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TC Ord. No. 24-11 Amendmending Chapter 3.12.060 Real Property Transfer Tax to Increase The Primary Residence ExemptionA neon C O L O R A U O TOWN OF AVON, COLORADO ORDINANCE NO.24-11 AMENDING CHAPTER 3.12.060 REAL PROPERTY TRANSFER TAX TO INCREASE THE PRIMARY RESIDENCE EXEMPTION WHEREAS, the Town of Avon, Colorado ("Town") is a home rule municipality and political subdivision of the State of Colorado ("State") organized and existing under a home rule charter ("Charter") pursuant to Article XX of the Constitution of the State; and WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule powers of the Town, the Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Town Council adopted the Town of Avon Community Housing Plan on December 13, 2018, which included a policy to "formalize a fee waiver/reimbursement process" and which included an Appendix A: Avon Community Housing Plan — Work Plan that contemplated formalizing a Fee Waiver Program; and WHEREAS, the Town Council finds that amendments to the Avon Municipal Code will promote the health, safety and general welfare of the Avon community; and WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that the Town Council desires to comply with the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the Ordinance and that approval of this Ordinance on First Reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this Ordinance. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Amendment of Section 3.12.060 — Exemptions. Section 3.12.060 of the Avon Municipal Code is hereby amended to enact a new Section 3.12.060(17) to read as follows: "3.12.060 (17) The first five hundred thousand thousand dollars ($500,000) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. The same applicant has not previously received an exemption pursuant to this subsection; b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: Ord. 24-11 June 11, 2024 Page I of 5 1. An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co -signor shall not disqualify the exemption for the applicant where the co -signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co -signor is not a co -purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record. c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. Section 3. Amendment of Section 3.12.060 — Exemptions. Section 3.12.060 of the Avon Municipal Code is hereby amended to enact a new Section 3.12.060(18) to read as follows: "3.12.060 (18) The five hundred thousand dollars ($500,000) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided that the following conditions are met: The applicant previously received a primary residence exemption pursuant to Section 3.12.060(17) and the applicant has satisfied the conditions of subsection (17)b.1. and 2. of Section 3.12.060; and An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the applicant's current primary residence used to satisfy the requirements of Section 3.12.060(17) is within the Town; that the applicant meets the definition of an Eagle County employee; that the real property is being purchased for use as a new primary residence and not for investment or resale (provided that a co -signor shall not disqualify the exemption for the applicant where the co -signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co -signor is not a co -purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event that the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence or shall cease to meet the definition of an Eagle County employee within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. Section 4. Amendment of Section 3.12.060 — Exemptions. Section 3.12.060 of the Avon Municipal Code is Ord. 24-1 1 June 11, 2024 Page 2 of 5 hereby amended to enact a new Section 3.12.060(19) to read as follows: "3.12.060 (19) In the alternative to the exemption in sub -sections (17) and (18) of this Section 3.12.060, a buyer may exempt SEVEN HUNDRED FIFTY THOUSAND DOLLARS ($750,000)] of the consideration paid for any sale or conveyance of residence for occupancy as a primary residence (including both the first purchase in Avon and subsequent purchases), provided the following conditions are met: a. The total consideration paid forthe residence does not exceed ONE MILLION FOUR HUNDRED THOUSAND DOLLARS [$1,400,000.00]; b. The residence is used and occupied by the buyer as primary residence for a period of three (3) years or until sold by buyer, whichever occurs first; c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction; d. An application for exemption is filed with the Finance Department, which application is accompanied by: 1. Verification that the total consideration paid for the residence in the conveyance does not exceed ONE MILLION FOUR HUNDRED THOUSAND DOLLARS [$1,400,000.00]; 2. An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co -signor shall not disqualify the exemption for the applicant where the co -signor is signing for the sole purpose of facilitating the financing qualifications of the buyer and signs an affidavit that the co -signor is not a co -purchaser for investment or resale purposes); 3. A promissory note with the following minimum provisions: I. The promissory note shall be in the amount of the total exempted tax otherwise owing together with interest at the rate of one and one-half percent (1%%) per month (eighteen percent [18%] per annum, compounded annually); and, ii. The promissory note shall state that the exempted tax and accrued interest shall be due and payable in full in the event that the buyer: A. shall fail to occupy and use the property as a primary residence within the timeframe established for initial occupancy under the definition of primary residence found in Section 3.12.020; or B. shall cease to use the property as the buyer's primary residence at any time after establishing initial occupancy until the three (3) year period after conveyance or sale of the residence, whichever is sooner. 4. A lien granted to Town securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record, and which lien shall be released if the residence has been occupied and used by the buyer in compliance with this sub -section (19) for a period of three years after conveyance or until sale of the residence, whichever is sooner; and, Ord. 24-11 June 11, 2024 Page 3 of 5 5. Verification of the amount of the real estate transfer tax actually paid by buyer, or the portion of the real estate transfer tax that buyer is responsible to pay, in the closing statement or other written document signed by buyer and seller." Section 5. Codification Amendments. The codifier of the Town's Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 6. Interpretation. This Ordinance shall be interpreted and applied to comply in all respects with Article X, Section 20, of the Colorado Constitution, in its application to any person or circumstance and no part of this Ordinance shall be interpreted or applied to constitute a tax policy change that would require voter approval. Section 7. Non-Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid or held to be in conflict with Article X, Section 20, of the Colorado Constitution, such invalidity or conflict shall invalidate this Ordinance in its entirety. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term "provision" means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term "application" means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 8. Effective Date. This Ordinance shall take effect thirty (30) days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 9. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessaryforthe preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 10. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Section 11. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. Ord. 24-11 June 11, 2024 Page 4 of 5 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on April 9, 2024 and setting such public hearing for June 11, 2024 at the Council Chambers of the Avon Town Ha cated at 100 Mikaela Way, Avon, Colorado. DEN BY' ATTEST: ty P fillips, Mayor Miguel Jaur ADOPTED ON SECOND AND FINAL READING on July 9, 2024. APPROVED AS TO FORM: Nina Williams, Town Attorney Ord. 24-11 June 11, 2024 Page 5 of 5 Casanueva, ATTEST: Miguel tre ui Casanueva, 1 'Clerk wclerk :SEAL.: