HomeMy WebLinkAboutUNION PLACE - FDP - 15-09/A - CORRESPONDENCE - AFFORDABLE HOUSING MEMO. (5)BUYER:
STATE OF COLORADO )
S.S.
COUNTY OF )
The foregoing instrument was acknowledged before me this
20 , by as
Witness my hand and official seal. .
My commission expires:
[SEAL]
Notary Public
n
day of ,
OR
A
r W t
EXHIBIT C
MEMORANDUM OF ACCEPTANCE
OF
MASTER COVENANT
FOR THE OCCUPANCY AND RESALE OF
UNIT ,
UNION PLACE SUBDIVISION
WHEREAS, , the Buyer, is.
purchasing from , the Seller, at a price of
$ , a unit described as:
Unit Union Place
Subdivision, according the Plat of Union Place Subdivision
recorded in Book at Page , under Reception No.
, in the real property records of the County of
Larimer, Colorado.
WHEREAS, the Seller of the Unit is requiring as a prerequisite to the sale transactions,
that the Buyer acknowledge and agree to the terms, conditions, and restrictions found in that
certain instrument entitled, "Master Covenant for the Occupancy and Resale of Units
Union Place," recorded on , in Book at Page
under Reception No. , in the real property records of the County of
Larimer, Colorado.
NOW, THEREFORE, as an inducement to the Seller to sell the Unit, the Buyer:
1. Acknowledges that the Buyer has carefully read the entire Master Covenant, has
had the opportunity to consult with legal and financial counsel concerning the Master Covenant
and fully understands the terms, conditions, provisions, and restrictions contained in the Master
Covenant. Resale is restricted by the Master Covenant and profits may be required to be
disgorged and/or reversion may occur upon breach of the Master Covenant.
2. Notice to the Buyer, pursuant to Subsection 11(a) of the Master Covenant, should
be sent to:
3. Directs that this memorandum be placed of record in the real estate records of the
County of Larimer, Colorado.
IN WITHNESS WHEREOF, the parties hereto have executed this instrument on the day
an&year first above written.
17
ACCEPTANCE BY THE CITY OF FORT COLLINS, COLORADO
The foregoing Master Covenant for the Occupancy and Resale of ,
Union Place Subdivision, and its terms are hereby accepted, approved, agreed to and adopted by
the City of Fort Collins, Colorado.
THE CITY OF FORT COLLINS COLORADO,
a municipal corporation
Darin A. Atteberry, City Manager
ATTEST:
City Clerk
APPROVED AS TO FORM:
Deputy City Attorney
STATE OF COLORADO )
ss.
COUNTY OF LARIMER )
The foregoing instrument was acknowledged before me this day of 20_,
by Darin A. Atteberry, as City Manager of the City of Fort Collins, Colorado, a municipal
corporation.
Witness my hand and official seal.
My commission expires:
[SEAL]
Notary Public
f<el
. 1k,
1. Owner and Successors. The term Owner shall mean the person or persons
who shall acquire an ownership interest in an Affordable Unit in compliance with the terms and
provisions of this Covenant; it being understood that such person or persons shall be deemed an
Owner hereunder only during the period of his, her or their ownership interest in the Affordable
Unit and shall be obligated hereunder for the full and complete performance and observance of
all covenants, conditions and restrictions contained herein during such period.
IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day
and year above first written.
DECLARANT:
STATE OF COLORADO )
ss.
COUNTY OF LARIMER )
Union Place, LLC, a Colorado limited
liability company
By:
Donna Merten, President
Date:
The foregoing instrument was acknowledged before me this day of ,
, by Donna Merten, Manager of Union Place, LLC, a Colorado limited liability
company.
Witness my hand and official seal.
My commission expires:
[SEAL]
Notary Public
15
with a copy to: The City of Fort Collins City Attorney's Office
300 LaPorte Avenue, City Hall West, Second Floor
Fort Collins, Colorado 80521
b. Exhibits. All exhibits attached hereto are incorporated herein and by this
reference made a part hereof.
C. Severability. Whenever possible, each provision of this Covenant 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.
d. Choice of Law. This Covenant and each and every related document are
to be governed and construed in accordance with the laws of the State of Colorado.
e. Successors. Except as otherwise provided herein, the provisions and
covenants contained herein shall inure to and be binding upon the heirs, successors and assigns
of the parties.
f. Section Headings. Paragraph or section headings within this Covenant are
inserted solely for convenience of reference, and are not intended to, and shall not govern, limit
or aid in the construction of any terms or provisions contained herein.
g. Waiver. No claim of waiver, consent or acquiescence with respect to any
provision of this Covenant shall be valid against any party hereto except on the basis of a written
instrument executed by the parties to this Covenant. However, the party for whose benefit a
condition is inserted shall have the unilateral right to waive such condition.
h. Gender and Number. Whenever the context so requires herein, the neuter
gender shall include any and all genders and vice versa and the use of the singular shall include
the plural and vice versa.
i. Personal Liabilitv. Owner agrees that he or she shall be personally liable
for any of the transactions contemplated herein.
j. Further Actions. The parties to this Covenant 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 Covenant or any restriction or document relating hereto or entered
into in connection herewith.
k. Modifications. The parties to this Covenant agree that any modifications
of this Covenant shall be effective only when made by writings signed by the Declarant (or its
successors) and the City and recorded with the Clerk and Recorder of Larimer County, Colorado.
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to cover the administrative costs of assigning its Purchase Right and the City shall be entitled to
these additional sales proceeds in order to cover the administrative costs associated with
assigning its Purchase Right. If the Purchase Right has expired or if the City, or its assignee, has
failed to complete the purchase within the forty-five (45) day period allowed above, the Owner
may sell the property according to paragraph 6, or nor more than the Maximum Purchase Price
as calculated according to paragraph 4.
9. Release of Covenant in Foreclosure. This covenant shall automatically terminate
with respect to a particular Affordable Unit in the event of foreclosure or the acceptance of a
deed in lieu of foreclosure or assignment of the insured mortgage to HUD, with respect to such
Affordable Unit by a holder of a first priority deed of trust against the Affordable Unit (the "First
Lien Holder") (which shall be the only party entitled to take the Affordable Unit free of this
Covenant pursuant to the provisions of this Section 9).
10. Covenant Running with Land; Duration of Covenant.
a. The terms of this Covenant shall constitute covenants running with the
Affordable Units, as a burden thereof, for the benefit of, and shall be specifically enforceable by
the City and its successors and assigns, as applicable, by any appropriate legal action including
but not limited to specific performance, injunction, reversion or eviction of non -complying
Owners and/or.occupants.
. b. This Covenant shall terminate, expire and be of no further force and effect
with respect to a particular Affordable Unit following the first Transfer of said Affordable Unit
that occurs more than twenty (20) years after the date of first sale.
11. Miscellaneous:
a. Notices. Any notice, consent or approval which is required or permitted to
be given hereunder shall be given by mailing the same, certified mail, return receipt requested,
properly addressed and with posting 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 Covenant.
Said notices, consents and approvals shall be sent to the parties hereto at
the following addresses unless otherwise notified in writing:
To Declarant: Union Place, LLC
55 South 52"d Street
Boulder, CO 80305
To the City: The City of Fort Collins, Colorado
300 LaPorte Avenue, City Hall West, Second Floor
Fort Collins, Colorado 80521
Attn: City Manager
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Monday through Friday, after providing such Owner with no less than twenty-four (24) hours
advance written notice.
b. In the event a violation of this Covenant is discovered, the City shall send
a notice of violation to the Owner detailing the nature of the violation and allowing the Owner
fifteen (15) days to cure such default. Said notice shall state that the Owner may request a
hearing before the City within fifteen (15) days 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 Covenant. If a hearing is held before the City, the decision
of the City based on the record of such hearing shall be final for the purpose of determining if a
violation has occurred.
C. There is hereby reserved to the City the right to enforce this Covenant, by
the following remedies and any other means that are lawful to the City under HUD rules:
i. disgorgement of profits received by the selling Owner over the
Maximum Purchase Price; and/or
ii. obtaining a court order requiring sale of an Affordable Unit by the
Owner thereof to either the City or a third party under a purchase
right designed to preserve the affordability of the property for
persons of low or moderate income. The costs of such sale shall be
assessed against the proceeds of the sale with the balance being
paid to the Owner. In the event the City resorts to litigation with
respect to any or all provisions of this Covenant and the City
prevails, the City shall be entitled to recover damages and costs,
including reasonable attorney's fees.
d. In order to preserve the affordability of the property as an Affordable Unit,
if the Owner intends to transfer title to the property, the Owner must, at least forty-five (45) days
before any transfer is effected, notify the City of its intent to sell, whereupon, the City shall have
the right to purchase the property ("Purchase Right") at the "Maximum Purchase Price" as
calculated in paragraph 4. If the City elects to purchase the property, it shall exercise the
Purchase Right by notifying the Owner, in writing, of such election ("Notice of Exercise of
Right") with thirty (30) days of the receipt of notice of the Owner's intent to sell, or the right
shall expire. Having given such notice, the City may either proceed to exercise the Purchase
Right directly by purchasing the property, or may assign the Purchase Right to an eligible buyer.
In either case, the City or its assignee shall enter into a contract to purchase the property within
seven (7) days of exercising the Purchase Right. The purchase (by the City or the City's
assignee) must be completed within forty-five (45) days of the City's Notice of Exercise of
Right, or the owner may sell the property as provided in paragraph 6 above. The time permitted
for the completion of the purchase may be extended by mutual written agreement of the Owner
and the City.
If the City assigns its Purchase Right to an eligible buyer, the Maximum
Purchase Price shall be increased by the amount set annually by the City Manager as necessary
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(iii) the contract must state as a contingency that the purchaser will
submit the application described in Subsection 6.c below to the
City within three (3) days after contract acceptance, and that the
selling Owner's obligations under the contract are expressly
contingent upon the City's determination that the purchaser is an
Eligible Buyer and that the purchase price does not exceed the
Maximum Purchase Price as evidence by issuance of the
Certificate described in Subsection 6.c below.
C. Within three (3) days after contract acceptance (defined as the date of last
execution of the contract by the purchaser or the selling Owner), the purchaser shall complete
and submit an application form to the City requesting a determination that the purchaser is an
Eligible Buyer and that the purchase price does not exceed the Maximum Purchase Price. The
City shall promulgate the form of such application, which shall request only such information as
is necessary to determine whether the purchaser is an Eligible Buyer and whether the purchase
price exceeds the Maximum Purchase Price. The City shall make its determination within five
(5) days for sales by Declarant and within fourteen (14) days in the event of any other sale after
receipt of the completed application, as evidenced either by (A) the issuance of a certificate,
signed by the City and in recordable form, stating that the purchaser is an Eligible Buyer, the
amount of the purchase price and that the purchase price does not exceed the Maximum Purchase
Price (the "Certificate"); or (B) delivering a notice to seller and purchaser that a Certificate
cannot be issued and stating the reason(s) therefore. Failure by the City to make its determination
and deliver the Certificate or the notice as described above within the applicable 5 or 14-day
period will be deemed an approval of the purchaser and the purchase price, and the City shall
thereafter issue a Certificate with respect to the transaction immediately upon request therefore
by the selling Owner or the purchaser. Delivery of the Certificate shall not be construed as a
representation or warranty that the Eligible Buyer will in fact qualify for purchase money
financing for the acquisition of the Affordable Unit.
d. Upon the Transfer of the Affordable Unit, the Certificate shall be recorded
by the Eligible Buyer in the real estate records of the County of Larimer, Colorado, along with
the deed for the Affordable Unit, and if the Certificate is not so recorded, then the Transfer shall
be voidable at the option of the City.
7. No Rental of Affordable Units. An Owner may not rent or lease such Owner's
Affordable Unit for any period of time. The requirements of this Section shall not preclude an
Owner from sharing occupancy of the Affordable Unit with non -owners on a rental basis
provided Owner continues to reside in the Affordable Unit and to meet the obligations contained
in this Covenant.
8. Remedies in the Event of Breach.
a. In the event that the City has reasonable cause to believe that an Owner is
violating the provisions of this Covenant, the City, by its authorized representative, may inspect
the Affordable Unit owned by such Owner between the hours of 8:00 a.m. and 5:00 p.m.,
11
Affordable Unit shall be based upon the Eligible Buyer's total income equaling the 3 persons
Median Income in Fort Collins as determined by the U.S. Department of Housing and Urban
Development Income Limits ("HUD") and the Sales Price for a three bedroom Affordable Unit
shall be based upon the Eligible Buyer's total income equaling the 4 person Median Income for
Fort Collins as determined by the HUD. Each such sales price is subject to increase with respect
to sales occurring in the year(s) following the year of this Agreement by the increase, if any, in
the 3 and 4 person, respectively, Area Median Income for the City of Fort Collins as determined
by the HUD for the year in which the closing actually occurs.
Maximum Purchase Price.
a. A selling Owner shall not permit any prospective buyer to assume any or
all of the selling Owner's customary closing costs nor accept any other consideration which
would cause an increase in the purchase price above the Maximum Purchase Price, and all such
additional consideration, in any form, shall be considered by the City when determining whether
the purchase price for the Affordable Unit exceeds the Maximum Purchase Price.
THE MAXIMUM PURCHASE PRICE IS ONLY AN UPPER LIMIT ON PRICE
APPRECIATION FOR EACH AFFORDABLE UNIT, AND NOTHING HEREIN SHALL
BE CONSTRUED TO CONSTITUTE A REPRESENTATION, WARRANTY OR
GUARANTEE BY THE DECLARANT OR THE CITY THAT UPON TRANSFER THE
OWNER SHALL OBTAIN THE MAXIMUM PURCHASE PRICE. FURTHER,
NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO PREVENT AN
OWNER FROM SELLING A UNIT FOR LESS THAN THE MAXIMUM PURCHASE
PRICE.
6. Transfer of Affordable Unit.
a. In the event that an Owner desires to sell the Affordable Unit owned by
such Owner, the Owner shall provide notice to the City of such Owner's intent to sell at least ten
(10) days prior to engaging a broker to list the Affordable Unit for sale. The City may keep a list
of interested purchasers and may provide same to any selling Owner in the City's discretion.
b. After providing the notice required in Subsection 6.a, the selling Owner
may list the Affordable Unit for sale with a real estate agent licensed in the State of Colorado or
the selling Owner may market the Affordable Unit as a so-called "for sale by owner," and may
enter into a contract for the sale of the Affordable Unit upon such terms and conditions as the
selling Owner shall, in the selling Owner's sole discretion, deem acceptable, provided, however,
that:
(i) the purchase price shall not exceed the Maximum Purchase Price;
(ii) the selling Owner must believe in good faith that the purchaser is
an Eligible Buyer and that the purchase price does not exceed the
Maximum Purchase Price; and
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i. "Contract Date" means the date of contract for the proposed Transfer of an
Affordable Unit to a new Owner.
2. Transfer Subject to Covenant. Declarant and each subsequent Owner of each of
the Affordable Units hereby covenants and agrees that the Affordable Units shall be used,
occupied and Transferred strictly in conformance with the provisions of this Covenant for so
long as this Covenant remains in force and effect with respect to each such Affordable Unit.
Each Owner who takes title from Declarant and every subsequent Owner of each Affordable
Unit shall execute and record the Memorandum of Acceptance attached hereto as Exhibit A
(completed with the appropriate information relating to the Affordable Unit and such Owner)
with such Owner's deed to his or her Affordable Unit in the real property records of the County
of Larimer, Colorado.
3. Use and Occupancy. An Owner (other than Declarant), in connection with the
purchase and ownership of an Affordable Unit, must:
a. occupy the Affordable Unit as his or her sole, exclusive and permanent
place of residence during the time that such Affordable Unit is owned by such Owner. A
permanent residence shall mean the home or place in which one's habitation is fixed and to
which one, whenever he or she is absent, has a present intention of returning after a departure or
absence therefrom, regardless of the duration of the absence. In determining what is a permanent
residence, the following circumstances relating to the Owner shall be taken into account:
business pursuits, employment, income sources, residence for income or other tax purposes, age,
marital status, residence of parents, spouse and children, if any, location of personal and real
property, and motor vehicle registration;
b. not engage in any business activity on or in such Affordable Unit, other
than permitted under applicable zoning ordinances and the condominium declaration governing
the Affordable Unit; and
C. not permit any use or occupancy of such Affordable Unit except in
compliance with this Covenant during the period of such Owner's ownership of the Affordable
Unit.
4. Maximum Purchase Price. Every Transfer of an Affordable Unit by Declarant or
subsequent buyers to a purchaser shall be for a purchase price which does not exceed the
Maximum Purchase Price as set forth herein and in the Plan. The Maximum Purchase Price shall
be the maximum amount which an Eligible Buyer can finance with a 30-year, 97% loan at
Market Interest Rate (as defined herein). In the event Developer conveys an Affordable Unit for
a sales price less than the Maximum Purchase Price and Developer is required to pay any
commission to transactional or buyer real estate agents or brokers upon the sale of any
Affordable Unit, Developer may increase the purchase price for the sale by the amount to be paid
to such real estate agents or brokers in connection with such sale, provided the total of the
purchase price and any commission does not exceed the Maximum Purchase Price and the
commission does not exceed 3% of the Purchase Price. The Sales Price for a two bedroom
0
b. "Market Interest Rate" means the Fannie Mae yield on 30-year mortgage
commitments (priced at par) for delivery within thirty (30) days, rounded up to the nearest .125
of 1.00% as of the first business day of the month (printed in the Wall Street Journal).
C. "Maximum Gross Annual Income" means no more than 80% of the Area
Median Income for Fort Collins as determined by the U.S. Department of Housing and
Development Income Limits ("HUD"). Income shall mean the pre-tax income from all
acceptable sources as defined in the Fannie Mae Seller/Servicer Guide which income shall be
verified in one or more of the following methods:
Obtain two (2) paycheck stubs from the proposed Eligible Buyer's
two (2) most recent pay periods.
ii. Obtain a true copy of an income tax return from proposed Eligible
Buyer for the most recent tax year in which a return was filed.
iii. Obtain an income verification from the employer of the proposed
Eligible Buyer.
iv. Obtain an income verification certification from the Social
Security Administration and/or the Colorado Department of Social
Services if the proposed Eligible Buyer receives assistance from
such agencies.
Obtain an alternate form of income verification reasonably
requested by the City.
d. "Maximum Loan" means 97% of the purchase price for the applicable
Affordable Unit.
e. "Owner" means the Declarant and any subsequent buyer, devisee,
transferee, grantee, owner or holder of title of any Affordable Unit.
f. "Proposed Monthly Housing Expense" means the monthly total of the
principal and interest, private mortgage insurance, homeowners association dues, I/12th of
estimated real property taxes and estimated gas, property insurance, water and sewer and
electricity expenses.
g. "Transfer" means any sale, assignment or transfer that is voluntary,
involuntary or by operation of law (whether by deed, contract of sale, gift, devise, bequest,
trustee's sale, deed in lieu of foreclosure, or otherwise) of any interest in an Affordable Unit,
including, but not limited to a fee simple interest, a joint tenancy interest, a tenancy in common,
a life estate, or any interest evidenced by a land contract by which possession of an Affordable
Unit is transferred and the Owner obtains title.
h. "Acquisition Date" means the date of Transfer of an Affordable Unit.
Definitions. The following terms shall have the following meanings when used in
this Covenant:
a. "Eligible Buyer" means a natural person, family or household with a (1)
Maximum Gross Annual Income that is no more than 80% of the Area Median Income for Fort
Collins, and (2) whose proposed Monthly Housing Expense(s) (principal, interest, taxes,
insurance, utilities, HOA expense) for a Maximum Loan at the Market Interest Rate does not
exceed 38% of the Maximum Gross Annual Income adjusted to a monthly income. This
definition of Eligible Buyer. is to be used solely to calculate the maximum income level of buyers
eligible to .purchase an Affordable Unit and shall not be construed as in any way limiting the type
of lending program or loan terms (except that such terms or conditions shall not be predatory)
which an Eligible Buyer may accept to finance the purchase of an Affordable Unit. A person,
family or household who at the time of purchase qualified as an Eligible Buyer shall continue to
be deemed so qualified until such time as the Affordable Unit is Transferred. The following is
the method of determining an Eligible Buyer and a hypothetical example of the determination of
the Maximum Purchase Price, based on the identified assumptions and estimates:
Example:
1. Maximum Annual Gross Income of Eligible le Buyer: The Area Median Income
("AMP') as determined by U.S. Department of Housing and Urban Development Income Limits
("HUD").
-- Year,2009 3 person Household = $50,687.40 x 80% = $40,549.92
2. Monthly Housing Expense: ($40,549.92/12 x.38) = $1,248.08
Assumptions:
Initial Sales Price
2 Bedroom Unit:
Loan Amount (97%):
Interest Rate:
Monthly Housing Expenses:
Monthly Principal and Interest:
Est. Monthly H.O.A. Dues
Est. Gas
Est. Property Insurance
Est. Water and Sewer
Est. Monthly Real Estate Taxes
Est. Monthly Electrical
Est. Private Mortgage Insurance
$127,724.80
$123,893.05
8%
$ 909.09
60.00
50.00
25.00
30.00
130.00
35.00
45.00
Total: $ 1,284.08 Monthly Housing
EXHIBIT B
MASTER COVENANT
FOR THE OCCUPANCY AND RESALE OF UNION PLACE SUBDIVISION UNITS
THIS MASTER COVENANT FOR THE OCCUPANCY AND RESALE OF CERTAIN
UNITS, UNION PLACE (the "Covenant") is made and entered into this day of
by Union Place, LLC, a Colorado limited liability company (the
"Declarant"), and enforceable by the CITY OF FORT COLLINS, COLORADO, a municipal
corporation, or its designee (the "City").
WITNESSETH:
WHEREAS, Declarant owns the real property described as follows:
(the "Affordable Units").
WHEREAS, Union Place is subject to a certain Union Place Affordable Housing Plan
dated ,2009;
WHEREAS, Union Place, LLC is planning to build a mixed -use project at the southwest
corner of Willox Lane and Mason Street in Fort Collins, Colorado. Of the 89 residential units,
36 (40%) will be affordable to households earning 80% or less of the Area Median Income; and
WHEREAS, Declarant agreed to restrict the acquisition, resale or transfer of the
Affordable Units to Eligible Buyers as that term is defined in this Covenant. In addition, the
Declarant agreed that this Covenant shall constitute a resale restriction setting forth the
Maximum Purchase Price for which each Affordable Unit may be sold, the amount of
appreciation and the terms and provisions controlling the resale of the Affordable Units should a
subsequent owner of an Affordable Unit desire to sell his or her interest in the Affordable Unit at
any time after the date of this Covenant. Finally, by this Covenant, the Affordable Units shall be
restricted against use and occupancy inconsistent with this Covenant.
NOW, THEREFORE, for consideration hereby acknowledged by Declarant, Declarant
hereby represents, covenants and declares as follows:
Col
EXHIBIT A
UNION PLACE SUBDIVISION IN THE CITY OF FORT COLLINS ACCORDING TO THE
PLAT THEREOF WHICH WILL BE SUBSEQUENTLY RECORDED. SAID SUBDIVISION
IS CONTAINED WITHIN THE BOUNDARIES OF THE PROPERTY DESCRIBED BELOW:
THE NORTH 15 ACRES OF THE NE `Y4 OF THE NE'/< OF SECTION 2, TOWNSHIP 7 NORTH,
RANGE 69 WEST OF THE 6T" P.M., FORT COLLINS, COUNTY OF LARIMER, STATE OF
COLORADO, EXCEPT THAT PORTION THEREOF CONVEYED IN DEED RECORDED
NOVEMBER 26, 1976 IN BOOK 1735 AT PAGE 134 AND ALSO EXCEPT THAT PARCEL OF
LAND CONVEYED IN DEED RECORDED FEBRUARY 3, 1998 AT. RECEPTION NO. 98007877
AND ALSO EXCEPT THAT PARCEL OF LAND CONVEYED TO THE CITY OF FORT COLLINS,
COLORADO IN DEED RECORDED MARCH 3, 1999 AT RECEPTION NO.99018609 AND RE-
RECORDED MARCH 25, 1999 AT RECEPTION NO. 99025160 AND ALSO EXCEPT THAT
PARCEL OF LAND CONVEYED TO NORTH COLLEGE LLC IN QUIT CLAIM DEED RECORDED
AUGUST 19, 2009 AT RECEOPTION NO.20090057572;
THE PERIMETER OF WHICH IS MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE EAST 1/16 CORNER ON THE NORTH LINE OF SAID SECTION 2;
THENCE SOUTH 00'29'29" WEST, ALONG THE WEST LINE OF THE NORTHEAST QUARTER
OF THE NORTHEAST QUARTER OF SAID SECTION 2, A DISTANCE OF 30.00 FEET TO THE
SOUTH RIGHT OF WAY LINE OF WEST WILLOX LANE, SAID POINT BEING THE POINT OF
BEGINNING;
THENCE SOUTH 89'32'29" EAST, ALONG THE SOUTH RIGHT OF WAY LINE OF WEST
WILLOX LANE, A DISTANCE OF 882.07 FEET TO THE WEST LINE OF THAT PARCEL OF
LAND CONVEYED TO THE CITY OF FORT COLLINS, COLORADO IN DEED RECORDED
MARCH 3, 1999 AT RECEPTION NO. 99018609 AND RE -RECORDED MARCH 25, 1999 AT
RECEPTION NO. 99025160 OF THE LARIMER COUNTY, COLORADO RECORDS; THENCE
SOUTH 00'20'55" WEST, ALONG THE WEST LINE OF SAID PARCEL, A DISTANCE OF 10.00
FEET TO THE SOUTH LINE OF SAID PARCEL; THENCE SOUTH 89'32'29" EAST, ALONG THE
SOUTH LINE OF SAID PARCEL, A DISTANCE OF 35.00 FEET TO THE WEST LINE OF LOT 1,
WILLOX CROSSING PUD AS DESCRIBED IN DOCUMENT RECORDED AS RECEPTION NO.
99037006; THENCE SOUTH 00'20'55" WEST, ALONG THE WEST LINE OF SAID LOT 1, A
DISTANCE OF 253.53 FEET TO THE SOUTH LINE OF SAID LOT 1; THENCE SOUTH 89'39'05"
EAST, ALONG THE SOUTH LINE OF SAID LOT 1, A DISTANCE OF 100.00 FEET TO THE
NORTHWEST CORNER OF SCHRADER COMMERCIAL P.U.D. AS DESCRIBED IN DOCUMENT
RECORDED AS RECEPTION NO.21671373 OF LARIMER COUNTY, COLORADO RECORDS;
THENCE SOUTH 00'20'55" WEST, ALONG THE WEST LINE OF SAID SCHRADER
COMMERCIAL P.U.D., A DISTANCE OF 196.67 FEET TO THE NORTH INE OF THAT PARCEL
CONVEYED TO NORTH COLLEGE LLC IN QUIT CLAIM DEED RECORDED AUGUST 19, 2009
AT RECEPTION NO.20090057572; THENCE NORTH 89'35'44" WEST, ALONG THE NORTH
LINE OF SAID PARCEL, A DISTANCE OF 1018.21 FEET TO THE WEST LINE OF THE
NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 2; THENCE
NORTH 00'29'29" EAST, ALONG THE WEST LINE OF THE NORTHEAST QUARTER OF THE
NORTHEAST QUARTER OF SAID SECTION 2, A DISTANCE OF 460.96 FEET TO THE POINT OF
BEGINNING.
CITY OF FORT COLLINS, COUNTY OF LARIMER, STATE OF COLORADO.
such instrument shall in all instances replace references to the City in this Plan and in
the attached Master Covenant.
2. The Developer may assign any of its rights under this Plan to
an assignee specifically delegated in writing, executed by the Developer, and approved
in advance by the City of Fort Collins.
DEVELOPER:
Union Place LLC
A Colorado Limited Liability Company
By:
Title:
Date:
ACCEPTANCE BY THE CITY OF FORT COLLINS, COLORADO
The foregoing Union Place Affordable Housing Plan, and its terms are hereby
approved by the City of Fort Collins, Colorado.
THE CITY OF FORT COLLINS, COLORADO
A municipal corporation
By:
Title:
Date:
2
attached hereto as Exhibit C, thereby confirming they have read and understand the
content of the Master Covenant.
4. Miscellaneous.
A. Binding Effect. This Plan shall be binding upon and inure to the
benefit of the Developer and the City and their respective successors and assignees.
B. Entire Plan. This Plan, together with any exhibits of documents
referred to in or supplied pursuant to the terms of this Plan (all of which are incorporated
into this Plan by this reference), contains the entire affordable housing plan relative to
Union Place and supersedes any and all prior oral representations, covenants,
understanding, memorandums, or other agreements between parties or their agents.
C. Conveyance of Lots. The City acknowledges that the Developer
may convey certain parcels of property within Union Place to others for development,
and that in the event of such conveyance, the new owners of the conveyed parcel shall
become solely responsible for the Developer's obligations and all requirements under
this Plan with respect to such parcels of property conveyed in the event said parcels are
not released from this Plan.
D. Section Headings. The section headings are inserted only for
convenient reference and do not define, limit, or prescribe the scope of this Plan.
E. Governing Law. This Plan shall be construed under the provisions
of Colorado Law.
F. Severability. If any terms, covenants, or provisions of this Plan shall
be illegal or unenforceable for any reason, the same shall not invalidate any other
terms, covenants, or provisions, and all of the remaining terms, covenants, and
provisions shall remain in full force and effect.
G. Amendment. This Plan may be amended, modified, or rescinded
only in writing as executed by the Developer and the City.
H. Assignment. All obligations arising under this Plan shall burden the
Developer as provided herein and its successors and assignees. All rights of the
Developer and the City as provided herein shall inure to the benefit of the Developer
and the City and their respective successors and permitted assignees, as follows:
1. It is contemplated that the City may sometime in the future
assign its enforcement rights under this Plan to an assignee which has as its primary
purpose the development or management of affordable housing projects in the City or is
otherwise qualified to undertake the responsibilities described in this Plan. Any such
assignment shall be in writing delivered to the Developer, and the assignee so named in
3
map or otherwise and prior to sale or contract to sell, the Developer will subject each
Affordable Unit to a recorded covenant in the form as attached hereto as Exhibit B and
incorporated herein by this reference ("Master Covenant"). No building permit shall be
issued by the City for construction of any dwellings on the Property until the Master
Covenant has been duly executed and recorded with the Larimer County Clerk and
Recorder. A copy of such Master Covenant shall be provided to the City promptly
following the recording of the same by the Developer in the real property records of the
County of Larimer, Colorado.
3. Sales.
A. Marketing. The Developer will market the Affordable Units to
specific demographic groups within the City and sell the Affordable Units only to Eligible
Buyers. Criteria and process for choosing buyers of the Affordable Units with respect to
sales to the Developer's homebuyers shall be as required in the Master Covenant. In
the event that more than one such Eligible Buyer is interested in purchasing the same
Affordable Unit, the Developer, in cooperation with the City, may consider other criteria
designated to further the goals of the Plan (i.e., gross assets) in choosing a buyer, may
elect a lottery process, or may implement another equitable election procedure (i.e., first
come, first served). Marketing of the Affordable Units may include, but not be limited to,
first-time homebuyer seminars.
B. Sales Price. The conveyance of each Affordable Unit by the
Developer or subsequent sellers to a purchaser shall be for a purchase price which
does not exceed the Maximum Purchase Price as defined in the Master Covenant. In
the event the Developer conveys an Affordable Unit for a sales price less than the
Maximum Purchase Price, and the Developer is required to pay any commission to
transactional or buyer real estate agents or brokers upon the sale of any Affordable
Unit, the Developer may increase the purchase price for the sale by the amount to be
paid to such real estate agents or brokers in connection with such sale, provided the
total of the purchase price and any commission does not exceed the Maximum
Purchase Price, and the commission does not exceed three percent (3%) of the
Maximum Purchase Price. The sales price for a two (2) bedroom Affordable Unit will be
based upon the Eligible Buyer's total income equaling the three (3) persons Median
Income in the City for the year 2009 as determined by the U.S. Department of Housing
and Urban Development (HUD) income limits, and the sales price for a three (3)
bedroom Affordable Unit will be based upon the Eligible Buyer's total income equaling
the four (4) person Median Income for the City for the year 2009 as determined by HUD.
The Developer may increase the Maximum Purchase Price for each such sale with
respect to sales occurring in the year(s) following the year of this Plan by the increase, if
any, in the three (3) and four (4) person Median Income for the City, as determined by
HUD for the year in which the closing of the sale actually occurs.
C. Certification. Prior to closing, each Eligible Buyer shall present the
Developer a certificate issued by the City confirming that the buyer is an Eligible Buyer.
At closing, each Eligible Buyer shall sign a Memorandum of Acceptance in the form as
2
UNION PLACE AFFORDABLE HOUSING PLAN
THIS AFFORDABLE HOUSING PLAN ("Plan") is made effective as of September 22,
2009 by Union Place LLC, a Colorado Limited Liability Company ("Developer'), as
owner of the property legally described in Exhibit A attached hereto and incorporated
herein by this reference ("Property').
RECITALS
A. The Developer has agreed that at least forty percent (40%) of all
residential units to be constructed on the Property are to be built as affordable housing
units, and that said units will be restricted to remain as affordable housing for twenty
(20) years.
B. The Developer desires to submit this Plan with respect to the
implementation of the covenants creating affordable housing units on the Property, and
the City of Fort Collins ("City') has reviewed this Plan and by signature below
acknowledges its approval of the same.
NOW, THEREFORE, the Developer hereby submits the following Plan:
1. Affordable Housing Units. The Developer will construct within the Property
forty percent (40%) of the total residential units approved for construction as Affordable
Units as'defined below. The obligations of the Developer contained herein may be
satisfied in part by the construction of Affordable Units on the Property by the Developer
or by persons or entities to whom the Developer conveys any portion of the Property.
An Affordable Unit is one for which the purchase price does not exceed the Maximum
Purchase Price as determined herein and in the Master Covenant, and is one which is
sold only to an Eligible Buyer as that term is defined in the Master Covenant.
2. Location and Designation of Affordable Units.
A. Units.
■ Lot 1 .Block 5 of Union Place Subdivision: townhomes (8) units
■ Lot 5 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 6 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 7 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 8 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 4 Block 3 of Union Place Subdivision: single family (1) unit
• Lot 3 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 2 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 1 Block 3 of Union Place Subdivision: single family (1) unit
■ Lot 1-10 Block 1 of Union Place Subdivision: triplexes (20) units
B. Covenants. Simultaneously with the creation of each Affordable
Unit as a separately subdivided parcel of real estate, by recording of a condominium
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Page 1 of 1
Emma McArdle - Final Affordable Housing Plan
From:
Megan Woodman
To:
Merten, Donna
Date:
9/17/2009 2:20 PM
Subject:
Final Affordable Housing Plan
CC:
McArdle, Emma
Attachments:
Union Place AH Plan_9-17-09.pdf
Hello again,
I have the entire Plan put together, minus the legal description which we can do without for now. I'd rather get
this through our chain of command and get Darin's signature as soon as possible. I will send it to you as soon as
it gets back to me and then it's ready to record. Again, let me know if you have any questions.
Thanks!
Megan
file://C:\Documents and Settings\emcardle\Local Settings\Temp\XPgrpwise\4AB245A7FC... 9/17/2009