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HomeMy WebLinkAboutresolution.council.054-10RESOLUTION N0. (Series of 2010) A RESOLUTION OF THE CTl'Y COUNCIL OF ASPEN, COLORADO, AUTHORIZING THE CHANGE OF UNIT DESIGNATION OF 45 CALLAHAN COURT, iJNIT #203, BURLINGAME RANCH CONDOMINNMS FROM TWO BEDROOM TO THREE BEDROOM. WHEREAS, Scott Kirkwood and Lori Dodd (hereinafter "Owners' are the owners of a condominium in the Burlingame Ranch Condominiums known as 45 Callahan Court, Unit #203 (hereinafter "Unit"). The Owners purchased the unit on December 10, 2007 as atwo-bedroom, Category 4 unit; and WHEREAS, the owners have proposed to expand the Unit by approximately 400 square feet by converting space within the Unit to a third bedroom. The work proposed would exceed the capital improvement maximum that is allowed on affordable housing projects. A change in the designation of the Unit from a two bedroom unit to a three bedroom unit would allow the Owners to recoup some or all of the expenses of the work to expand the Unit, even if the capital improvement maximum is maintained; and WHEREAS, Burlingame Ranch did contemplate the expansion of units and a change from a two bedroom unit to a three bedroom unit would not be a dramatic shift in the inventory; and WHEREAS, at its meeting on June 16, 2010, the Aspen/Pitkin Housing Authority Boazd of Directors approved by a vote of 4-1, a resolution authorizing the change of the deed restriction reflecting a change of designation of the bedroom count from two to three for the purposes of the sale price of the unit under certain specific conditions; and WHEREAS, the City Council desires to approve the designation of the Unit following the work proposed from a two bedroom Category 4 Unit to a three bedroom Category 4 Unit. NOW, THEREFORE, BE TI' RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1 The Aspen City Council hereby approves the request of the Owners to change the Unit designation of 45 Callahan Court, Unit #203, Burlingame Ranch Condominiums from a two bedroom Category 4 Unit to a, three bedroom Category 4 Unit on the following temvs and conditions: 1. All work to expand the Unit and add a bedroom is approved in accordance the Housing Guidelines; 2. Receipts of expenses incurred aze provided in accordance with Housing Guidelines 3. Work is completed before APCHA grants the change in the deed restriction on the property. Upon the completion of the above-stated conditions, APCHA may execute and record a new deed restriction on the property and the subsequent sale of the Unit may be based upon the Unit as a three bedroom Category 4 unit. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the ~tv~ day of @~ 2010. Michael C. el ,Mayor I, Kathryn S. Koch, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held on the day hereinabove stated. Kathryn S. Koc City Clerk z Attachment C New Deed Restriction for 45 Callahan Court, Unit 203 DEED RESTRICTIONAGREEMENT FOR THE OCCUPANCYAND RESALE OF 0045 CALLAHAN COURT, UMT 203 BURLINGAME RANCH CONDOMIMUMS THIS DEED RESTRICTION AGREEMENT FOR THE OCCUPANCY AND RESALE OF 0045 CALLAHAN COURT, UNIT 203, BURLINGAME RANCH CONDOMINIUAIS(the "Agreement") is made and entered into ~ _ day of 2010, by Scott Kirkwood and Lori Dodd (hereinafter referred to as "Owner"), for the benefit of the parties and enforceable by the ASPEN/PITKIN COUNTY HOUSING AUTHORITY (hereinafter referred to as "APCHA"), a duly constituted multi jurisdictional Housing Authority established pursuant to the FO(IRTHAMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT by and between the City of Aspen, Colorado (the "City") and Pitkin County, Colorado (the "County")> dated December 20, 2007 and recorded at Reception No. 545387 on January 2, 2008, of the records of the Pitkin County Clerk and Recorder's Office. WITNESSETH: WHERAS, the Owner purchased the property on December 10, 2007; WHEREAS, Owner owns the real property described in Exhibit "A" attached hereto and incorporated herein. For purposes of this Agreement, the real property and all dwellings, appurtenances, improvements and fixtures associat- ed dterewith shall hereinafter be referred to as the "Property"; and WHEREAS, Owner agrees to restrict the acquisition or transfer of the Properly to "Qualified Buyers," as that term is defined in this Agreement, who fall within the Category 4 income range established and adopted by the APCHA from time to time in its Employee Housing Guidelines. In addition, the Owner agrees that this Agreement shall constitute a resale agreement setting forth the maximum resale price for which the Property may be soil e ~ ~ laran Resale Price) and the terms and provisions controlling the resale of the Property. Finally, by this Agre „ restricts the Property against use and occupancy inconsistent with this Agreement. WHEREAS, "Qualified Buyers" are natural persons meeting the income, residency and all other qualifications set forth in the Aspen/Pitkin County Housing Authority Employee Housing Guidelines (hereinafter dre "Employee Housing Guidelines"), or its substitute, as adopted by the APCHA, or its successor, and in effect at the time of the closing of the sale to the Qualified Buyer, and who must represent and agree pursuant to this Agreement to occupy the property as their sole place of residence, not to engage in any business activity on the Property, other than that permitted in that zone district or by applicable ordinance, not to sell or otherwise transfer the Property for use in a trade or business; and to continue meeting the employment, residency and other requirements as stated in this Agreement, and as stated in the Guidelines as they are amended from time to time. WHEREAS, an "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 this Agreement, or any other person or legal entity owning an interest in the Property or Unit; it being understood that such person, persons or entity shall be deemed an "Owner" hereunder only during the period of his, her, their or its ownership interest in the 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. WHEREAS, this doc[nnent supercedes any previous deed restriction ageement for occupancy and resale associated with this trait. WHEREAS, a "Unit" is the unit located at 0045 Callahan Court, Unit 203, Aspen, Colorado 8161 ]. NOW, THEREFORE, for value received, the receipt and sufficiency of which aze hereby acknowledged, Owner hereby represents, covenants and agrees as follows: C:\Documents end Settings\barryc\Locel Settings\Temporary Internet Files\Content.Outlook\MM6X7MR4\dr_BG45CC203.doc d, In addition, upon receipt of notice as provided in Paragraphs 3a and 3b, the APCHA shall have the option, exercisable in the APCHA's sole discretion, to purchase the Owner's Lot and hnprovemenu for ninety-five percent (95%) of the Maximum Resale Price. If the APCHA desres to exercise said option, it shall give written notice thereof to the Owner within forty-five (45) days following the APCHA's receipt of the notice as provided in Paragraphs 3a and 3b. In the event the APCHA timely exercises said option, the closing of the purchase of the Lot and Improvemenu shall occur within forty-five (45) days following the date of the APCHA's notice to the Owner of the exercise of said option. DEFAULT ON CONDOMINIUM ASSESSMENTS 4. It shall be a violation of the Agreement for the Owner to default in the payment of general or special assessmenu to the Homeowner's Association, and such person shall be subject to enforcement as provided herein. In addition, upon sale of a unit as to which the payment of such obligations is in default, the assessmenu shall be paid at closing. ENFORCEMENT 5. In the event that the APCHA detem»nes that sale of the Property or a Unit is necessary as a result of breach of this Agreement, Owner shall immediately execute a standard Listing Contract on forms approved by the Colorado Real Estate Commission with the APCHA, providing fora 30-day listing period. At that time, the Owner shall deposit with the APCHA an amount equal to one percent (1%) of the estimated value of the Unit. The appreciation of the unit will have stopped from the date that the violation occurred. Said date shall not necessarily be the same time the Notice of Violation was sent to the Owner. If a sales contract has not been executed within the initial 30-day period, Owner shall extend the listing period for an additional 180 days, provided such extension does not conflict with the statutory righu of any secured creditors. The APCHA shall promptly advertise the Property for sale by competitive bid to Qualified Buyers. At the time of closing, the Owner shall pay to the APCHA an additional fee as stated in the Aspen/P#kin Couuty Employee Housing Guidelines. In the event of a listing of the Property pursuant to this Paragraph 5, the APCHA is entitled to require the Owner to accept the highest of any quahfied bids that is equal m the lesser of (i) an amount that at least satisfies the Owner's financial of other obligations due under the promissory note secured by a first deed of tnut and any deed of trust in favor of the APCHA, as described herein, or (ii) the Maximum Resale Price (as hereinafter defined), and to sell the Property to such qualified bidder. The listing and sale of the Property or Unit shall be subject to such listing, sales and other fees and expenses as maybe imposed by the APCHA from time to time as set forth in the Employee Housing Guidelines. AGREEMENT RUNS WITH THE LAND (>, This Agreement shall constitute covenanu rumrmg wrth the Property, as a burden thereon, for the benefit o£ and shall be specifically enforceable by the APCHA, the City Council for the City (the "City Council"), the Boazd of County Commissioners for the County (also referred to herein as the "County"), and their respective successors and assigns, as applicable, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction ofnon-complying owners and/or occupanu. VOLUNTARY SALE 7. In the event that an Owner desires to voluntarily sell the Property or Unit, the Owner shall execute a standazd Listing Contract on forms approved by the Colorado Real Estate Commission with the APCHA providing for a 180-day listing period, or such other time period as required by the APCHA Employee Housing Guidelines in effect at time of listing. The APCHA shall promptly advertise the Property or Unit for sale by competitive bid to Qualified Buyers. The listing and sale of the Property or Unif shall be subject to such listing, sales and other Page 3 Deed Rea[riction/0045 Callahan Court 82°3 c. In order to qualify as Permitted Capital Improvements, the Owner must famish to the APCHA the following information with respect to the improvements that the Owner seeks to include in the calculation of Maximum Resale Price: (1) Original or duplicate receipts to verify the actual costs expended by the Owner for the Permitted Capital Improvements; (2) Owner's affidavit verifying that the receipts aze valid and correct receipts tendered at the time of purchase; and (3) True and correct copies of any building permit or certificate of occupancy required to be issued by the Aspen/Pitkin County Building Departmant with respect to the Permitted Capital Improvements. (4) Tn calculating the costs under Paragraphs 10 a-c(1-3), only the Owner's actual outof-pocket approved costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to Owner's "sweat equity" or to any appreciation in the value of the improvements. All capital improvements will be depreciated. Certain capital improvements will not be counted towazds the 10% cap. Each capital improvement will depreciate according to the depreciation schedule stated in an approved handbook. The current source is the Marshall Sw~ Residential Handbook. Any capital improvements associated with health and safety, energy efficiency, water conservation, and green building products will be exempt from the 10% capital improvement cap; however, such capital improvements shall be depreciated according to the depreciation schedule stated in an approved handbook Any improvement to bring the unit up to the Aspen A,~'ordable Housing Building Guidelines will also be allowed as part of the 10% cap. d. For the purpose of detemlining the Maximum Resale Price in accordance with this Section, the Owner may also add to the amounts specified in Paragraphs 9 and ]Oa, the cost of any. permanent improvements constructed or installed as a result of any requirement imposed by any governmental agency, which shall not include any requirement imposed for the addition of the one-bedroom and one-bathroom, provided that written certification is provided to the APCHA of both the applicable euqurement and the information required by Paragraph lOc, (1) - (3). e. In order to obtain maximum resale price, Owner must ensure that the unit meets APCHA's generally applicable minimum standards for a seller of adeed-restricted unit to receive full value as determined by APCHA in its discretion. This shall include requvements to clean the home, ensure that all fixtures are in working condition, and to repair damage to the unit beyond normal weaz and teaz and as stated in the Minimum Standards for Seller to Receive Full Value at Resale, Exhibit "C". If the Seller does not meet this requirement, APCHA may require that Seller escrow at closing a reasonable amount to achieve compliance by APCHA, or reduce the maximum resale price accordingly. GRIEVANCES 11. All disputes between the Owner and the administrative staff of the APCHA shall be heard in accordance with the grievance procedures set forth in the Employee Housing Guidelines. CLOSING COSTS 12 Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs (including, but not limited to, title insurance, sales fee, pro ration of taxes, homeowners dues, etc., as aze customary in Aspen and Pitkin County) nor accept any other consideration which would cause an increase in the purohase price above the bid price so as to induce the Owner to sell to such prospective buyer. Page 5 Deed Restriction/0045 Callahan Court #203 OWNER RESIDENCE, EMPLOYMENT AND CONTINUING COMPLIANCE 15. The Property and all Units shall be and is/are to be utilized only as the sole and exclusive place of residence of an Owner. 16. Tn the event an Owner changes place of residence or ceases to utilize the Property or Unit as his sole and exclusive place of residence, ceases to be a full-time employee in accordance with the APCHA Guidelines as they are amended from time to time, or otherwise ceases to be in compliance as a Qualified Buyer with the APCHA Guidelines as they are amended from time to time, or this Agreement, the Property or Unit MUST be offered for sale pursuant to the provisions of Paragraph 6 of this Agreement. An Owner shall be deemed to have changed his or her place of residence by becoming a resident elsewhere or accepting employment outside Pitkin County, or residing on the Property or Unit for fewer than nine (9) months per calendaz year without the express written approval of the APCHA, or by ceasing to be a full-time employee as required by the Employee Housing Guidelines as amended from time to time. Where the provisions of this Paragraph 16 applyh t ge APCHA may require the Owner to rent the Property or Unit in accordance with the provisions of Pazagrap below pending a sale of the property. 17. If at any time the Owner of the Property or Unit at any time also owns directly or indirectly through a legal entity any interest alone or in conjunction with others in any developed residential property or dwelling unit(s) located in Eagle, Garfield, Gunnison or Pitkin Counties, within the Ownership Exclusion Zone as defined in the Employee Housing Guidelines as they aze amended from time to time, the Owner agrees to immediately list said other property or unit for sale and to sell his or her interest in such property at fair market value to like units or properties in the azea in which the property or dwelling unit(s) aze located. In the event said other property or unit has not been sold by Owner within one hundred eighty (180) days of its listing fot any reason, then Owner hereby agrees to immediately list this Property or Unit for sale pursuant to the provisions of paragraph 6 of this Agreement. Should the Owner not receive afull-priced bid, then said Owner must accept the first reasonable offer for said unit as deemed appropriate by the APCHA. RENTAL 18. Owner may not, except with prior written approval of the APCHA, and subject to APCHA's conditions of approval, rent the Property or Unit for any period of time. Prior to occupancy, each tenant must be approved by the Homeowner's Association, if applicable, and the APCHA in accordance with the income, occupancy and all other qualifications established by the APCHA in its Employee Housing Guidelines. The APCHA 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 in excess of twelve (12) months. A signed copy of the lease must be provided to the APCHA prior to occupancy by each tenant. Any such lease approved by the APCHA shall show the length of the lease and the monthly rent. The monthly rent cannot exceed the Owner's costs, which include the montlily 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 amount as stated in the Employee Housing Guidelines and as they aze amended form time to time, 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-Ownets on a rental basis provided Owner continues to meet the obligations contained in this Agreement, including Pazagrdph 15. 19. IN NO EVENT SHALL THE OWNER CREATE AN ADDITIONAL DWELLING UNIT, AS DEFINED IN THE PITKIN COUNTY OR CITY OF ASPEN LAND USE CODES, IN OR ON THE PROPERTY. 20. NOTHING HEREIN SHALL BE CONSTRUED TO REQUIRE THE APCHA TO PROTECT OR INDEMNIFY THE OWNER AGAINST ANY LOSSES ATTRIBUTABLE TO THE RENTAL, INCLUDING (NOT BY WAY OF LIMITATION) NON-PAYMENT OF RENT OR DAMAGE TO THE Deed Restriction/0045 Callahan Cour[ 5203 Page '/ FORECLOSURE 27. a. If any Property or Unit is sold as a foreclosure sale or otherwise acquired by any person or entity in lieu of foreclosure, the APCHA and the Board, as the designee of the APCHA, shall have the option to acquire such Property or Unit within thirty (30) days after (i) the issuance of a public trustee's deed to the purchaser, or (ii) receipt by the APCHA of written notice from such person or entity of the acquisition of such Lot in lieu of foreclosure, as applicable, for an option price not to exceed (a) in the event of a foreclosure, the redemption price on the last day of all statutory redemption periods and any additional reasonable costs incurred by the holder during the option period which are directly related to the foreclosure or (b) in the event of a transfer in lieu of foreclosure, the amount paid, or the amount of debt forgiven, by the transferee plus the reasonable costs incurred by the transferee with respect to its acquisition of such Property or Unit. Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on a Property or Unit, only Qualified Buyers may acquire an interest in a Property or Unit at a foreclosure sale or in lieu of foreclosure. If any person or entity having a lien on a Property or Unit is not a Qualified Buyer and acquires an interest in such Property or Unit in a foreclosure sale or in lieu of foreclosure, the provisions of Paragraph 14 shall apply. It is the APCHA's intent that the terms and provisions of this Agreement shall remain in full force and effect with respect to the Property and all Units until modified, amended or terminated in accordance with pazagraph 38 hereof. b. In the event that APCHA or the Board, as the designee of the APCHA, exercise the option descnbed above, the APCHA and/or its designee, may sell the Property or Unit to Qualified Buyers as that tertn is defined herein, or rent the Property or Unit to qualified tenants who meet the income, occupancy and all other qualifications, established by the APCHA in its Employee Housing Guidelines until a sale to a Qualified Buyer is effected. c. Notwithstanding the foregoing, in the event of foreclosure by the holder of the first deed of trust on such Property or Unit, if the holder of such deed of trust is the grantee under the public trustee's deed and APCHA does not exercise its option to purchase as provided in paragraph 27, then APCHA agrees to release the Property or Unit from the requirements of this Deed Restriction. GENERAL PROVLSIONS 28. 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 other- wise notified in writing: To APCHA: Aspen/Pitkin County Housing Authority 530 East Main, Lower Level, Aspen, Colorado 81611 To Owner: Scott Kirkwood and Lori Dodd 0045 Callahan Court #203, Aspen, Colorado 81611 29. Exhibits. All exhibits attached hereto (Exhibits "A", "B" and "C") aze incorporated herein and by this reference made a part hereof 30. Severabiliri. 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 Deed Restriction/DDaS Callahan Court %203 Page 9 STATE OF COLORADO ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this Kirkwood and Lori Dodd. Witness my hand and official seal; My commission expires:. / / Notary day of 2010 by Scott ACCEPTANCE BY THE ASPEN/PITKIN COUNTY HOUSING AUTHORITY The foregoing Deed Restriction Agreement for the Occupancy and Resale of 0045 Callahan Court #203, Burlingame Ranch Condominiums, of the Aspen/Pitkin County Housing Authority and its temts are hereby adopted and declared by the Aspen/Pitkin County Housing Authority. THE ASPEN/PITKIN COUNTY HOUSING AUTHORITY By: Tom McCabe, Executive Director STATE OF COLORADO ) ss. COUNTY OF PIT'KIN ) The foregoing instrument was acknowledged before me this _ day of , 2010, by Tom McCabe, as Executive Duector of the Aspen/Pitkin County Housing Authority. Witness my hand and official seal; My commission expires: / / Public Deed Restriction/0045 Ca1laLan Court #203 Page 11 the Employee Housing Guidelines, such improvement shall be deemed a Pemutted Capital Improvement at all times notwithstanding any modification of the Employee Housing Guidelines. Page 13 Deed Restriction/0045 Callahan Cour[ %203 Bathrooms: o Bathtub, Shower Walls, Sinks - Bathtubs, shower walls and sinks shall be clean. o Toilet and Water Closet -Water closets, toilet bowls and toilet seats will be clean. If the toilet seat is broken or peeling, the seat shall be replaced. o Tile - All tle and grout will be clean. o Mirrors and Medicine Cabinets -Mirrors and medicine cabinets shall be cleaned inside and out. o Shelves and/or Other Cabinetry -All other shelving or cabinetry shall be cleaned inside and out. Walls Ceilin s Painted Doors and Baseboards: Painted surfaces must be cleaned with caze to ensure the surface is clean without damaging the paint. Floors: Floor cleaning includes sweeping and mopping and could include stripping, waxing and buffing. Types of floor surfaces include wood, wood pazquet tles, linoleum, asphalt tile, vinyl tle, mosaic tle, concrete and carpet. If carpet, all carpets shall be cleaned at least two days prior to closing. Interior Storaee/Utility Rooms: Storage/utility rooms shall be cleaned. Properly cleaned storage/utility rooms will be free from odors, removable stains, grease mazks or accumulatons. Safety Hazard: Any item that provides a safety hazard shall be fixed. This would include, but is not limited to, exposed electrical wiring, satisfaction of any radon issue found, ventilation for gas hot water system, etc. Walls Paint-Ready: All holes shall be patched; all posters, pictures, etc., shall be removed from all walls; all nails, tacks, tape, etc., shall be removed from all walls; and all walls shall be clean and ready for the new buyer to paint. If wallpaper has been placed on the wall and in good condition, the wallpaper can remain; if the wallpaper is peeling off, the wallpaper must be removed. Windows: If a window is broken, including the locking mechanism, the window shall be replaced. Deed Restriction/0065 Callahan Court #203 Page 15 Attachment D New Memorandum of Acceptance for 45 Callahan Court, Unit 203 MEMORANDUM OFACCEPTANCE FOR THE DEED RESTRICTIONAGREEMENT FOR THE OCCUPANCYAND RESALE OF THE 0045 CALLAHAN COURT, #203 B URLINGAME RANCH CONDOMINI UMS RECTTALS: WHEREAS, Scott Kirkwood and Lori Dodd, Owners, purchased on December 10, 2007 from the City of Aspen, the Seller, at a price of $271,000 described as: Unit 203, 0045 CALI.AHAN COURT BUILDING, BURLINGAME RANCH I CONppMINIUMS, according to the Condominium Map recorded November 13, 2006 under Reception No. 530970 and First Supplement recorded January 9, 2007 under Reception No. 533147, Second Supplement recorded June 26, 2007 under Reception No. 539360, Third Supplement recorded June 26, 2007 under Reception No. 539361, Fourth Supplement recorded November 7, 2007 under Reception No. 543904, and Fifth Supplement recorded November 7, 2007 under Reception No. 543906, and according to the Condominium Declaration of Burlingame Ranch I recorded November 13, 2006 under Reception No. 530969 and First Supplement recorded January 9, 2007 under Reception No. 533146, Second Supplement recorded June 26, 2007 under Reception No. 539358, Third Supplement recorded June 26, 2007 under Reception No. 539359, Fourth Supplement recorded November 7, 2007 under Reception No. 543903 and Fifth Supplement recorded November 7, 2007 under Reception No. 543905, County of Pitlan, State of Colorado. Also known as 0045 Callahan Court, #203, Aspen, Colorado 81611. WHEREAS, the Seller of that unit required, as a prerequisite to the sale transaction, that the Owner acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled "Deed Restriction Agreement for the Occupancy and Resale of 0045 Callahan Court #203, Burlingame Ranch Condominiums", including Exhibits "A", B", and "C", recorded at Reception No. of the records of Pitkin on County, Colorado (hereinafter"Deed Restriction' ). WHEREAS, as a condition of approving the addition of one-bedroom and one-bathroom to the unit, the Seller and Aspen/Pitkin County Housing Authority (hereinafter APCHA) require a new Deed Restriction Agreement. NOW, THEREFORE, the Owner: 1. Agrees that this Memorandum of Acceptance supersedes the Memorandum of Acceptance dated December 11, 2007 and recorded at Reception No. 544806. 2. Acknowledges that the undersigned has cazefully read the entire "Deed Restriction" for this unit and has had the opportunity to consult with legal and financial counsel concerning it and fully understands it. Owner(s) Initials STATE OF COLORADO ) ss. COUNTY OF PITKIN ) The foregoing instrument was acknowledged before me this day of 2010 by Scott Kirkwood and Lori Dodd. WITNESS my hand and official seal; My commission expires: Notary Public ACCEPTANCE BY THE ASPEN/PITKIN COUNTY HOUSING AUTHORIIY The foregoing Agreement and its terms are accepted by The Aspen/Pitkin County Housing Authority. THE ASPEN/PITKIN COUNTY HOUSING AUTHORITY Tom McCabe, Executive Duector STATE OF COLORADO ) ss. COUNTY OF PITKIN ) The foregoing instrument was acknowledged before me this day of 2010, by Tom McCabe, Executive Director of the Aspen/Pitkin County Housing Authority. WITNESS my hand and official seal; My commission expires: Notary Public 3 Owner(s) Initials Attachment E Letter to APCHA Board from Owners of 45 Callahan Court, Unit 203 LETTER FROM OWNERS TO HOUSING AUTHORITY April 6, 2010 Scott Kirkwood /Lori Dodd 45 Callahan Ct, #203 Aspen, CO 81611 Mr. Tom McCabe Executive Director Aspen Housing Authority Main Street Aspen, CO 81611 Dear Mr. McCabe: We are getting ready to make some major improvements to our Burlingame unit #203 and are seeking approval to add the improvement cost to the equity in our home as we are going to be incurring significant expense due to the unique opportunity our unit presents. Our unit is very unique in that we have nearly 400 sq. ft of unfinished space (already insulated, floored and partially wired) on the second level of our single-level condo that we have no way to access unless we bring a 12 foot ladder into the living room and climb through a 3' x 2' opening in the wall. We were informed that the original plans for our unit were changed sometime during the construction process (it was originally designed as office space) resulting in a great deal of unlivable space within our unit and a rather odd layout. In spite of this, our unit has so much potential that it is inconceivable we don't make use of the space available to us to use as efficiently as possible. The recommendation from Poss Architects includes adding a stairway and loft in order to access the unfinished space. This is going to require installing support beams to handle the load. In addition to finishing out the space, we will be installing a 2nd bathroom upstairs. We are going to have to remove the toilet and' tear'up the floor in our only bathroom in order to access the plumbing, therefore our home will not be livable during this time and we will have to rent another place to live. Overall we will be increasing the square footage by 41 % within our unit. The maximum allowed under the 10% capital improvement cap will give us an additional $27,100 in equity; however the estimated out-of-pocket cost for completion is $61,946. Paying title insurance, appraisal fees and loan origination costs for a second time after only 2 yrs of occupancy is very disconcerting especially if interest rates go above our very good 30 yr fixed rate. Which leads to the question....Would ahome equity loan (which also requires an appraisal) be sufficient in lieu of refinancing in order to increase the home value if interest rates continue to rise and we are not able to lock-in at an acceptable rate? The plans have already been approved by the HOA and we have preliminary approval from the City. We want to submit the permit application as soon 3s possible and hope to have a permit early next month. We have attached the general contractor's proposal, time-line for completion, architectural plans as well as photos for your review. We would very much welcome a site visit in order for you to better understand the situation. Thank you for your consideration. Lori Dodd and Scott Kirkwood 618-5740 askaspenna comcast.net or doddlor~aol.com