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AHA Resolution 20-03 Approving Sale of AHA Interest in Buffalo Ridge LLLPAvon COLORADO AVON HOUSING AUTHORITY RESOLUTION 20-03 APPROVING SALE OF AVON HOUSING AUTHORITY INTEREST IN BUFFALO RIDGE LLLP WHEREAS, Corum Real Estate Group, Inc., a Colorado corporation ("Corum"), developed that certain multi -family residential low income housing project known as the Buffalo Ridge Apartments located on certain real property located in the Town of Avon, Eagle County, Colorado, and consisting of a portion of the subdivision known as The Village (at Avon) Filing No. 2 (the "Project); WHEREAS, Corum formed Buffalo Ridge II LLLP, a Colorado limited liability limited partnership (the "LLLP") for the purposes of owning, developing, constructing and operating the Project; and WHEREAS, for purposes of financing the Project, SunAmerica Housing Fund 1048 ("SunAmerica") became an investment partner in the LLLP for purposes of providing capital contributions to the LLLP and the Project; and WHEREAS, Traer Creek -RP LLC ("Traer Creek") became special limited partner in the LLLP for purposes of providing the real property on which the Project is located, which land dedication was made in partial satisfaction of Traer Creek's affordable housing obligations under The Village (at Avon) PUD; and WHEREAS, the Town of Avon (the "Town"), acting by and through the Avon Housing Authority (the "Authority"), became a special limited partner in the LLLP for the purpose of exempting the Project from real property taxation pursuant to §§ 29-4-226 and 227, C.R. S; and WHEREAS, pursuant to the LLLP's Amended and Restated Agreement of Limited Partnership (the "LLLP Partnership Agreement"), the Authority has a 0.0025% interest in the LLLP; and WHEREAS, pursuant to the LLLP Partnership Agreement, the Authority is entitled to 3.00% of any net proceeds realized from the sale of the LLLP; and WHEREAS, SunAmerica now desires to sell, and Corum desires to purchase, its interests in the LLLP, and for tax and other legal reasons Corum must acquire Traer Creek's and the Authority's respective interests in the LLLP to complete the transaction; and Res 20-03 Sale of Interest in Buffalo Ridge LLLP June 23, 2020 Page I of 4 WHEREAS, in order to facilitate the acquisition of the property, Corum has formed Buffalo Ridge, LLC, a Delaware limited liability company (`Buffalo Ridge") for purposes of owning and operating the Project; and WHEREAS, Corum has formed OI-CREG Cherry Creek, LLC, a Delaware limited liability company ("OI-CREG"), which shall serve as the initial voting member and Manager of Buffalo Ridge; and WHEREAS, to facilitate the acquisition of the Project, OI-CREG desires to purchase the Authority's interest in the LLLP for $1,500,000.00, and shall cause Buffalo Ridge to make monthly payments of 0.005% of the gross revenue of Buffalo Ridge to the Town; and WHEREAS, in order to maintain the affordability of the Project, OI -GREG, as the voting member and Manager of Buffalo Ridge, desires to admit the Authority as a Class "A" Member of Buffalo Ridge for the purpose of exempting the Project from real property taxation pursuant to §§ 29-4-226 and 227, C.R.S; and WHEREAS, the Authority desires to sell its interest in the LLLP to OI -GREG; and WHEREAS, the Authority believes that it is in the best interests of the Project, the Town, and the Authority that the Authority act and serve as a Class "A" Member in Buffalo Ridge as such membership will assist in providing safe, decent and affordable housing to the residents of the Town, provided the Town may withdraw its membership from Buffalo Ridge in the event Buffalo Ridge is no longer controlled by Corum or an affiliate controlled by Corum; and WHEREAS, the Avon Housing Authority hereby finds, determines and declares this Resolution will promote the health, safety and general welfare of the Avon community. NOW THEREFORE, BE IT RESOLVED, BY THE AVON HOUSING AUTHORITY OF THE TOWN OF AVON, COLORADO: Section 1. The Authority hereby ratifies, confirms and approves the sale of its special limited partner interest in the LLLP, and agrees to be admitted to, and serve as, a Class "A" Member of Buffalo Ridge in order to exempt the Project from real property taxation pursuant to and in accordance with the provisions of C.R.S. §§ 29-4-226 and 227. Section 2. The Town Attorney is hereby delegated authority to review and modified all documents necessary to effectuate the above referenced transaction. The Chairman or appropriate designee of the Authority, is hereby authorized and empowered to execute and deliver any and all documents and instruments on behalf of the Authority to cause its admission to Buffalo Ridge as a Class "A" Member thereof at such times and on such terms and conditions as such officer may deem acceptable in his or her sole discretion, such acceptance to be evidenced by such officer's execution and delivery of such documents and instruments. Res 20-03 Sale of Interest in Buffalo Ridge LLLP June 23, 2020 Page 2 of 4 Section 3. The foregoing officers are hereby authorized and empowered to execute and deliver any other documents or instruments on behalf of the Authority that such officers may deem necessary or desirable in connection with its Class "A" Membership in Buffalo Ridge, on such terms and conditions as such officers deem acceptable, such acceptance to be evidenced by such officers' execution and delivery of any such documents or instruments. Section 4. The Authority hereby ratifies, confirms and approves all actions previously taken by Corum, OI-CREG and Buffalo Ridge in connection with the formation of Buffalo Ridge and the acquisition, ownership, construction, development, financing, operation and management of the Project [SIGNATURE PAGE FOLLOWS] Res 20-03 Sale of Interest in Buffalo Ridge LLLP June 23, 2020 Page 3 of 4 ADOPTED this 16th day of July 2020. AVON HOUSING AUTHORITY By: Attest: Sarah Smith-Hymes, Chairper Res 20-03 Sale of Interest in Buffalo Ridge LLLP June 23, 2020 Page 4 of 4 Brenda Torres, An