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HomeMy WebLinkAboutECHDA19-007 6 West Apartments LLC Purchase AgreementDEED RESTRICTION PURCHASE AGREEMENT THIS DEED RESTRICTION PURCHASE AGREEMENT (the "Agreement") is made this _________ (the "Effective Date"), by and between the Eagle County Housing and Development Authority (the "ECHDA") and 6 West Apartments LLC, a Colorado limited liability company with an address of 1677 Buffehr Creek Road, Vail, Colorado 81657 ("Developer") (each a "Party" and collectively the "Parties"). WHEREAS, Developer is the owner of certain real property more particularly described in Exhibit A, attached hereto and incorporated herein by this reference (the "Property"); WHEREAS, Developer is developing the Property for residential housing (the "Development"); WHEREAS, Developer has agreed to place certain restrictions on the use and occupancy of 13 residential dwelling units in the Development for the benefit of the ECHDA, as set forth in the deed restriction attached hereto and incorporated herein as Exhibit B (the "County Deed Restriction"); WHEREAS, the Town of Vail (the ''Town") intends to purchase a separate deed restriction on 23 additional residential dwelling units in the Development (the ''Town Deed Restriction"); and WHEREAS, the County Deed Restriction is of value to the ECHDA, and the ECHDA is willing to compensate Developer for the value of the County Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the receipt and sufficiency of which is mutually acknowledged, the Parties agree as follows: 1.General Description of Development. The Development will consist of 120 residential dwelling units (each a "Unit" and collectively the "Units"), together with associated landscaping, lighting, driveway, parking and walkway improvements. The ECHDA is purchasing the County Deed Restriction on 13 Units (the "County Units") and the Town is purchasing the Town Deed Restriction on 23 Units (the "Town Units"). The remaining 84 units are deed restricted by the Developer as Resident Occupied Eagle County units per the Restrictive Covenant Imposing Occupancy Restrictions At 6 West Apartments For The Benefit of Eagle County Housing and Development Authority, recorded March 1, 2018 at reception no. 201803210 of the Records of the Eagle County Clerk and Recorder. 2.Conveyance. Under the terms and conditions of this Agreement, Developer agrees to convey, sell, transfer and assign to the ECHDA, and the ECHDA agrees to purchase from Developer, the County Deed Restriction on the County Units. As each County Unit is completed and a temporary or permanent certificate of occupancy that allows occupancy is issued, the ECHDA shall purchase each County Deed Restriction for the Purchase Price set forth in Section 3 hereof. 3.Purchase Price. At the closing on the sale of each County Deed Restriction ("Closing"), the ECHDA shall pay Developer $27,173.91 per County Deed Restriction (the "County Purchase 1 DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 1/9/2019 Price”),foratotalof$353,260.83.DevelopershallensurethattheTown’spurchasepriceisthesamefortheTownDeedRestrictionstobepurchasedbytheTown,andiftheTown’spurchasepriceisless,theCountyPurchasePriceshallbereducedaccordingly.4.Closing.ClosingsshalloccuraseachphaseofthePropertyiscompletedandreadyforoccupancy,andOwnershalldesignateaportionoftheUnitsineachphaseasCountyUnitsroughlyinproportiontothefinalratioof13CountyUnitsto120totalUnits.EachClosingwilloccuratamutuallyagreeablelocation,atadateagreeduponbytheParties,within14daysofissuanceofthecertificateofoccupancyforaCountyUnit.TheCountyDeedRestrictionshallberecordedagainstthePropertyatthefirstclosingonaCountyDeedRestriction.AteachClosing,itisaconditiontotheECHDA’sobligationtoclosethatDeveloperhasperformedallofitsobligationsunderthisAgreementandDeveloper’srepresentationsandwarrantiesunderSection7ofthisAgreementremaintrueandcorrectinallmaterialrespectsasifmadeonthedateoftheClosing.5.NoticeandConsent.DevelopershallnotifyeverypersonorentityholdingalienorotherencumbranceonthePropertyofthepurchaseoftheCountyDeedRestrictionsbytheECHDA,andifnecessary,obtaineachoftheirconsenttotherecordingoftheCountyDeedRestrictionagainsttheProperty.6.TerminationbytheCounty.TheECHDAmayterminatethisAgreementbeforetheECHDApaystheCountyPurchasePricefortheCountyDeedRestrictiononall13CountyUnitsimmediatelyuponwrittennoticetoDeveloperifeitherofthefollowingoccurs:a.DeveloperfailstoexecuteorrecordtheCountyDeedRestrictionatthefirstClosing;orb.TheECHDA’sauthoritytopurchasetheCountyDeedRestrictionischallengedinacourtofcompetentjurisdictioninalawsuitfiledbeforeallClosingsoccur.IntheeventofterminationunderSection6.a.above,theECHDAshallnotpaytheCountyPurchasePricefortheCountyDeedRestrictions.IntheeventofterminationunderSubsection6.b.above,theECHDAshallnotpaythebalance,ifany,oftheCountyPurchasePricefollowingthefilingofsuchlawsuit,andintheeventthechallengetotheECHDA’sauthoritytopurchasetheCountyDeedRestrictionissuccessful,DevelopershallreturntoECHDAanyfundspaidbytheECHDAfortheCountyDeedRestrictionunderthisAgreement.7.RepresentationsandWarranties.Developerherebyrepresentsandwarrantsthatthefollowingstatementsarenow,andwillbeasoftheclosingdate,trueandcorrect,toDeveloper’sactualknowledge,andDevelopershallgivetheECHDApromptwrittennoticeifanyoftherepresentationsorwarrantiesmadebyDeveloperinthisAgreementarenolongertrueorcorrectinanymaterialmanner:a.Thereisnoaction,suitorproceedingpending,ortothebestofDeveloper’sknowledgethreatened,againstorotherwiseaffectingDeveloperorthePropertyinanycourtoflaworequity,orbeforeanygovernmentalauthority,inwhichanadversedecisionmightmateriallyimpairDeveloper’sabilitytoperformitsobligationsunderthisAgreement.2DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 b.ThereisnopendingorthreatenedcondemnationorsimilarproceedingaffectingtheProperty.c.ExceptfortheinchoatelienrightsofthecontractorsandsupplierscurrentlyconstructingtheDevelopment,exceptfortheDeedofTrustdatedMay9,2018infavorofFirstBankasthebeneficiary,whichwasrecordedatReceptionNumber201808084,andexceptfortheotherexistingrecordedencumbrancesthataffecttitletotheProperty,therearenoliens,encumbrances,orotherinterestsintheProperty,eitherrecordedorunrecorded.8.County’sRemedies.InthecaseofabreachofthisAgreementbyDeveloperbeforeallClosingsareconsummated,theECHDAmayterminatethisAgreementbywrittennoticetoDeveloper,andtheECHDAshallhaveallremediesavailableatlaworequityforsuchbreach,includingtheremediessetforthinSection6,aboveorspecificperformance.9.Miscellaneous.a.Modification.ThisAgreementmayonlybemodifiedbysubsequentwrittenagreementoftheParties.b.Integration.ThisAgreementandanyattachedexhibitsconstitutetheentireagreementbetweenDeveloperandtheECHDA,supersedingallpriororalorwrittencommunications.c.BindingEffect.ThisAgreementshallbebindinguponandinuretothebenefitofthepartiesheretoandtheirrespectiveheirs,successorsandassigns.d.Severability.IfanyprovisionofthisAgreementisdeterminedtobevoidbyacourtofcompetentjurisdiction,suchdeterminationshallnotaffectanyotherprovisionhereof,andalloftheotherprovisionsshallremaininfullforceandeffect.e.GoverningLawandVenue.ThisAgreementshallbegovernedbythelawsoftheStateofColorado,andanylegalactionconcerningtheprovisionshereofshallbebroughtinEagleCounty,Colorado.f.Assignment.ThereshallbenotransferorassignmentofanyoftherightsorobligationsofDeveloperunderthisAgreementwithoutthepriorwrittenapprovaloftheECHDA.g.ThirdParties.Therearenointendedthird-partybeneficiariestothisAgreement.h.Contingency;NoDebt.PursuanttoArticleX,§20oftheColoradoConstitution,anyfinancialobligationsoftheECHDAunderthisAgreementarespecificallycontingentuponannualappropriationoffundssufficienttoperformsuchobligations.ThisAgreementshallneverconstituteadebtorobligationoftheECHDAwithinanystatutoryorconstitutionalprovision.NoJointVenture.Notwithstandinganyprovisionhereof,theECHDAshallneverbeajointventureinanyprivateentityoractivitywhichparticipatesinthisAgreement,andthe3DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 ECHDAshallneverbeliableorresponsibleforanydebtorobligationofanyparticipantinthisAgreement.j.Notice.AnynoticeunderthisAgreementshallbeinwriting,andshallbedeemedsufficientwhendirectlypresentedorsentpre-paid,firstclassUnitedStatesMailtothePartyattheaddresssetforthonthefirstpageofthisAgreement.k.GovernmentalImmunity.TheECHDA,EagleCountyanditsofficers,attorneysandemployeesarerelyingon,anddonotwaiveorintendtowaivebyanyprovisionofthisAgreement,themonetarylimitationsoranyotherrights,immunities,andprotectionsprovidedbytheColoradoGovernmentalImmunityAct,C.R.S.§24-10-101,etseq.,asamended,orotherwiseavailabletotheTownanditsofficers,attorneysoremployees.WHEREFORE,thePartieshaveexecutedthisAgreementasoftheEffectiveDate.EAGLECOUNTYHOUSINGANDDEVELOPMENTAUTHORITYChairATTEST:4DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 STATE OF (1{bl'Q. cU) COUNTY OF � Cl J / ..e__ ) ss. ) By: By: M West Edwards Apartments LLC, a Colorado limited liability company, its Managing ember -�� ;::;;: 0 Stephen S. Spessard, its manager 1 1 ij--The foregoing instrument was subscribed, sworn to, and acknowledged before me this I '1' day of U(!.£rnbv; 2018, by Stephen S. Spessard. My commission expires: 3d&c2 l (S E A MICHELLE M RYMER NOTARY PUBLIC �TATE OF COLORADO NOTARY ID 19964020588 MY COMMISSION EXPIRES 03/26/21 Notary Public s DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 EXHIBITALEGALDESCRIPTIONLot1,FinalPlatofthe6WestApartmentsSubdivision,EagleCounty,Colorado,recordedintherecordsoftheEagleCountyClerkandRecorderatReceptionNumber201803207.6DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 EXHIBIT B DEED RESTRICTION FOR THE OCCUPANCY OF 6 WEST APARTMENT HOMES THIS DEED RESTRICTION FOR THE OCCUPANCY OF 6 WEST APARTMENT HOMES (the "Deed Restriction") is made and entered into this____ (the "Effective Date"), by and between the Eagle County Housing and Development Authority, (the "ECHDA"), and 6 West Apartments LLC, a Colorado limited liability company with an address of 1677 Buffehr Creek Road, Vail, Colorado 81657 ("Owner") (each a "Party" and collectively the "Parties"). WHEREAS, Owner is the owner of certain real property more particularly described in Exhibit A, attached hereto and incorporated herein by this reference (the "Property"); WHEREAS, Owner is developing the Property for rental housing (the "Development"); and WHEREAS, Owner has agreed to restrict 13 of the residential dwelling units being constructed in the Development as set forth in this Deed Restriction. NOW, THEREFORE, in consideration of the promises and covenants hereinafter set for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 1.Defined Terms. For purposes of this Deed Restriction, the following terms shall have the following meanings: a."Eligible Households" means Households that (i) will use the Unit as their Primary Residence, (ii) meet the employment qualification criteria below in subsection 1.a.i., and (iii) comply with the real estate ownership limitation below in subsection 1.a.ii. Each of the criteria are further defined below: i.Employment Qualification: 1.At least one member of the Household must meet one or more of the following criteria: a.Has earned 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.Has been hired for a job in Eagle County on a permanent basis to work at least thirty (30) hours per week; or c.Households that make their home in Eagle County but work for an employer or employers that are located outside of Eagle County (i.e. telecommuters) may be considered eligible if all other eligibility requirements are met and the Household can prove Eagle County 7 DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 1/9/2019 residencyforatleast1yearbeforeapplicationsubmission;ord.Isovertheageofsixty(60)andhadearnedalivingprimarilyinEagleCountypriortohisorherretirement;ore.Isadisabledpersonwhohadbeenafull-timeemployeeinEagleCounty(subjecttotheretirementexception)foraminimumoftwoyearsimmediatelypriortohisorherdisabilityorhasbeengrantedanexceptiontotheminimumof30hoursperweekinordertocontinuewithafederalorstatebenefitprogram,ifthepersonworksthemaximumnumberofhoursperweektheprogramwillallow;orf.Cumulatively,earnedatleast75%oftheHousehold’sGrossHouseholdIncomeinEagleCounty.ii.Limitsonowningotherrealestate:1.NomemberofanEligibleHousehold,including,butnotlimitedto,spousesandchildrenunder18yearsofage,mayownresidentialrealestateanywhereduringtheperiodoftimeaUnitisrentedtosuchEligibleHousehold.2.DuringtheperiodoftimeaUnitistentedtoanEligibleHousehold,noHouseholdmembershallownanyinterestaloneorinconjunctionwithothers,inanyotherresidentialrealestate.3.RealestatethatisownedbyaprospectiveEligibleHouseholdmaynotbedeededtoacorporationorotherpersonorentityexceptatfairmarketvaluenormayrealestatebedeededtoacorporationorotherlegalentityinwhichanyHouseholdmemberhasanyfinancialinterestinordertomeettherequirementssetforthinthissubsectionI.a.ii.b.‘QualifiedEmployer”meansanindividualorentitythatregularlyconductsbusinessinEagleCounty.QualifiedEmployersmaymasterleaseunitsandsubleasetoemployeeswhoaremembersofEligibleHouseholds.QualifiedEmployersmaynotimposeadditionalrestrictionstoUnitsinthePropertywithoutwrittenconsentoftheECHDAandtheOwner’spropertymanagerforthesubjectPropertyandtheUnits(the“PropertyManager”).c.‘GrossHouseholdIncome”meansthetotalamountofincomeaHouseholdearnsinoneyearfromallsourcesbeforetaxes.U.“Household”meansallindividualswhowilloccupyaUnitregardlessoflegalstatusorrelationtothepersonnamedasthetenantontheleasefortheUnit.e.“AnnualCertification”meansanannualcertificationunderoathbytheOwneroritsPropertyManagertotheECHDAstating,foreachmonthofthecalendaryear,thenumberofUnitsrentedtoEligibleHouseholdsinthatmonth,thenumberofUnitsrentedtosomeoneotherthananEligibleHouseholdinthatmonth,andthenumberofUnitsthatwerenotrentedinthatmonth.f.“PrimaryResidence”:aUnitisthePrimaryResidenceofaHouseholdaslongasoneormoremembersoftheHouseholdlivesintheUnitforatleast9outofany12months.The8DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 OwneroritsPropertyManagerwillrequirethetenantofeachUnitoccupiedbyanEligibleHouseholdtocertifyintheleasethattheUnitqualifiesastheHousehold’sPrimaryResidence.DeterminationofEagleCountyresidencystatusshallbebasedoncriteriaincludingbutnotlimitedto1)copyofdeedorpropertytaxstatement,or2)utilitystatementsfromserviceproviders,or3)otherdocumentationthattheOwneroritsPropertyManagerdeemsreasonablynecessarytomakeadetermination,suchasvoterregistrationinformation,placeofautomobileregistration,driver’slicenseaddressandincometaxreturns.g.“RentalGuidelines”meanstheguidelinesattachedasExhibitBheretoandincorporatedhereinbythisreference,asamended.h.“CountyUnits”meanstheUnitsthataresubjecttothisDeedRestriction.TheCountyUnitsarenotfixed,specificUnits,butmayfloat,aslongas,oncetheDevelopmentiscomplete,thetotalnumberofCountyUnitssubjecttothisDeedRestrictionisequalatalltimesto13.“Units”meansalloftheresidentialdwellingunitsconstructedontheProperty.2.BindingEffect.ThisDeedRestrictionshallberecordedintheofficeoftheEagleCountyClerkandRecorder,andshallconstituteacovenantandanequitableservituderunningwiththePropertyasaburdenthereon,forthebenefitof,andenforceableby,EagleCounty(the“County”),theECHDAandtheirrespectivesuccessorsorassignsortheirdesignee,Owner,andanysubsequentowneroftheProperty,byanyappropriatelegalactionincludingbutnotlimitedtospecificperformance,injunction,reversion,oreviction.ThisDeedRestrictionshallbindOwnerandalloccupantsoftheCountyUnits.EachandeveryoccupantofaCountyUnitshallbepersonallyobligatedhereunderforthefullandcompleteperformanceandobservanceofallcovenants,conditionsandrestrictionscontainedhereinthatareapplicabletosuchoccupantduringsuchoccupant’srespectiveperiodofoccupancyofaCountyUnit.EachandeveryconveyanceofthePropertyoraportionthereof,orinteresttherein,forallpurposes,shallbedeemedtoincludeandincorporatebythisreference,thecovenantscontainedinthisDeedRestriction,evenwithoutreferencetothisDeedRestrictioninanydocumentofconveyance.3.OccupancyandUse.a.SubjecttotheRentalGuidelines,eachCountyUnitshallbeoccupiedatalltimesbyanEligibleHousehold.AUnitthatisrentedforatermoflessthan30consecutivedayswillnotqualifyasbeingrentedtoanEligibleHousehold.AUnitthatismasterleasedtoaQualifiedEmployerforsubleasetoitsemployeeswhoaremembersofEligibleHouseholdswillqualifyasaUnitthatisrentedtoanEligibleHousehold.b.NobusinessactivityshalloccuronorinaCountyUnit,otherthanaspermittedwithinthezoningdistrictapplicabletotheProperty.4.CountyUnitLease.NoCountyUnitshallbeleasedoroccupiedwithoutalease.EachCountyUnitshallhaveonlyoneleaseatanyonetime.WhenleasingCountyUnits,OwnershallnotdiscriminatebetweenCountyemployees,employeesofbusinessesintheCounty,andothertenantswithrespecttotherentcharged,theamountofthesecuritydepositrequired,oranyothermaterialleaseterms.EachCountyUnitleaseshallexpresslyprovidethatsuchleaseissubjecttothisDeedRestrictionandshallcontainabriefsummaryofthisDeedRestriction,includingtheremediesuponaviolationorbreachofthetermsofthisDeedRestriction,andshallincorporatethetermsandconditionsofthisDeedRestriction.9DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 5.RightToTerminateLease.NothinghereinshallpreventOwnerfromterminatingtheleaseofaEligibleHousehold,ortakinganyotherlegalactionagainstaEligibleHouseholdbaseduponanytenant’sbreachofthetermsofthelease;providedthatifatenantofaCountyUnitmisrepresentshisorherHousehold’sstatusasanEligibleHousehold,Ownershallterminatetheleaseinadditiontoanyotheravailableremedies.6.Inspection.Inanon-emergencysituation,iftheECHDAorOwnerhasreasonablecausetobelievethatanoccupantofaCountyUnitisviolatinganyprovisionofthisDeedRestriction,theECHDAorOwnermayinspecttheCountyUnitbetweenthehoursof8:00amand5:00pm,MondaythroughFriday,afterprovidingtheoccupantwithnolessthan24hourswrittennotice,whichnoticemaybegivenbypostingonthefrontdooroftheapplicableCountyUnit.NothinghereinshallprecludetheECHDAorOwnerfromaccessingaCountyUnitinanemergencysituationwherethereisanimminentthreattoperson(s)orproperty.7.AnnualVerification.NolaterthanFebruary1stofeachyear,beginningintheyearfollowingthefirstyearofoccupancyoftheProperty,OwnershallsubmitawrittenstatementtotheECHDAincludingthefollowinginformationandcertifyingthatsuchinformationistrueandcorrecttothebestofOwner’sknowledgeandbelief:a.AlistoftenantswhooccupiedtheCountyUnitsinthepriorcalendaryearandtheevidencesubmittedbysuchtenantstoestablishthattheirHouseholdswereEligibleHouseholds;b.AcopyoftheleaseformcurrentlyusedfortheCountyUnits;andc.Copies(whichmaybeelectronic)ofallapplicationinformationsubmittedbyEligibleHouseholdsoccupyingCountyUnits.OwneroritsPropertyManagershallmakeOwner’srecordswithrespecttotheuseandoccupancyoftheCountyUnitsavailabletotheECHDAoritsauthorizedagentforinspectionuponrequestforaudittoconfirmcompliancewiththisDeedRestriction.8.RighttoRedeem.UnderC.R.S.§38-38-305,ECHDA,astheholderofthisDeedRestriction,isconsideredasalienor,butwithoutanylienamount,witharighttoredeemupontheforeclosureofasuperiorlien,inaccordancewithArticle38ofTitle38,C.R.S.,asamended.9.SuperiortoLiens.ThisDeedRestrictionissuperiortoeachmortgage,deedoftrust,andanyotherlienrecordedagainstallorpartoftheProperty,andbyrecordingamortgage,deedoftrust,orotherlienagainstalloranypartoftheProperty,thelienoracknowledgesandagreesthatitsmortgage,deedoftrust,orotherlienissubordinatetothisDeedRestriction,andthatthisDeedRestrictionshallremaininfullforceandeffectandcannotbeterminated,extinguished,orotherwiseaffectedbyaforeclosureofanymortgage,deedoftrust,orotherlienoranyconveyanceofthePropertyinlieuofanysuchaforeclosure.10.Violations.a.IfOwnerdiscoversaviolationofthisDeedRestrictionbyanoccupantofaCountyUnit,oriftheECHDAnotifiesOwnerinwritingthatthereisaviolationofthisDeedRestrictionbyanoccupantofaCountyUnit,Ownershallsendanoticeofviolationtotheoccupantdetailingthenatureoftheviolationandallowingtheoccupant10daysfromthedateofthenoticetocuresaidviolationtothereasonablesatisfactionofOwnerandtheECHDA.NoticemaybegivenbypostingonthefrontdooroftheapplicableCountyUnitorbyotherlawfulmeans,Iftheviolationisnot10DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 curedwithinsuchtime,theviolationshallbeconsideredaviolationofthisDeedRestrictionbytheCountyUnitoccupant.b.IftheECHDAoritsdesigneediscoversaviolationofthisDeedRestrictionbyOwner,theECHDAoritsdesigneeshallsendanoticeoftheviolationtoOwner,detailingthenatureoftheviolationandallowingOwner30daystocuresaidviolationtothereasonablesatisfactionoftheECHDA.Ifaforcibleentryanddetainerisnecessarytoresolvetheviolation,theforcibleentryanddetainershallbecommencedwithinsuch30-dayperiodanddiligentlyprosecutedtocompletion.Iftheviolationifnotcuredwithinsuchtime,theviolationshallbeconsideredaviolationofthisDeedRestrictionbyOwner.11.Remedies.a.TheECHDA,theCounty,andtheirrespectivesuccessorsandassigns,asapplicable,ortheirdesignee,shallhaveanyandallremediesprovidedbylawandinequityforaviolationofthisDeedRestriction,includingwithoutlimitation:(I)damages,includingbutnotlimitedtodamagesresultingfromtheleasingofaCountyUnitinviolationofthisDeedRestriction;(ii)specificperformance;and(iii)injunction,includingbutnotlimitedtoaninjunctionrequiringevictionoftheoccupant(s)andaninjunctiontoprohibittheoccupancyofaCountyUnitinviolationofthisDeedRestriction.Allremediesshallbecumulative.b.Inadditiontoanyotheravailableremedies,ifOwnerisfoundtobeinviolationthisDeedRestriction(afterexpirationofanycureperiod),Ownershallbesubjecttoapenaltyof$100perviolationasdeterminedbytheECHDAineachinstance.EachoccurrenceisherebydeemedtobeaseparateviolationofthisDeedRestriction,andthepenaltymaybeimposedforeachandeverydayduringanyportionofwhichaviolationisfoundtohavebeencommitted,continuedorpermittedbyOwner.ThispenaltyshallnotapplyifitisdiscoveredthatanoccupantprovidedfalseinformationtoOwner,Ownerreasonablyreliedonsuchfalseinformation,andthefalseinformationcausedtheviolation.c.Ifadditiontoanyotheravailableremedies,ifanoccupantofaCountyUnitisfoundtobeinviolationofthisDeedRestriction(afterexpirationofanycureperiod),theoccupantshallbesubjecttoapenaltyof$100perviolationasdeterminedbytheECHDAoritsdesigneeineachinstance.EachoccurrenceisherebydeemedtobeaseparateviolationofthisDeedRestriction,andthepenaltymaybeimposedforeachandeverydayduringanyportionofwhichaviolationisfoundtohavebeencommittedorcontinuedbyanoccupant.d.ThecosttotheECHDAofanyactivitytakeninresponsetoanyviolationofthisDeedRestrictionbyOwner,includingreasonableattorneyfees,shallbepaidpromptlybyOwner;providedthat,ifacourtofcompetentjurisdictionfindsthatOwnerwasnotinviolationofthisDeedRestriction,Ownershallnotbeliableforsuchpayment.12.Term.ThisDeedRestrictionshallcommenceontheEffectiveDateandruninperpetuity.13.Notices.Anynotice,consent,orapprovalthatisrequiredtobegivenhereundershallbegivenbymailingthesame,certifiedmail,returnreceiptrequested,properlyaddressedandwithpostagefullyprepaid,toanyaddressprovidedhereinortoanysubsequentmailingaddressofthepartiesindicatedbelowaslongaspriorwrittennoticeofthechangeofaddresshasbeengiventotheallpartiesasindicated.Saidnotices,consentsandapprovalsshallbesenttothefollowingaddressesunless11DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 otherwisenotifiedinwriting:ToOwner:6WestApartmentsLLCdoStephenS.Spessard1677BuffehrCreekRoadVail,CO81657pssard(gorecreekpartners.cornToECHDA:EagleCountyHousingandDevelopmentAuthorityPostOfficeBox850Eagle,CO81631Withcopyto:EagleCountyAttorneyPostOfficeBox850Eagle,CO81631attorneys@eaglecounty.us14.Miscellaneous.a.Modification.ThisDeedRestrictionmayonlybemodifiedbyasubsequentwrittenagreementofthePartiesthatisrecordedwiththeClerkandRecorderofEagleCounty,Colorado.b.Assignment.NeitherthisDeedRestrictionnoranyoftherightsorobligationsofthePartiesshallbeassignedbyeitherPartywithoutthewrittenconsentoftheother,butOwnermayconveythePropertywithouttheECHDA’sconsent.Notwithstandingtheforegoing,theECHDAmayinitssolediscretionassignthebenefitsanddelegatetheresponsibilitieshereundertoapublicagencyorauthorityorganizedoroperatedinwholeorinparttoprovidehousingprogramsinEagleCounty.c.Severability.IfanyprovisionofthisDeedRestrictionisdeterminedtobevoidbyacourtofcompetentjurisdiction,suchdeterminationshallnotaffectanyotherprovisionhereof,andalloftheotherprovisionsshallremaininfullforceandeffect.d.GoverningLawandVenue.ThisDeedRestrictionshallbegovernedbythelawsoftheStateofColorado,andanylegalactionconcerningtheprovisionshereofshallbebroughtinEagleCounty,Colorado.e.ThirdParties.Therearenointendedthird-partybeneficiariestothisDeedRestriction.f.NoJointVenture.Notwithstandinganyprovisionhereof,theECHDAshallneverbeinajointventurewithOwner,andtheECHDAshallneverbeliableorresponsibleforanydebtorobligationofOwner.g.NoIndemnity.NothinghereinshallbeconstruedtorequitetheECHDAtoprotectorindemnifyOwneragainstanylossesattributabletotherentalofaCountyUnit,nortorequiretheECHDAortheCountytolocateanEligibleHouseholdforanyCountyUnit.12DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 h.GovernmentalImmunity.TheECHDA,theCountyanditsofficers,attorneysandemployees,arerelyingon,anddonotwaiveorintendtowaivebyanyprovisionofthisDeedRestriction,themonetarylimitationsoranyotherrights,immunities,andprotectionsprovidedbytheColoradoGovernmentalImmunityAct,C.R.S.§24-10-101,etseq.,asamended,orotherwiseavailabletotheCountyoritsofficers,attorneysoremployees.PerpetuitiesSavingsClause.Ifanyoftheterms,covenants,conditions,restrictions,uses,limitations,obligationsoroptionscreatedbythisDeedRestrictionshallbeunlawfulorvoidforviolationof:(a)theruleagainstperpetuitiesorsomesimilarstatutoryprovision,(b)therulerestrictingrestraintsonalienation,or(c)anyotherstatutoryorcommonlawrulesimposinglikeorsimilartimelimits,thensuchprovisionshallcontinueonlyfortheperiodofthelivesofthethen-currentdulyelectedandseatedEagleCountyCommissioners,andthethencurrentEagleCountyemployees,theirnowlivingdescendants,ifany,andthesurvivorofthem,plustwenty-one(21)years.j.Recording.ThisDeedRestrictionshallberecordedintherealpropertyrecordsofEagleCounty,Colorado.13DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 INWITNESSWHEREOF,thePartieshaveexecutedthisDeedRestrictionasoftheEffectiveDate.EAGLECOUNTYHOUSINGANDDEVELOPMENTAUTHORITYATTEST:OWNER6WestApartmentsLLCBy:WestEdwardsApartmentsLLC,aColoradolimitedliabilitycompany,itsManagingMemberBy:___StephenS.Spessard,itsManagerSTATEOFCOLORADO))ss.COUNTYOFEAGLE)Theforepinginstrumentwassubscribed,swornto,andacknowledgedbeforemethis)L,tdayof/)(2(?JJy),2018,byStephenS.Spessard,themanagerofWestEdwardsApartmentsLLC,aColoradolimitedliabilitycompany,astheManagingMemberof6WestApartmentsLLC,aColoradolimitedliabilitycompany.Mycommissionexpires:3?6s21EMICHELLEMRYMER(SEAL)•TATEOFCOLORADONotaryPublicNOTARYID19964020588IMYCOMMISSIONEXPIRES03/26/2114DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 EXHIBITALEGALDESCRIPTIONLot1,FinalPlatofthe6WestApartmentsSubdivision,EagleCounty,Colorado,recordedintherecordsoftheEagleCountyClerkandRecorderatReceptionNumber201803207.15DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 EXHIBITB6WESTAPARTMENTHOMESRENTALGUIDELINES1.Purpose.ThepurposeoftheseRentalGuidelinesistosetforththeoccupancyeligibilityrequirementsfortheCountyUnitspursuanttotheDeedRestrictiondated_____________,2018.2.Definitions.AllcapitalizedtermshereinshallhavethemeaningssetforthintheDeedRestriction.3.Administration.InaccordancewiththeDeedRestriction,OwnershalladministertheseRentalGuidelines,including,withoutlimitation,makingdeterminationsregardingtheeligibilityofapplicantstorentandoccupyeachCountyUnit.PriortoleasingorrenewingaleaseforaCountyUnit,eachtenantmustsignanindividualacknowledgementofacceptanceofthetermsoftheseRentalGuidelinesandtheDeedRestriction.4.EligibleHouseholds.Subjecttoparagraph8oftheseRentalGuidelines,tobeeligibleforconsiderationtoleaseaCountyUnit,theoccupantsmustqualifyasanEligibleHousehold.5.Application.TobecomeanEligibleHouseholdanindividualmustfirstprovidethefollowinginformationonanapplicationtobeprovidedbyOwner,andallapplicationsandaccompanyingdocumentationshallbecomethepropertyofOwnerandtheECHDAandwillnotbereturnedtotheapplicant:a.VerificationthattheapplicantisaEligibleHousehold,includingverificationoftheapplicant’scurrentemploymentandincome(e.g.,paystubs,employername,address,telephonenumber,andotherappropriatedocumentation)ORverificationthattheapplicantderivesatleast75%oftheapplicant’stotalannualgrossincomefromemploymentatoneormoreemployersinEagleCountyb.Avalidformofidentification,suchasadriver’slicense,state-issuedidentification,passportormilitaryidentification;c.AnyotherdocumentationthatOwnerortheECHDAdeemsnecessarytomakeadeterminationofeligibility;andd.Astatementsignedbytheapplicantcertifying,acknowledging,andagreeing:thatallinformationsubmittedinsuchapplicationistrue;thattheapplicanthasreadtheDeedRestrictionandtheseGuidelinesandagreestocomplywiththem;thattheapplicantunderstandsthatheorshemaynotsublettheCountyUnit;thattheapplicantauthorizesOwnertoverifyanyandallpastorpresentemploymentandresidencyinformationandallotherinformationsubmittedbyanapplicant;andthattheapplicantunderstandsthat,assetforthintheDeedRestriction,Ownerreservestherighttoreviewanyapplicationsandtakeanyappropriateactionregardingsuchapplication.16DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 6.Interpretation.InevaluatinganapplicationtoleaseaCountyUnit,Ownershallbeguidedbythefollowing:a.Anapplicant’sphysicalplaceofemploymentiscontrolling,notthemailingaddress;b.ClaimsofemploymentbyanapplicantthatareunabletobeverifiedbyOwnerwillnotbeutilizedindetermininganapplicant’seligibility;andc.Seasonalworkandpart-timeworkalonemaynotbeadequatetomeettheminimum30hoursperweekaverageannualrequirement,butmayaugmentotheremploymenttomeettheminimumeligibilityrequirements.7.Occupancy.a.OwnershallprovidetheECHDAwithwrittennoticeofeachupcomingvacancyofaCountyUnitatleast10dayspriortotheendofthethen-currentleaseterm.b.SubjecttotheseGuidelines,atalltimes,eachCountyUnitshallbeoccupiedbyanEligibleHousehold.c.ACountyUnitmaybevacantduringrepairsandrenovations,butOwnermaynotdisproportionatelydesignatevacantUnitsasCountyUnits.Forexample,becauseapproximately10%oftheUnitsatthePropertyareCountyUnits,ifthereare5vacantUnitsatthePropertyataparticulartime,onlyoneofthevacantUnitsmaybeaCountyUnit.d.Thepreferenceforleasing/occupancyforeachavailableCountyUnitshallbeasfollows:TheCountyoranEligibleHouseholdthatincludesamemberwhoisemployedbytheCounty;butifOwnermakesreasonableeffortstoleasetheCountyUnittoallsuchQualifiedResidentsfor7daysandfindsnosuchQualifiedResidents,thentoii.AnEligibleHouseholdthatincludesamemberwhoisemployedbyabusinesslocatedwithintheCounty’sboundaries.e.TheCountyUnitsshallbeleasedfor12-monthperiods.f.IftheECHDAortheCountyisthelessee,asanEligibleHousehold,eithermaytransferaCountyUnitleasetoanotherEligibleHouseholdatanytime.g.IftheECHDAortheCountyisthelessee,asanEligibleHousehold,eithermaysubleaseaCountyUnittoanotherEligibleHouseholdatanytime.8.Misrepresentation.AnymisrepresentationbyanapplicantinanysubmittalshalldisqualifysuchapplicantfrombeingeligibletoleaseaCountyUnit,andshallbegroundsforevictionifsuchmisrepresentationisrevealedaftersuchapplicant’soccupancy.17DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5 9.InspectionofDocuments.TheECHDAoritsdesigneemayinspectanydocumentssubmittedwithanyapplicationforEligibleHouseholdstatuspursuanttoSection5hereof,atanytimeduringnormalbusinesshours,uponreasonablenotice.Inaddition,uponinspection,iftheECHDAreasonablydeterminesthatadditionaldocumentsarenecessarytoverifyEligibleHouseholdstatus,theECHDAmayrequestadditionaldocuments.10.Retirement.AnindividualwhooccupiesaCountyUnitashisorherPrimaryResidenceandwasanEligibleHouseholdwhentheindividualmovedintotheCountyUnit,butthenretiresduringthetermofhisorherlease,andis60yearsofageorolderatthetimeofretirement,andwho,workedanaverageof30hoursormoreperweekatabusinesslocatedinEagleCountythatpaidsalestaxes,orwasotherwisegenerallyrecognizedasalegitimatebusiness,maycontinuetooccupytheCountyUnitunderaCountyLease,asextendedorrenewed.11.Disability.AnindividualwhooccupiesaCountyUnitashisorherPrimaryResidenceandwasanEligibleHouseholdwhentheindividualmovedintotheCountyUnit,butthenbecomesdisabledduringthetermofhisorherleaseandthedisabilitypreventstheindividualfromworkinganaverageof30hoursormoreperweekmaycontinuetooccupytheCountyUnitunderaCountyLease,asextendedorrenewed.18DocuSign Envelope ID: 8A093153-BCE8-4FED-BDD3-484E4B6C9BB5