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TC Resolution 25-01 Approving the 2025 Update to the Avon Community Housing Policies DocumentA .von COLORADO RESOLUTION 25-01 APPROVING THE 2025 UPDATE TO THE AVON COMMUNITY HOUSING POLICIES DOCUMENT WHEREAS, the Avon Community Housing Policies were adopted in September of 2023; and WHEREAS, community housing practices and efforts have changed requiring this document to be updated to reflect contemporary management of existing and ongoing housing programs, and WHEREAS, the goal of Staff and Town Council is to allow this document to be updatable and to be maintained as a living document; and WHEREAS, the 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 hereby adopts the 2025 Town of Avon Avon Community Housing Policies document that supports Community Housing programs and projects in the Town of Avon. ADOPTED this 8") day of P Q / 2025. AVON TOWN COUN Attest: Underwood, Mayor Miguel Jau �pWN OF A O't� :SEAL: Casanueva Td,wn Clerk. �PLo Res 25-01 ACHP Page 1 of 1 AVON COMMUNITY HOUSING POLICIES LULJ Avon Community Housing Policies 2025 PURPOSE: The purpose of the Avon Community Housing Policies is to establish policies and technical procedures for acquiring, developing, buying, owning, selling, renting, and managing affordable housing that meets the needs of the Avon community. "Community Housing" contemplates providing housing for all segments of the Avon community which cannot otherwise afford market rate rental and/or 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 "ACHP" or "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. They describe the authorization to perform certain tasks and transactions administratively. These Policies are adopted by Resolution and intended to be updated regularly through approval by Town Council. This method of revision and adoption allows the Town to make regular updates as market conditions, industry changes, and usefulness of particular policies warrant. INTENTION: 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. The current version of these Policies 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 other programs. These provisions apply to both Price Capped and Resident Occupied deed restrictions and apply to both for sale and for rent units. These Policies are separated into chapters which set forth the requirements for developers, buyers, owners, managers, and sellers of affordable housing units and projects. The Policies reference the Eagle County Affordable Housing Guidelines Administrative Procedures ("Guidelines"). These Guidelines are updated by Eagle County Government and the Eagle County Housing & Development Authority. The Guidelines include data tables for Area Median Income, Maximum Rental Rates and Maximum Initial Sales Prices based on current economic data published by various State and Federal Agencies. TABLE OF CONTENTS CHAPTER1.................................................................................................................................................................1 INTRODUCTION..........................................................................................................................................................1 I_m1►11:191Bill" II0I B. ADOPTION AND AMENDMENTS: ....................................................................................................................... 1 C. INTERPRETATION..............................................................................................................................................1 D. ADMINISTRATION...............................................................................................................................................1 E. AUTHORIZATION: ............................................................................................................................................... 1 F. AREA MEDIAN INCOME: ..................................................................................................................................... 1 G. INCOME LIMITS...................................................................................................................................................1 H. PREVIOUS POLICIES. ......................................................................................................................................... 1 I. COUNCIL TO ESTABLISH COMMUNITY HOUSING PROGRAMS: ................................................................... 2 J. ACRONYMS: ........................................................................................................................................................ 2 CHAPTER2.................................................................................................................................................................2 DEFINITIONS..............................................................................................................................................................2 CHAPTER3.................................................................................................................................................................7 DEVELOPERS I INFORMATION FOR DEVELOPERS OF ALL COMMUNITY HOUSING........................................7 A. FOR SALE PRICE CAPPED COMMUNITY HOUSING......................................................................................7 B. FOR SALE RESIDENT OCCUPIED COMMUNITY HOUSING..........................................................................8 C. FOR RENT PRICE CAPPED COMMUNITY HOUSING: .................................................................................... 8 D. FOR RENT RESIDENT OCCUPIED COMMUNITY HOUSING..........................................................................9 E. GENERAL PROVISIONS I DEVELOPMENT OF ALL COMMUNITY HOUSING UNITS.....................................9 CHAPTER4...............................................................................................................................................................10 BUYERS I ELIGIBILITY AND SELECTION OF FOR SALE UNITS.........................................................................10 A. ELIGIBILITY REQUIREMENTS FOR HOUSEHOLD MEMBERS: ...................................................................... 10 B. RESTRICTION ON OWNING OTHER REAL ESTATE: ..................................................................................... 10 C. APPLICATION PROCESS: ................................................................................................................................. 11 D. APPLICATION CRITERION: ..... ........................................................................................................................ 12 E. BUYER SELECTION PROCESS I PRICE CAPPED UNITS: .......................................................................... _ 13 F. SELECTION PROCESS I RESIDENT OCCUPIED COMMUNITY HOUSING UNITS: ....................................... 15 CHAPTER5 ...............................................................................................................................................................15 OCCUPANTS I REQUIREMENTS OF OWNERS AND RENTERS OF FOR SALE UNITS......................................15 A. RENTAL OF A COMMUNITY HOUSING UNIT BY QUALIFIED EMPLOYERS FOR EMPLOYEES: ................. 15 B. MAINTAINING OCCUPANCY: ........................................................................................................................... 15 C. COMPLIANCE: ................................................................................................................................................... 15 D. LEAVE OF ABSENCE —ALL COMMUNITY HOUSING UNITS: ........................................................................ 16 E. SHORT TERM RENTALS: .................................................................................................................................. 16 F. FORECLOSURES: ............................................................................................................................................. 16 G. TRUST OWNERSHIP: ....................................................................................................................................... . 16 H. OTHER TITLE TRANSFERS: ............................................................................................................................. 17 Avon Community Housing Policies April 8, 2025 Table of Contents CHAPTER6...............................................................................................................................................................17 SELLERS I SALE & RESALE OF FOR SALE UNITS..............................................................................................17 A. SALES OF PRICE CAPPED HOUSING UNITS: ................................................................................................ 17 B. MAXIMUM RESALE PRICE FOR PRICE CAPPED HOUSING UNITS: ............................................................. 19 C. INCREASES TO BASE PRICE AND PERMITTED CAPITAL IMPROVEMENTS FOR PRICE CAPPED HOUSINGUNITS: .............................................................................................................................................. 19 D. RESALES OF RESIDENT OCCUPIED HOUSING UNITS: ................................................................................ 20 CHAPTER7...............................................................................................................................................................21 PROPERTY MANAGERS I INFORMATION ON FOR RENT UNITS........................................................................21 A. APPLICATION PROCESS: ................................................................................................................................. 21 B. ANNUAL VERIFICATION: . ................................................................................................................................. 21 CHAPTER8...............................................................................................................................................................21 ENFORCEMENT.......................................................................................................................................................21 A. REQUIRED DOCUMENTS: ................................................................................................................................ 21 B. NON -ELIGIBLE TRANSFEREE: ......................................................................................................................... 21 C. FAILURE TO COMPLY: ...................................................................................................................................... 22 D. UNCURED VIOLATION: ..................................................................................................................................... 22 E. REQUIRED RENTAL: ......................................................................................................................................... 22 F. PRESERVATION OF DEED RESTRICTED UNIT:.............................................................................................22 CHAPTER9...............................................................................................................................................................22 APPEAL PROCEDURES..........................................................................................................................................22 APPENDICES APPENDIX A — DEED RESTRICTION TEMPLATES Price Capped Community Housing Deed Restriction Resident Occupied Community Housing Deed Restriction APPENDIX B— PERMITTED CAPITAL IMPROVEMENTS APPENDIX C — RECOMMENDED LANGUAGE FOR USE IN LEGAL DOCUMENTS Avon Community Housing Policies April 8, 2025 Table of Contents AVON COMMUNITY HOUSING POLICIES A. INTRODUCTION: The Avon Community Housing Policies ("Policies" or "ACHF) establish minimum requirements and technical 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 are updated periodically based on current real estate market, area median income, and the most recent affordable housing data, affecting the Avon community. The ACHP is separated into chapters, which set forth the requirements for developers of Residential Development, requirements for buyers, owners, and sellers of Community Housing units, and requirements for owners, renters, or managers of Community Housing rental units. 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. 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. Interpretation will favor the intention of preserving Community Housing and deed restrictions. D. 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. 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 they differ substantially from the standard forms in these Policies, which may then be used and executed administratively. AREA MEDIAN INCOME: There are many references to Area Median Income ("AMI") 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. G. INCOME LIMITS: When Area Median Income limits are used, the "4 Person" limit shall be used regardless of the household size. Households that 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. H. 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. Avon Community Housing Policies April 8, 2025 Page 1 COUNCIL TO ESTABLISH COMMUNITY HOUSING PROGRAMS: Community Housing Programs must be approved by the Avon Town Council prior to implementation. Within these programs, all Community Housing Deed Restrictions must include these minimum terms and conditions: Community Housing Deed Restrictions run 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; Restriction on owning other improved residential property, which includes a procedure and timeframe for sale of existing residential property. J. 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 Guidelines Administrative Procedures FHA — Federal Housing Administration RO — Resident Occupied TOA — Town of Avon 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. Acknowledgement of Deed Restriction — A document accepting a purchaser's agreement to be bound by both the recorded deed restriction and ACHP covering the Community Housing Unit. 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. Annual Compliance Recertification - An annual recertification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with the Deed Restriction and the ACHP, and subject to verification documents. Avon Community Housing Policies April 8, 2025 Page 2 Applicant — A prospective renter, prospective buyer, 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 ("AMP') — 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, a 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. Base Price— The price of a Price Capped For Sale unit, before appreciation and capital improvements are added. 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 Employee Housing Mitigation Community Housing — Residential housing which is subject to a deed restriction that limits use to long-term residential use as a primary residence by an Eligible Household 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 (C.P.I.) — 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. Avon Community Housing Policies April 8, 2025 Page 3 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. 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. Drawing — A drawing of Eligible Households needed to select a winner from equal Applicants, who are tied for highest priority. Eagle County Administrative Procedures — The Eagle County Affordable Housing Guidelines 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 — Households that will use the property as their Primary Residence, meet the employment qualification criteria, and comply with the restrictions on use, occupancy, and owning other real estate. The definition may include an Eagle County Employee, Employer, Qualified Buyer, or Qualified Person. Employee — Employee means a person employed in a building or on a property during normal periods of use. Employe r—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 Housing — Housing used exclusively for persons employed by an Employer in Eagle County. 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. For Rent Community Housing — Rental housing subject to a Resident Occupied or Price Capped Deed Restriction requiring that the Housing meets Rental Rate or Occupancy Restrictions, quality, annual compliance, and other criteria set forth in this document. Gross Household Income —The total combined amount of income a Household earns in one calendar year from all sources before taxes any applicable deductions. Avon Community Housing Policies April 8, 2025 Page 4 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 individual(s) who will occupy the Property 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 Price Capped For Sale Housing Unit may be initially sold by a developer, the price of a unit after a buy down payment is applied, or the initial price of a unit in a subsequent resale. 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. Maximum Rental Rate — The maximum monthly rent payment for a Community Housing Unit, as provided for in the deed restriction, ACHP, or 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 Community 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. Municipal Employee Home Ownership Program Guidelines or "MEHOP Guidelines" - the Town of Avon Employee Home Ownership Program Guidelines as adopted by Avon and as may be amended from time to time. 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 the time of closing identifying conditions of occupancy resale. Owner— The owner, as well as its agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title of the Property of Record of the Community Housing Unit, according to the Clerk and Recorder of Eagle County, during the period of ownership interest. Payment in Lieu — A payment made to the Town of Avon to satisfy a Project's recommended Housing mitigation. Avon Community Housing Policies April 8, 2025 Page 5 Permitted Capital Improvements — Certain improvements made to a Community Housing Unit that may be included in the seller's Maximum Resale Price. Price Capped Community Housing —Collectively refers to For Sale or For Rent Community Housing. Is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence and sold subject to the Maximum Resale Price, as those terms are defined in the deed restriction and ACHP. Primary Residence — A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. 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 Employer - means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Employers may not impose or reduce restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. 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. Rental Rate Restrictions — The maximum Rental Rate for which a 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. Resident Occupied Community Housing — Housing subject to a Deed Restriction requiring that the Housing be owned and/or occupied by an Eligible Household as its Primary Residence as set forth in this document. 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. Town - Shall include employees of the Town of Avon, program administrators, or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. Town of Avon Employee Household - An employee working for the Town of Avon who meets the Initial Purchase Qualification, may meet the Continuing Employment Qualification, will use the Property as their Primary Residence, Avon Community Housing Policies April 8, 2025 Page 6 and comply with the restriction on owning other real estate ownership, as outlined in the deed restriction and MEHOP Guidelines. Notwithstanding the foregoing, the Town of Avon is also a Town of Avon Employee Household. 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 not 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. This chapter details the requirements for Developers of Community Housing and includes For Sale and For Rent housing types. A. FOR SALE I PRICE CAPPED COMMUNITY HOUSING 1. Initial Pricing: The Initial Sales Price of Price Capped For Sale Community Housing units shall be set no higher than at a price affordable to Households earning 100%-140% of AMI. The units should be priced in a spectrum of prices consistent with unit size, location, and market demand. The Town will determine the initial sales process and/or lottery. Chapter 8 of the Eagle County Affordable Housing Guidelines Administrative Procedures shows the current vear maximum Initial Sales Prices. 2. Deed Restrictions: All deed restrictions burdening Price Capped For Sale Community Housing units must include resale restrictions binding future buyers and sellers to the applicable conditions set forth in these Policies and shall be in a form approved by Town Staff and Town Attorney. All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed Restriction. Terms for Price Capped For Sale deed restrictions will include the following: a. Eligible Households only b. Primary Residence use only with annual recertification C. May not own other real property, subject to exceptions d. Limitations on rentals e. Prohibition on Short Term Rentals f. Initial Sales Price restrictions g. Maximum Resale Price restriction h. Ownership interest conveyed to Town of Avon Ability to force sale if Owner is not complying with the deed restriction Avon Community Housing Policies April 8, 2025 Page 7 j. Option to buy post foreclosure k. Resale by Town or Town's Program Administrator Annual compliance verification by Owner to Town of Avon B. FOR SALE I RESIDENT OCCUPIED COMMUNITY HOUSING Initial Pricing of Resident Occupied Community Housing: The initial sale price for Resident Occupied Community Housing is not restricted or limited and shall be determined by the Owner or Seller. Resident Occupied units should be built, come to market, and be sold proportionately with free market units. The Town will determine the initial sales process and/or lottery. 2. Deed Restrictions: All deed restrictions burdening Resident Occupied For Sale Community Housing units must include resale restrictions binding future buyers and sellers to the applicable conditions set forth in these Policies and shall be in a form approved by Town Staff and Town Attorney. All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed Restriction. Terms for Resident Occupied For Sale deed restrictions will include the following: a. Eligible Households only b. Primary Residence use only with annual compliance verification by Owner to Town of Avon C. May not own other Real Property, subject to exceptions d. Prohibition on Short Term Rentals e. Annual compliance verification by Owner to Town of Avon Rental of the unit allowed under certain deed restrictions may require the rental rate be set no higher than 100% AMI Ability to force sale if Owner is not complying with the deed restriction h. Option to buy post foreclosure Resale monitoring and buyer approval by Town or Town's Program Administrator C. FOR RENT I PRICE CAPPED COMMUNITY HOUSING: 1. Maximum Rental Rates for Price Capped Rental Housing: Maximum Rental Rates for Deed Restricted Rental Housing must be set at rates that are affordable to Households with incomes no greater than 80%-100% AMI, based on unit type. The Eagle County Affordable Housing Guidelines Administrative Procedures shows the current year maximum rental rates. 2. Deed Restrictions: All deed restrictions burdening Price Capped For Rent Community Housing units must include the following: Terms for Price Capped For Rent deed restrictions will include the following: a. Eligible Households only, unless otherwise permitted Avon Community Housing Policies April 8, 2025 Page 8 b. Maximum rents C. Prohibition on Short Term Rentals d. Annual Verification by Owner to Town of Avon e. The term of the deed restriction will be perpetual, and the restriction agreement must be between the Owner and the rental property and either the Town of Avon or other acceptable entity, such as the Colorado Housing and Finance Authority or the United States Department of Housing and Urban Development D. FOR RENT I RESIDENT OCCUPIED COMMUNITY HOUSING Rental Rates for Resident Occupied Rental Housing: The rental rates are not restricted in Resident Occupied Community Housing. 2. Deed Restrictions: All deed restrictions burdening Resident Occupied Rental Community Housing units must include the following: a. Eligible Households only b. Prohibition on Short Term Rentals C. Annual Verification by Owner to Town of Avon d. The term of deed restriction should be perpetual, and the restriction agreement must be between the Owner of the rental property and the Town of Avon or other acceptable entity, such as the Colorado Housing and Finance Authority or the United States Department of Housing and Urban Development. E. GENERAL PROVISIONS I DEVELOPMENT OF ALL COMMUNITY HOUSING UNITS Homeowners Associations: Any documents creating a homeowners association should require that the Community Housing units will be assessed regular and other shared assessments based upon a reasonable formula. For inclusionary projects (community housing units mixed with predominantly free market units in the same project), those unit's assessments will be prorated to a maximum of 75% of the association assessments levied against the free market units. E.g. Projects with similar nature to Frontgate, Kestrel, One Riverfront, or Riverfront Lodge. 2. Divided Ownership of Affordable Rental Housing: No Price Capped or Resident Occupied Rental Community Housing Unit(s) shall be converted in the future to For Sale housing through subdivision, the cooperative form of ownership, condo conversion, or some similar form of ownership inconsistent with its rental purpose, unless the Owner of such unit(s) proposes providing substantially similar substitute Deed Restricted Housing Unit(s) and such proposal is approved in advance by the Town of Avon. 3. Form of Deed Restrictions: All Deed Restrictions for Community Housing Units will use the forms attached, as amended from time to time in EXHIBIT A. 4. Employee Housing Mitigation: New development is required to provide Employee Housing Mitigation AMC Section 7.20.100. Avon Community Housing Policies April 8, 2025 Page 9 This section discusses the requirements for eligibility and selection of For Sale Deed Restricted Community Housing units. It is the Town's goal to provide a fair, non-discriminatory, and clear process for Buyer Selection. Out of respect for privacy, the Town does not publish the names of applicants for housing units. A. ELIGIBILITY REQUIREMENTS FOR HOUSEHOLD MEMBERS: Employment Qualification: At least one primary member of a Household must meet one or more of the following criteria: a. A Household earning a living primarily in Eagle County by having worked an average of at least thirty (30) hours per week on an annual basis at a business with an office or job site physically located in Eagle County. Multiple jobs in Eagle County may be combined to reach 30 hours per week; or b. A Retired Person or Older Person over the age of sixty (60) who 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 C. 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 d. 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 discretion or as otherwise stated in the applicable deed restriction; or e. 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 eligible renters by the Town of Avon or assigns. 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: 1. No member of an Eligible Household, 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, subject to the following exceptions: a. If the Owner is currently an owner of real estate and are under contract to sell their existing real estate and purchase a Community Housing Unit contemporaneously. A hardship exemption from this requirement may be granted at the discretion of the Program Administrator; or Avon Community Housing Policies April 8, 2025 Page 10 b. Members of an Eligible Household who own commercial property for business use or vacant land may be exempted from this requirement at the discretion of Program Administrator. C. During acquisition or ownership of a Community Housing Unit, no member of the household 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. Some exceptions apply to Resident Occupied deed restrictions. See individual deed restrictions. d. Members of an Eligible Household who acquire improved residential real property outside of the State of Colorado, and only after their initial purchase of the Community Housing Unit, may be exempted from this requirement at the discretion of the Program Administrator. See individual deed restrictions. C. APPLICATION PROCESS: PRICE CAPPED COMMUNITY HOUSING APPLICATIONS. Households and/or Qualified Employers interested in purchasing a Community Housing unit must apply to the Program Administrator to certify eligibility prior to or at the time of submitting an offer to purchase a unit. The application and supporting 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: a. Obtain and complete an application from the Program Administrator; b. Provide evidence of employment by a Qualified Employer; 2 most recent paystubs, W2, and most recent tax return ii. An employment contract, or other document deemed necessary by the Program Administrator iii. Affidavit from employer verifying employment plus any other document necessary by the Program Administrator iv. Qualified Employers must provide proof of active business ownership in Eagle County including verification of business license, Secretary of State registration, all registered agents, operating agreements, current tax returns, current income/expense statements or P&L statements, and any other document(s) deemed necessary by the Program Administrator. Entities established solely for the purposes of owning a deed restricted residence are prohibited. C. Provide evidence of residency in Eagle County, if applicable; d. Affirmation on the application that your Household intends to live in the unit as your Primary Residence and that no member(s) of your Household own other improved residential real estate; e. Provide a prequalification letter from a mortgage lender for a mortgage with a fixed interest rate of at least 5 years duration or a statement of proof of funds and submit a copy to the Program Administrator. Reverse amortization mortgages are prohibited; Avon Community Housing Policies April 8, 2025 Page 11 f. 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. Provide a copy of a home buyer education class certification. Once basic eligibility has been met, the Applicant submitting the highest offer (not to exceed the Maximum Resale Price) will have the first right to negotiate for the purchase of the unit. If market conditions indicate high demand for price capped Community Housing, or there are two or more equal offers are received by a Seller, offers will be prioritized for selection based on the Selection Process listed below. The Program Administrator will notify the Applicant if additional proof of any of the following items is necessary. RESIDENT OCCUPIED COMMUNITY HOUSING APPLICATIONS: Eligible Households and/or Qualified Employers interested in purchasing an existing Non -Price Capped Community Housing units must submit an application to the Program Administrator to certify eligibility prior to or at the time of 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: a. Obtain an application from the Program Administrator. b. Provide evidence of employment by a Qualified Employer; 2 most recent paystubs, W2, and most recent tax return; An employment contract, or other document deemed necessary by the Program Administrator; iii. Affidavit from employer verifying employment plus any other document necessary by the Program Administrator; iv. Qualified Employers must provide proof of active business ownership in Eagle County including verification of business license, Secretary of State registration, all registered agents, operating agreements, current tax returns, current income/expense statements or P&L statements, and any other document(s) deemed necessary by the Program Administrator. Entities established solely for the purposes of owning a deed restricted residence are prohibited. c. Provide evidence of residency in Eagle County, if applicable; d. Copy of the sales contract and title commitment; e. 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. D. APPLICATION CRITERIA: Applications for Community Housing units require supporting documentation to verify income, employment, and residency. A list of required documents is provided with an application. Supporting documents vary greatly depending on source therefore, the following considerations will be made to the actual document. Avon Community Housing Policies April 8, 2025 Page 12 The physical location of residency and prior residency is relevant. The Applicant's mailing address is not. 2. The physical location of local employment and/or employer is relevant. The Applicant's company headquarters may not be. For example, company or organization headquarters are located in "Town A", but the Eligible Household member reports to work in "Town B" (e.g., the school district). 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 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. 3. Residency and Employment documents consider physical location, the applicant's name, and length of time. 4. Full time employment is defined in Eligible Household and Eagle County Employee in Section 3.12.020 of the Avon Municipal Code. 5. If two individuals are applying jointly, their information cannot be combined. 6. Joint Applicants must meet the criteria for an Eligible Household. Combined income will be considered in determining a maximum AMI%, with a combined income not to exceed the equivalent of a 4-person AMI%. 7. Employment and/or 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. E.G. — an employer applying to purchase a unit for the purposes of employee housing will provide tax returns and income and expense statements along with a business license and a registered agent, etc. 8. All documents may be verified by the Program Administrator. Residency, employment, or income that cannot be verified will not be considered or used in determining length of employment or residency. 9. Eligible Household occupancy may not exceed the maximum limits set in local Building Code. 10. Any consideration for remote work will be required to provide an acknowledgment of remote work status from their employer. Remote work must substantially benefit Eagle County to be considered for eligibility. Final determination or acceptance will be by the Town or Program Administrator. 11. Eligible Households in existing Community Housing Units located in the Town of Avon or Eagle County may receive higher priority by the Town of Avon when being considered for a different Community Housing Unit elsewhere within the Town of Avon, if applicable. E. BUYER SELECTION PROCESS I PRICE CAPPED UNITS: The following selection criteria applies to all resales of Price -Capped Community Housing Units: Upon owner notification to the Program Administrator/Town of the owner's intention to sell, the resale timeline and process for advertising will be determined by the Program Administrator. All resales of Price Capped units will assume more than one applicant will apply for the unit and the unit will be advertised on a publicly accessible platform._ In the event one (1) applicant applies for a Price Capped Unit, no lottery is required. In the event there is more than one applicant, a selection process and (potentially), a lottery shall be held. The priority process is as follows: Avon Community Housing Policies April 8, 2025 Page 13 1. 2. 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. L If one applicant meets the lowest category, they will have the first opportunity to purchase the unit. If there are no applicants in the lowest or first category, then the next income category will be considered, and so on. iii. If more than one applicant meets the lowest category, then priority of Work/Residency History will apply, before the lottery is held. Area Median Income Category Priority Grouping 80%-100% 1 101 %-120% 2 121 %-140% 3 b. Work/Residency History. Priority will be given to those who have worked/lived full time within Eagle County longer, considered on a cumulative, calendar year basis. See Chapter4. C and 4. D for details. Additional entries into a random lottery will be given as follows: Lottery Entries Years Working/Living Lottery Entries <1-5 1 6-10 2 11-15 3 (maximum) C. Other. I. There will be no consideration for those who do not meet the definition of Eligible Household. ii. The ability to purchase the unit with cash has no relevance to the selection process. Lottery Process. The Program Administrator shall hold a lottery drawing comprised of the final applicants, using the number of entries they accrued. The drawing will be held by the Program Administrator within five (5) to ten (10) business days from determining the final entries. Drawing entries shall be randomized, and the lottery will occur during regular business hours. b. All entries will be drawn and a draw order will be published. C. The first applicant drawn will have the first opportunity to purchase the unit. If the first applicant declines or is otherwise unable to purchase the unit, the next applicant in the draw order will have an opportunity, and so on. Avon Community Housing Policies April 8, 2025 Page 14 EXAMPLE OF LOTTERY INTENTION TIER 1 - 40 APPLICANTS Persons interested in applying for Price Capped Deed Restricted Unit TIER 2 - NARROWED BY INCOME 15 Entrants below 100%AMI IMTIER 3 - NARROWED BY WORKFORCE LONGEVITY 7 Entrants with 5 years or more in EC Workforce --2-Entrants have 10 years = Additional Entries TIER 4 - RANDOM LOTTERY 7 Entrants - 11 Entries F. SELECTION PROCESS I RESIDENT OCCUPIED COMMUNITY HOUSING UNITS: There is no selection criteria for resales of Resident Occupied For Sale Housing units. Units will be advertised for sale on a publicly accessible platform like the Vail MLS. This section provides the requirements of Buyers, Owners, and Renters of For Sale Community Housing units. A. RENTAL OF A COMMUNITY HOUSING UNIT BY QUALIFIED EMPLOYERS FOR EMPLOYEES: Qualified Employers may purchase a Community Housing Unit and lease to their employees who are members of Eligible Households. Qualified Employers may not impose additional Deed Restrictions or reduce eligibility requirements to renters within these Units without the written consent of the Program Administrator. B. 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. C. 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. 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. Avon Community Housing Policies April 8, 2025 Page 15 D. LEAVE OF ABSENCE — ALL COMMUNITY HOUSING UNITS: A leave of absence for the occupant of a Community Housing Unit may be granted at the 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% AMI* 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. E. 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. F. 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. G. 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 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. Avon Community Housing Policies April 8, 2025 Page 16 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. H. 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, including upon death or through probate, the Non -Eligible Household must notify the Program Administrator of its intent as outlined below within 90 days of taking title to the unit. The Non -Eligible Household may list the unit for sale, following the procedures outlined herein. The Non -Eligible Household may become an Eligible Household as follows: a. Upon death or probate: will have one year to become an Eligible Household; Other title transfers: will have 90 days to become an Eligible Household; C. In the event the Non -Eligible Household is unable to become an Eligible Household 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. 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. This section discusses the sale and resale process for For Sale Community Housing Units. A. SALES OF PRICE CAPPED HOUSING UNITS: Listing 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. Notify the Town or Program Administrator of Intent to Sell. Avon Community Housing Policies April 8, 2025 Page 17 b. Execute a standard Listing Contract on forms approved by the Program Administrator. 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. d. The Town or its Program Administrator will provide the Deed Restriction, ACHP, application, and any other relevant documents necessary to advertise the unit for sale as deed restricted. e. The Program Administrator shall administer the sale in accordance with the requirements in effect at the time of listing. A minimum advertising period of 7 calendar days applies for price capped units, unless market conditions indicate otherwise, as approved by the Program Administrator. g. 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. 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. 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. Avon Community Housing Policies April 8, 2025 Page 18 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: All units will have maintenance and upkeep. Maintenance and upkeep is the owner's responsibility, regardless of the deed restriction. Certain improvements to a unit may be included in a Community Housing's Maximum Resale Price. Improvements may fall under 3 categories: Maintenance, Base Price Improvements, and Permitted Capital Improvements ("PCI"). Maintenance items are not allowed to be added to the owner's Maximum Sale Price ("MSP"). Base Price and Permitted Capital Improvements may increase the owner's Maximum Sales Price. Maximum Sales Price Formula: Initial Purchase Price = Base Price + Appreciation + PCI = MSP Base Price, also sometimes called Initial Purchase Price, is the owner's initial purchase price including garage, lot premium, or other developer inclusions, which resets upon each resale. 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. 3. Capital Improvements to the Homeowners Association Common Elements may be approved with the Town's prior written approval and documentation demonstrating cost and individual unit owner's proportionate share of the project, and subject to depreciation. Permitted Capital Improvements are replacement items an owner completes that may increase the Maximum Sales Price and are subject to depreciation (e.g., kitchen remodel, window replacement, flooring). See Appendix A for a complete table of Permitted Capital Improvements and Depreciation schedules. 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. Avon Community Housing Policies April 8, 2025 Page 19 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: 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 discretion. 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. D. RESALES OF RESIDENT OCCUPIED HOUSING UNITS 1. Listing Units. Resident Occupied Community Housing Units may be listed for sale using a licensed real estate agent, or as specified by the applicable deed restriction. An Owner who wishes to sell their Resident Occupied Community Housing Unit must follow these steps: a. Notify the Town, in writing of their intent to sell. b. The Town or its Program Administrator will provide the Deed Restriction, ACHP, application, and any other relevant documents necessary to advertise the unit for sale as deed restricted. C. Consult with the Program Administrator to review the Deed Restriction recorded against the unit and ACHP to determine the resale process and any other applicable provisions concerning a sale. d. The Town or Program Administrator shall administer the application review and buyer approval in accordance with the requirements in effect at the time of listing. Avon Community Housing Policies April 8, 2025 Page 20 e. 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. This section discusses the requirements for Property Managers and Renters of For Rent Community Housing units and projects. A. APPLICATION PROCESS: Only Eligible Households may rent Price Capped and Resident Occupied Community Housing Rental 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 For 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 the Town of 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. 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. REQUIRED DOCUMENTS: The Program Administrator may request any and all documents and information necessary to establish continued compliance with any deed restriction and with the ACHP 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 -ELIGIBLE TRANSFEREE: In the event that title to a Community Housing Unit vests in any individual or entity that is not an Eligible Household 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- Eligible individual or entity that it must sell the Community Housing Unit in accordance with these Policies. A Non -Eligible individual or entity shall not: (i) occupy a Community Housing Avon Community Housing Policies April 8, 2025 Page 21 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, the Town 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, the Town 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 the Town, the Owner shall: (i) consent to any sale, conveyance or transfer of such Unit to an Eligible Household; (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 the Town under this Covenant may be assigned by it to its successors or assigns. E. REQUIRED RENTAL: In all situations where the provisions of this section apply, the Town may alternatively require the Owner to promptly rent their Unit to a lessee that is deemed an Eligible Household in accordance with the requirements of this Covenant and subject to the one (1) year limit while the Unit is listed for sale. 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, the Town 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 the Town to the Owner that requires the Owner to sell the Unit due to a violation pursuant to this Section. The Town 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: 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; The specific decision that the Owner requests; and Avon Community Housing Policies April 8, 2025 Page 22 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 additional 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 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, and such written decision shall be considered final and may not be appealed except to the courts in accordance with state law. Avon Community Housing Policies April 8, 2025 Page 23 APPENDIX A —PERMITTED CAPITAL IMPROVEMENTS 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 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 Avon Community Housing Policies Appendix A APPENDIX B - DEED RESTRICTION TEMPLATES Price Capped Community Housing Deed Restriction Resident Occupied Community Housing Deed Restriction Avon Community Housing Policies Appendix B A TOWN OF AVON AVO n COMMUNI Y HOUSING PRICE CAPPED DEED RESTRICTION PRICE CAPPED DEED RESTRICTION THIS TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED 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 [hereinafter known as "Owner"], (each individually a "Party" and collectively the "Parties"). WHEREAS, Owner is purchasing the real property and the improvements situated thereon, located at , Avon, Colorado 81620, and more particularly described in Exhibit A hereto ("Property"); and WHEREAS, the Town intends to place certain restrictions on the ownership and resale of the Property for the benefit of the Town by requiring ownership and resale of the Property as set forth in this Deed Restriction and the Avon Community Housing Policies ("ACHP"), and as they may be amended from time to time; and WHEREAS, the Town 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 WHEREAS, the Town has authority as a home rule municipality to enter into this Deed Restriction and to exercise all rights, remedies and administrative oversight in this Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: COVENANTS 1. Property Subject to Deed Restriction. The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. 2. Definitions. The following definitions shall apply to terms used in the Deed Restriction: A. "Annual Compliance Recertification' means an annual recertification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with this Deed Restriction and the ACHP, and any other deed restriction monitoring or certifications required by the Town from time to time. Price Capped Community Housing Deed Restriction 2025 Page 1 of 23 A _ OF AVON AV O n CO MUN TY HOUSING PRICE CAPPED DEED RESTRICTION B. "Avon Community Housing Policies" means the Avon Community Housing Policies, as may be amended from time to time. which may include similar housing policies of another local or regional government housing authority serving the Avon community in the event that this Deed Restriction is assigned by Avon to such housing authority, and as they may be amended from time to time. C. "Eligible Household" means Households that (i) will use the Property as their Primary Residence, (ii) meet the employment qualification criteria below, and (iii) comply with the restriction on owning other real estate ownership below. Each of the criteria are further defined below: i. Employment Qualification: At least one primary member of the Household must meet one or more of the following criteria: (1) an employee working a total average of at least thirty (30) hours per week on an annual basis for a business(es) or employer(s) located within Eagle County; or (2) earns seventy-five percent (75%) or more of his or her income and earnings at a business(es) or employer(s) located within Eagle County, as documented with the United States Internal Revenue Service; or (3) has a qualified employment contract, that has been accepted by the Town, with an employer(s) within Eagle County on a permanent basis to work at least an average of thirty (30) hours per week on an annual basis, or (4) Employment qualifications may include classifications of workers (i.e. retirees, disabled, remote workers) in accordance with the Avon Community Housing Policies, as may be amended from time to time, and as approved by the Town. ii. Restriction on Owning Other Real Estate: (1) As of the date of purchase of the Property, during ownership of the Property and during any period of time the Property is occupied by an Eligible Household, no member of such Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own any interest, alone or in conjunction with others, anywhere in any improved residential real property(ies), which may be subject to exceptions provided in the Avon Community Housing Policies. (2) A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the written discretion of the Town or its assign. (3) Real estate that is owned by a prospective or current Eligible Household shall not be deeded to a corporation or other person or entity except for a fair market value, nor shall real estate be deeded to a corporation or other legal entity in which any Price Capped Community Housing Deed Restriction 2025 Page 2 of 23 A TOWN OF AVON AV O n CO MUN TY HOUSING PRICE CAPPED DEED RESTRICTION Household member has any financial interest in order to meet the requirements in this subsection. iii. Title of the Property shall be held in the name of the natural person(s) who are members of the Eligible Household and who qualifies under criteria above. For example, title may be held jointly in the name of spouses who are members of an Eligible Household. (1) Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Property to be held in trust for the benefit of a natural person who also meets the definition and qualifications of an Eligible Household, as stated herein in Section 2.13. Such ownership in trust may only occur in the circumstances provided herein and at the sole written discretion of the Town, or its assign. To request a variance, the applicant shall submit a letter to the Town, or its assign, requesting a special review and a determination that title of the Property may be held in trust as set forth herein. (2) To be eligible for a variance, the following conditions must be met: (i) The beneficiary of the trust may not own other real property; and (ii) The beneficiary of the trust must be of the age of majority to qualify for this variance. (3) Upon receipt of a request for a special review for a variance and any requested information and documentation, the Town, or its assign, may grant the request, in writing, with or without conditions. D. "Household" means all individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. E. "Initial Sales Price" means the maximum price for which a Price Capped For - Sale Housing unit may be initially sold. It also refers to the amount paid by an Owner in a subsequent sale. F. "Maximum Sales Price" means the maximum amount an owner can sell the Community Housing Unit. G. "Owner" means the owner, as well as its agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title to the Property of record of the Community Housing Unit, according to the Clerk and Recorder of Eagle County, during their period of ownership interest. H. "Price Capped Community Housing" is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence and sold subject to the Maximum Resale Price, as those terms are defined herein. Price Capped Community Housing Deed Restriction 2025 Page 3 of 23 A TOWN OF AVON AV O n COMMUNI Y HOUSING PRICE CAPPED DEED RESTRICTION I. "Primary Residence" A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. J. "Qualified Employer" means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Employers may not impose restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. K. "Short Term Rental" An Owner or non -Owner providing compensation to lodge in the Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. L. "Town" shall include employees of the Town of Avon, program administrators, or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. Ownership, Occupancy and Use Restrictions: A. The ownership, use and occupancy of the Property is restricted as follows: (i) the Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Property to their employee(s), who is/are Eligible Household(s), as defined within Section 2 of this Deed Restriction; (ii) the Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and (iii) the Owner or Qualified Employer lessee uses the Property as its Primary Residence, as defined within Section 2 of this Deed Restriction. B. The Property may not be sold or otherwise transferred to any person other than an Eligible Household in accordance with the procedures for prior verification contained in Section 4 below and pursuant to all provisions within this Deed Restriction. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Property may be held from time to time by the Town in the event of a foreclosure or as permitted by this Agreement or the ACHP. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Property may be held from time to time by certain employers, districts or Price Capped Community Housing Deed Restriction 2025 Page 4 of 23 TOWN OF AVON AV O n CO MUNI Y HOUSING PRICE CAPPED DEED RESTRICTION governmental entities which qualify as a Qualified Employer, as that term is defined in Section 2.G above. C. Owner is subject to Annual Compliance Recertification confirming and verifying the Owner's continued eligibility as an Eligible Household and its compliance with this Agreement. To confirm such eligibility, the Owner of the Property shall submit the following information to the Town: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Property as its Primary Residence; and (ii) a statement that the Owner owns no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and other documentation that be required by the Town and the ACHP, as may be amended from time to time. D. An Owner must not engage in any business activity on or in such Property, other than as permitted within the zone district applicable to the Property. E. The Short Term Rental, or the advertising of a short term rental, of all or any portion of the Property is prohibited. F. An Owner of the Property may not permit any use or occupancy of the Property except in compliance with this Agreement. G. Owner, other than a Qualified Employer, may not, except with prior written approval of the Town and subject to the most current ACHP and the provisions of this Deed Restriction, rent the Property for any period of time. 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 and ACHP, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eligible Household and Primary Residence status, as defined in Section 2. H. Any subsequent Owner of the Property must execute an Acknowledgement of Deed Restriction Agreement for Price Capped For Sale Housing, in the form, or similar form provided by the Town, set forth in Exhibit C , and attached hereto and incorporated herein by this reference. The failure to execute such document shall not extinguish the legal force and effect of this Deed Restriciton on all current and subsequent Owners. I. All sales of the Property shall be subject to the Maximum Sales Price as calculated in Section 5 below. 4. Resale Restrictions: The Property may not be sold or otherwise transferred to any person other than an Eligible Household and subject to the calculation of the Maximum Sales Price in accordance with Section 5 and the provisions of this Deed Restriction. Price Capped Community Housing Deed Restriction 2025 Page 5 of 23 A _ OF AVON Avo nCOMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION A. In the event that an Owner desires to sell the Property, the sale or transfer of the Property shall be administered by the Town or its assigns in accordance with the most current ACHP procedures. B. Upon sale and conveyance of the Property by Owner to a buyer, the buyer shall be subject to the same occupancy and use requirements set forth in this Deed Restriction and the most recent version of the ACHP. 5. Maximum Sale Price: In no event shall the Property be sold for an amount in excess of the Initial Sales Price plus the applicable percentage of appreciation per year, and as provided below. A. Appreciation shall be three percent (3%), simple annually. i. In the event an Owner owns a Subject Property for only a portion of any year, the percentage increase shall be prorated monthly, from purchase date, and the Owner shall be given credit through the month in which the property is listed for sale. B. Permitted Capital Improvements shall not increase the Owner's Initial Sales Price. For the purpose of determining the Maximum Sales Price, the Owner may add the following amounts: i. The cost of permitted capital improvements as set forth in the most current ACHP. ii. The cost of any permanent improvements constructed or installed as a result of any requirement imposed by any government agency or special assessment by a homeowner's association for such permanent improvements, provided that written certification is provided to the Town. C. Real estate sales fees as identified in the most current ACHP. Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the Owner to sell to such prospective buyer. NOTHING HEREIN SHALL BE CONSTRUED TO CONSTITUTE A REPRESENTATION OR GUARANTEE BY THE TOWN THAT ON RESALE THE OWNER SHALL OBTAIN A PARTICULAR PRICE INCLUDING BUT NOT LIMITED TO THE MAXIMUM SALES PRICE. 6. Default by Owner. Owner shall be responsible for compliance with all terms of this Deed Restriction, including occupancy and use of the Subject Property and limitations on owning other real estate. Any non-compliance with the terms of this Deed Restriction or breach of any Price Capped Community Housing Deed Restriction 2025 Page 6 of 23 A TOWN OF AVON AV O n CO MUNI Y HOUSING PRICE CAPPED DEED RESTRICTION covenant(s) set forth in this Deed Restriction, including non-compliance of use and occupancy of the Subject Property and limitations on owning other real estate, shall be deemed to be a Default by Owner, whether such non-compliance is a result of direct actions of the Owner of such non- compliance occurs during ownership. 7. Inspection. If the Town has reasonable cause to believe that the occupancy or use of the Property does not comply with any provision(s) 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 a Notice to Inspect with at least twenty four (24) hours written notice. Notice of Inspection may be given by posting notice on the door to the residence on the Property. The Notice of Inspection shall generally describe the suspected non-compliance with this Deed Restriction and shall reference the Town's right to inspect set forth in this Deed Restriction. The Town shall have permission to enter the Property during such times upon providing a Notice of Inspection without further consent. 8. Notice and Cure. In the event of a Default by Owner of this Deed Restriction, the following procedures shall apply. A. Notice of Default. The Town shall send a written Notice of Default to the Owner detailing the nature of the default. Notice may be mailed, posted on the front door of the Property, or sent electronically. The Notice of Default shall (i) state the terms of this Deed Restriction, EHOP Guidelines or ACHP for which the Owner has defaulted; (ii) state the period for the Cure; (iii) references the potential remedies in this Deed Restriction; and (iv) state the procedures for administrative appeal of the Notice of Default. B. Period for Cure. The Period for Cure shall generally be thirty (30) days, provided that a default by Owner for lease or use of the Property as a Short Term Rental, non - primary residence or Second Home shall be cured by the Owner immediately. The Town may provide a longer period for Cure upon written agreement with the Owner, when the nature of the default will take longer than thirty (30) days to cure and the Owner is actively cooperating with the Town and making all reasonable efforts to effect the cure. C. Administrative Appeal. Owner has the right to request an administrative appeal of a Notice of Default. A request for an administrative appeal must be filed within ten (10) days of receiving a written Notice of Default. The Town shall conduct an administrative appeal hearing in accordance with procedures and requirements set forth in the ACHP. D. Default. If an administrative appeal request is not tiemly and properly submitted in writing and the default is not cured withing the stated Period for Cure in the Notice of Default, the Owner shall be deemed to be in Default of this Deed Restriction. Price Capped Community Housing Deed Restriction 2025 Page 7 of 23 A TOWN OF AVON AV O n CO MUNI Y HOUSING PRICE CAPPED DEED RESTRICTION E. Court Review. An administrative appeal decision shall be the final decision for the purpose of determining if a default has occurred. The date of the final decision shall be the date that a written decision of the administrative appeal is executed and provided to the Owner (as appellant). A final decision from an administrative appeal hearing may be judicially appealed, in the District Court of Eagle county pursuant to C.R.C.P. 106. 9. Remedies. The Town has the right to the following remedies. A. Law and Equity. This Deed Restriction is enforceable by the Town, and their respective successors and assigns, as applicable, or as their designee, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction. The remedies provided herein are cumulative and not exclusive of all other remedies provided by law and/or equity. In the event of violation, non- performance, default or breach of any term of this Deed Restriction by the Owner, the 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. B. Interest on Amounts Due. 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. C. Recovery of Costs to Enforce. 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. D. Lien. 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, §31-20-105, as amended from time to time, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. E. Joint and Several Liability. 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. F. Recovery of Wrongful Gains. In the event of any lease of the Property to a person who is not an Eligible Househould/Eagle County Employee, as defined in the ACHP, or use of the Property as a Short Term Rental, non -primary residence 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. Price Capped Community Housing Deed Restriction 2025 Page 8 of 23 A TOWN OF AVON AV O n COMMUNI Y HOUSING PRICE CAPPED DEED RESTRICTION 10. 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 8 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, non -primary -residence 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 thirty (30) day period to cure, and such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 11. Foreclosure. A. In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, and subject to the issuance of a public trustee's deed to the holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the older, the Town or its assigns shall have the option to purchase the Property as provided in the Option to Purchase, in a form similar to EXHIBIT B: Option to Purchase, attached hereto and incorporated herein. B. Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Property, only an Eligible Household may acquire an interest in the Property at a foreclosure sale or in lieu of foreclosure. C. Notwithstanding the foregoing, in the event of foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, if the holder of such deed of trust is the grantee under the public trustee's deed or deed in lieu of foreclosure and the Town does not exercise its Option to Purchase as provided in Section I I .A, then the Town agrees to release the Property from the requirements of this Deed Restriction. D. It is specifically agreed that nothing contained herein shall require the Town to release and waive its ability to enforce this Deed Restriction in the event of a foreclosure of a lien secured in second or subsequent position. E. If the Town or its assigns exercises the Option to Purchase described in this Section 11, and acquires title to the Property, the Town or its assigns may sell the Property to an Eligible Household or rent the Property to qualified tenants who meet the income, Price Capped Community Housing Deed Restriction 2025 Page 9 of 23 TOWN OF AVON AV O n CO MUNI Y HOUSING PRICE CAPPED DEED RESTRICTION occupancy, and all other qualifications, established by the ACHP, until such time that the Property can be sold to an Eligible Household, or may elect to release and terminate this Deed Restriction, at Town's sole discretion. F. All obligations recorded of record against the Property and subsequent to this Agreement shall be subordinate to terms hereof. 12. Agreement Runs with the Land. This Deed Restriction and the terms, covenants, conditions and other provisions hereof shall constitute covenants running with title to the Property for the benefit of, and enforceable by the Town and its successors and assigns and this Deed Restriction shall bind the Property, the Owner and all subsequent owners, occupants, successors and assigns. Each and every lease and each and every contract, deed or other instrument hereafter executed conveying the Property or any portion thereof shall expressly provide that such lease or conveyance is subject to this Deed Restriction; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to lessees and successors and/or assigns of all or any portion of the Property, regardless of whether such lease, contract, deed or other instrument hereafter executed leasing or conveying the Property or any portion thereof provides that such lease or conveyance is subject to this Deed Restriction. Each subsequent owner(s), occupant(s) and Eligible Household(s), upon acceptance of a deed or lease to a Unit or of the Property, shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions, and restrictions contained herein during an owner's period of ownership or Eligible Household's occupancy. 13. General Provisions. A. Disputes. If any action is brought by a court of law by either party to this Deed Restriction concerning the enforcement, interpretation or construction of this Restrictive Deed Restriction, the prevailing party, either at trial or upon appeal, shall be entitled to reasonable attorney's fees as well as costs, including expert witness's fees, incurred in the prosecution or defense of such action. The exclusive forum for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. B. Venue. The exclusive venue for dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. C. 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. D. 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. Price Capped Community Housing Deed Restriction 2025 Page 10 of 23 A TOWN OF AVON AVO n COMMUNI Y HOUSING PRICE CAPPED DEED RESTRICTION E. Modifications: The Owner and Town of Avon agree that any modifications of this Deed Restriction shall be effective only when made by writings signed by the Owner and the Town of Avon and recorded with the Clerk and Recorder of Eagle County, Colorado. F. 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. G. 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. H. Assignment. The Town may in its sole discretion assign the benefits and delegate the responsibilities of this Deed Restriction 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. I. 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. J. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be in a joint venture with Owner, and the Town shall never be liable or responsible for any debt or obligation of Owner. K. Governmental Immunity. The town and its officers, attorneys, and employees, are relying on, and do not waive or intend to waive any provision of this Deed Restriction, the monetary limitations or any rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. SS 24-10-101, et seq., as amended, or otherwise available to the Town or its officers, attorneys, or employees. L. 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. M. Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The Deed Restriction shall be a burden upon and run with the Property for the benefit of the Town or the Town's assigns, who may enforce the Deed Restriction s and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. Price Capped Community Housing Deed Restriction 2025 Page 11 of 23 TOWN OF AVON AV O n COMMUNI Y HOUSING PRICE CAPPED DEED RESTRICTION N. Recording. The Town shall record this Deed Restriction in the real property records of Eagle County, Colorado at the Owner's expense. O. 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. P. 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. Q. 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 the sale of the Community Housing Unit through a tax lien sale process. R. 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. S. 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. T. 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. Said notices, consents and approvals shall be sent to the following address unless otherwise notified in writing: To Town of Avon: P.O. Box 975 100 Mikaela Way Avon, CO 81620 To Owner: Price Capped Community Housing Deed Restriction 2025 Page 12 of 23 A TOWN OF AVON Avo nCOMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION With a copy to: the address provided by the Eagle County Assessor's office Price Capped Community Housing Deed Restriction 2025 Page 13 of 23 A TOWN OF AVON Avo nCOMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. OWNER: 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. Notary Public Price Capped Community Housing Deed Restriction 2025 Page 14 of 23 A neon TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION TOWN OF AVON, COLORADO: By: Town Manager Price Capped Community Housing Deed Restriction 2025 Page 15 of 23 Attest: Town Clerk TOWN OF AVON Avo nCOMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION EXFUBIT A [Insert Property Legal Description] Price Capped Community Housing Deed Restriction 2025 Page 16 of 23 A neon TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION EXHIBIT B OPTION TO PURCHASE In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust ("Holder") on the on the real property known as [Legal Description] , (the "Property"), and subject to the issuance of a public trustee's deed to the Holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the Holder, the Town or its assigns shall have the option to purchase the Property, which shall be exercised in the following manner: 1. Notice of Foreclosure Proceedings: The Holder shall give such notice to the Town of intent to foreclose at least sixty days prior to commencing foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Town of Avon C/O Town Manager PO Box 975 Avon, CO 81620 Town of Avon C/O Town Attorney PO Box 975 Avon, CO 81620 2. Option to Purchase: The Town or its assigns shall have sixty (60) days after issuance of the public trustee's deed or deed in lieu of foreclosure in which to exercise this Option to Purchase. In the event of a deed in lieu of foreclosure, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, an amount equal to the amount due on the note and any additional reasonable costs incurred by the Holder during the option period. In the event of foreclosure and issuance of a public trustee's deed, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Holder during the option period which are directly related to the foreclosure. 3. Title: Upon receipt of the option price, the Holder shall deliver to the Town or its assignee a special warranty deed, conveying the Property to the Town or its assignee. The Holder shall convey only such title as it received through the public trustee's deed or deed in lieu of foreclosure and shall not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustees' deed to the Holder. The Holder shall not be liable for any of the costs of conveyance to the Town or its assignee. Price Capped Community Housing Deed Restriction 2025 Page 17 of23 A TOWN OF AVON AV O n CO MUNITY HOUSING PRICE CAPPED DEED RESTRICTION 4. Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the Town or its assigns shall have sixty (60) days in which to exercise the Option to Purchase as set forth herein by notifying the Holder in writing of its intent to exercise the option. In the event that the Town or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the Town's Option to Purchase and the Town of Avon's Community Housing Price Capped Deed Restriction recorded at Reception Number in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the Property which is the subject of foreclosure as of the thirty-first day after the issuance of such public trustee's deed or deed in lieu of foreclosure. The Holder shall not be required to take any affirmative action to obtain such release. It is the intent of the Town that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the Town or its assigns to provide written notice of its intent to exercise its Option to Purchase to the Holder, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Holder and without the necessity of filing a release of such Deed Restriction Agreement or option of public record. It is agreed that this Section 4 shall not result in a release of the Deed Restriction Agreement from any other property which is not the subject of foreclosure, and nothing contained herein shall require the Town to release and waive its ability to enforce the Deed Restriction Agreement in the event of foreclosure of a lien secured in second or subsequent position. 5. Successors and Assigns: 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 6. Modification: The parties hereto agree that any modifications to this Option to Purchase shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder's Office of Eagle County, Colorado. Price Capped Community Housing Deed Restriction 2025 Page 18 of 23 AVA_ OF AVON O n COMMUNI Y HOUSING PRICE CAPPED DEED RESTRICTION IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the day of , 20_. OWNER: 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. Notary Public Price Capped Community Housing Deed Restriction 2025 Page 19 of 23 A Avon TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION TOWN OF AVON, COLORADO: By: Town Manager Price Capped Community Housing Deed Restriction 2025 Page 20 of 23 Attest: Town Clerk A neon TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION EXHIBIT C ACKNOWLEDGEMENT OF THE TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION WHEREAS, [Buyer Name] (the "Buyer") is purchasing from [Seller Name] (the "Seller") at a price of $[purchase price amount] , the real property and improvements located in [Address & Neighborhood] more particularly described as: [Legal Description] , according to the plat recorded under Reception No. , in the real property records of Eagle County of Eagle, Colorado (the "Subject Property"); and WHEREAS, the Seller of the Subject Property is requiring, as a prerequisite to the sales transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled "TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION", recorded on , 20_, under Reception No. , in the real property records of Eagle County, Colorado (the "Deed Restriction"). A copy of the Deed Restriction is attached to this Acknowledgement as Exhibit A. NOW, THEREFORE, as an inducement to the Seller to sell the Property, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Deed Restriction, has had the opportunity to consult with legal and financial counsel concerning the Deed Restriction and fully understands the terms, conditions, provisions, and restrictions contained in the Deed Restriction, and agrees to abide by the Deed Restriction. 2. Buyer acknowledges that the Deed Restriction imposes a future sale to an Eligible Household at no greater than the Maximum Sales Price exclusively on the sale or conveyance of the Subject Property. 3. I/we acknowledge that no sales/purchases are exempt from the requirement that the Property be occupied by an Eligible Household in accordance with the Deed Restriction. All future buyers shall complete an application for approval of Eligible Household status with the Town of Avon or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Property as its Primary Residence; and (iii) the Owner is in compliance with the terms and conditions of this Deed Restriction. 4. Notice to Buyer, pursuant to Section 12 of the Deed Restriction, should be sent to: Price Capped Community Housing Deed Restriction 2025 Page 21 of 23 TOWN OF AVON Avo nCOMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION 5. Uwe direct that this acknowledgement be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Town of Avon. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day of , 20_. BUYER(S): Printed Name Printed Name STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , by Witness my hand and official seal. Notary Public Price Capped Community Housing Deed Restriction 2025 Page 22 of 23 A TOWN OF AVON AVO n CO MUN TY HOUSING PRICE CAPPED DEED RESTRICTION EXHIBIT A DEED RESTRICTION Price Capped Community Housing Deed Restriction 2025 Page 23 of 23 A Avo n TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION THIS COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION ("Deed Restriction") is made and 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 , with an address of , [hereinafter known as "Owner"], (each individually a "Party" and collectively the "Parties"). WHEREAS, Owner and Town desire to enter into this Deed Restriction; and, WHEREAS, the Town places certain restrictions on the ownership and resale of the Property for the benefit of the Town by requiring ownership and resale of the Property as set forth in this Deed Restriction and Avon Community Housing Policies ("ACHP"), and as they may be amended from time to time; and WHEREAS, the Town 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 WHEREAS, the Town has authority as a home rule municipality to enter into the Deed Restriction and to exercise all rights, remedies and administrative oversight in this Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: COVENANTS 1. Property Subject to Deed Restriction. The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. 2. Definitions. The following definitions shall apply to terms used in the Deed Restriction: A. "Annual Compliance Recertification" means an annual certification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with this Deed Restriction and the ACHP. B. "Property Subject to Deed Restriction" The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. Resident Occupied Community Housing Deed Restriction 2025 Page 1 of 20 A _ OF AVON ,4vo n COMMUNI Y HOUSING • RESIDENT OCCUPIED DEED RESTRICTION C. "Eligible Household" means Households that (i) will use that Unit as their Primary Residence, (ii) are qualified employees, and (iii) own no other real estate. Each of the criteria are further defined below: i. Employment Qualification: At least one primary member of a Household must meet one or more of the following criteria: (1) an employee working in Eagle County who works an average of at least thirty (30) hours per week on an annual basis; or (2) earns seventy-five percent (75%) of his or her income and earnings by working in Eagle County; or (3) has been hired for a job in Eagle County on a permanent basis to work at least thirty (30) hours per work, or (4) Employment qualifications may include classifications of workers (i.e. retirees, disabled, remote workers) in accordance with the Avon Community Housing Policies, as may be amended from time to time. ii. Primary Residence. The Property will be used as the sole and exclusive place of residence as defined herein. iii. Restriction on Owning Other Real Estate: (1) As of the date of purchase of the Property, during ownership of the Property and during any period of time the Property is occupied by an Eligible Household, no member of such Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own any interest, alone or in conjunction with others, anywhere in any improved residential real property(ies), which may be subject to exceptions provided in the Avon Community Housing Policies. (2) A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the written discretion of the Town or its assign. (3) Real estate that is owned by a prospective or current Eligible Household shall not be deeded to a corporation or other person or entity except for a fair market value, nor shall real estate be deeded to a corporation or other legal entity in which any Household member has any financial interest in order to meet the requirements in this subsection. iv. Title of the Property shall be held in the name of the natural person(s) who are members of the Household which qualifies under criteria above. For example, title may be held jointly in the name of spouses who are members of an Eligible Household. Resident Occupied Community Housing Deed Restriction 2025 Page 2 of 20 A _ OF AVON Avo nCOMMUNITY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Property to be held in trust for the benefit of a natural person who also meets the definition and qualifications of an Eligible Household, as stated herein in Section 2.13. Such ownership in trust may only occur in the circumstances provided herein and at the sole written discretion of the Town, or its assign. To request a variance, the applicant shall submit a letter to the Town, or its assign, requesting a special review and a determination that title of the Property may be held in trust as set forth herein. (2) To be eligible for a variance, the following conditions must be met: (i) The beneficiary of the trust may not own other real property; and (ii) The beneficiary of the trust must be of the age of majority to qualify for this variance. (3) Upon receipt of a request for a special review for a variance and any requested information and documentation, the Town, or its assign, may grant the request, in writing, with or without conditions. D. "Household" means all individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. E. "Initial Sale" means the price the Resident Occupied For -Sale Housing unit may be initially sold for, the process for which that unit will be offered for sale, and the buyer selection process. F. "Owner" means the owner of a fee simple title to the Property, as well as its owner's agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title to the Property of record of the Housing Unit, according to the Clerk and Recorder of Eagle County, during their period of ownership interest. G. "Primary Residence" A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. H. "Qualified Employer" means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Resident Occupied Community Housing Deed Restriction 2025 Page 3 of 20 A _ OF AVON Avo nCOM.UN.TY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION Employers may not impose restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. I. "Resident Occupied Community Housing" is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence. J. "Short Term Rental" An Owner or non -Owner providing compensation to lodge in the Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. 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 Restrictions: A. The ownership, use and occupancy of the Property is restricted as follows: (i) the Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Property to their employee(s), who is/are Eligible Household(s), as defined within Section 2 of this Deed Restriction; (ii) the Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and (iii) the Owner or Qualified Employer lessee uses the Property as its Primary Residence, as defined within Section 2 of this Deed Restriction. B. The Property may not be sold or otherwise transferred to any person other than an Eligible Household in accordance with the procedures for prior verification contained in Section 4 below and pursuant to all provisions within this Deed Restriction. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Property may be held from time to time by the Town in the event of a foreclosure or as permitted by this Agreement or the ACHP. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Property may be held from time to time by certain employers, districts or governmental entities which qualify as a Qualified Employer, as that term is defined in Section 2.G above. C. Owner is subject to Annual Compliance Recertification confirming and verifying the Owner's continued eligibility as an Eligible Household and its compliance with this Agreement. To confirm such eligibility, the Owner of the Property shall submit the following information to the Town: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Property as its Primary Residence; and (ii) a statement that the Owner owns no other real property, subject to the exceptions set forth in the definition of Eligible Resident Occupied Community Housing Deed Restriction 2025 Page 4 of 20 TOWN OF AVON Avo nCOMMUN,TY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Household, in Section 2 above, and other documentation that be required by the Town and the ACHP, as may be amended from time to time. D. An Owner must not engage in any business activity on or in such Property, other than as permitted within the zone district applicable to the Property. E. The Short Term Rental, or the advertising of a short term rental, of all or any portion of the Property is prohibited. F. An Owner of the Property may not permit any use or occupancy of the Property except in compliance with this Agreement. G. Owner, other than a Qualified Employer, may not, except with prior written approval of the Towp and subject to the most current ACHP and the provisions of this Deed Restriction, rent the Property for any period of time. 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 and ACHP, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eligible Household and Primary Residence status, as defined in Section 2. H. Any subsequent Owner of the Property must execute an Acknowledgement of Deed Restriction Agreement for Resident Occupied For Sale Housing, in the form, or similar form provided by the Town, set forth in Exhibit C , and attached hereto and incorporated herein by this reference. The failure to execute such document shall not extinguish the legal force and effect of this Deed Restriction on all current and subsequent Owners. I. All sales of the Property shall be subject to the Maximum Sales Price as calculated in Section 5 below. 4. Sale Restrictions: The Property may not be sold otherwise transferred to any person other than an Eligible Household and in accordance with the procedures set for verification contained in this Section 4. A. Initial Sale by Owner. Unless otherwise governed by the ACHP, the process for Initial Sale by the developer and buyer selection shall be administered by the Town. B. Resale. i. Owner shall deliver to the Town, or its assigns, a written notice of intent to sell the Subject 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 an Eligible Household. Resident Occupied Community (lousing Deed Restriction 2025 Page 5 of 20 TOWN OF AVON Avo nCOMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION ii. 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 an Eligible Household. The administrative fee may be increase by the Town over time by an amount equal to the annual increases in the Consumer Price Index for All Urban Consumers for the Denver -Aurora -Lakewood, Colorado 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. iii. Once the Town has received complete information concerning the prospective buyer(s) and has received the administrative fee, the Town shall review the information and make a written determination as to whether the buyer(s) meet the definition of an Eligible Household within thirty (30) days of receipt of such information. iv. The Town may require the buyer to reimburse the Town of any additional costs that are incurred in the review and determination of whether a buyer(s) meets the definition of an Eligible Household, including but not limited to legal costs, title review costs, and investigation costs if reasonably required by the Town to complete its investigation. V. The Owner may sell and convey the Subject Property to the buyer(s) that is determined in writing by the Town to be an Eligible Household. A. Upson sale and conveyance of the Subject Property by Owner to a buyer(s), the buyer(s) shall be subject to the same occupancy and use requirements set forth in this Agreement. 5. Default by Owner. Owner shall be responsible for compliance with all terms of this Deed Restriction, including occupancy and use of the Subject Property and limitations on owning other real estate. Any non-compliance with the terms of this Deed Restriction or breach of any covenant(s) set forth in this Deed Restriction, including non-compliance of use and occupancy of the Subject Property and limitations on owning other real estate, shall be deemed to be a Default by Owner, whether such non-compliance is a result of direct actions of the Owner of such non- compliance occurs during ownership. 6. Inspection. If the Town has reasonable cause to believe that the occupancy or use of the Property does not comply with any provision(s) 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 a Notice to Inspect with at least twenty four (24) hours written notice. Notice of Inspection may be given by posting notice on the door to the residence on the Property. The Notice of Inspection shall generally describe the suspected non-compliance with this Deed Restriction and shall reference the Town's right to inspect set forth in this Deed Restriction. The Resident Occupied Community Housing Deed Restriction 2025 Page 6 of 20 TOWN F .4vo n CO MUNITYOHOUSING RESIDENT OCCUPIED DEED RESTRICTION Town shall have permission to enter the Property during such times upon providing a Notice of Inspection without further consent. 7. Notice and Cure. In the event of a Default by Owner of this Deed Restriction, the following procedures shall apply. A. Notice of Default. The Town shall send a written Notice of Default to the Owner detailing the nature of the default. Notice may be mailed, posted on the front door of the Property, or sent electronically. The Notice of Default shall (i) state the terms of this Deed Restriction, EHOP Guidelines or ACHP for which the Owner has defaulted; (ii) state the period for the Cure; (iii) references the potential remedies in this Deed Restriction; and (iv) state the procedures for administrative appeal of the Notice of Default. B. Period for Cure. The Period for Cure shall generally be thirty (30) days, provided that a default by Owner for lease or use of the Property as a Short Term Rental, non -primary residence or Second Home shall be cured by the Owner immediately. The Town may provide a longer period for Cure upon written agreement with the Owner, when the nature of the default will take longer than thirty (30) days to cure and the Owner is actively cooperating with the Town and making all reasonable efforts to effect the cure. C. Administrative Appeal. Owner has the right to request an administrative appeal of a Notice of Default. A request for an administrative appeal must be filed within ten (10) days of receiving a written Notice of Default. The Town shall conduct an administrative appeal hearing in accordance with procedures and requirements set forth in the ACHP. D. Default. If an administrative appeal request is not timely and properly submitted in writing and the default is not cured withing the stated Period for Cure in the Notice of Default, the Owner shall be deemed to be in Default of this Deed Restriction. E. Court Review. An administrative appeal decision shall be the final decision for the purpose of determining if a default has occurred. The date of the final decision shall be the date that a written decision of the administrative appeal is executed and provided to the Owner (as appellant). A final decision from an administrative appeal hearing may be judicially appealed, in the District Court of Eagle County pursuant to C.R.C.P. 106. 8. The Town has the right to the following remedies. A. Law and Equity. This Deed Restriction is enforceable by the Town, and their respective successors and assigns, as applicable, or as their designee, by any appropriate legal action including but not limited to specific performance, Resident Occupied Community Housing Deed Restriction 2025 Page 7 of 20 TOWN OF AVON Avo nCOM,..N.TY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION injunction, reversion, or eviction. The remedies provided herein are cumulative and not exclusive of all other remedies provided by law and/or equity. In the event of violation, non-performance, default or breach of any term of this Deed Restriction by the Owner, the 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. B. Interest on Amounts Due. 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. C. Recovery of Costs to Enforce. 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. D. Lien. 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, §31-20-105, as amended from time to time, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. E. Joint and Several Liability. 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. F. Recovery of Wrongful Gains. In the event of any lease of the Property to a person who is not an Eligible Household, as defined in the ACHP, or use of the Property as a Short Term Rental, non -primary residence 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. 9. 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 8 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, non -primary -residence 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 Resident Occupied Community Housing Deed Restriction 2025 Page 8 of 20 A TOWN OF AVON Avo nCOMMUN,TY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION prior to receipt of a Notice of Default and prior expiration of a thirty (30) day period to cure, and such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 10. Foreclosure. A. In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, and subject to the issuance of a public trustee's deed to the holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the older, the Town or its assigns shall have the option to purchase the Property as provided in the Option to Purchase, in a form similar to EXHIBIT B: Option to Purchase, attached hereto and incorporated herein. B. Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Property, only a Town of Avon Employee Household may acquire an interest in the Property at a foreclosure sale or in lieu of foreclosure. C. Notwithstanding the foregoing, in the event of foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, if the holder of such deed of trust is the grantee under the public trustee's deed or deed in lieu of foreclosure and the Town does not exercise its Option to Purchase as provided in Section I I .A, then the Town agrees to release the Property from the requirements of this Deed Restriction. D. It is specifically agreed that nothing contained herein shall require the Town to release and waive its ability to enforce this Deed Restriction in the event of a foreclosure of a lien secured in second or subsequent position. E. If the Town or its assigns exercises the Option to Purchase described in this Section 11, and acquires title to the Property, the Town or its assigns may sell the Property to a Town of Avon Employee Household or an Eligible Household or rent the Property to qualified tenants who meet the income, occupancy, and all other qualifications, established by the EHOP Guidelines and/or the ACHP, until such time that the Property can be sold to a Town of Avon Employee Household or an Eligible Household, or may elect to release and terminate this Deed Restriction, at Town's sole discretion. F. All obligations recorded of record against the Property and subsequent to this Agreement shall be subordinate to terms hereof. 11. Deed Restriction Runs with the Land. This Deed Restriction and the terms, covenants, conditions and other provisions hereof shall constitute covenants running with title to the Property for the benefit of, and enforceable by the Town and its successors and assigns and this Deed Restriction shall bind the Property, the Owner and all subsequent owners, occupants, successors and assigns. Each and every lease and each and every contract, deed or other instrument hereafter Resident Occupied Community Housing Deed Restriction 2025 Page 9 of 20 A TOWN OF AVON Avo nCOMMUNITY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION executed conveying the Property or any portion thereof shall expressly provide that such lease or conveyance is subject to this Deed Restriction; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to lessees and successors and/or assigns of all or any portion of the Property, regardless of whether such lease, contract, deed or other instrument hereafter executed leasing or conveying the Property or any portion thereof provides that such lease or conveyance is subject to this Deed Restriction. Each subsequent owner(s), occupant(s) and Eligible Household(s), upon acceptance of a deed or lease of the Property, shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions, and restrictions contained herein during an owner's period of ownership or Eligible Household's occupancy. 12. General Provisions. A. Disputes. The exclusive forum for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. B. Venue. The exclusive venue for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. C. 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. D. 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. E. Modifications: The Owner and Town of Avon agree that any modifications of this Deed Restriction shall be effective only when made by writings signed by the Owner and the Town of Avon and recorded with the Clerk and Recorder of Eagle County, Colorado. F. 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. G. Assignment. The Town may in its sole discretion assign the benefits and delegate the responsibilities of this Deed Restriction 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. Resident Occupied Community Housing Deed Restriction 2025 Page 10 of 20 TOWN OF AVON AV O n CO MUNI Y HOUSING RESIDENT OCCUPIED DEED RESTRICTION H. 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. I. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be in a joint venture with Owner, and the Town shall never be liable or responsible for any debt or obligation of Owner. J. Governmental Immunity. The town and its officers, attorneys, and employees, are relying on, and do not waive or intend to waive any provision of this Deed Restriction, the monetary limitations or any rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. SS 24-10-101, et seq., as amended, or otherwise available to the Town or its officers, attorneys, or employees. K. 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. L. Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The Deed Restriction shall be a burden upon and run with the Property for the benefit of the Town or the Town's assigns, who may enforce the Deed Restriction s and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. M. Recording. The Town shall record this Deed Restriction in the real property records of Eagle County, Colorado at the Owner's expense. N. 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. O. 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. P. 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. Q. 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 the sale of the Community Housing Unit through a tax lien sale process. Resident Occupied Community Housing Deed Restriction 2025 Page 11 of 20 A AvonTOWN OF AVON COM.UN.TY HOUSING RESIDENT OCCUPIED DEED RESTRICTION R. 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. S. 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. Said notices, consents and approvals shall be sent to the following address unless otherwise notified in writing: To Town of Avon: P.O. Box 975 100 Mikaela Way Avon, CO 81620. To Town of Owner: With a copy to: the address provided by the Eagle County Assessor's office. Resident Occupied Community Housing Deed Restriction 2025 Page 12 of 20 A TOWN OF Avo nCOMMUN.TYAVON HOUSING RESIDENT OCCUPIED DEED RESTRICTION IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. OWNER: 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: Town Manager Resident Occupied Community Housing Deed Restriction 202i Page 13 of 20 Notary Public Attest: Town Clerk A TOWN OF AVON AV O n COMMUNI Y HOUSING RESIDENT OCCUPIED DEED RESTRICTION [Insert Property Legal Description] Resident Occupied Community Housing Deed Restriction 202i Page 14 of 20 A _ AvonCOMMUON,TY HOUSING RESIDENT OCCUPIED DEED RESTRICTION EXHIBIT B OPTION TO PURCHASE In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust ("Holder") on the on the real property known as [Legal Description] , (the "Property"), and subject to the issuance of a public trustee's deed to the Holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the Holder, the Town or its assigns shall have the option to purchase the Property, which shall be exercised in the following manner: 1. Notice of Foreclosure Proceedings: The Holder shall give such notice to the Town of intent to foreclose at least sixty days prior to commencing foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Town of Avon C/O Town Manager PO Box 975 Avon, CO 81620 Town of Avon C/O Town Attorney PO Box 975 Avon, CO 81620 2. Option to Purchase: The Town or its assigns shall have sixty (60) days after issuance of the public trustee's deed or deed in lieu of foreclosure in which to exercise this Option to Purchase. In the event of a deed in lieu of foreclosure, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, an amount equal to the amount due on the note and any additional reasonable costs incurred by the Holder during the option period. In the event of foreclosure and issuance of a public trustee's deed, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Holder during the option period which are directly related to the foreclosure. 3. Title: Upon receipt of the option price, the Holder shall deliver to the Town or its assignee a special warranty deed, conveying the Property to the Town or its assignee. The Holder shall convey only such title as it received through the public trustee's deed or deed in lieu of foreclosure and shall not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustees' deed to the Holder. The Holder shall not be liable for any of the costs of conveyance to the Town or its assignee. 4. Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the Town or its assigns shall have sixty (60) days in which to exercise the Option Resident Occupied Community Housing Deed Restriction 2025 Page 15 of 20 A TOWN OF AVON AV O n COMMUNI Y HOUSING • RESIDENT OCCUPIED DEED RESTRICTION to Purchase as set forth herein by notifying the Holder in writing of its intent to exercise the option. In the event that the Town or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the Town's Option to Purchase and the Town of Avon's Community Housing Resident Occupied Deed Restriction recorded at Reception Number in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the Property which is the subject of foreclosure as of the thirty-first day after the issuance of such public trustee's deed or deed in lieu of foreclosure. The Holder shall not be required to take any affirmative action to obtain such release. It is the intent of the Town that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the Town or its assigns to provide written notice of its intent to exercise its Option to Purchase to the Holder, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Holder and without the necessity of filing a release of such Deed Restriction Agreement or option of public record. It is agreed that this Section 4 shall not result in a release of the Deed Restriction Agreement from any other property which is not the subject of foreclosure, and nothing contained herein shall require the Town to release and waive its ability to enforce the Deed Restriction Agreement in the event of foreclosure of a lien secured in second or subsequent position. 5. Successors and Assigns: 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. 6. Modification: The parties hereto agree that any modifications to this Option to Purchase shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder's Office of Eagle County, Colorado. Resident Occupied Community Housing Deed Restriction 2025 Page 16 of 20 A TOWN OF AVON Avo nCOMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the day of , 2024. OWNER: 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. Notary Public TOWN OF AVON, COLORADO: By: Town Manager Resident Occupied Community Housing Deed Restriction 2025 Page 17 of 20 Attest: Town Clerk A TOWN OF AVON Avo nCOMMUN.TY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION EXHIBIT C ACKNOWLEDGEMENT OF THE TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION WHEREAS, [Buyer Name] (the "Buyer") is purchasing from [Seller Name] (the "Seller") at a price of $[purchase price amount] , the real property and improvements located in [Address & Neighborhood] more particularly described as: [Legal Description] , according to the plat recorded under Reception No. , in the real property records of Eagle County of Eagle, Colorado (the "Subject Property"); and WHEREAS, the Seller of the Subject Property is requiring, as a prerequisite to the sales transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled "TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION", recorded on , 20_, under Reception No. , in the real property records of Eagle County, Colorado (the "Deed Restriction'). A copy of the Deed Restriction is attached to this Acknowledgement as Exhibit A. NOW, THEREFORE, as an inducement to the Seller to sell the Property, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Deed Restriction, has had the opportunity to consult with legal and financial counsel concerning the Deed Restriction and fully understands the terms, conditions, provisions, and restrictions contained in the Deed Restriction, and agrees to abide by the Deed Restriction. 2. Buyer acknowledges that the Deed Restriction imposes a future sale to an Eligible Household exclusively on the sale or conveyance of the Subject Property. 3. I/we acknowledge that no sales/purchases are exempt from the requirement that the Property be occupied by an Eligible Household in accordance with the Deed Restriction. All future buyers shall complete an application for approval of Eligible Household status with the Town of Avon or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Property as its Primary Residence; and (iii) the Owner is in compliance with the terms and conditions of this Deed Restriction. 4. Notice to Buyer, pursuant to Section 12 of the Deed Restriction, should be sent to: 5. I/we direct that this acknowledgement be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Town of Avon. Resident Occupied Community Housing Deed Restriction 2025 Page 18 of 20 A _ OF Avo nCOMMUN,TYAVON HOUSING • RESIDENT OCCUPIED DEED RESTRICTION IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day of , 20_. BUYER(S): Printed Name Printed Name STATE OF ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this , by Witness my hand and official seal. Notary Public Resident Occupied Community Housing Deed Restriction 2025 Page 19 of 20 day of A TOWN OF AVON Avo nCOMMUN,TY HOUSING • RESIDENT OCCUPIED DEED RESTRICTION EXHIBIT A DEED RESTRICTION Resident Occupied Community Housing Deed Restriction 2025 Page 20 of 20 APPENDIX C — 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 Appendix C