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HomeMy WebLinkAboutR22-042 Housing - Locals First Program/Cash Buy Program DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF Commissioner Chandler-Henry moved adoption of the following resolution: BOARD OF EAGLE COUNTY COMMISSIONERS EAGLE COUNTY, COLORADO RESOLUTION NO. 2022-042 RESOLUTION AUTHORIZING THE EAGLE COUNTY LOCALS FIRST PROGRAM,A CASH BUY PROGRAM,AND AUTHORIZING THE EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY TO ACT AS THE FISCAL AGENT FOR THE COUNTY, TO ADMINISTER THE LOCALS PROGRAM AND TO EXECUTE DOCUMENTS ASSOCIATED WITH THE SAME WHEREAS, on July 27, 2021,the Eagle County Board of County Commissioners ("Board") authorized the Eagle County Housing and Development Authority's Bold Housing Moves, a series of innovative housing programs, including the Locals First Program ("Locals First Program"), a cash buy program, designed to address the growing housing challenges among local residents in Eagle County; and WHEREAS,the Board desires to delegate to the Eagle County Housing and Development Authority("ECHDA")the authority to act as the fiscal agent for the County and to administer the Locals First Program in accordance with the Locals First Program Guidelines established by the ECHDA and attached hereto as Exhibit A. ECHDA may act as a cash buyer on behalf of an Eligible Household or in its own interest, in order to acquire a property, which will then be resold to the Eligible Household. In exchange for the ECHDA acting as the cash buyer, ECHDA shall record a Price Capped Deed Restriction against the property, which will preserve the property for future local housing, intending to remove the financing and sale contingencies to facilitate a faster closing, and then to resell the property to an Eligible Household, who likely has a financing or sale contingency in the terms and conditions of the Contract to Buy and Sell Real Estate; and WHEREAS,through the Locals First Program, ECHDA will enter into a Letter of Intent, in the form attached hereto as Exhibit B, with an Eligible Household who is a prospective buyer of an open market property (the "Property") and the Eligible Household will pay the Valley Home Store an administrative service fee for this service; and WHEREAS,the County further desires to delegate to the ECHDA,through its Executive Director(the "Director")and/or The Valley Home Store ("TVHS"),the authority to negotiate and enter into Contracts to Buy and Sell Real Estate on the County's behalf, one agreement for the cash purchase of the Property by the ECHDA, and the second for the sale of the Property from the ECHDA to the Eligible Household, using the current Colorado Real Estate Commission Contract to Buy and Sell Real Estate form, subject to prior review and approval by the Eagle County Attorney's Office; and DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF WHEREAS,the County further desires to delegate to the ECHDA the authority to utilize and execute an ECHDA deed restriction in the form of the Eagle County Good Deeds Program Price Capped Deed Restriction attached hereto as Exhibit C (the "Price Capped Deed Restriction"), and to authorize the Director to execute documents that may be required to complete the purchase and sale of the Property and to effectuate the Locals First Program, subject to prior review and approval by the Eagle County Attorney's Office; and WHEREAS,the Locals First program will facilitate the deed restriction and preservation of certain properties for future local resident buyers who qualify as Eligible Households, as that term is defined in the Eagle County Affordable Housing Guidelines. NOW,THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF THE BOARD OF COUNTY COMMISSIONERS, COUNTY OF EAGLE, STATE OF COLORADO: THAT, the Board hereby delegates to the ECHDA the authority to act as the fiscal agent for the County and to administer the Locals First Program in accordance with the Locals First Program Guidelines established by the ECHDA, including the use of the ECHDA form Price Capped Deed Restriction. THAT,the Board hereby delegates to the ECHDA,through its Director and/or TVHS,the authority to negotiate and enter into a Letter of Intent with an Eligible Household and to negotiate and enter into Contracts to Buy and Sell Real Estate on the County's behalf, one agreement for the cash purchase of the Property by the ECHDA, and the other for the sale of the Property from the ECHDA to the Eligible Household, using the current Colorado Real Estate Commission Contract to Buy and Sell Real Estate. The Board further delegates authority to the Director to execute documents that may be required to complete the purchase and sale of the Property and to effectuate the Locals First Program, subject to prior review and approval by the Eagle County Attorney's Office. THAT this Resolution is necessary for the health, safety and welfare of the people of Eagle County, Colorado. [Signature page to follow] 2 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle County, State of Colorado, at its regular meeting held this 23rd day of May , 2022. COUNTY OF EAGLE, STATE OF o`OF F� COLORADO, By and Through Its s �� BOARD OF COUNTY COMMISSIONERS eo C ATTEST: moo DocuSigned by: `��"ADO DocuSigned by: [ letlitAA OttYiWt., B f8D02r^400064d0_. Y• rnear»nFnnne7n Clerk to the Board of Jeanne McQueeney County Commissioners County Commissioners Chair DocuSigneedby::aI 1A AI' 0111 80A881FFEB84403 Kathy Chandler-Henry Commissioner A 'DocuuSigne' . d by: rA '^^ 01E7020710E0473.. Matt Scherr Commissioner Commissioner McQueeney seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner McQueeney Aye Commissioner Chandler-Henry Aye Commissioner Scherr Aye This resolution passed by 3/0 vote of the Board of County Commissioners of the County of Eagle, State of Colorado 3 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF EXHIBIT A Locals First Program Guidelines 4 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fl HOUSING AfitolkEAGLE COUNTY Locals First Program I Program Guidelines These Guidelines are subject to change based on availability of funds, conditions of property and market conditions. ECHDA does not discriminate on the basis of race, color, sex, religion, handicap, familial status, sexual orientation, gender identity, or national origin. The Locals First Program, a cash buy program, will support local residents who are at a disadvantage in the real estate marketplace because they are competing with cash buyers who are likely more agile, can offer a higher purchase price, and who can close more quickly because there is no financing contingency. Through the Locals First Program, the Eagle County Housing and Development Authority ("ECHDA") may act as a cash buyer on behalf of an Eligible Household or in its own interest, in order to acquire a property, which will then be resold to the Eligible Household. In exchange for the ECHDA acting as the cash buyer, the ECHDA will record a Price Capped Deed Restriction against the property, which will preserve the property for future local housing. The intent is for the ECHDA to remove financing and sale contingencies to facilitate a faster closing, and then to resell the property to an Eligible Household, who likely has a financing or sale contingency. If an Eligible Household needs to sell an existing property, ECHDA may make a cash offer to purchase said property. The Program will require payment of a service fee to the Valley Home Store for services. The Down Payment Assistance Program is compatible with this Program. Purpose of Program This Program is intended to allow ECHDA to act as a cash buyer in today's competitive real estate marketplace. In exchange for acting as the cash buyer, the ECHDA will record a Price Capped Deed Restriction against the property and will then resell the property to the Eligible Household, who will likely have a financing contingency or needs to sell an existing property. Eligible Households An Eligible Household is defined by the most recent Eagle County Affordable Housing Guidelines and Administrative Procedures and subject to policies contained within. Eligible Properties Single family homes, condominiums, townhomes, duplexes, modular homes or manufactured homes on a permanent foundation taxed as real property within the jurisdictional boundaries of Eagle County that are not currently encumbered by a deed restriction, right of first refusal, occupancy requirement, Land Use Regulatory Agreement, or similar program. Maximum Purchase $850,000 Price of Property Primary Residence Buyer is required to be an Eligible Household and use the property as a primary residence, as defined in the Eagle County Affordable Housing Guidelines. There shall be no short term rentals allowed per the Eagle County Affordable Housing Guidelines. Buyer Down Payment For sale of the property from ECHDA to Eligible Household, minimum down payment of 3% contributed directly by the Eligible Household towards the Effective 5/24/2022 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /0 \ HOUSING lif5k EAGLE COUNTY Locals First Program I Program Guidelines purchase price of the property, excluding any down payment assistance funds, employment assistance program, gifts, or other funds. Funds will be verified by the ECHDA and may include equity in existing residence to be sold. Deed Restriction An Eagle County Good Deeds Price Capped Deed Restriction will be recorded against the property with Eagle County Clerk and Recorder's office upon the closing of the sale of the property from the ECHDA to the Eligible Household. Program Compatibility This Program is compatible with the Eagle County Down Payment Assistance Loan program. Other Real Estate Eligible Households may not own any other residential real estate at the time of purchase of the property from the ECHDA and for the period the Eligible Household owns the property. If an Eligible Household owns another residential property, Eligible Household is required to list that property for sale immediately upon execution of the Letter of Intent or within a reasonable amount of time thereafter as approved by the ECHDA. Acquisition of the ECHDA will purchase the property with cash and no financing contingency. The Property Contract to Buy and Sell Real Estate for the sale of the property from seller to ECHDA will include contingencies for Title and Inspection. Conveyance shall occur via General Warranty Deed and the title policy shall insure clear title. ECHDA will hire a professional inspector to inspect the property, including a radon test, where applicable, and may negotiate or terminate the Contract to Buyer and Sell in consultation with the Eligible Household in regards to other inspection items. Letter of Intent to ECHDA and the Eligible Household shall enter into a Letter of Intent for the Eligible Household sale of the property from ECHDA to Eligible Household. Sale of the Property to The Contract to Buy and Sell Real Estate for the sale of the property from the Eligible Household ECHDA to the Eligible Household will include contingencies for title and financing only. Eligible Household will purchase the property in its 'as is' condition from ECHDA, and ECHDA shall not make any repairs to the property during its ownership. Eligible Household may purchase a Home Warranty at their expense. Resale Eagle County Good Deeds Price Capped Deed Restriction shall determine the future resale price and process. The Program Administrator shall administer and facilitate the resale of all future Price Capped deed restricted properties. Transactional brokerage sales fee of 2% shall be paid to TVHS by Seller at time of closing as outlined in Eagle County Affordable Housing Guidelines Administrative Procedures. Customary Effective 5/24/2022 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fl HOUSING EAGLE COUNTY Locals First Program I Program Guidelines closing costs will be borne by each party, no concessions. A waitlist of Eligible Households will be maintained by the Program Administrator. Appreciation is capped between 0-3% annually, limits on owning other real estate,TVHS shall be resale broker and approve all future buyers upon resale. Buyer Service Fee The Eligible Household will pay The Valley Home Store ("TVHS") a Buyer Service Fee of$2,500 with $500 being paid up front and the remaining balance of$2,000 paid at closing of the sale of the property from ECHDA to the Eligible Household. The fee will cover ownership expenses incurred by ECHDA for insurance, inspection, utilities, title work, closing and recording fees, professional cleaning, etc. Transaction Fee A fee may be charged by TVHS for real estate transaction fees paid by either seller or buyer for brokerage services. For a transaction where ECHDA is represented by TVHS, TVHS may charge a fee of$5,000 for transaction services. Buyer Broker If applicable, ECHDA will honor brokerage commissions with proof of an Commission existing Exclusive Right to Buy contract as listed in the Vail Board of Realtors Multiple Listing Service. ECHDA will pass-through and pay the commission earned during the ECHDA cash purchase to the Buyer's broker upon successful closing of the Buyer's purchase from ECHDA. If there is not a Buyer's broker, TVHS may earn the commissions. Application Eligible Households shall complete an application with the TVHS to demonstrate Eligible Household status, which may or may not have a property identified for purchase. Applications will be approved at the discretion of the Program Administrator, based on whether the application meets these Guidelines, and subject to available funds. Application Processing Review and approval within two (2) business days of receipt by the Program Administrator. Applicability All aspects of the Locals First Program eligibility and approval are at the sole exclusive discretion of the Program Administrator and availability of funds. These Guidelines may be amended from time to time to effectuate the intent and goals of the Program, and all changes are binding upon program participants. Applications may be denied based on the physical condition of the proposed property or a determination that the deed restriction purchase is not in the best interest of the County or ECHDA. Program is subject to market conditions. Other In the event of policy conflict between this Program and the Eagle County Affordable Housing Guidelines and the Administrative Procedures, the Locals First Program Guidelines shall control. Effective 5/24/2022 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fl HOUSING 410 EAGLE COUNTY Locals First Program I Program Guidelines Program Administrator The ECHDA and/or the TVHS or other as assigned by Eagle County. More Information www.housingeaglecounty.com or call (970) 328-8776 EQUAL HOUSING OPPORTUNITY Effective 5/24/2022 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF EXHIBIT B Form Letter of Intent 5 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF The Valley Home Store Buyer Name May 24, 2022 Address Eagle, CO 81631 email@gmail.com RE: Letter of Intent between ECHDA and Buyer Dear Buyer, Thank you for your interest in Eagle County's Locals First Program. The Locals First Program, a cash buy program, will support local residents who are at a disadvantage in the real estate marketplace because they are competing with cash buyers who are likely more agile, can offer a higher purchase price, and who can close more quickly because there is no financing contingency. Through the Locals First Program, the Eagle County Housing and Development Authority ("ECHDA") may act as a cash buyer on behalf of an Eligible Household in order to acquire a property, which will then be resold to an Eligible Household. In exchange for acting as the cash buyer, the ECHDA will record a Price Capped deed restriction against the property, which will preserve the property for future local housing. The intent is for ECHDA to remove the contingencies to obtain financing and/or sell an existing property. The Property will then be resold to an Eligible Household, likely with a financing contingency. If an Eligible Household needs to sell an existing property, ECHDA may make a cash offer to purchase said property. The Program will require payment of a service fee to the Valley Home Store for services. The Down Payment Assistance Program is compatible with this Program. This Letter of Intent provides assurance that ECHDA agrees to sell the identified property to the Eligible Household, after purchase by the ECHDA, subject to the recording of a Price Capped Deed Restriction against the property. The property address is: Unit# , CO Once the property is under contract, ECHDA will work with you, as the future buyer of this property, to identify any inspection concerns or objections in the real estate process with the seller. Sincerely, Kim Bell Williams Executive Director, Eagle County Housing and Development Authority kim.williams(@..eaglecountv.us, 970-328-8773 25 Mill Loft Street • Suite 200 • Miller Ranch • Edwards, CO 81632 • valleyhomestore.org DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF The Valley Home Store Locals First Program Letter of Intent This nonbinding Letter of Intent("LOI") serves to outline the general terms for the Locals First Program as between the Eagle County Housing and Development Authority ("ECHDA") and ("Buyer"). This LOI does not constitute a binding agreement. The general terms for the proposed sale and purchase of the Property will be as follows: 1. PROPERTY: The Buyer shall identify the Property to be purchased by ECHDA. 2. PURCHASE The cash Purchase Price for the Property shall be PRICE: $ 3. PROPERTY The Property address is ADDRESS: in , CO 4. RESALE TO ECHDA intends to resell Property to Buyer once ECHDA BUYER: closes on the purchase of the Property. 5. BUYER CLOSING Buyer shall have a ninety (90) day period of time after mutual TIME FRAME: execution of a Contract to Buy and Sell Real Estate between the Buyer and ECHDA to purchase and close on the Property from ECHDA. The Closing of the transaction will take place through a mutually agreed upon title company located in Eagle County. The Program Administrator may provide additional time, subject to their discretion. 6. BUYER DOWN Buyer shall contribute a minimum down payment of 3% PAYMENT: towards the Purchase Price of the Property, excluding any down payment assistance funds, employment assistance program, gifts, or other funds. 7. BUYER SERVICE The Buyer will pay The Valley Home Store ("TVHS") a Buyer FEE: Service Fee of $2,500 with $500 being paid up front and the remaining balance of $2,000 paid at closing of the sale of the Property from ECHDA to the Eligible Household. The fee will cover ownership expenses incurred by ECHDA for insurance, inspection, utilities, title work, closing and recording fees, professional cleaning, etc. The fee is subject to change based 25 Mill Loft Street • Suite 200 • Miller Ranch • Edwards, CO 81632 • valleyhomestore.org DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF The Valley Home Store on ownership and/or transaction expenses incurred by the ECHDA. 8. EARNEST Buyer anticipates that it will deposit a minimum of 1% in MONEY Earnest Money with the Title Company upon mutual execution DEPOSIT: of a Contract to Buy and Sell Real Estate with the ECHDA. 9. FINANCING: Buyer expects to finance the acquisition of the Property, and agrees to diligently pursue and obtain a commitment of financing with a lender of its choice. In the event Buyer cannot obtain financing or other financial assistance on terms acceptable, Buyer may terminate the Contract to Buy and Sell Real Estate with the ECHDA in accordance with the terms of such agreement. 10. TITLE COMPANY: The Title Company shall be (the "Title Company"). 11. INSPECTION ECHDA shall provide Buyer and its authorized representatives FOR INITIAL with access to the Property during the inspection period under PURCHASE the Contract to Buy and Sell Real Estate between ECHDA and FROM SELLER: seller, at reasonable times and upon at least forty-eight (48) hours' notice to ECHDA, for any purpose in connection with Buyer's proposed purchase of the Property, subject to access from Seller. Buyer shall pay for all costs associated with an inspection and Buyer shall be responsible for any damage to the Property as a result of any such inspections . Buyer shall provide ECHDA with written Inspection Objections or Inspection Termination at least 24 hours prior to relevant deadlines. RESALE ECHDA and Buyer shall agree on the following terms to be CONTRACT included in the Contract to Buy and Sell Real Estate PROVISIONS: between Buyer and ECHDA A. PRICE CAPPED ECHDA shall record an Eagle County Good Deeds Price DEED Capped Deed Restriction against the Property at the closing of RESTRICTION: the sale of the Property to the Buyer, which shall determine the future resale price and process. B. ELIGIBLE Buyer must qualify as an Eligible Household, which is defined HOUSEHOLD: by the most recent Eagle County Affordable Housing 25 Mill Loft Street • Suite 200 • Miller Ranch • Edwards, CO 81632 • valleyhomestore.org DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF The Valley Home Store Guidelines and Administrative Procedures and subject to policies contained within. C. TERMINATION: If a Buyer does not qualify as an Eligible Household, sell its existing residence or if Buyer cannot obtain financing, the Contract to Buy and Sell Real Estate may be terminated. ECHDA will then have the right to sell the Property to another Eligible Household. D. INSPECTION Because the Buyer may participate in the inspection of the FOR RESALE TO Property under the Contract to Buy and Sell Real Estate BUYER: between seller and ECHDA, there will be no inspection contingency in the Contract to Buy and Sell Real Estate between ECHDA and Buyer, and Buyer shall purchase the Property from the ECHDA in its "as is" condition. It is the intent for the Property to remain vacant during resale from ECHDA to Buyer. E. COMMISSIONS: If a Buyer has a brokerage relationship with a broker, who was the procuring cause for the identified Property and can provide proof of relationship, ECHDA shall pay the broker the commission earned on the purchase of the Property by ECHDA at closing for the ECHDA sale to the Buyer. ECHDA shall not provide a commission upon resale of Property to outside brokers otherwise. This LOI is a list of proposed points that may or may not become part of an executed contract. It is not based on any agreement between the parties. Buyer and ECHDA understand and acknowledge that no legal obligations are created by this LOI, and that neither Buyer nor ECHDA will have any legal obligations with respect to the proposed transaction (unless and until a definitive purchase agreement is negotiated, executed and delivered by both parties and approved and ratified by the Board, as provided above, and only as provided therein). This letter is not intended to impose any obligation on any party, and in particular it does not impose on any party any obligation to bargain in good faith or in any way other than at arm's length. This paragraph supersedes all other conflicting language. 25 Mill Loft Street • Suite 200 • Miller Ranch • Edwards, CO 81632 • valleyhomestore.org DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF The Valley Home Store Please acknowledge your acceptance of this letter of intent by executing in the space provided below and returning a copy of this letter to the undersigned. Sincerely, EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY Kim Bell Williams Executive Director APPROVED AND ACCEPTED THIS DAY OF , 2022 BUYER(S) By: Name: Its: APPROVED AND ACCEPTED THIS DAY OF , 2022 25 Mill Loft Street • Suite 200 • Miller Ranch • Edwards, CO 81632 • valleyhomestore.org DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF EXHIBIT C Form Price Capped Deed Restriction s 6 DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fil%\, HOUSING Eagle County Good Deeds Program i EAGLE COUNTY Price Capped Deed Restriction DEED RESTRICTION AGREEMENT FOR OCCUPANCY AND RESALE OF PRICE CAPPED FOR SALE HOUSING THIS DEED RESTRICTION AGREEMENT FOR PRICE CAPPED FOR SALE HOUSING (the "Agreement") is made and entered into this day of , 20_, by (hereinafter known as "Owner") for the benefit of the parties and is enforceable by the Eagle County Housing and Development Authority (the "ECHDA"), or its assign or designee as and to the extent set forth herein. RECITALS: WHEREAS, Owner is purchasing the real property and improvements known as and more particularly described in Exhibit A, attached hereto and incorporated herein by reference (the "Subject Property"); and WHEREAS, in exchange for compensation as set forth in a Deed Restriction Purchase Agreement of even date herewith, and pursuant to the Eagle County Good Deeds Program, Owner has agreed to place certain restrictions on the occupancy and resale of the Subject Property for the benefit of the ECHDA by requiring occupancy of the Subject Property by an Eligible Household, as that term is defined below. Owner also agrees that this Agreement shall constitute a resale agreement setting forth the maximum sales price for which the Subject Property may be sold ("Maximum Sales Price"), the amount of appreciation and the terms and provisions controlling the resale of the Subject Property, all in accordance with the terms and conditions of the Agreement. NOW, THEREFORE, in consideration of the foregoing, Owner hereby represents, covenants, and agrees as follows: 1. Definitions: A. "Eligible Households" means Households that will (i) use the Subject Property 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: 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. The Household must cumulatively earn at least 75% of the Household's Gross Household Income in Eagle County: or c. Has been hired for a job in Eagle County on a permanent basis to work at least thirty (30) hours per week; or d. Employment qualifications may include other classifications of workers (i.e. retirees, telecommuters) in accordance with the Eagle County Affordable Housing Guidelines, as may be amended from time to time. ii. Limits on owning other real estate: DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /0!,\ HOUSING Eagle County Good Deeds Program MVEAGLE COUNTY price Capped Deed Restriction 1. No member of an Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own real estate anywhere as of the date of purchase of the Subject Property. 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 sole discretion of ECHDA or its assign. 3. During ownership of a Subject Property, no Household member shall own any interest alone or in conjunction with others, in any other residential real estate. 4. Real estate that is owned by a prospective Eligible Household may not be deeded to a corporation or other person or entity except at fair market value nor may 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 1.A.ii. iii. Title of the Subject Property shall be held in the name of the natural person(s) who are members of the Household which qualifies under criteria 1.A i. and ii. above. For example, title may be held jointly in the name of a husband and wife who are members of an Eligible Household. 1. Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Subject Property to be held in trust for the benefit of a natural person who also meets the definition of an Eligible Household. Such ownership in trust may only occur in the circumstances provided herein and at the sole discretion of the ECHDA, or its assign. To request a variance, the applicant shall submit a letter to ECHDA, or its assign, requesting a special review and a determination that title of the Subject 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 and any requested information and documentation, ECHDA, or its assign, may grant the request with or without conditions. B. "Qualified Employer" means an individual or entity that regularly conducts business in Eagle County. Individuals or entities that regularly conduct business in Garfield and Pitkin Counties may be considered Qualified Employers for purposes of qualifying employees who apply to purchase or rent Affordable Housing in Eagle County in the Roaring Fork Valley. Qualified Employers may hold title to the Subject Property and lease to employees who are members of Eligible Households. Qualified Employers may not impose additional restrictions on the Subject Property without written consent of the ECHDA. C. "Gross Household Income" means the total amount of income a Household earns in one year from all sources before taxes. D. "Household" means all individuals who will occupy the Subject Property regardless of legal status or relation to the owner or lessee. DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /0"10\ HOUSING Eagle County Good Deeds Program �� EAGLE COUNTY Price Capped Deed Restriction E. "Initial Sales Price" means an amount equal to the purchase price of the Subject Property less the compensation paid pursuant to the Deed Restriction Purchase Agreement or the amount paid by an Owner in a subsequent sale. F. "Owner" means the owner of record of the Subject Property according to the Clerk and Recorder of Eagle County, it being understood that that such person or persons shall be deemed an "Owner" hereunder only during the period of his, her, or their ownership interest in the Subject Property and shall be obligated hereunder for the full and complete performance and observance of all covenants, conditions and restrictions contained herein during such period. G. "Primary Residence" means the residence in which an Owner lives for at least 9 out of any 12 months. Determination of Eagle County residency status shall be based on criteria including, but not limited, to 1) copy of deed or property tax statement, or 2) utility statements from service providers, or 3) other documentation that ECHDA, or its assign, deems necessary to make a determination, such as voter registration information, place of automobile registration, driver's license address and income tax returns. H. "Price Capped For Sale Housing" means housing with 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 Sales Price, as those terms are defined herein. I. "Short Term Rental" means a non-Owner providing compensation to lodge in the Subject Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Subject Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. 2. Use and Occupancy Restrictions: A. The use and occupancy of the Subject Property is restricted as follows: (i) the Subject Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Subject Property to an Eligible Household; (ii) the Owner or Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 1 above, and (iii) the Owner or Qualified Employer lessee uses the Subject Property as its Primary Residence. B. The Subject 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 3 below. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Subject Property may be held from time to time by the ECHDA in the event of a foreclosure or as permitted by this Agreement or the Eagle County Affordable Housing Guidelines. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Subject Property may be held from time to time by certain districts or governmental entities which qualify as a Qualified Employer, as that term is defined in Section 1 above. C. An Owner of the Subject Property is subject to annual 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 Subject Property shall submit the following information to ECHDA: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Subject 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, DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /�� HOUSING Eagle County Good Deeds Program �� EAGLE COUNTY Price Capped Deed Restriction in Section 1 above, and other documentation that be required by the Eagle County Affordable Housing Guidelines, as may be amended from time to time . D. An Owner must not engage in any business activity on or in such Subject Property, other than as permitted within the zone district applicable to the Subject Property. E. The Short Term Rental of all or any portion of the Subject Property is prohibited. F. An Owner of the Subject Property may not permit any use or occupancy of the Subject Property except in compliance with this Agreement. G. Owner, other than a Qualified Employer, may not, except with prior written approval of ECHDA and subject to the most current Eagle County Affordable Housing Guidelines and Eagle County Affordable Housing Guidelines: Administrative Procedures, rent the Subject Property for any period of time. H. Any subsequent Owner of the Subject Property must execute an Acknowledgement of this Deed Restriction Agreement for Price Capped For Sale Housing, in the form set forth in Exhibit C attached hereto and incorporated herein by this reference. I. All sales of the Subject Property shall be subject to the Maximum Sales Price as calculated in Section 4 below. 3. Resale Restrictions: The Subject 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 4. A. In the event that an Owner desires to sell the Subject Property, the sale or transfer of the property shall be executed by the ECHDA or its assigns in accordance with the most current Eagle County Affordable Housing Guidelines and Eagle County Affordable Housing Guidelines: Administrative Procedures. B. Upon sale and conveyance of the Subject Property by Owner to a buyer, the buyer shall be subject to the same occupancy and use requirements set forth in this Agreement. 4. Maximum Sales Price: In no event shall the Subject Property be sold for an amount ("Maximum Sales Price") in excess of the Initial Sales Price plus the percentage increase per year of the average wage for Eagle County as determined by the Colorado Department of Labor and Employment. A. If the percentage increase in the average wage for Eagle County as determined by the Colorado Department of Labor and Employment is greater than three (3)% in a given year, the percentage increase which an Owner may claim for purposes of determining Maximum Sales Price shall be three (3)% for that year. i. In the event that an Owner owns a Subject Property for only a portion of any year, the percentage increase shall be prorated quarterly, from purchase date, and the Owner shall be given credit through the quarter in which the sale is initiated. ii. If there is no increase in the average wage for Eagle County as determined by the Colorado Department of Labor and Employment, the percentage increase which an Owner may claim for purposes of determining Maximum Sales Price shall be zero (0)% for that year. iii. The parties agree that there may be a delay in the publication of statistics from the Colorado Department of Labor and Employment. Therefore, the calculation of Maximum Sales Price shall be based upon the most current available data. If data for the year of sale is not available then the Owner shall rely on the most current full year's data that is available for purposes of calculating the Maximum Sales Price. DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF • fi� HOUSING Eagle County Good Deeds Program EAGLE COUNTY Price Capped Deed Restriction iv. In the event that the Colorado Department of Labor and Employment no longer publishes the average wage for Eagle County, the Eagle County Board of County Commissioners shall identify a similar indicator from a reliable source and shall provide notice to all Owners of the change. 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 Eagle County Affordable Housing Guidelines and Eagle County Affordable Housing Guidelines: Administrative Procedures. 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 ECHDA. C. Real estate sales fees as identified in the most current Eagle County Affordable Housing Guidelines and Eagle County Affordable Housing Guidelines: Administrative Procedures. D. 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 ECHDA THAT ON RESALE THE OWNER SHALL OBTAIN A PARTICULAR PRICE INCLUDING BUT NOT LIMITED TO THE MAXIMUM SALES PRICE. 5. Default by Owner: If the ECHDA has reasonable cause to believe that the occupancy or use of the Subject Property is in violation of any provision of this Agreement, ECHDA or its assigns may inspect the Subject Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner and occupants with at least twenty four (24) hours written notice. Notice to the occupants may be given by posting notice on the door to the Subject Property. This Agreement shall constitute permission to enter the Subject Property during such times upon such notice without further consent. A default by Owner shall include breach of the covenants set forth in this Deed Restriction, including without limitation any of the following: A. Transfer or conveyance of the Subject Property to a person or entity that is not an Eligible Household. B. Failure to follow resale procedures as outlined in Section 3.A. above. C. Acceptance of the Subject Property by a person or entity that is not an Eligible Household. D. Any ownership, use or occupancy of the Subject Property in violation of Section 2 above. E. Failure to submit an annual certification of occupancy and use as described in Section 2.0 above. F. Failure to make payments and comply with the terms of any deed of trust placed on the Subject Property. Owner must notify the ECHDA, in writing, of any notification received from a lender or its assigns, of past due payments or default in payment or other obligations due or to be performed under a promissory note secured by a first DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF j� HOUSING Eagle County Good Deeds Program EAGLE COUNTY Price Capped Deed Restriction deed of trust, as described herein, within five (5) calendar days of Owner's notification from lender, or its assigns, of said default or past due amounts. G. Any action by the Owner to encumber the Subject Property in a manner that conflicts with the terms of this Agreement or renders compliance with the terms of this Agreement impossible or impractical. H. Permitting the use of the Subject Property as a Short Term Rental. 6. Notice and Cure: A. In the event of a violation of this Agreement, the ECHDA or its assigns shall send a written notice of default to the Owner detailing the nature of the default and providing sixty (60) days for the Owner to cure such default. Notwithstanding the foregoing or any other term of this Agreement, a default for lease or use of the Subject Property as a Short Term Rental shall be cured by the Owner immediately. The notice shall state that the Owner may request an appeal of the violation finding in writing within ten (10) days of such notice, in which event the ECHDA shall administratively review the finding. If the violation finding is upheld, the Owner may request in writing within ten (10) days of such administrative decision a hearing before the ECHDA Board of Commissioners ("Board"). A decision of the ECHDA Board may only be judicially appealed in the District Court of Eagle County pursuant to C.R.C.P. 106. If no administrative or ECHDA Board appeal is timely requested in writing and the violation is not cured within sixty (60) days of mailing the notice of default, the Owner shall be deemed to be in violation of this Agreement. If an administrative or ECHDA Board appeal is requested, the decision of the ECHDA Board (or administrative decision if such decision is not timely appealed to the ECHDA Board) shall be final for the purpose of determining if a violation has occurred and, if such violation is not cured within sixty (60) days of such final determination, the Owner shall be deemed to be violation of this Agreement. If a decision of the ECHDA Board is judicially appealed, an order of the Court confirming the violation shall be final for the purpose of determining if a violation has occurred and, if such violation is not cured within sixty (60) days of such final determination, the Owner shall be deemed to be violation of this Agreement. In the event of any lease to a person or use of the Subject Property as a 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 ECHDA as a material requirement of curing the notice of default. B. Upon receipt of notice as provided in Section 5.F. above, the ECHDA shall have the right, in its sole discretion, to cure the default or any portion thereof. In such event, the Owner shall be personally liable to the ECHDA for past due payments made by the ECHDA together with interest thereon at the rate specified in the promissory note secured by the deed of trust, plus one percent (1%) in addition to the interest rate identified in the promissory note and all actual expenses of the ECHDA incurred in curing the default. The Owner shall be required by the ECHDA to execute a promissory note on commercially reasonable terms acceptable to ECHDA and secured by a deed of trust encumbering the Subject Property in favor of the ECHDA for the amounts expended by the ECHDA as specified herein, including future advances made for such purposes. The ECHDA shall be entitled to all rights and remedies under the deed of trust including rights of foreclosure. The Owner may cure the default and satisfy the obligations to ECHDA under this subsection at any time prior to execution of a contract for sale, upon such reasonable terms as specified by the ECHDA. Otherwise, Owner's indebtedness to ECHDA shall be satisfied from the Owner's proceeds at closing. DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fi%\ HOUSING Eagle County Good Deeds Program ^'‘ EAGLE COUNTY Price Capped Deed Restriction 7. Remedies and Enforcement: In the event of violation, non-performance, default or breach of any term of this Agreement by the Owner, ECHDA, or its assigns, shall have the right to enforce Owner's obligations herein by an action for any equitable remedy, including injunction or specific performance, as well as pursue an action to recover damages. In addition, any amount due and owing to the ECHDA shall bear interest at the rate of one percent (1%) per month (12% per annum, compounded annually) until paid in full. The ECHDA shall be entitled to recover any costs related to enforcement of this Agreement, including but not limited to attorney's fees, court filing costs and county recording costs. In the event of a transfer or conveyance of the Subject Property which violates the terms of this Agreement and constitutes a violation of this Agreement, both the grantor and grantee shall be jointly and severally liable for any damages and costs due under this Agreement. Penalties which the ECHDA may assess against the Owner include, but shall not be limited to, eliminating resale gain, requiring sale of the Subject Property, assessing penalties and seeking remedies set forth in the Eagle County Land Use Regulations or the most current Eagle County Affordable Housing Guidelines. In the event of a breach of any of the terms or conditions contained herein by the Owner, his or her heirs, successors or assigns, the Maximum Sales Price of the Subject Property as set forth in Paragraph 4 of this Agreement shall, upon the date of such breach as determined by the ECHDA cease to increase, and shall remain fixed until the date of cure of said breach.The remedies provided herein are cumulative and not exclusive, of all other remedies provided by law. 8. 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 Subject 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 ECHDA or its assigns shall have the option to purchase the Subject Property as provided in the Option to Purchase, attached hereto as Exhibit B and incorporated herein. B. Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Subject Property, only Eligible Households may acquire an interest in the Subject 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 Subject 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 ECHDA does not exercise its Option to Purchase as provided in Section xx, then ECHDA agrees to release the Subject Property from the requirements of this Deed Restriction. D. It is specifically agreed that nothing contained herein shall require the ECHDA to release and waive its ability to enforce this Agreement in the event of a foreclosure of a lien secured in second or subsequent position. E. If ECHDA or its assigns exercises the Option to Purchase described in Section 8.A above, and acquires title to the Subject Property, the ECHDA or its assigns may sell the Subject Property to an Eligible Household or rent the Subject Property to qualified tenants who meet the income, occupancy and all other qualifications, established by the Eagle County Affordable Housing Guidelines, as amended from time to time, until such time that the Subject Property can be sold to an Eligible Household. F. All obligations recorded of record against the Subject Property and subsequent to this Agreement shall be subordinate to terms hereof. 9. Agreement Runs with the Land: Owner and any subsequent Owner of the Subject Property, and all other parties with an interest in title to the Subject Property hereby acknowledge, or are DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF ,'ll%\ HOUSING Eagle County Good Deeds Program j� EAGLE COUNTY Price Capped Deed Restriction deemed to acknowledge by virtue of recordation of the deed by which such Owner takes title to the Subject Property, that this Agreement shall constitute an irrevocable covenant running with title to the Subject Property as a burden thereon for the benefit of the ECHDA, or its assign, and shall be binding on the Owner of the Subject Property, and on its heirs, personal representatives, assigns, lessees, licensees and any transferee of the Owner of the Subject Property. 10. Notices: Any notice, consent or approval which is required to be given hereunder shall be given by mailing the same, certified mail, return receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the party as long as prior written notice of the change of address has been given to the other parties to this Agreement. Said notices, consents and approvals shall be sent to the parties hereto at the following addresses unless otherwise notified in writing: To Owner: «INSERTOWNER» With copy to: To Eagle County: Eagle County Housing and Development Authority Post Office Box 850 Eagle, CO 81631 With copy to: Eagle County Attorney Post Office Box 850 Eagle, CO 81631 11. Disputes: If any action is brought in a court of law by either party to this Agreement concerning the enforcement, interpretation or construction of this Agreement, 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 this Agreement shall be the Eagle County District Court. 12. Severability: Whenever possible, each provision of this Agreement and any other related document shall be interpreted in such a manner as to be valid under applicable law; but if any provision of any of the foregoing shall be invalid or prohibited under said applicable law, such provisions shall be ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of such documents. 13. Choice of Law: This Agreement and each and every related document is to be governed and construed in accordance with the laws of the State of Colorado. 14. 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 any Owner of the Subject Property, and the ECHDA. 15. Section Headings: Paragraph or section headings within this Agreement are inserted solely for convenience or reference, and are not intended to, and shall not govern, limit or aid in the construction of any terms or provisions contained herein. 16. Waiver: No claim of waiver, consent or acquiescence with respect to any provision of this Agreement shall be valid against any party hereto except on the basis of a written instrument executed by the parties to this Agreement. However, the party for whose benefit a condition is DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fil%\ HOUSING Eagle County Good Deeds Program 4‘ EAGLE COUNTY Price Capped Deed Restriction inserted herein shall have the unilateral right to waive such condition. 17. Gender and Number: Whenever the context so required herein, 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. 18. Personal Liability: By taking title to a Subject Property, an Owner agrees that he or she shall be personally liable for compliance with the applicable terms and conditions of this Agreement. 19. Further Actions: Any Owner of the Subject Property and the ECHDA 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 Agreement or any agreement or document relating hereto or entered into in connection herewith. 20. Modifications: Any Owner of the Subject Property, and the ECHDA agree that any modifications of this Agreement shall be effective only when made by writings signed by the parties and recorded with the Clerk and Recorder of Eagle County, Colorado. The ECHDA reserves the right to amend this Agreement unilaterally where deemed necessary to effectuate the purpose and intent of this Agreement, and where such unilateral action does not materially impair an Owner's rights or any lender's rights under this Agreement. 21. Perpetuities Savings Clause: If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Agreement or any of its Exhibits shall be unlawful or void for violation of: (a) the rule against perpetuities or some similar statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the then-current duly elected and seated Eagle County Commissioners, and the then-current Eagle County employees, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. 22. Assignment: The ECHDA may in its sole discretion assign the benefits and delegate the responsibilities hereunder to a nonprofit private entity or public agency or authority organized or operated in whole or in part to provide housing programs in Eagle County. 23. Entire Agreement: This Agreement constitutes the entire agreement and understanding between the parties relating to the subject matter of this Agreement, and supersedes any prior agreement or understanding relating thereto. 24. Recording: This Agreement shall be recorded in the real property records of Eagle County, Colorado. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year above first written. [remainder of page intentionally left blank] DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF HOUSING Eagle County Good Deeds Program 410 EAGLE COUNTY Price Capped Deed Restriction OWNER: By: Name: Title: By: Name: Title: STATE OF COLORADO ) )ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of , by Witness my hand and official seal. My commission expires: Notary Public DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF A,\ HOUSING Eagle County Good Deeds Program EAGLE COUNTY Price Capped Deed Restriction ACCEPTANCE BY EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY The foregoing Deed Restriction Agreement For Occupancy And Resale Of Price Capped For Sale Housing and its terms are hereby adopted and declared by the Eagle County Housing and Development Authority. EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY By: Executive Director DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF �� HOUSING Eagle County Good Deeds Program EAGLE COUNTY Price Capped Deed Restriction EXHIBIT A Legal Description Of Subject Property m8E f u DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fill10\,,, HOUSING Eagle County Good Deeds Program "Ik EAGLE COUNTY 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 "Subject 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 ECHDA or its assigns shall have the option to purchase the Subject Property, which shall be exercised in the following manner: 1. Notice: The Owner and the Holder shall give such notice to the ECHDA as is required by law in the foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Eagle County Housing and Development Authority Post Office Box 850 Eagle, CO 81631 2. Option to Purchase: The ECHDA or its assigns shall have 30 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, ECHDA 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, ECHDA 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 ECHDA or its assignee a special warranty deed, conveying the Subject Property to the ECHDA 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 Subject 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 ECHDA or its assignee. 4. Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the ECHDA or its assigns shall have thirty (30) 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 ECHDA or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the ECHDA's Option to Purchase and the Deed Restriction Agreement For Occupancy And Resale Of Price Capped For Sale Housing recorded at Reception Number in the records of the Clerk and DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF f0"10\ HOUSING Eagle County Good Deeds Program "Ik EAGLE Capped Price Ca ed Deed Restriction Recorder of Eagle County, Colorado shall be automatically released only with respect to the Subject 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 ECHDA that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the ECHDA 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 ECHDA 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. Perpetuities Savings Clause:lf any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Option to Purchase shall be unlawful or void for violation of (I) the rule against perpetuities or some analogous statutory provision, (2)the rule restricting restraints on alienation, or (3) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated Board of County Commissioners of Eagle County, Eagle, Colorado, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. 6. Successors and Assigns: Except as otherwise provided herein, the provisions and covenants contained herein shall insure to and be binding upon the heirs, successors and assigns of the parties hereto. 7. Modifications: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 of Eagle County, Colorado. IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the day of , 20 . DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /I� HOUSING Eagle County Good Deeds Program i� EAGLE COUNTY Price Capped Deed Restriction OWNER: By: Name: Title: By: Name: Title: STATE OF COLORADO ) )ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of , by Witness my hand and official seal. My commission expires: Notary Public DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fi%\ HOUSING Eagle County Good Deeds Program ^i‘ EAGLE COUNTY Price Capped Deed Restriction EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY By: Executive Director DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF fillit\ HOUSING Eagle County Good Deeds Program 411:1 EAGLE COUNTY Price Capped Deed Restriction EXHIBIT C ACKNOWLEDGEMENT OF THE DEED RESTRICTION AGREEMENT FOR OCCUPANCY AND RESALE OF PRICE CAPPED FOR SALE HOUSING 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 "DEED RESTRICTION AGREEMENT FOR OCCUPANCY AND RESALE OF PRICE CAPPED FOR SALE HOUSING", 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 Subject 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 Subject 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 Eagle County Housing and Development Authority or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Subject 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 10 of the Deed Restriction, should be sent to: DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /0110\ HOUSING Eagle County Good Deeds Program j � EAGLE COUNTY Price Capped Deed Restriction 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 ECHDA. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day of , 20_ BUYER(S): Printed Name(s): STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , by Witness my hand and official seal. My commission expires: Notary Public DocuSign Envelope ID:249AF9F3-BD26-4BF5-9F5A-EEODDED6FOCF /l� HOUSING Eagle County Good Deeds Program 4115k EAGLE COUNTY Price Capped Deed Restriction EXHIBIT A DEED RESTRICTION