The URL can be used to link to this page

Home My WebLink AboutR07-001 Miller Ranch Housing Guidelines Second Modification Commissioner ~ moved adoption of the following resolution: BOARD OF COUNTY CO~nSSIONERS COUNTY OF EAGLE, ST ATE OF COLORADO RESOLUTION NO. 2007- 00 I RESOLUTION ADOPTING SECOND MODIFICATION OF ~nLLER RANCH HOUSING GUIDELINES WHEREAS, the Board of County Commissioners ("Board") of Eagle County, Colorado by Resolution No. 2003-121 dated September 30, 2003 approved the Deed Restriction Agreement for the Occupancy and Resale of Miller Ranch Housing ("Agreement") and the Miller Ranch Housing Guidelines ("Guidelines"); and WHEREAS, the Board by Eagle County Resolution No. 2003-167 dated December 16, 2003 modified and adopted the Miller Ranch Housing Guidelines; and WHEREAS, the Board desires to further modify and adopt the Miller Ranch Housing Guidelines in the form attached hereto as Exhibit "A"; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY CO~SSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT the Board hereby adopts the Miller Ranch Housing Guidelines as set forth in Exhibit "A" which are attached hereto and incorporated herein by reference. THAT this Resolution is necessary for the health, safety and welfare of the citizens of Eagle County, Colorado. MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held this 9th day of January, 2007. COUNTY OF EAGLE, STATE OF COLORADO By and Through its Board of County Commissioners "..~ c""/<i1i~. . J.-.- { . Peter F. Runyon, Chairman ~\;.~ Clerk of the Board of County Commissioners By: M. Menconi, Commissioner By: ~~.[) Tom~::Q1~issioner Commissioner I/J~ seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: ::r oy This Resolution passed by ~ /-0 vote of the Board of County Commissioners of the County of Eagle, State of Colorado. Commissioner Runyon Commissioner Menconi Commissioner Stone G:VKS\resolutions\MillerRanch Guidelines.DOC ~LLER RANCH HOUSING GUIDELINES Revised and Adopted by the Eagle County Commissioners January L, 2007 EXHIBIT "A" TO RESOLUTION APPROVING MODIFICA nON OF MILLER RANCH HOUSING GUIDELINES I. PURPOSE The purpose of the Miller Ranch Housing Guidelines ("Guidelines") is to provide additional information pertaining to Miller Ranch deed restricted housing than can be found in the Deed Restriction Agreement for the Occupancy and Resale of Miller Ranch Housing ("Master Deed Restriction"). In the event of conflict between the Master Deed Restriction and these Guidelines, the Master Deed Restriction shall control. II. DEFINITIONS A. "Owner" is a person or persons who is/are a Qualified Buyer who acquires an ownership interest in the Property or Unit in compliance with the terms and provisions of the Master Deed restriction and these Guidelines. B. "Property" is the real property described in Exhibit "A" of the Master Deed Restriction and all dwellings, appurtenances, improvements, and fixtures associated therewith. C. "Qualified Buyers" are natural persons meeting the requirements as determined by the County and as set forth in the Miller Ranch Housing Guidelines, or its substitute, as adopted from time to time by the County, or its successor or designee. D. "Unit" is any of the units that comprise the Property including but not limited to condominiums, townhomes, duplexes, and single family homes. "Unit" shall not include the community center and day care facility that may be located on the Property. III. MAXIMUM RESALE PRICE An owner may sell a Unit provided that the resale price and prospective purchaser meet the standards of both these Guidelines and the Master Deed Restriction. The resale price may not exceed: A. The Owner's purchase price plus the percentage increase for each year (compounded annually) of the average wage for Eagle County as determined by the US Department of Labor, Bureau of Labor Statistics (i) In the event that an Owner owns the Property or a Unit for only a portion of any year the percentage increase shall be prorated monthly. 2 (ii) If the percentage increase in the average wage for Eagle County as determined by the Colorado Department of Labor and Employment is greater than 6% in a given year the percentage increase that an Owner may claim for purposes of determining the Maximum Sales Price shall be 6% for that year. (iii) If the percentage increase in the average wage for Eagle County as determined by the Colorado Department of Labor and Employment is less than 3% in a given year then the percentage increase that an Owner may claim for purposes of determining Maximum Sales Price shall be 3% for that year. (iv) 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 data available for purposes of calculating the Maximum Sales Price. In addition to the items in this section UI(A) the Owner may also include permitted capital improvements as identified in UI(B) hereof. B. Permitted Capital Improvements. The actual costs of permitted capital improvements made to the Property or Unit shall not exceed ten percent (10%) of the initial purchase price for the first ten years of ownership. For every subsequent ten- year period, an additional ten percent (10%) of the value of the unit at the beginning of that ten-year period may be made. Permitted capital improvements are identified in Exhibit "A" hereto (hereinafter "Permitted Capital Improvements"). The ten-year period for Permitted Capital Improvements shall not reset merely upon resale. If the costs of Permitted Capital Improvements are less than 10 percent of the initial purchase price in a given 10- year period, the remaining allowance for Permitted Capital Improvements shall not be rolled over to the amount of allowable Permitted Capital Improvements in the following ten-year period. The actual costs for allowable Permitted Capital Improvements may be added to the sales price. All such Permitted Capital Improvements installed or constructed over the life of the unit shall qualify. Permitted Capital Improvements shall not include any changes or additions to the Property made by the Owner during construction or thereafter, except in accordance with this section. Permitted Capital Improvements shall !!2! increase an Owner's base purchase price. (i) In order to qualify as Permitted Capital Improvements, the Owner must furnish to the County the following information with respect to the improvements that the Owner seeks to include in the calculation of 3 Maximum Sales Price: a) Original or duplicate receipts to verify the actual costs expended by the Owner for the Permitted Capital Improvements; b) Owner's affidavit verifying that the receipts are valid and correct receipts tendered at the time of purchase; and c) True and correct copies of any building permit or certificate of occupancy required to be issued by the Eagle County Building Department with respect to the Permitted Capital Improvements. Work that requires and is performed without the issuance of a building permit shall not be considered a Permitted Captial Improvement. (ii) For the purpose of determining the Maximum Sales Price in accordance with these Guidelines and the Master Deed Restriction, the Owner may also add as a Permitted Capital Improvement, the cost of any permanent improvements constructed or installed as a result of any requirement imposed by any governmental agency, or required by special assessment by a Homeowners Association for such permanent improvements, provided that written certification from such agency or association is provided to the County. (iii) In calculating the costs allowed as Permitted Capital Improvements, only the Owner's actual costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to Owner's labor or to any appreciation in the value of the improvements. C. In addition to the items identified in sub-paragraphs (A) and (B) of this Section In hereof an Owner may add the actual sales costs as indicated in Section IV below, not to exceed two (2%) percent of the Maximum Sales Price as calculated above. IV. RESALE PROCEDURES All deed-restricted units must be listed for sale with Eagle County. These procedures are summarized at Exhibit "8." The calendar attached thereto shall govern the timing of the marketing, sale, and closing of all such units. A. Listing the Unit with Eagle County: Staff Duties 1. In the event that an Owner desires to sell the Property or Unit, Owner shall execute a listing contract on forms approved by Eagle County. At that time, the Owner shall deposit with the County an amount equal to one-half 4 percent (\12 %) of the estimated value of the Unit. In addition, the County shall promptly advertise the Property or Unit for sale by competitive bid to Qualified Buyers. At the time of closing, the Owner shall pay to the County, an additional one and one-half percent (1 Y2 %). The total may not exceed two (2%) percent of the actual sales price. The County may charge a fee based on the amount financed for any conventional loans. The amount of this fee shall be paid by the purchaser and shall be used in the event the County desires to step in and cure a default of any Unit under the Master Deed Restriction or these Guidelines. 2. An Owner of a Unit desiring to sell should consult with County housing staff and review the individual deed restriction and the Master Deed Restriction affecting the Unit to determine the Maximum Sales Price permitted and other applicable provisions concerning a sale. Unless otherwise provided in the Master Deed Restriction or these Guidelines the Unit must be listed for sale with the County and the County staff will administer the sale in accordance with the most current Guidelines. There shall be a minimum listing period of 90 days before a Unit's price can be readjusted. Any termination in the listing shall require the payment of administrative and advertising costs. The one- half (\12%) percent of the estimated value of the Unit required to be deposited with County staff at time of listing will be returned to Owner less any expenses incurred by County. In the event that costs exceed the amount of the deposit such costs shall be paid by the Owner. Closings need not occur earlier than thirty (30) days after execution, but they may at the buyer's discretion. 3. The Guidelines are intended to ensure that ALL purchasers and ALL sellers will be treated fairly and impartially. Questions will be answered and help provided to any potential purchasers or sellers equally in accordance with the current Guidelines. Listings, sales contracts, extensions to contracts and closing documents will be prepared and all actions necessary to consummate the sale shall be undertaken. 4. In pursuit of the above, the staff will be acting on behalf of the County. It should be clearly understood by and between all parties to a sales transaction that the staff members are not acting as licensed brokers to the transaction, but as representatives of the County and its interests. The County shall nevertheless attempt to help both parties consummate a fair and equitable sale in accordance with the current Guidelines. 5. All purchasers and sellers are advised to consult legal counsel regarding examination of title and all contracts, agreements and title documents. The retention of such counsel, licensed real estate brokers, or such related 5 services, shall be at purchaser's or seller's own expense. The fees paid to the County are to be paid regardless of any actions or services that the purchaser or seller may undertake or acquire. B. Advertising the Sale: Bid Periods 1. After a Unit is listed for sale with the County, the County will arrange to advertise the Unit for sale in two consecutive weekly editions of two newspapers that are in general circulation within Eagle County. After a Unit is first listed, there is an initial bid period during which the Unit will be advertised with two open house dates when the Unit may be viewed by interested parties. This initial bid period ends on the Friday after the second week of advertising. If no bids are received during the initial bid period, there will follow consecutive one-week bid periods, ending on Friday, until the unit is sold. 2. If more than one bid is received during any bid period, the bids shall be prioritized according to the criteria of the then current Guidelines. In the event that one qualified bid is received equal to the Maximum Sales Price, the Property shall be sold to such bidder at the Maximum Sales Price. In the event Owner receives two or more such bids equal to the Maximum Sales Price, the Qualified Buyer shall be selected according to the criteria of these Guidelines; and, in the event that several qualified bidders are of equal priority pursuant to the Guidelines, the Qualified Buyer shall be selected by lottery among the Qualified Buyers, whereupon the Property or Unit shall be sold to the winner of such lottery at the Maximum Sales Price. If the winner of the lottery does not proceed to contract within three (3) business days after notification, the next in line will be notified and so on, until the Unit is under contract for purchase. Back-up contracts in the priority order set forth in the lottery will be accepted. Prospective purchasers must be pre-qualified by a lender prior to submitting a bid for a Miller Ranch Unit. County staff will be available to assist interested parties with the purchase procedures and to answer any questions about the process. Bidders may submit a contingency for inspection and title only. The inspection must occur within fourteen (14) days of the bid acceptance at the bidder's expense. No bid will be accepted with any other contingencies. 3. If the terms of the proposed purchase contract, other than price, as initially presented to the Owner, are unacceptable to the Owner, there shall be a mandatory negotiation period of three (3) business days to allow the Owner and potential buyer to reach an agreement regarding said terms. If, after the negotiation period is over, the Owner and prospective buyer have 6 not reached an agreement, the next bidder's offer will then be presented to the Owner for consideration and a three (3) business day negotiating period will begin again. The Owner may reject any and all bids, however, the Owner is subject to the provisions in these Guidelines pertaining to the listing fee. Bids in excess of the Maximum Sales Price shall be rejected. If all bids are below Maximum Sales Price, Owner may accept the highest qualified bid. If all bids are below Maximum Sales Price and two or more bids are for the same price, and the Owner accepts that price, the Qualified Buyer shall be selected by lottery from among the highest qualified bidders. c. Sales and Other Fees: Unless otherwise set forth in the Master Deed Restriction covering the Unit, at the closing of the sale, the seller will pay the County a sales fee equal to two (2%) percent of the actual sales price. The County shall instruct the title company to pay said fees to the County out of the funds held for the seller at the closing. Unless otherwise specified in the Master Deed Restriction, a one-half percent (1/2%) fee is paid by the Seller at the time of listing, which is applied to the total sales fee of two percent (2%) payable at closing. In the event that the seller fails to perform under the listing contract, rejects all offers at maximum price in cash or cash-equivalent terms, or should withdraw the listing after advertising has commenced, that portion of the fee will not be refunded. In the event that the seller withdraws for failure of any bids to be received at maximum price or with acceptable terms, the advertising and administrative costs incurred by the County shall be deducted from the fee, with the balance returned to Owner. D. Deed Restriction The purchaser must execute, in a form satisfactory to the County and for recording with the Eagle County Clerk and Recorder concurrent with the closing of the sale, a document acknowledging the purchaser's agreement to be bound by (1) the Master Deed Restriction, which will run with the property in perpetuity; and (2) these Guidelines as may be amended from time to time. E. Agreement with Town of Vail Pursuant to the terms of an Intergovernmental Agreement between County and the Town of Vail, it is agreed that County will make an effort to place Qualified Buyers who are employed within the Town in one-half of the units on the Property. Specifically, upon resale the units will be rotated such that the first unit that becomes available for sale shall be a County unit, the second a Town unit, the third a County unit and continuing in such a rotating pattern. When a Town unit 7 becomes available in the rotation, the lottery and preference system set forth in these Guidelines shall be used. Eagle County shall, as set forth below, assign a preference of five points for applicants who are employed within the Town of Vail and who apply for a Town unit in addition to other points an applicant may otherwise receive under the Guidelines. The "Town" units shall then be sold to the highest ranking Qualified Buyer whether employed within the County or the Town. v. RESALE LOTTERY CRITERIA A. The following basic eligibility requirements must be met prior to an individual submitting a bid to purchase an employee-housing unit. 1. The applicant must intend to use the unit as his/her primary residence and maintain it as his/her primary residence in the future. 2. The applicant must be currently employed at a business located within Eagle County; and 3. The applicant must be employed an average of thirty (30) hours each week on an annual basis, and must maintain this level of employment for as long as he or she owns the unit; OR The applicant must demonstrate that at least 75% of his/her income and earnings are earned by working in Eagle County. 4. Neither the applicant nor any member of the applicant's immediate family (including, but not limited to, spouse and children under 18 years of age) may own any residential real estate at the time of sale. 1 5. The applicant must be prequalified with a mortgage lender. 6. For all Miller Ranch single family units that contain three (3) or more bedrooms, the applicant must have a household size of 3 or more persons. For the purposes of determining household size, applicants may include all persons related to the applicant by blood, marriage, adoption, or the applicant's domestic partner. If the applicant plans to include dependents, I The sole exception to the prohibition against ownership is if the applicant is currently an owner of a unit at Miller Ranch, and he or she seeks to sell his or her existing unit and purchase another at Miller Ranch contemporaneously. 8 they must be continuously listed on federal income tax forms and reside in the household at least six months and one day out of each year. A pregnancy may be counted towards the family size requirement as long as a note from an Eagle County doctor is provided. For Miller Ranch row houses and duplexes that contain three (3) or more bedrooms, applicants with a household size of 3 or more shall have a preference regardless of application score over households smaller than 3. If, however, no such eligible applicants are available such row house and duplex units may be sold to smaller households. 7. A retired individual, sixty years or older, who has worked a minimum of five years in Eagle County for an average of thirty hours per week on an annual basis may also satisfy paragraphs two and three of this section A. 8. No unit may have more than two occupants per bedroom at any time. (For example, household of five does not qualify of a two bedroom. B. An individual may seek a variance from the strict application of these Guidelines to request that title to a Unit be held in trust. Such ownership in trust may only occur in limited circumstances and upon special review and approval from the Eagle County Housing Department. 1. In order to request a variance from the strict application of these Guidelines the applicant shall submit a letter requesting a special review to the Eagle County Housing Department. Such letter shall include the following: a. The letter shall request permission to title the property in trust for the benefit of a natural person who also meets the definition of a Qualified Buyer. b. Units may be held in trust only for the benefit of a natural person who due to a physical or mental impairment lacks the capacity to contract or is prevented by such impairment from acquiring title to a Unit in his or her own name. The letter shall include documentation of such impairment and the basis for ownership in trust. It should be noted that the applicant shall submit any additional information reasonably requested by the County to allow County to process this special request. c. The beneficiary of the trust may not own other real property. d. The beneficiary of the trust must be of the age of majority to qualify under this section. 9 e. For purposes of the criteria set forth in Section V(A)2 and 3 hereof, the beneficiary may meet the criteria of said paragraphs 2 and 3 through volunteer work in Eagle County. Such volunteer work shall be verified through proof from the applicant as set forth in Section VIII of these Guidelines. f. The criteria of Section V(A)5 may be met so long as the trust pre- qualifies for a loan. Further the trust must prove an adequate means of ensuring that expenses associated with ownership, including but not limited to association dues and expenses are met. 2. Upon receipt of a request for a special review and any requested information and documentation, a special review meeting will then be scheduled in a timely manner. The Director of the Eagle County Housing Department may grant the request with or without conditions, so long as the request meets the requirements set forth above and if the approval will not cause a substantial detriment to the public good and will not substantially impair the goals and the purpose of the Guidelines. 3. An applicant affected by the decision of the Eagle County Housing Director may appeal such decision to the Board of County Commissioners by filing with the Board of County Commissioners within ten (10) days of the date of the written decision, a written notice stating and specifying briefly the grounds of the appeal. The Board of County Commissioners shall place the appeal on the Board of County Commissioner's agenda within thirty (30) days of receipt of a written notice of appeal. 4. The Board of County Commissioners, after a hearing, shall have the power to affirm or reverse the decision of the Director of Housing. In making its decision the Board of County Commissioners shall apply the criteria set forth in V(B)(1) above and shall render a written decision. The decision of the Board of County Commissioners shall be final. c. Once basic eligibility has been met, the qualified person(s) submitting the highest bid price (not to exceed the Maximum Sales Price) during a bidding period shall have the first right to negotiate purchase of the Unit. If two or more qualified bids are submitted at the highest bid price, they shall receive preference and be prioritized for selection as the top bidder based on the highest score using the criteria listed below. All points listed below are cumulative. 1. An applicant shall receive one point for each year of employment and one point for each year of residency in Eagle County. 10 2. There shall be three categories of preferences for purposes of allocating points: a. Category I. Shall include applicants currently employed more than thirty (30) hours per week as the following: firefighters, police officers, EMS technicians, plow operators in the public service, mechanics in public service, dispatchers in the public service, 911 information service employees, other emergency service workers, hospital-employed medical professionals, and public water and sanitation workers. Those applicants who meet the criteria of Category I shall receive 5 points plus one point for each year in such category in addition to the points identified in paragraph 1 hereof. b. Category n. Shall include applicants employed more than thirty (30) hours per week as the following: government public transportation workers, pre-school, primary, and secondary teachers, and Eagle County employees. Those applicants who meet the criteria of Category n shall receive 4 points plus 1 point for each year in that category in addition to the points identified in paragraph 1 hereof. c. Category III. Those Employed within Eagle County. Applicants employed in Eagle County shall receive 1 point plus 1 point for each full year employed in Eagle County. d. Category IV. Town of Vail Employees who apply for "Town Units." Applicants employed within the Town of Vail and who apply for a "Town" Unit shall receive 5 points in addition to points the applicant might otherwise receive under this section. 3. Physical place of residence and employment will be considered, not the mailing address. 4. Seasonal work and part-time work shall be counted on a pro-rata basis. Seasonal work and part time work alone may not be adequate to meet the thirty (30) hours each week average annual requirement or the requirement that at least 75% of income be earned by working in Eagle County. This type of work may need to augment other employment to meet the 11 minimum eligibility. 5. For the purposes of determining standing of each applicant, each year of residency (or employment) reflects one point. For the portion of time in excess of a complete year, the County will round to the next highest number if the time exceeds six months and one day. If time is less than six months, the County will round down. 6. If two individuals are applying jointly, only the points from the highest ranking individual shall be considered. 7. All claims will be verified by Eagle County staff. Claims of residence or employment that are un-verifiable in the sole discretion of County will not be counted in determining longevity. 8. If there is a sole applicant in the top tier of the lottery, the scheduled lottery will not be conducted and the Unit will be awarded to the top tier applicant. A drawing to establish the reserve list will be held in Eagle County offices during regular business hours and shall be witnessed by a member of the County staff. 9. The application and any accompanying documentation shall become the property of Eagle County and will not be returned to the applicant. Applicants may be required to supplement or complete a new application if requested by Eagle County. Applications shall be maintained by Eagle County for one year. VI. OCCUPANCY REQUIREMENTS A. Once a Unit has been purchased, it must continue to be occupied in a manner that is consistent with these Guidelines and the Master Deed Restriction. The purchased Unit must be owner occupied by: 1. An employee, working in Eagle County who works an average of thirty (30) hours per week on an annual basis or earns 75% of his /her income and earnings by working in Eagle County or as set forth in Section V hereof. A Miller Ranch occupant, satisfying these criteria, who becomes disabled as determined by a state or federal agency after taking possession of the Miller Ranch unit, shall not lose Miller Ranch occupancy eligibility. The Miller Ranch occupant must, however, provide Eagle County with any documentation of disability as required by the Eagle County. 2. A retired individual, sixty years or older, who has worked a minimum of five years in Eagle County for an average of thirty (30) hours per week on 12 an annual basis. 3. In the event that title to the Property or Unit vests by descent in a surviving spouse and/or children who are not Qualified Buyers, such surviving spouse and/or children shall have one year to become qualified. In the event the surviving spouse and/or children are unable to become Qualified Buyers in one year then such Unit shall be listed for sale as provided in Section IV hereof including the payment of specified fees to County. 4. In the event that title to the Property or Unit is transferred or vests by descent (other than surviving spouse and children) in individuals and/or entities who are not Qualified Buyers as that term is defined herein ("Non- Qualified Transferee") the Property or Unit shall be immediately listed for sale as provided in Section IV hereof including the payment of specified fees to County. The highest bid by a Qualified Buyer of not less than ninety-five percent (95%) of the Maximum Sale's Price or the market value, whichever is less, shall be accepted by the Non-Qualified Transferee. If all bids received are less than ninety-five percent (95%) of the Maximum Sale's Price or the appraised market value, the Property or Unit shall continue to be listed for sale until a bid in accordance with this section is made, which bid must be accepted unless the Non-Qualified Transferee elects to accept a lower bid from a Qualified Buyer. The cost of appraisal shall be paid by the Non-Qualified Transferee(s). a. Non-Qualified Transferee(s) shall join in any sale, conveyance or transfer of the Property or Unit to a Qualified Buyer and shall execute any and all documents necessary to do so; and b. Non-Qualified Transferee(s) shall not: 1) occupy the Property or said Unit; 2) rent all or any part of the Property or Unit, except in strict compliance with these guidelines; 3) engage in any other business activity on or in the Property or Unit; 4) sell or otherwise transfer the Property or Unit except in accordance with these Guidelines or the Master Deed Restriction; or 5) sell or otherwise transfer the Property or Unit for use in a trade or business. c. The County and its successors, as applicable, shall have the right and option to purchase the Property or Unit, exercisable within a period of fifteen (15) calendar days after receipt of any sales offer submitted to the County by a Non-Qualified Transferee(s), and in the event of exercising their right and option, shall purchase the Property or Unit from the Non-Qualified Transferee(s) for a price 13 of ninety-five percent (95%) of the Maximum Sale's Price, or the appraised market value, whichever is less. The offer to purchase shall be made by the Non-Qualified Transferee within fifteen (15) days of acquisition of the Property or Unit. d. Where the provisions of this Paragraph apply, the County may require the Non-Qualified Transferee to rent the Property or Unit in accordance with the provisions of these guidelines. 5. If at any time the Owner of the Property or Unit also owns any interest alone or in conjunction with others in any developed residential property or dwelling unit(s) located in Eagle County, Owner agrees to immediately list said other property or unit for sale and to sell Owner's interest in such property at a sales price comparable to like units or properties in the area in which the property or dwelling unit(s) are located. In the event said other property or unit has not been sold by Owner within one hundred twenty (120) days of its listing, then Owner hereby agrees to list the Miller Ranch Unit for sale pursuant to the provisions of these Guidelines and the Master Deed Restriction. It is understood and agreed between the parties hereto that, in the case of an Owner whose business is the construction and sale of residential properties or the purchase and resale of such properties, the properties that constitute inventory in such an Owner's business shall not constitute "other developed residential property" or "dwelling unit(s)" as those terms are used in these Guidelines and the Master Deed Restrictions. 6. Owner may not, except with prior written approval of the County, and subject to Eagle County's conditions of approval, rent the Property or Unit for any period of time. Prior to occupancy, any tenant must be approved by the County. The County shall not approve any rental if such rental is being made by Owner to utilize the Property or Unit as an income producing asset, except as provided below, and shall not approve a lease with a rental term of less than thirty (30) days and no more than six (6) months without clear and convincing evidence that a lease longer than six (6) months is necessary. A signed copy of the lease must be provided to the County prior to occupancy by any tenant. Any such lease approved by the County shall be equivalent to the monthly expenses for the cost of principal and interest payments, taxes, property insurance, condominium or homeowners' assessments, utilities remaining in owner's name, plus an additional twenty dollars ($20) and a reasonable (refundable) security deposit. The requirements of this paragraph shall not preclude the Owner from sharing occupancy of the Property or unit with non-owners on a rental basis provided Owner continues to meet the obligations contained in these Guidelines and the Master Deed Restriction. 14 7. In the event Owner changes domicile or ceases to utilize the Property or Unit as his or her sole and exclusive place of residence, the Property or Unit will be offered for sale pursuant to the terms of these Guidelines and the Master Deed Restriction. Owner shall be deemed to have changed Owner's domicile by becoming a resident elsewhere or accepting permanent employment outside of Eagle County, or residing on the Property or Unit for fewer than nine (9) months per calendar year without the express written approval of the County. Where the provisions of this Paragraph apply, the County may require the Owner to rent the Property or Unit in accordance with the provisions of these Guidelines and the Master Deed Restriction. A. A leave of absence may be granted for one year (in the sole discretion of County), subject to clear and convincing evidence that shows a reason for leaving and a commitment to return to the Eagle County area. Said evidence shall be in written form presented to the County for review and recommendations thirty (30) days prior to leaving. The Leave of Absence shall be for one year and may, at the discretion of the County, be extended for one year, but in no event shall it exceed two years. The unit must be rented during said year or years to residents who comply with occupancy requirements. After verification and qualification of tenant( s), a copy of the executed lease shall be furnished to the County. B. If the Unit is listed for sale and the Owner must relocate to another area, the unit may, upon approval of the County, be rented prior to completion of the sale to persons who comply with the occupancy requirements. A letter must be sent to the County requesting permission to rent the unit until sold. A lease of not less than (6) months must be provided to the tenants with a sixty (60) day move out clause upon notification that the unit is sold. C. Occupants may request waivers to the provisions of these Guidelines concerning Rentals by providing a written request to the County Housing Department, which will then be forwarded to the County Commissioners for their consideration. D. Eagle County may charge an administrative fee for processing rental requests. 15 VII. ANNUAL VERIFICATION REQUIRED; PENALTIES FOR VIOLATION A. No later than February 1st of each year, the owner of the Unit shall submit two copies of a sworn affidavit on a form to be obtained from Eagle County Housing Department, to the County verifying that the Unit continues to be Owner occupied in accordance with these Guidelines, that the occupant has worked thirty hours per week for the previous year or earned 75 % of his/her earnings in Eagle County, where the occupant has worked and other information that County may reqUire. B. If the County determines that there has been a violation of the Guidelines or the Master Deed Restriction, the Owner of the Unit shall be found to be in noncompliance. Penalties the County may assess against the owner include, but shall not be limited to eliminating resale gain, requiring sale of the Unit, penalties and remedies as identified in the Master Deed Restriction and/or penalties found in the Eagle County Land Use Regulations. Any misrepresentation by an applicant in submittal material shall disqualify the applicant from purchasing a Miller Ranch Unit. C. In the event that the Owner of a Unit fails to cure any breach of the Master Deed Restriction of these Guidelines the County may resort to any and all available legal action, including but not limited to, specific performance of the Master Deed Restriction, a mandatory injunction or require the sale of the Property of Unit by Owner. The costs of such sale shall be taxed against the proceeds of the sale with the balance being paid to the Owner. D. If a violation of the Master Deed Restriction or these Guidelines is discovered, County shall send a notice of violation to the Owner detailing the nature of the violation and allowing the owner fifteen (15) days to cure. Said notice shall state that the Owner may request a hearing before the Board of County Commissioners (or such other entity as the Board of County Commissioners may designate) to determine the merits of the allegations. If no hearing is requested and the violation is not cured within the fifteen (15) day period, the Owner shall be considered in violation of this Agreement. If a hearing is held before the Board of County Commissioners, or its designee, the decision of the Board of County Commissioners or its designee, based on the record of such hearing shall be final for the purpose of determining if a violation has occurred. If the Board or its designee determines that there has been a violation of the occupancy standards, the owner of the Unit shall be found to be in non-compliance. VIII. SUB~TT AL REQUIREMENTS In conjunction with completing an application to purchase a Unit, the applicant shall provide, 16 upon request by the County, the following documentation as proof of residency and employment: A. Federal Income Tax return forms. Applicant must provide the last three (3) years of Federal Income Tax Returns, an audited financial statement if available, or acceptable documentation to the County. B. Verification of current employment in Eagle County or proof of volunteer work to satisfy the requirements of Section V(B)(I)(e)(i.e., wage stubs, employer name, address and phone number or other appropriate documentation as requested by the County). C. Landlord verification (proof of residency, physical address). D. Valid Colorado Driver's License (address, issue date). E. Prequalification for a loan from a bank or mortgage company. F. Deposits for down payment shall be verified by the holder of such funds. G. Any co-ownership interests other than joint tenancy or tenancy-in-common must be approved by the County. H. Any documentation that the County deems necessary to make a determination. IX. FORECLOSURE In the event of a foreclosure or of acceptance of a deed in lieu of foreclosure by the holder of a promissory note secured by a first deed of trust on a Unit, Eagle County shall have the option to purchase the Property, which shall be exercised as set forth in the Master Deed Restriction. X. MODIFICATION The Guidelines may be modified by the Board of County Commissioners. XI. AGREEMENT TO ARBITRATE ALL DISPUTES Any dispute arising out of or related to these Guidelines or the purchase or sale of property at Miller Ranch, including the determination of the scope or applicability of this agreement to arbitrate, shall be subject to binding arbitration. Buyers, sellers, and occupants of Miller Ranch shall agree that any disputes concerning the terms and conditions of the purchase, sale, or occupancy of any unit at Miller Ranch shall be submitted and finally settled by arbitration to the 17 extent permitted by law. Arbitration shall be conducted at the Eagle County Government Building, 500 Broadway, Eagle, CO 81631-0850 pursuant to the JAMS Streamlined Arbitration Rules and Procedures. Any such binding arbitration shall be presided over by an Eagle County hearing officer appointed by Eagle County to arbitrate disputes. Judgment on any award may be entered in any court having jurisdiction. XII. ADDITIONAL INFORMATION For additional information, contact the Housing Department of Eagle County. 18 EXHIBIT" A" Permitted Capital Improvements 1. The term "Permitted Capital Improvement" as used in the Agreement shall only include the followin2: a. Improvements or fixtures erected, installed or attached as permanent, functional, non-decorative improvements to real property; b. Improvements for energy and water conservation; c. Improvements for health and safety protection devices; d. Improvements to add and/or finish permanent/fixed storage space; and/or e. Improvements to finish unfinished space; f. The cost of adding decks and balconies, and any extension thereto; g. Except where the Homeowners' Association maintains building exteriors (from basic dues and not special assessments), the following major maintenance items may be included as "Permitted Capital Improvements" with an appropriate reduction for the life of the improvements: 1. Exterior painting, to be amortized over three (3) years. (i.e. In the first year the full cost of painting could be added as a permitted capital improvement; in the second year two-thirds of the cost could be added, in the third year one-third could be added and after three years none of the cost could be added.) 11 Roof to be amortized over 10 years. 111. Exterior windows to be amortized over 10 years. h. Upgrades offered by the developer as part of the original construction of the unit and approved by County as Permitted Capital Improvements. The County will maintain a list of approved upgrades and this list may be obtained from the Eagle County Housing Department; 19 1. Improvements required to repair, replace and maintain existing fixtures, appliances, plumbing, and mechanical fixtures, carpeting, flooring and similar items; J. Permanent landscaping and fencing; and k. Jacuzzi, saunas, steam showers and other similar items. 2. Permitted Capital Improvements as used in this Agreement shall NOT include the following: a. Upgrades or addition of removable decorative items, removable window coverings and other similar items. 3. STRUCTURAL UPGRADES BY DEVELOPER. The following structural upgrades offered by the developer as part of the original construction and sale shall be included in the purchase price for purposes of calculating maximum resale price and not as permitted capital improvements: a. Basements; b. Garage; c. Carport; d. Optional bath; e. Optional bedroom wall; f. Electrical for ceiling fan; and g. Space Saver Microwave. 4. STRUCTURAL UPGRADES BY OWNER. The following structural upgrades, which may be installed by an Owner after closing, may be included in the purchase price for purposes of calculating the maximum resale price and not as permitted capital improvements (Note: fmishes to such structural items shall be deemed to be permitted capital improvements pursuant to paragraph 1 of this Exhibit A): a. Garage; b. Carport; c. Optional bath; d. Optional bedroom wall; e. Electrical for ceiling fan; and f. Space Saver Microwave. In order for the items set forth in this Paragraph 4 to qualify for inclusion in the purchase price, the Owner must furnish to County the following information: 20 i. Original or duplicate receipts to verify actual costs expended by Owner; 11. Owner's affidavit verifying that the receipts are valid and correct as of the time of purchase; 111. True and correct copies of any building permit or certificate of occupancy required to be issued by the Eagle County Building Department. Work performed without the issuance of a required building permit shall not be considered for inclusion in the purchase price. The allowance of such structural items in this paragraph 4 of Exhibit A should not be deemed approval of associated work by County. Any work must be conducted in compliance with Miller Ranch Association Documents and all applicable State, County and local regulations; iv. Only Owner's actual out-of-pocket costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to Owner's labor. 5. All Permitted Capital Improvement items and costs as well as structural upgrades shall be approved by County staff. a. As more fully set forth in Paragraph III B of the Guidelines and the Deed Restriction Agreement for the Occupancy and Resale of Miller Ranch, the value of Permitted Capital Improvements shall not exceed ten percent (10%) of the purchase price for each ten years of ownership and do not increase the purchase price and thus are not subject to appreciation. b. The value of structural upgrades as identified in paragraphs 3 and 4 of this Exhibit A may be included in the purchase price and may appreciate as set forth in the Deed Restriction Agreement for the Occupancy and Resale of Miller Ranch. 6. In the event there are any questions as to whether an item will qualify as a Permitted Capital Improvement or as a structural upgrade contact the Eagle County Housing Department. 21 I- ~ - m co >- :E .g ~ "- ~ - ~ V") 0) -0 e e V") >- ti+- +- 0) -0 ~ :::J ~ "Vi -0 e 0 .Q e 0) 0) E Q. 0) ... :; 0) 0) '- 0 0 0) 0 e o 0) Q.e "i:: 0) '- ~ -o+- 0 xO) 0 w<( ~ ii5<( U) >- c ~ eN ::I "0 '- -0 ~ (])o......... e ......V") .oV")..:,,: 0) V") e 0) V") -o::l(]) -0 <(E::,3 <( W Z V") >- 0)......... - ~ +-C/) -1 .Q> ::l<( W ~ .QO 0(") ~ ~ 0'-../ :t::o.. 00:: - C'i5~ l- V") .c V") Q.+- o 0 '- ::l e .. f 0)-0 -- '- o e -00) co+- O)Q. Q) o V") o 0 ~ .c -. 32 o Q. 0..0)0 0.0 :t::~0) Oo.c -0 0 C'i5.co <(.Q ....J -0-0 -0-0 ~O:: <(~ e2 e 0) -0 ~Z o 0 0-0 >- Ow o..w (D~ (D~ .Q ~ o::z <(~ (j) u..s Ow +-0) +-0) a.. t:>0 ~> 00)'- 00)'- :E Ww -0 -Oei!? -Oei!? 0) V") ::>~ 20:: +-V")G) +-V")G) e c o 0) V") o 0) V") .C -- 80 coo.. OE....... OE....... o 0) ::>~ o 0) C!:I C/) _ Jj:.=3 Jj:.=3 U).o I >- 0) 0) c V") V") -g ::l ::l 0 0 ~ N (") I "'" I I.() ::::.:: ::::.:: ::::.:: e ::::.:: e ::::.:: w w w 0) w 0) w w w w Q. w Q. w S S S 0 S 0 S w Z - --1 W ~ - t- i Gl C ~ >- ~ ~ r.n Q) -0 >- "0 ij +- J;! (]) (]) e -0 :g -0 Q) - (])E (]) ... '- 0 Q3 +- Q)oU)(]):J e'"-Q.........Q) 0 e >-'-(]) >O:JO>x >+-a:JO(]) >- c 'R Gl ;: Q. :J '- 12 Q) >- ~Q)'::'::: C e e 0 8 .3"~ E ~ c.o.2 Q)C")r.n-O :t:: r.n >- e o 0 0 "- _J.e -0 E >- .g c 0 ~ --0 r-.... co 0- :::r.:: :::r.:: :::r.:: :::r.:: :::r.:: w w w w w w w w w w 5 5 5 5 5 w Z - -.J W ~ - .- >- .g ~ >- ~ ... g .5!? b~ :;~ EE,-.o~ Q) Q) ....: "- 0) 0>.0 t 0 6- c "~ '- 0 ~ (]) .- r.n :J r.n +- '- OOo>.c+- oQ,g.gS2 ! ! "C ~ ! GI ~ >- .g c o :E " ~t:-7'.-. . ";;,,,..- J<..- >- .g c N (") '<:t ~ :::.:: :::.:: :::.:: :::.:: u.J w u.J W W W W W S S S S c' ..