alienation of Real Property, as evidenced by deed, instrument of conveyance
or exchange, or any other writing wherein or whereby title to Real Property is granted, conveyed or alienated, or the
conveyance of a possessory interest including any other indicia of ownership without the passing of legal title.
Note: Some terms within this Section may be considered retired (outdated) and no used within these Policies but
may be found within existing deed restriction language. Certain relevant definitions have also been updated within
these Policies. The Town of Avon may replace certain terms using other modernized definitions within this Section
when replacing or updating older documents.
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These policies are for Priced Capped Community Housing. The purpose of Price Capped Community Housing is to
provide housing that is affordable for lower AMI households and to preserve the affordability of such housing while
providing appropriate reimbursement of capital investments on resale.
A. Initial Pricing of Priced Capped Community Housing: The Initial Sales Price of Price Capped Community
Housing units shall be set no higher than at a price affordable to Households earning 140% of AMI, based on two
persons per bedroom (e.g. pricing for a three bedroom unit shall be based on the income limits for six persons).
B. Maximum Rental Rates for Rent Capped Community Housing: Maximum Rental Rates for Deed Restricted
Rental Housing Units must be set at rates that are affordable for households with incomes no greater than 120%
AMI, based on unit type.
C. Form of Deed Restrictions: All Deed Restrictions for For -Sale Price Capped Community Housing units must
use the form attached as EXHIBIT A.1 — PRICE CAPPED COMMUNITY HOUSING DEED RESTRICTION. All
Deed Restrictions for Rental Price Capped Community Housing units must use the form attached as EXHIBIT A.2
— RENTAL CAPPED COMMUNITY HOUSING DEED RESTRICTION.
These policies are for Occupied and Resident Occupied Community Housing. The purpose of Resident Occupied and
Resident Occupied Community Housing is to provide housing for full-time primary residential use without limiting the
price upon sale and resale and without limiting the rental rate.
A. Pricing of Non -Price Capped Community Housing: The sale price and rental price for Non -Price Capped
Community Housing is not restricted or limited and shall be determined by the Owner or Seller.
B. Form of Deed Restriction: All Deed Restrictions for Resident Occupied Non -Price Capped Community Housing
units must use the form attached as EXHIBIT A.3 — RESIDENT OCCUPIED COMMUNITY HOUSING DEED
RESTRICTION. All Deed Restrictions for Owner Occupied Non -Price Capped Community Housing units must
use the form attached as EXHIBIT A.4 — OWNER OCCUPIED COMMUNITY HOUSING DEED RESTRICTION.
A. Employment Qualification: At least one primary member of a Household must meet one or more of the
following criteria:
An Owner or Occupant meets the definition of Qualified Employee; or
2. A Retired Person or Older Person over the age of sixty (60) and had earned a living in the Town of Avon or
within Eagle County, for no less than five (5) years prior to the date of their retirement; or
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October 24, 2023
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3. A Person with a Disability who had been a full-time employee in the Town of Avon or within Eagle County
immediately prior to their Disability or has been granted an exception to the minimum of 30 hours per week
to continue with a federal or state Disability benefit program, or as qualifying programs allow; or
4. Owners and Members of Households that reside in the Town of Avon or within Eagle County but work for
employers that are located outside of Eagle County (e.g., remote workers). These employees may be
considered eligible if all other eligibility requirements are met and the Owner and or Member of the
Household can prove Town of Avon or Eagle County residency for no less than one year before application
submission, subject to the Program Administrator's sole discretion or as otherwise stated in the applicable
deed restriction; or
5. Members of the Household cumulatively earning at least 75% of the Household's Gross Household Income
in the Town of Avon or within Eagle County or Members of the Household that are considered qualified
renters by the Town of Avon or assigns.
6. At initial qualification of a purchase of a price capped unit, assets of the buyer cannot exceed 50% of the
list price for the unit.
B. Restriction on Owning Other Real Estate: No Qualified Person or immediate household members, including,
but not limited to, spouses, domestic partners and children under 18 years of age, may own other improved
residential real estate anywhere as of the date of purchase or occupancy of the Community Housing Unit, unless
such is under contract to sell such existing real estate and such person in fact conveys ownership of such existing
real estate within six (6) months. The Program Administrator may provide an additional six (6) month period to
convey such existing real estate for unforeseen circumstances. During ownership of a Community Housing Unit,
no Qualified Person or immediate household member shall own or acquire any interest, alone or in conjunction
with others, in any other improved residential real estate, including ownership via a corporation, limited liability
company, trust, or other legal entity.
C. Application Process for Price Capped Community Housing Units: Households interested in purchasing a
Price Capped Community Housing unit must apply to the Program Administrator to certify eligibility prior to
submitting an offer to purchase a unit. The application and any accompanying documentation will become the
property of the Program Administrator and will not be returned to the Applicant.
The Applicant must provide all of the following information and documentation:
1. Complete application. Applications can be obtained from the [website] or Program Administrator;
2. Evidence of employment by a Qualified Employer.
3. Evidence of residency in Eagle County, if applicable.
4. Affirmation on the application that your Household intends to live in the unit as your Primary Residence and
that no members of your Household own other improved residential real estate.
5. A prequalification letter from a mortgage lender for a mortgage with a fixed interest rate of at least 3 years
duration or a statement of proof of funds and submit a copy to the Program Administrator. Reverse
amortization mortgages are prohibited.
6. Provide proof of funds for a down payment equal to at least 3% of the purchase price or as otherwise stated
in the applicable Deed Restriction.
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October 24, 2023
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Once basic eligibility has been met, the Applicant submitting the highest and best offer (not to exceed the Maximum
Resale Price) will have the first right to negotiate for the purchase of the unit. If two or more equal offers are
received, those offers will be prioritized for selection based on the selection criteria listed below. The Program
Administrator will notify the Applicant if additional proof of any of the following items is necessary.
D. SELECTION PROCESS FOR PRICE -CAPPED COMMUNITY HOUSING UNITS: The following selection criteria
applies to all resales of Price -Capped Community Housing Units.
Upon owner notification of intention to sell, the resale timeline will be determined by the Program
Administrator.
In the event one (1) applicant applies for a Price Capped Community Housing Unit, no lottery is
required. In the event there is more than one applicant in the same priority category, a selection
process and (potentially), a lottery shall be held.
1. Priority. Applicants will be categorized in the following order:
a. Household income - Priority order will align with income. First priority is for incomes that fall
below 100% AMI, Second priority to those whose income falls below 120% AMI, Third priority to
those who fall below 140% AMI and so on. Preference will be for Applicant(s) who meet the
lowest of the available income categories but will not be selected solely based on lowest income
alone. If no applicants in the lowest or first category apply for the lottery, then the unit shall be
offered to the second income category, and so on.
b. Work History. Priority will be given to those who have worked full time within Eagle County for at
least 5 years, considered on a cumulative, calendar year basis. See Chapter 4.C.
Lottery Entries
Years Working Lottery Entries
1-5 1
6-10 2
11+ 3
b. Other.
There will be no consideration for those who do not meet the definition of Eligible Household.
The ability to purchase the unit with cash has no relevance to the selection process.
3. Lottery Process.
The Program Administrator shall hold a drawing comprised of applicants who have equal
qualifications, to determine the winning Applicant. The drawing shall be held by the Program
Administrator within five (5) to ten (10) business days from entry qualification determination. Drawing
entries shall be randomized, and the lottery shall occur during regular business hours.
E. RULES FOR SELECTION PROCESS FOR PRICE -CAPPED COMMUNITY HOUSING UNITS: The following
rules apply to the selection process for Price -Capped Community Housing Units:
1. The physical place of prior residency and local employment and/or employer is relevant. The Applicant's
mailing address or company headquarters is not. For example, company or organization headquarters are
located in "Town A", but the Eligible Household member reports to another physical location in "Town B." In
this example, the physical location where the Eligible Household member reports to daily, in "Town B", would
be considered the physical place of employment. Alternatively, the company or organization headquarters are
Avon Community Housing Policies
October 24, 2023
Page 14
located in "Town A" but work is completed at changing locations throughout the county (e.g.,
construction/landscaping). In this example, the location of the headquarters in "Town A" would be used.
2. Full time employment for an Eagle County Employee as defined in Section 3.12.020 of the Avon Municipal
Code.
3. Joint Applicants must meet the criteria for an Eligible Household. Combined income will be considered in
determining a max AMI%, with a combined income not to exceed the equivalent of a 4-person AMI%.
4. Income may be determined using the Applicant's most recent federal income tax return or if unavailable or if
income has changed, by Applicant's current paystubs, or other reasonable means as determined by the
Program Administrator.
5. All claims shall be verified by the Program Administrator. Claims of residency or employment that cannot be
verified will not be considered in determining length of employment or residency.
6. Eligible Households may have no more than two occupants per Bedroom at any time. For example, a
household of five (5) people does not qualify for a two (2) Bedroom unit.
7. Home office or remote work (remote workers) will be required to provide acknowledgement of home office
status from their employer.
8. Qualified Persons in existing CHUs located in the Town of Avon or Eagle County may receive higher priority
by the Town of Avon when being considered for a different CHU elsewhere within the Town of Avon.
F. APPLICATION PROCESS FOR PURCHASING NON -PRICE CAPPED COMMUNITY HOUSING UNITS:
Qualified persons interested in purchasing an existing Non -Price Capped Community Housing units must submit
an application to the Program Administrator to certify eligibility prior to submitting an offer to purchase a unit, unless
otherwise outlined in the recorded deed restriction. The application and any accompanying documentation will
become the property of the Town of Avon and/or the Program Administrator and will not be returned to the
Applicant.
The application steps are as follows:
1. Obtain an application from the Program Administrator.
2. Provide a verification of employment ("VOE") by a Qualified Employer as follows:
a. The two most recent pay stubs and, a W2 or VOE letter from employer(s), or
b. An employment contract or other documents that the Program Administrator deems necessary to make
this determination, or
c. Affidavit from employer verifying employment plus other documents that the Program Administrator deems
necessary for substantiation.
3. Most recent tax returns, if required by existing deed restriction
4. Affirm on the application that your Household intends to live in the unit as your Primary Residence and that,
unless otherwise stated in the deed restriction, no members of your Household own other real estate in Eagle
County.
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There are no selection criteria for resales of Resident Occupied For -Sale Housing units.
E. RENTAL OF A COMMUNITY HOUSING UNIT BY QUALIFIED EMPLOYERS FOR EMPLOYEES: Qualified
Employers may purchase a Community Housing Unit and lease to employees who are members of Eligible
Households. Qualified Employers may not impose additional Deed Restrictions to renters within these Units
without the written consent of the Program Administrator.
F. MAINTAINING OCCUPANCY: The Owner of a Community Housing Unit shall continue to use the unit as its
primary place of residence. The Owner of a Community Housing Unit will be deemed to have ceased to use the
unit as its Primary Residence by accepting permanent employment outside of Eagle County, by residing in the unit
for fewer than 9 months out of any 12 months, or by registering to vote outside of Eagle County.
G. COMPLIANCE: Once a Community Housing Unit has been purchased, it must continue to be owned and occupied
only by an Eligible Household. On an annual date set by the Program Administrator, the Owner of the Unit, shall
submit the following information to the Program Administrator:
1. A completely filled out compliance verification form stating that the Owner continues to meet employment and
residency requirements, as applicable; and
2. A statement that the Owner owns no other Real Property with the exceptions provided for herein.
The Program Administrator will provide either a paper or electronic form to CHU Owners. Failure to provide
information as required by the Program Administrator and any applicable deed restriction may result in forfeiture
of appreciation, a sale mandated by the Program Administrator, or any other available remedy at law or equity.
LEAVE OF ABSENCE — ALL COMMUNITY HOUSING UNITS: A leave of absence for the occupant of a
Community Housing Unit may be granted at the sole discretion of the Program Administrator, subject to clear and
convincing evidence that shows the reason for leaving and a commitment to return. Said evidence shall be in
written form and presented to the Program Administrator for review and decision prior to the Owner leaving. The
leave of absence shall be in accordance with the limitations as established in the subject Deed Restriction. In the
case of an approved leave of absence, the Owner shall only rent to an Eligible Household.
1. Unless otherwise stated in the applicable deed restriction, any and all charges to rent a Deed Restricted
Housing Unit during a leave of absence may not exceed the lesser of 1) Maximum Rental Rates for Rental
Housing at 100% AM I* or 2) the Owner's monthly housing expenses.
*See the ECAHGAP for current Maximum Rental Rates.
2. Tenant(s) must submit a complete application and receive approval from the Program Administrator prior to
occupancy. The Owner shall provide a copy of the executed lease agreement between the Owner and tenant
to the Program Administrator.
3. If a Community Housing Unit is listed for sale and the Owner has relocated outside of Eagle County, the unit
may, upon approval of the Program Administrator, be rented to an Eligible Household prior to completion of
the sale.
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A. APPLICATION PROCESS: Only Eligible Households may rent Price Capped and Resident Occupied
Community Housing Units, unless prohibited by other funding sources. Households must meet all other
requirements of the Deed Restriction. The Property Manager must document how eligibility and income was
confirmed and must keep a record of any documents supporting the eligibility determination.
B. ANNUAL VERIFICATION: The Property Manager of Price Capped and/or Rent Capped Community Units must
verify annually that the Owners and tenants follow the applicable Community Housing requirements. The
Property Manager shall submit a written statement to Avon including the following information and certifying that
such information is true and correct to the best of the Property Manager's knowledge and belief.
1. A list of Owners or tenants who occupy the Community Housing Units in the prior calendar year and the
evidence, to include income and employment documentation, submitted by such tenants to establish that
their Households were Eligible Households;
2. A copy of the lease form currently used for tenants of the Community Housing Units;
3. Copies (which may be electronic) of all application information submitted by the Eligible Households
occupying the Community Housing Units including but not limited to a copy of a driver's license, voter
registration, or vehicle registration information;
Manager shall maintain Owner's records with respect to the use and occupancy of the Community Housing Units
available to Avon or its authorized agent for inspection upon request for audit to confirm compliance with the
recorded deed restriction.
A. TRUST OWNERSHIP: An Eligible Household may seek a variance to allow the title of a Community Housing
Unit to be held in trust for the benefit of a natural person who also meets the definition of an Eligible Household
member. Such ownership in trust may only occur in the circumstances provided herein, at the sole discretion of
the Program Administrator, on a case -by -case basis.
In order to request a variance from the strict application of these Policies, the Applicant shall submit a letter
requesting a special review to the Program Administrator as follows:
1. Community Housing Units may be held in trust only for the benefit of a natural person who due to a physical
or mental impairment lacks the capacity to contract or is prevented by such impairment from acquiring title
to a unit in their own name. The letter shall include documentation of such impairment and the basis for
ownership in trust. It should be noted that the Applicant should submit any additional information reasonably
requested by the Program Administrator to allow the Program Administrator to process this special request.
2. The beneficiary of the trust may not own other residential Real Property.
3. The beneficiary of the trust must be of the age of majority to qualify under this section.
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4. The criteria set forth in these Policies may be met so long as the trust pre -qualifies for a loan. Further the
trust must prove an adequate means of ensuring that expenses associated with ownership, including, but
not limited to association dues and expenses are met.
5. Upon receipt of a request for a special review and any requested information and documentation, the
Program Administrator may grant the request with or without conditions, in a timely manner.
B. SHORT TERM RENTALS: Short Term Rentals are not permitted in any Community Housing Unit regardless of
type. A Short Term Rental is defined in AMC Section 3.29.020 - Definitions.
C. FORECLOSURES: In the event of a foreclosure or of acceptance of a deed in lieu of foreclosure by the holder
of a promissory note secured by a first deed of trust on a Community Housing Unit, Avon shall have the option to
purchase the unit prior to public sale, which option shall be exercised as set forth in the deed restriction. The
Owner has an obligation to notify the Program Administrator in writing once the Owner perceives a foreclosure
difficulty.
D. OTHER TITLE TRANSFERS: In the event that title to a Community Housing Unit transfers to a person or entity
that is not an Eligible Household, the Non -Eligible Household must notify the Program Administrator of its intent
as outlined below within 90 days of taking title to the unit.
1. The Non -Eligible Household may list the unit for sale, following the procedures outlined herein.
2. The Non -Eligible Household shall have one year to become an Eligible Household. In the event the Non -
Eligible Household is unable to become an Eligible Household in one year then the unit shall be listed For -
Sale as provided herein.
3. Non -Eligible Households shall not:
a. Occupy the Community Housing Unit;
b. Rent all or any part of the Community Housing Unit, except in strict compliance with these Policies;
c. Engage in any other business activity on or in the Community Housing Unit;
d. Sell or otherwise transfer the Community Housing Unit except in accordance with these Policies or
applicable Deed Restriction.
e. The Program Administrator may require the Non -Eligible Household to rent or sell the Community
Housing Unit in accordance with the provisions of these Administrative Procedures.
E. TAX SALE. In the event of a tax sale the 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 Community Housing Unit through a tax lien sale process.
F. PREVIOUS POLICIES. Within the 1990-1991 Avon Housing Policies, income limitations were classified as a
"Category". Under these Policies, income limitations shall utilize AMI rates and levels, or whatever methodology
in establishing income is employed by the Program Administrator.
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October 24, 2023
Page 18
A. SALES OF PRICE -CAPPED HOUSING UNITS:
1. Listinp Units. All Price Capped Community Housing Units must be listed for sale with the Program
Administrator, its designee, or as specified by the applicable deed restriction.
An Owner who wishes to sell the Price Capped Community Housing Unit must follow these steps:
a. Execute a standard Listing Contract on forms approved by the Program Administrator.
b. Consult with the Program Administrator to review the Deed Restrictions recorded against the unit to
determine the Maximum Resale Price and other applicable provisions concerning a sale.
c. The Program Administrator shall administer the sale in accordance with the requirements in effect at
the time of listing.
d. The Owner may consult legal counsel regarding examination of title and all contracts, agreements and
title documents. The retention of such counsel, licensed real estate brokers, or such related services
(excluding all sales fees), will be at the Owner's own expense and shall not be included in the
calculation of the Maximum Resale Price.
2. Inspection Prior to Sale. The Owner shall undertake a listing inspection by the Program Administrator or
assigns before executing a listing contract to determine the condition of the unit.
a. The Owner shall pay for the cost of the inspection at the time of inspection.
b. The inspector shall furnish a written report to the Owner and the Program Administrator.
c. This information shall be furnished to the purchaser as a part of the seller's property disclosure once a
purchase contract has been executed.
d. The inspection will be valid for no more than 60 days.
The Owner shall replace or repair any items that are identified as unsatisfactory in the report at market value
or reduce the listing price accordingly.
3. Sales Fees. Unless otherwise set forth in the applicable Deed Restriction, at the closing of the sale, the
Owner shall pay the Program Administrator or its designee a minimum sales fee of 2% (two percent) of the
sale price. This fee offsets the administration and associated fees of selling a unit and does not act as a
direct commission for a Town of Avon employee or third -party handling the transaction.
a. The Owner must deposit 0.5% (one half percent) of the list price with the Program Administrator upon
listing the unit for sale, known as the listing deposit.
b. If the Owner fails to perform under the listing contract, rejects all offers, or withdraws the listing after
advertising has commenced, the Owner shall not be refunded the listing deposit.
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October 24, 2023
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c. The listing deposit shall be considered a budgeted amount for advertising and administrative costs that
will be incurred by the Program Administrator. If the Program Administrator incurs any additional costs,
the Owner will be notified in advance by the Program Administrator and shall be responsible for those
additional costs.
d. Closing Costs. Sellers of Community Housing Units shall not permit any prospective buyer to assume
any of the seller's customary closing costs, including the fees set forth herein, nor accept any other
consideration that would increase the purchase price above a Maximum Resale Price to induce the
seller to sell to such prospective buyer.
B. MAXIMUM RESALE PRICE FOR PRICE -CAPPED HOUSING UNITS: No Owner of Price Capped Community
Housing shall sell the unit for an amount greater than the Maximum Resale Price for the unit. Maximum Resale
Price will be calculated as follows: Base Price + Appreciation of Base Price + Permitted Capital Improvements —
Depreciation of Capital Improvements + Sales Fee = Maximum Resale Price.
There are no resale price limitations on Resident Occupied For -Sale Housing, unless such a provision is
included within the pertinent deed restriction for that Unit.
C. INCREASES TO BASE PRICE AND PERMITTED CAPITAL IMPROVEMENTS FOR PRICE CAPPED
HOUSING UNITS: Certain capital improvements to a unit may be included in a Community Housing's Maximum
Resale Price. The following list outlines the costs that may be included in an Owner's Base Price as "Permitted
Capital Improvements" and provides a depreciation schedule for Permitted Capital Improvements. Base Price
items are not counted against the Permitted Capital Improvement allowance.
"Base Price": purchase price including garage, lot premium, or other developer inclusions
The following improvements may be included in the Base Price with the written approval of the Program
Administrator prior to the commencement of work:
1. Structural addition or addition of livable space including bathrooms, Bedrooms, exterior door, interior doors,
baseboard, window casing, insulation, and plumbing (excluding fixtures)
2. Modifications or improvements to accommodate a person with a Disability as defined in the Americans with
Disabilities Act of 1990.
Permitted Capital Improvements depreciated on a 5-year schedule
Replaced appliances
Door locks (including smart)
Gutters and downspouts
Washer/Dryer
Ceiling fans
Heat Tape
Water heaters
Thermostats (including smart)
Exterior paint
Carpet/pad replacement
Permanent fitted window blinds
Storm doors
Laminate flooring
Health and safety protection
Building permit fees
New garage door openers
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Permitted Capital Improvements depreciated on a 20-year schedule
Hardwood or tile flooring
Permanent landscaping
Solar panels
Solid stone countertops
Trees
Roof replacement (not reserved)
Light fixtures
Permanent irrigation systems
Furnace replacement
Plumbing fixtures
Outdoor decks
A/C, swamp cooler, split units
Cabinets and vanities
New fencing
Closet organization systems
Windows
Improvements that are NOT Permitted Capital Improvements
Jacuzzi, saunas, hot tubs, steam showers, etc.
Work done without issuance of a building permit
Maintenance, cleaning, painting, or improvements
to existing mechanical systems, fixtures, appliances
Decorative items including window coverings, lamps and
lighting not affixed to walls or ceilings, bathroom towels
bars, hooks, etc.
Gas or electric fireplaces
Cost of tools
Removable items not attached to the unit
Equipment rental
Security and smart home systems
Unless otherwise identified in the recorded deed restriction, the actual costs of Permitted Capital Improvements
made to a unit shall not exceed 10% of the Initial Sales Price for a five-year term, regardless of changes in
ownership. For every subsequent five-year period, an additional 10% of the value of the unit at the beginning of
that five-year period may be added into the value as Permitted Capital Improvements. The five-year period for
Permitted Capital Improvements shall not reset merely upon resale. No costs incurred in one five-year term may
be rolled into a different five-year term.
For an Owner to request Base Price Improvements and/or Permitted Capital Improvements be added to the
Maximum Resale Price, Owners must retain original receipts and invoices. Additionally:
1. Upon completion of the work the following must be submitted to the Program Administrator:
a. Legible copies of receipts for materials and or invoices for purchases.
b. Proof of payment by a third party and itemized invoice receipt for work performed.
2. In calculating the costs allowed as Permitted Capital Improvements, only the Owner's actual out of pocket
costs and expenses shall be eligible for inclusion. Such an amount shall not include an amount attributable
to the Owner's labor, or that of their employees or business, or to any appreciation in the value of these
improvements.
3. If an Owner pays cash for improvements, the Owner must provide third party documentation of payment. An
Owner must have an invoice for improvements, but if no such documentation of proof of cash payment can
be produced, the Program Administrator can inspect the improvement completed in the unit. Up to 75% of
documented invoice value may be included after an inspection, subject to depreciation, at the Program
Administrator's sole discretion.
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October 24, 2023
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4. Work that requires and is performed without the issuance of all required building permits or property owners'
association approval will not be included as a Base Price or Permitted Capital Improvement.
5. The value of the Permitted Capital Improvements will be added to the appreciated value of the unit at the
time of sale. No appreciation is allowed on Permitted Capital Improvements.
6. Other improvements to the Affordable Housing unit are allowed, but adjustments to the Maximum Resale
Price will only be given for Base Price and Permitted Capital Improvements.
If a Base Price Improvement and/or Permitted Capital Improvements or an improvement included in the Base
Price of the unit is removed or is no longer operational, the actual cost of the improvement shall be deducted
from the Base Price or Permitted Capital Improvement schedule. No other categories or types of expenditures
may qualify as Permitted Capital Improvements unless pre -approved in writing by the Program Administrator.
A. REQUIRED DOCUMENTS: The Program Administrator may request any and all documents and information
necessary to establish continued compliance with any restriction and with the HPGAP as amended from time to
time. The Owner of a Deed Restriction will provide documents that may include but are not limited to: Federal
and State Income Tax Returns, W2's, 1099's, bank statements, vehicle and license information, pay stubs and
invoices for utility payments. All information will maintain the confidentiality of financial information as provided
by law.
B. NON -QUALIFIED TRANSFEREE: In the event that title to a Community Housing Unit vests in any individual or
entity that is not a Qualified by descent, by foreclosure and/or redemption by any lien or mortgage holder (except
any holder of a HUD -insured First Mortgage), or by operation of law or any other event, the Town may elect to
notify the Non- Qualified individual or entity that it must sell the Community Housing Unit in accordance with this
Guide. A Non -Qualified individual or entity shall not: (i) occupy a Community Housing Unit; (ii) rent all or any part
of a Unit, except in strict compliance with the corresponding deed restriction and as approved in writing by the
Avon; (iii) engage in any business activity on or in a Community Housing Unit; (iv) sell or otherwise transfer a
Unit except in accordance with the applicable procedures; or (v) sell or otherwise transfer a Community Housing
Unit for use in trade or business.
C. FAILURE TO COMPLY: In the event an Owner fails to comply with any of the restrictions, Avon may, but is not
required to, provide notice to the owner of the Community Housing unit in violation and provide an opportunity for
the owner to cease and desist or cure. In the event a Community Housing Unit is occupied, transferred or leased
in violation of a deed restriction, Avon may, at its sole discretion, notify an Owner that it must immediately list the
Community Housing Unit for sale.
D. UNCURED VIOLATION: In the case of such an uncured violation, if required by Avon, the Owner shall: (i)
consent to any sale, conveyance or transfer of such Unit to a Qualified Owner; (ii) execute any and all
documents necessary to do so; and (iii) otherwise reasonably cooperate with Avon to take actions needed to
accomplish such sale, conveyance or transfer of such Community Housing Unit. For this purpose, Owner
constitutes and appoints Avon or the Program Administer as the Owner's true and lawful attorney -in -fact with full
power of substitution to complete or undertake any and all actions required or as set forth elsewhere in the
corresponding deed restriction. It is further understood and agreed that this power of attorney, which shall be
deemed to be a power coupled with an interest, cannot be revoked. Owner specifically agrees that all power
granted to Avon under this Covenant may be assigned by it to its successors or assigns.
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October 24, 2023
Page 22
E. REQUIRED RENTAL: In all situations where the provisions of this section apply, Avon may alternatively require
the Owner to promptly rent their Unit to a lessee that is deemed a Qualified Occupant in accordance with the
requirements of this Covenant and subject to the one (1) year limit while the Unit is listed for sale.
F. PRESERVATION OF DEED RESTRICTED UNIT: In order to preserve the value of community housing,
specifically, for persons of low to moderate income, and or to ensure the physical condition of the Community
Housing Unit, Avon shall also have and is hereby granted the right and option to purchase a Community Housing
Unit, exercisable within a period of fifteen (15) calendar days after notice is sent by Avon to the Owner that
requires the Owner to sell the Unit due to a violation pursuant to this Section. Avon shall complete the purchase
of such Unit within thirty (30) calendar days after exercising its option hereunder for a price equal to the lesser of
the appraised market value of the Unit, as determined by the Program Administer in its reasonable, good faith
judgment, or the Maximum Sale Price as may be limited by the underlying deed restriction.
An appeal is a request by a Community Housing Unit Owner or potential purchaser (collectively referred to as
"Owner") to reconsider an interpretation, action or failure to act in accordance with the rights, duties, welfare, or
status of these persons or entities under these Policies. Procedures for filing an appeal are as follows:
1. The Owner must submit a written appeal to the Program Administrator. It shall specify:
a. The decision for which the Owner requests reconsideration;
b. The grounds for the reconsideration of the decision;
c. The specific decision that the Owner requests; and
d. The name, address, telephone number, email address of the Owner filing the grievance and similar
information about his/her representative, if any.
2. Within thirty (30) days of receipt of a written appeal the Program Administrator may issue a written decision
or may request addition information. The Program Administrator may request a meeting with the Owner at
the discretion of the Program Administrator. If the Program Administrator requests additional information,
then the timeframe to provide a written decision shall be extended by thirty (30) days for the purpose of
receiving or collecting additional information. The Program Administrator shall provide a written decision on
the appeal within ten (10) business days of meeting with the Owner.
3. If Owner's appeal is not approved by the Program Administrator, the Owner may request a hearing before
the Town Manager, in accordance with the following procedures:
a. A written request for a hearing shall be submitted to the Program Administrator.
b. The Town Manager shall schedule a hearing date within forty-five (45) days of receipt of the hearing
request.
c. The Owner requesting the Hearing and the Program Administrator may provide information to the Town
Manager, including the decision which is the subject of the appeal, the initial appeal request and the
Avon Community Housing Policies
October 24, 2023
Page 23
appeal decision of the Program Administrator. All information received by the Town Manager shall be
shared with both the Owner and the Program Administrator prior to the appeals hearing.
d. The Town Manager may request additional information.
e. Written notice of the date, time and place of the appeal hearing shall be provided to the Owner at least
four (4) days in advance of the hearing, which timeframe may be waived by the Owner.
f. The Owner and the Program Administrator may be present at the appeal hearing.
g. The Town Manager shall consider all information provided prior to or during the appeal hearing,
including testimony of the Owner, Program Administrator or other persons. The Town Manager shall
provide a written decision within ten (10) business days of the appeals hearing.
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Page 24
APPENDIX A — DEED RESTRICTION TEMPLATES
Price Capped Community Housing Deed Restriction
Rent Capped Community Housing Deed Restriction
Owner Occupied Community Housing Unit (Mi Casa Avon Deed Restriction)
Resident Occupied Community Housing Unit
Avon Community Housing Policies
October 24, 2023
APPENDIX A.3.
TOWN OF AVON
PRICE CAPPED
COMMUNITY HOUSING DEED RESTRICTION
THIS PRICE CAPPED COMMUNITY HOUSING DEED RESTRICTION ("Deed
Restriction") is entered into on 20 (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 ("Town"), and [DEVELOPMENT
ENTITY], with an address of ("Declarant") (each
individually a "Party and collectively the "Parties").
WHEREAS, Declarant owns the real property and the improvements situated thereon,
located at , Avon, Colorado 81620, and more particularly described
in Exhibit A hereto ("Property"); and
WHEREAS, pursuant to the Avon Community Housing Policies ("ACHP"), as may be
amended from time to time, Declarant has agreed to place certain restrictions on the ownership
and sale of the Property for the benefit of the Town by requiring ownership and sale of the
Property as set forth in this Deed Restriction; and
WHEREAS, Declarant declares that the restrictive covenants set forth in this Deed
Restriction are covenants running with the land and are binding upon all owners of the Property;
and
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 ownership and sale of the Property shall be
restricted as 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 prospective qualified Owner who purchases the Property.
b. Eagle County Employee means an employee working in Eagle County who works an
average of at least thirty (30) hours per week on an annual basis 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 (30) hours per week on an annual
basis; or a person who derives income from self-employment whose business is situated
Price Capped Community Housing Deed Restriction
Page 1 of 12
in Eagle County; or a person who works for an employer outside Eagle County if that
person can demonstrate that the residence is the primary residence for that person.
C. Maximum Income Limit means the
d. Maximum Resale Price means the maximum price an Owner can sell the Property for.
e. Non -Qualified Owner means any person who does not meet the definition of Qualified
Owner at the time of closing.
f. Owner means the owner of record of the Property according to the Clerk and Recorder
of Eagle County during their period of ownership.
g. 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 occupants are continuously occupying and using
the Property as a primary residence.
h. Qualified Owner means an Eagle County Employee.
Second Home means the status of the Property when used by any person who has a
Primary Residence that is not the Property.
j. Short Term Rental means the rental or lease of the Property, in whole or in part, for a
fee or other consideration to guests on an overnight basis for a period fewer than thirty
(30) days.
k. 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. Recording. Immediately upon execution of this Deed Restriction by the Town and
Declarant, the Town shall cause this Deed Restriction to be recorded against the
Property in the real property records of Eagle County.
b. Sale. Sale of the Property shall be limited to a Qualified Owner (who may take title
with their spouse or civil union partner) at a cost not to exceed the Maximum Resale
Price.
C. Maximum Resale Price. The Maximum Resale Price for the Property shall be
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d. Lease. 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.
e. Exceptions. It shall not be deemed a violation of Section 3.d. above if:
i. 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
iii. 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.
f. Owner covenants that the Owner shall not permit any sale or lease of the Property in
violation of this Section 3.
g. 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.
h. 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.
b. The Property must be listed for sale with the Town's designee.
C. Owner shall consult with the Town to review this Deed Restriction and to determine the
Maximum Resale Price and other applicable provisions concerning a sale.
d. 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
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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.
e. 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.
f. 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.
g. 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.
h. 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 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 residence on the Property. This
Deed Restriction shall constitute permission to enter the Property during such times upon such
notice without further consent. A default by an 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.h. above.
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f. Failure to make payments and comply with the terms of any deed of trust placed on the
Property after any period for notice and cure provided in said deed of trust.
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 of the Property 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
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enforce the lien in the manner and according to the procedures set forth in Colorado Revised
Statutes, Section 31-20-105, 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 that
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. Freddie Mac and Fannie Mae. Notwithstanding the foregoing, in the event that the
Federal Home Loan Mortgage Corporation ("Freddie Mac") or the Federal National Mortgage
Association ("Fannie Mae") holds or is assigned a deed of trust for the Property, the rights of the
Town pursuant to the provisions of Sections 7 and 8 shall be subordinate to such deed of trust
and such deed of trust shall unconditionally be and remain at all times a lien or charge on the
Property, prior and superior to the lien or charge of the Town. Until repayment in full of the deed
of trust, the Town shall not exercise any of its rights or remedies with respect to Sections 7 or 8.
10. 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
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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
IO.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 sale 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 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.
E Notwithstanding Section 10.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.
11. Option to Purchase. In the event of default by the Owner which is not cured, or upon
receipt of a Notice of Election and Demand, other 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 10
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 after receipt of
notice as provided above ("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 (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 Owner.
d. The Town shall have the right to assign the Town's right to purchase the Property to
any party provided that this Deed Restriction shall remain in effect and burden the
Property.
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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."
E 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 10.d above, subject, however, to Section 10.f above.
In the event that Town's Option to Purchase arises from a default by Owner and not a
notice of foreclosure 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.
12. 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.
13. 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.
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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.
f. 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.
i. Deed Restriction Runs with the Land. Owner and any subsequent Owner of the
Property, and all other parties with an interest in title to the Property hereby
acknowledge, or are deemed to acknowledge by virtue of recordation of the deed by
which such Owner takes title to the Property, that this Deed Restriction shall constitute
an irrevocable covenant running with title to the Property as a burden thereon for the
benefit of the Town, or its assign, and shall be binding on the Owner of the Property,
and on its heirs, personal representatives, assigns, lessees, licensees and any transferee
of the Owner of the Property.
j. Successors. The provisions and covenants contained herein shall inure to and be
binding upon the heirs, successors and assigns of any Owner of the Property, and the
Town.
k. Personal Liability. By taking title to the Property, the Owner agrees that he or she
shall be personally liable for compliance with the applicable terms and conditions of
this Deed Restriction.
1. Further Actions. Any Owner of the Property and the Town 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 Deed Restriction or any agreement or document
relating hereto or entered into in connection herewith.
m. Perpetuities Savings Clause. If any of the terms, covenants, conditions, restrictions,
uses, limitations, obligations or options created by this Deed Restriction or any of its
Exhibits shall be unlawful or void for violation of. (a) the rule against perpetuities or
some similar 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 then -current duly elected
and seated Town Council, and the then -current Town of Avon employees, their now
living descendants, if any, and the survivor of them, plus twenty-one (21) years.
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n. 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.
o. 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.
p. 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.
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IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and
the year first written above.
DECLARANT:
Name:
Its:
STATE OF COLORADO )
ss.
COUNTY OF EAGLE )
The foregoing instrument was subscribed, sworn to and acknowledged before me this _
day of , 20 , by , as the owner of the real
property described above.
Witness my hand and official seal.
My commission expires:
TOWN OF AVON, COLORADO:
LON
Eric Heil, Town Manager
Price Capped Community Housing Deed Restriction
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Notary Public
Attest:
Brenda Torres, Town Clerk
Exhibit A
[Insert Property Legal Description]
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APPENDIX A.2.
TOWN OF AVON
RENT CAPPED
COMMUNITY HOUSING DEED RESTRICTION
THIS RENT CAPPED COMMUNITY HOUSING DEED RESTRICTION ("Deed
Restriction") is entered into on 20 (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 ("Town"), and [DEVELOPMENT
ENTITY], with an address of ("Declarant") (each
individually a "Party" and collectively the "Parties").
WHEREAS, Declarant owns the real property and the improvements situated thereon,
located at , Avon, Colorado 81620, and more particularly described
in Exhibit A hereto ("Property"); and
WHEREAS, pursuant to the Avon Community Housing Policies ("ACHP"), as may be
amended from time to time, Declarant has agreed to place certain restrictions on the lease and
occupancy of the Property for the benefit of the Town by requiring lease and occupancy of the
Property as set forth in this Deed Restriction; and
WHEREAS, Declarant declares that the restrictive covenants set forth in this Deed
Restriction are covenants running with the land and are binding upon all owners of the Property;
and
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 lease and occupancy of the Property shall be
restricted as 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. Eagle County Employee means an employee working in Eagle County who works an
average of at least thirty (30) hours per week on an annual basis 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 (30) hours per week on an annual
basis; 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 the residence is the primary residence for that person.
Rent Capped Community Housing Deed Restriction
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b. Maximum Rental Rate means the maximum monthly rent payment for the Property.
All ongoing fees required to be paid by the resident (including without limitation
utilities and mandatory parking fees) must be included within the Maximum Rental
Rate.
C. Owner means the owner of record of the Property according to the Clerk and Recorder
of Eagle County during their period of ownership.
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 occupants are continuously occupying and using
the Property as a primary residence.
e. Second Home means the status of the Property when used by any person who has a
Primary Residence that is not the Property.
f. Short Term Rental means the rental or lease of the Property, in whole or in part, for a
fee or other consideration to guests on an overnight basis for a period 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. Recording. Immediately upon execution of this Deed Restriction by the Town and
Declarant, the Town shall cause this Deed Restriction to be recorded against the
Property in the real property records of Eagle County.
b. Lease. Lease of the Property shall be limited to an Eagle County Employee (who may
lease with their spouse or civil union partner) at a cost not to exceed the Monthly
Rental Rate.
C. Monthly Rental Rate. The Monthly Rental Rate for the Property shall be
d. Occupancy and Use. Occupancy and use of the Property shall be limited to one or
more Eagle County Employees for occupancy and use as a Primary Residence for
periods of thirty (30) days or longer. Permitted occupancy and use shall include
immediate family members of the Eagle County Employee or Employees and
temporary invitees who do not provide compensation for temporary residence at the
Property. Use or lease of the Property as a Second Home or for Short Term Rental is
Rent Capped Community Housing Deed Restriction
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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.
e. Exceptions. It shall not be deemed a violation of Sections 3.b. or 3.d. above if:
i. 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.
g. 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.
h. 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. 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 residence on the Property. This
Deed Restriction shall constitute permission to enter the Property during such times upon such
notice without further consent. A default by an Owner shall include breach of the covenants set
forth in this Deed Restriction, including without limitation any of the following:
a. 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.
b. Failure to submit an annual certification of occupancy and use as described in Section
3.h above.
Rent Capped Community Housing Deed Restriction
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C. Failure to make payments and comply with the terms of any deed of trust placed on the
Property after any period for notice and cure provided in said deed of trust.
d. 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.
e. Permitting the use of the Property as a Short Term Rental or Second Home.
5. 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 of the Property 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.
6. 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
Rent Capped Community Housing Deed Restriction
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enforce the lien in the manner and according to the procedures set forth in Colorado Revised
Statutes, Section 31-20-105, 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 that
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.
7. 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 6 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.
8. Freddie Mac and Fannie Mae. Notwithstanding the foregoing, in the event that the
Federal Home Loan Mortgage Corporation ("Freddie Mac") or the Federal National Mortgage
Association ("Fannie Mae") holds or is assigned a deed of trust for the Property, the rights of the
Town pursuant to the provisions of Sections 6 and 7 shall be subordinate to such deed of trust
and such deed of trust shall unconditionally be and remain at all times a lien or charge on the
Property, prior and superior to the lien or charge of the Town. Until repayment in full of the deed
of trust, the Town shall not exercise any of its rights or remedies with respect to Sections 6 or 7.
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
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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.
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 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.
f. 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 Election and Demand, other 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 after receipt of
notice as provided above ("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 (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 Owner.
d. The Town shall have the right to assign the Town's right to purchase the Property to
any party provided that this Deed Restriction shall remain in effect and burden the
Property.
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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."
f. 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 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.
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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.
f. 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.
i. Deed Restriction Runs with the Land. Owner and any subsequent Owner of the
Property, and all other parties with an interest in title to the Property hereby
acknowledge, or are deemed to acknowledge by virtue of recordation of the deed by
which such Owner takes title to the Property, that this Deed Restriction shall constitute
an irrevocable covenant running with title to the Property as a burden thereon for the
benefit of the Town, or its assign, and shall be binding on the Owner of the Property,
and on its heirs, personal representatives, assigns, lessees, licensees and any transferee
of the Owner of the Property.
j. Successors. The provisions and covenants contained herein shall inure to and be
binding upon the heirs, successors and assigns of any Owner of the Property, and the
Town.
k. Personal Liability. By taking title to the Property, the Owner agrees that he or she
shall be personally liable for compliance with the applicable terms and conditions of
this Deed Restriction.
1. Further Actions. Any Owner of the Property and the Town 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 Deed Restriction or any agreement or document
relating hereto or entered into in connection herewith.
in. Perpetuities Savings Clause. If any of the terms, covenants, conditions, restrictions,
uses, limitations, obligations or options created by this Deed Restriction or any of its
Exhibits shall be unlawful or void for violation of. (a) the rule against perpetuities or
some similar 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 then -current duly elected
and seated Town Council, and the then -current Town of Avon employees, their now
living descendants, if any, and the survivor of them, plus twenty-one (21) years.
Rent Capped Community Housing Deed Restriction
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n. 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.
o. 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.
p. 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.
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IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and
the year first written above.
DECLARANT:
By:
Name:
Its:
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing instrument was subscribed, sworn to and acknowledged before me this _
day of , 20 , by , as the owner of the real
property described above.
Witness my hand and official seal.
My commission expires:
TOWN OF AVON, COLORADO:
By:
Eric Heil, Town Manager
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Notary Public
Attest:
Brenda Torres, Town Clerk
Exhibit A
[Insert Property Legal Description]
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APPENDIX A.3.
TOWN OF AVON
OWNER OCCUPIED
COMMUNITY HOUSING DEED RESTRICTION
(NON -PRICE CAPPED)
THIS OWNER OCCUPIED COMMUNITY HOUSING DEED RESTRICTION
("Deed Restriction") is entered into on 20 (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 ("Town"), and [DEVELOPMENT
ENTITY], with an address of ("Declarant") (each
individually a "Party" and collectively the "Parties").
WHEREAS, Declarant owns the real property and the improvements situated thereon,
located at , Avon, Colorado 81620, and more particularly described
in Exhibit A hereto ("Property"); and
WHEREAS, pursuant to the Avon Community Housing Policies ("ACHP"), as may be
amended from time to time, Declarant has agreed to place certain restrictions on the use and
occupancy of the Property for the benefit of the Town by requiring ownership and occupancy of
the Property as set forth in this Deed Restriction; and
WHEREAS, Declarant declares that the restrictive covenants set forth in this Deed
Restriction are covenants running with the land and are binding upon all owners of the Property;
and
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 use and development of the Property shall be
restricted solely and exclusively to residential development for Community Housing as 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 prospective 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 (30) hours per week on an annual basis 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)
Owner Occupied Community Housing Deed Restriction
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years in Eagle County for an average of at least thirty (30) hours per week on an annual
basis; 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 the residence is the primary residence for that person.
C. 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 meets the definition of Qualified Owner.
d. Owner means the owner of record of the Property according to the Clerk and Recorder
of Eagle County during their period of ownership.
e. 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 occupants are continuously occupying and using
the Property as a primary residence.
E Qualified Owner means an Eagle County Employee who occupies the Property as their
Primary Residence.
g. Second Home means the status of the Property when used by any person who has a
Primary Residence that is not the Property.
h. Short Term Rental means the rental or lease of the Property, in whole or in part, for a
fee or other consideration to guests on an overnight basis for a period fewer than thirty
(30) days.
i. 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. Recording. Immediately upon execution of this Deed Restriction by the Town and
Declarant, the Town shall cause this Deed Restriction to be recorded against the
Property in the real property records of Eagle County.
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).
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
Owner Occupied Community Housing Deed Restriction
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use of the 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. Exceptions. It shall not be deemed a violation of Sections 3.b. or 3.c. above if:
i. 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.
Owner Occupied Community Housing Deed Restriction
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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.
f. 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 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 residence on the Property. This
Deed Restriction shall constitute permission to enter the Property during such times upon such
notice without further consent. A default by an 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.
Owner Occupied Community Housing Deed Restriction
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e. Failure to submit an annual certification of occupancy and use as described in Section
3.g above.
f. Failure to make payments and comply with the terms of any deed of trust placed on the
Property after any period for notice and cure provided in said deed of trust.
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 of the Property 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
Owner Occupied Community Housing Deed Restriction
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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 31-20-105, 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 that
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. Freddie Mac and Fannie Mae. Notwithstanding the foregoing, in the event that the
Federal Home Loan Mortgage Corporation ("Freddie Mac") or the Federal National Mortgage
Association ("Fannie Mae") holds or is assigned a deed of trust for the Property, the rights of the
Town pursuant to the provisions of Sections 7 and 8 shall be subordinate to such deed of trust
and such deed of trust shall unconditionally be and remain at all times a lien or charge on the
Property, prior and superior to the lien or charge of the Town. Until repayment in full of the deed
of trust, the Town shall not exercise any of its rights or remedies with respect to Sections 7 or 8.
10. 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.
O%rner Occupied Community Housing Deed Restriction
Page 6 of 12
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
10.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 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.
f. Notwithstanding Section 10.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.
11. Option to Purchase. In the event of default by the Owner which is not cured, or upon
receipt of a Notice of Election and Demand, other 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 10
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 after receipt of
notice as provided above ("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 (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 Owner.
Owner Occupied Community Housing Deed Restriction
Page 7 of 12
d. The Town shall have the right to assign the Town's right to purchase the Property to
any party 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."
f. 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 10.d above, subject, however, to Section 10.f above.
In the event that Town's Option to Purchase arises from a default by Owner and not a
notice of foreclosure 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.
12. 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.
13. 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.
Owner Occupied Community Housing Deed Restriction
Page 8 of 12
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.
f. 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.
i. Deed Restriction Runs with the Land. Owner and any subsequent Owner of the
Property, and all other parties with an interest in title to the Property hereby
acknowledge, or are deemed to acknowledge by virtue of recordation of the deed by
which such Owner takes title to the Property, that this Deed Restriction shall constitute
an irrevocable covenant running with title to the Property as a burden thereon for the
benefit of the Town, or its assign, and shall be binding on the Owner of the Property,
and on its heirs, personal representatives, assigns, lessees, licensees and any transferee
of the Owner of the Property.
j. Successors. The provisions and covenants contained herein shall inure to and be
binding upon the heirs, successors and assigns of any Owner of the Property, and the
Town.
k. Personal Liability. By taking title to the Property, the Owner agrees that he or she
shall be personally liable for compliance with the applicable terms and conditions of
this Deed Restriction.
Further Actions. Any Owner of the Property and the Town 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 Deed Restriction or any agreement or document
relating hereto or entered into in connection herewith.
m. Perpetuities Savings Clause. If any of the terms, covenants, conditions, restrictions,
uses, limitations, obligations or options created by this Deed Restriction or any of its
Exhibits shall be unlawful or void for violation of. (a) the rule against perpetuities or
some similar 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
Owner Occupied Community Housing Deed Restriction
Page 9 of 12
provision shall continue only for the period of the lives of the then -current duly elected
and seated Town Council, and the then -current Town of Avon employees, their now
living descendants, if any, and the survivor of them, plus twenty-one (21) years.
n. 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.
o. 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.
p. 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.
Owner Occupied Community Housing Deed Restriction
Page 10 of 12
IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and
the year first written above.
DECLARANT:
Name:
Its:
STATE OF COLORADO )
ss.
COUNTY OF EAGLE )
The foregoing instrument was subscribed, sworn to and acknowledged before me this _
day of , 209 by , as the owner of the real
property described above.
Witness my hand and official seal.
My commission expires:
Notary Public
TOWN OF AVON, COLORADO:
Attest:
Eric Heil, Town Manager
Owner Occupied Community Housing Deed Restriction
Page 11 of 12
Brenda Torres, Town Clerk
Exhibit A
[Insert Property Legal Description]
Owner Occupied Community Housing Deed Restriction
Page 12 of 12
APPENDIX AA.
TOWN OF AVON
RESIDENT OCCUPIED
COMMUNITY HOUSING DEED RESTRICTION
(NON -PRICE CAPPED)
THIS RESIDENT OCCUPIED COMMUNITY HOUSING DEED RESTRICTION
("Deed Restriction") is entered into on 20 (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 ("Town"), and [DEVELOPMENT
ENTITY], with an address of ("Declarant") (each
individually a "Party" and collectively the "Parties").
WHEREAS, Declarant owns the real property and the improvements situated thereon,
located at , Avon, Colorado 81620, and more particularly described
in Exhibit A hereto ("Property"); and
WHEREAS, pursuant to the Avon Community Housing Policies ("ACHP"), as may be
amended from time to time, Declarant has agreed to place certain restrictions on the use and
occupancy of the Property for the benefit of the Town by requiring occupancy of the Property as
set forth in this Deed Restriction; and
WHEREAS, Declarant declares that the restrictive covenants set forth in this Deed
Restriction are covenants running with the land and are binding upon all owners of the Property;
and
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 use and development of the Property shall be
restricted solely and exclusively to residential development for Community Housing as 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. Eagle County Employee means an employee working in Eagle County who works an
average of at least thirty (30) hours per week on an annual basis 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 (30) hours per week on an
annual basis; 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
Resident Occupied Community Housing Deed Restriction
Page 1 of 11
County if that person can demonstrate that the residence is the primary residence for
that person.
b. Non -Qualified Resident means any person who does not meet the definition of
Qualified Resident, including persons who originally qualified as a Qualified
Resident but whose circumstances change and who no longer meets the definition of
Qualified Resident.
C. Owner means the owner of record of the Property according to the Clerk and
Recorder of Eagle County during their period of ownership.
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 occupants are continuously
occupying and using the Property as a primary residence.
e. Qualified Resident means an Eagle County Employee who occupies the Property as
their Primary Residence.
f. Second Home means the status of the Property when used by any person who has a
primary residence that is other than the Property.
g. Short Term Rental means the rental or lease of the Property, in whole or in part, for a
fee or other consideration to guests on an overnight basis for a period fewer than
thirty (30) days.
h. 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. Recording. Immediately upon execution of this Deed Restriction by the Town and
Declarant, the Town shall cause this Deed Restriction to be recorded against the
Property in the real property records of Eagle County.
b. Occupancy and Use. The Property shall be occupied by at least one (1) Qualified
Resident. Permitted occupancy and use shall include immediate family members of
the Qualified Resident(s) and temporary invitees who do not provide compensation
for temporary residence at the Property. Any lease of the Property shall be 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 that is not
allowed or is prohibited by this Deed Restriction shall constitute a default of this
Resident Occupied Community Housing Deed Restriction
Page 2 of I
Deed Restriction and shall be subject to the enforcement provisions and remedies
contained in this Deed Restriction against the Owner.
C. Exceptions. It shall not be deemed a violation of Sections 3.a. or 3.b. above if:
i. The occupant of the Property who was a Qualified Resident at the time their
occupancy began becomes a Non -Qualified Resident because the occupant
becomes disabled and is no longer able to work as determined by the Town in
its sole exclusive discretion; or
ii. The occupant of the Property who was a Qualified Resident at the time their
occupancy began becomes a Non -Qualified Resident because the occupant 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 a Qualified Resident, provided that the period of
vacancy of the Property shall not exceed twelve (12) months.
d. Every Owner, by taking title to the Property, covenants that the Owner shall not permit
any occupancy, use or lease of the Property in violation of this Section 3.
e. Every Owner, by taking title to the Property, covenants that any lease of the Propety
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
Qualified Resident status.
f. No later than February 1st of each year, the Owner shall submit to the Town a
certification setting forth evidence establishing that the occupancy and use of the
Property 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. 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 residence on the Property. This Deed
Restriction shall constitute permission to enter the Property during such times upon such notice
without further consent. A default by an Owner shall include breach of the covenants set forth in
this Deed Restriction, including without limitation any of the following:
a. Occupancy of the Property by a person who is a Qualified Resident prior to obtaining
certification from the Town that such person is a Qualified Resident.
b. Any use or occupancy of the Property in violation of Section 3 above.
Resident Occupied Community Housing Deed Restriction
Page 3 of 11
C. Failure to submit an annual certification of occupancy and use as described in Section 3.f
above.
d. Failure to make payments and comply with the terms of any deed of trust placed on the
Property after any period for notice and cure provided in said deed of trust.
e. 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.
f. Permitting the use of the Property as a Short Term Rental or Second Home.
5. 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 of the Property 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.
6. 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
Resident Occupied Community Housing Deed Restriction
Page 4 of 11
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 31-20-105, 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 that 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.
7. 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 6 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.
8. Freddie Mac and Fannie Mae. Notwithstanding the foregoing, in the event that the
Federal Home Loan Mortgage Corporation ("Freddie Mac") or the Federal National Mortgage
Association ("Fannie Mae") holds or is assigned a deed of trust for the Property, the rights of the
Town pursuant to the provisions of Sections 6 and 7 shall be subordinate to such deed of trust and
such deed of trust shall unconditionally be and remain at all times a lien or charge on the Property,
prior and superior to the lien or charge of the Town. Until repayment in full of the deed of trust,
the Town shall not exercise any of its rights or remedies with respect to Sections 6 or 7.
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
Resident Occupied Community Housing Deed Restriction
Page 5 of 11
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 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.
f. 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 Election and Demand, other 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 after receipt of notice
as provided above ("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 (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
Owner.
d. The Town shall have the right to assign the Town's right to purchase the Property to any
party provided that this Deed Restriction shall remain in effect and burden the Property.
Resident Occupied Community Housing Deed Restriction
Page 6 of I I
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."
f. 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 Sections 9.e and 9.f above. In the
event that Town's Option to Purchase arises from a default by Owner and not a notice of
foreclosure 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
Resident Occupied Community Housing Deed Restriction
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Eagle County, Colorado and the original executed and record documents must be
returned to the Town.
f. 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.
i. Deed Restriction Runs with the Land. Owner and any subsequent Owner of the
Property, and all other parties with an interest in title to the Property hereby
acknowledge, or are deemed to acknowledge by virtue of recordation of the deed by
which such Owner takes title to the Property, that this Deed Restriction shall constitute
an irrevocable covenant running with title to the Property as a burden thereon for the
benefit of the Town, or its assign, and shall be binding on the Owner of the Property,
and on its heirs, personal representatives, assigns, lessees, licensees and any transferee
of the Owner of the Property.
j. Successors. The provisions and covenants contained herein shall inure to and be
binding upon the heirs, successors and assigns of any Owner of the Property, and the
Town.
k. Personal Liability. By taking title to the Property, the Owner agrees that he or she
shall be personally liable for compliance with the applicable terms and conditions of
this Deed Restriction.
1. Further Actions. Any Owner of the Property and the Town 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 Deed Restriction or any agreement or document
relating hereto or entered into in connection herewith.
m. Perpetuities Savings Clause. If any of the terms, covenants, conditions, restrictions,
uses, limitations, obligations or options created by this Deed Restriction or any of its
Exhibits shall be unlawful or void for violation of: (a) the rule against perpetuities or
some similar 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 then -current duly elected
and seated Town Council, and the then -current Town of Avon employees, their now
living descendants, if any, and the survivor of them, plus twenty-one (2 1 ) years.
n. Section Headings. Paragraph or section headings within this Deed Restriction are
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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.
o. 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.
p. 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]
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IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day
and the year first written above.
DECLARANT:
By:
Name:
Its:
STATE OF COLORADO )
ss.
COUNTY OF EAGLE )
The foregoing instrument was subscribed, sworn to and acknowledged before me this
day of , 20 , by , as the owner of the
real property described above.
Witness my hand and official seal.
My commission expires:
Notary Public
TOWN OF AVON, COLORADO:
Attest:
Eric Heil, Town Manager
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Brenda Torres, Town Clerk
Exhibit A
[Insert Property Legal Description]
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APPENDIX B — RECOMMENDED LANGUAGE FOR USE IN LEGAL DOCUMENTS
E.g., Declarations and Covenants, Plat Notes, etc.
COVENANTS
The Town of Avon hereby reserves the right to participate as a voting member of the "(Home)Owner(s) Association"
as an equity partner to the Owner listed on Title for any properties restricted as a Town of Avon Deed Restricted
Housing Unit.
The Town of Avon reserves the right to review any financial documents as approved by the "(Home)Owner(s)
Association".
PLAT NOTES
Using "Community Housing" as a Use:
All properties within / Lots / Parcel Nos. are
hereby restricted as Community Housing Units, subject to the requirements of the Avon Municipal Code Titles 3 and
7.
Using Inclusionary Housing Requirements:
Unit Nos. are hereby restricted as Community Housing Units ("CHU"),
subject to the requirements of the Avon Municipal Code and Avon Community Housing Policies ("ACHP"), until or
unless said restriction is released by the Town of Avon.
Avon Community Housing Policies
October 24, 2023