HomeMy WebLinkAboutPolicy.Multi-Family Condo Policy.1977
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M E M 0 RAN DUM
TO: Aspen City Council
FROM: Planning Office, Bill Kane
RE: Multi-family Condominiumization Policy
DATE: May 19, 1977
Given the data presented to date and an of infonnation available at
this time we recommend that the Council establish the policy of
multi-family condominium approvals with ,two key conditions:
1. That existing tenants be given fair notice and a
90 day exclusive, non-assignable right of first
refusal to purchase their unit at the preliminary
market value at the time of first notice of intent
to condominiuyze.
2. That each unit be restricted to 6 month minimum
base provisions.
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LAW 0 rF1CES
OATES, AUSTIN, MCGRATH So JORDAN
600 EAST HOPKINS STREE;T
LEO:"iAAO M. OATES
RONALD C. AU STrN
.J. NICHOLAS MCGRATH, ..JR.
Wll..LlA.!'o1 R. ..JORDAN m
ASPEN, COLORADO 8t611
Hay 4, 1977
AREA CODE 303
TELEI=>HONE; 6125-2600
ROB!';RT W. HUGHE;S
9ARRY D. EDWARDS
MEMORANDUM
TO:
Pat Boyd, AEM Partners
Craig and Suzette Jacobie
FROf.1:
Nick HcGrath
RE'
City's condominiumization pOlicy re mUlti-family
dwellings, and your pending applications
The general matter of the City's policy on
multi-family condominium conversions will be on the agenda
of City Council on May 23, and it is my understanding from
the City Clerk that the specific matter of your applications
will follow on the agenda on that same date. I will be on
vacation from May 8 to May 15, but Lennie and I will schedule
a meeting with you sometime between the week of May 16 to
discuss the matter more fully.
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bcc:
Brian Goodheim
P.S.
Brian, I cleared these dates with Kathy and said that
it was acceptable to you.
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Kathy Hauter
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LAW OF"F"ICe:S
OATES, AUSTIN, MCGRATH So JORDAN
600 EAST HOPKINS STREET
LEONARD M. OATES
RONALD O. AUSTIN
.... NICHOLAS MCGRATH, ..lR.
Wl1-t..IAM R. ,JORDAN m
ASPEN, COLORADO 81611
April 25, 1977
AREA CODE 303
TELEPHONE 92:5-2600
ROBERT W. HUGHES
BARRY O. EDWAROS
HAND DELIVERED
Hon. Stacy Standley, Mayor
City of Aspen
City Hall
130 So. Galena Street
Aspen, Colorado
City Council
City of Aspen
130 So. Galena Street
Aspen, Colorado 81611
Re: Item IX, Agenda April 25, multi-family
condominiumization policy
Ladies and Gentlemen:
As you will see from a letter from me distributed to
you by your Clerk, we withdrew from the April 25 agenda considera-
tion of the AEM and Jacobie small, multi-family condominium
conversions applications, both of which received conceptual p&Z
Commission approval several months ago.
We withdrew the request for the individual hearings
because the Clerk was kind enough to tell me that the City P&Z
Commission would be considering the matter of the condominiumiza-
tion policy at its meeting of April 19 and then at its meeting of
April 26, tomorrow, the City P&Z apparently having tabeled the
matter or having run out of time on the 19th.
Notwithstanding that we were informed the City P&Z
would consider the matter on the 26th, I now see today that you are
again to consider the condominiumization policy on your agenda.
I also have not seeH Brian's latest memorandum on the subject, al-
though I will soon as a secretary is picking up the package. He
apparently overlooked the courtesy of circulating a copy of his
memo to me, since there is a copy in your package, and hence,
it should have been done Wednesday or Thursday of last week.
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April 25, 1977
Page Two
Since he knows it affects two pending applications where the
parties are represented by me, and when my office has gone out
of its way to circulate its relevant matters to anyone in the
City involved in the project, I do think that procedure a bit
unfair.
I spoke with the City Attorney today. She indicated
that Brian's recommendations were to disallow multi-family
conversions except for hardship and upon conditions, the details
of which I will not be able to discuss in this letter at this
time since I have not yet been able to review them. I have
indicated to the City Attorney my belief that Brian's specific
recommendations are illegal, but that the policy underlying
stands a better chance of success in the courts if it were
accomplished in a different way, that is, by using certain
zoning techniques.
It is my understanding that the City Attorney desires
further time to evaluate the matter, and since I recommended
to Brian over a month ago that the City Attorney be brought
into the process at a much earlier stage than now, I do hope that
you will give her the time to evaluate the legalities involved.
In short, if you are going to be in a gray area, or as we have
said in the County, at the "leading edge of the law", you
ought to be there on the soundest grounds possible. So far as
I am concerned, Brian's memorandum does not give sufficient
consideration to those issues.
Thus, I assume it fair that you make no decisions
tonight, that P&Z consider the matter tomorrow, and that you
set the whole policy matter (Brian's memorandum and any p&Z
recommendation) together with the specific AEM and Jacobie
applications for your next regular meeting.
Thank you.
Very truly yours,
OATES, AUSTIN, McGRATH & JORDAN
By ~J it (,..,J
J. Nicholas McGrath, Jr.
JNMjrjgc
P. S. I have a separate scheduled meeting for this evening and
hence, cannot attend your meeting. Barry Edwards from
my office will be at this meeting if you have any questions
concerning our position.
cc: Ms. Dorothy Nuttall
Mr. Brian Goodheim
Mr. Bill Kane
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DIRECTOR OF HOUSING . SOt)::E. MaiJll ASPEN, COLORADO 81611 . PHONE, (303) 925.6612
MEMORANDUM
DATE: April 21, 1977
TO: City Council; Planning & Zoning Commission
FROM: Brian Goodheim
RE: Multifamily Condominiumization Policy
In an attempt to formulate public policy regarding_the
conversion of multifamily rental apartments we have
attempted to define the public impact of condominium-
ization by mean,s of a statistical survey. The initial
segment of this survey focused upon the social and
financial effects of conversion and is documented in the
Report on Condominiumization. A second survey has begun
in order to understand the differences between those
persons who are purchasing the condominiumized apartments
and those who are forced to vacate the same apartments.
In addition to these research efforts, data has been
presented by representatives of the current conversion
applicants.
From the Report on Condominiumization, it has been
determined that:
1. Within the 46 unit scope of the condominium-
ization study, 63% of the existing tenants
moved out and only 37% purchased their units.
Financial considerations were generally cited
as reasons why tenants did not exercise their
purchase option.
2. The fear that tourists ate purchasing
condominiumized apartments for use as vacation
homes is reflected by survey evidence. It
is predominantly locals replacing other locals
with the difference being that the new owners
are more affluent than the former tenants.
3. Building owners, tenants, and third party
investors have been the promulgators of multi-
family conversion efforts. The housing cost
and tenant displacement impacts vary according
to who the sponsor of the condominiumization
is and what this entity's motivations and
sensitivities are.
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MEMO City Council, Planning & Zoning Commission
April 21, 1977
page Two
4. Sales prices of condominiumized rental units are likely
to be at, or only slightly below, prevalent market levels.
The pricing of any given project, however, is a function
of the condominiumizing entity and its motivations.
5. If conventionally financed, monthly ownership expenses
can be expected to increase above the previous rent level.
This increase has been as much as 87% or as little as
8%, depending upon the condominiumizing entity and its
motivations.
6. Because of the incongruity between sales prices and pur-
chaser income levels, most financing was not on conventiional
terms because the purchase~s would not qualify for
conventional (80%) loans. Instead, an increase in down~
payment ranging from between $3000 and $12,000 were
required to decrease the loan amount to a point at which
the buyers could qualify for financing. The average
actual increase was 34% above the prev~ous rent.
7. After initial condominiumization, there is evidence to
suggest that housing costs have increased beyond that
which rents would have been e){pecte.dto increase during
this same period. Annual inflation rates ranging from
51% to 80% were documented within one year of condominium-
ization.
The second survey illustrates the following differences between
those purchasing and those displaced:
PURCHASERS
NON PURCHASERS
Mean Income
Standard Deviation
$18,180
3,856
$13 ,862
7,596
Mean Residency
Standard Deviation
31.8 months
31.6 months
78.8 months
33.2 months
The conclusionJWhich is apparent is that the new purchasers are more
consistently affluent than the non-purchasers. Also, when a few
extreme high incomes are deleted from the computation of the average
non-purchaser's income, this disparity is greater.
The new purchasers have consistently possessed less tenure in the
community than the renters whom they displaced.
POLICY RECOMMENDATION:
Given the above data and the fact that: (1) Our community, because
of its tourist economic base and high service industry employment,
is heavily dependent upon an adequate supply of rental housing,
and... (2) Market pressures exist which would convert the existing
rental supply into ownership housing generally not affordable by
service employees, and (3) Because the cscenario to losing our large
supply of dispersed rental housing is to construct a large, central-
ized future rental project.
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MEMO City Council; Planning & Zoning Commission
April 21, 1977
Page Three
The following policy is recommended:
1. Disallow the condominiumization or conversion of existing
multifamily rental units (anything larger than conforming
triplexes) .
2. Allow variances from this policy where hardship and the
following can be evidenced:' ---
A. A displacement of no more than 5% of the existing
tenants can be evidenced by contracts for sale or
long-term leases in favor of such tenants.
B. Conformance with PMH price guidelines in the original
sale prices (adjusted accordingly for building
'.' amenitdJesor condition) and rights of first refusal
on the entire project for original and subsequent
sales.
It should be the policy of the City to protect the dwindling supply
of long-term rental housing by carefully examining the entirety of
its public policies for their effects upon the private owners's
decision to rent long-term housing. This approach has been suggested
by the P&Z as a tandem program to encourage long-term rentals.
It is concerned with utility pricing, subdivision fee extraction,
taxes, and other municipal expenses.
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DIRECTOR OF HOUSING .506 E. .Main . ASPEN, COLORADO 81611 . PHONE, (303) 925.6612
MEMORANDUM
DATE: April 7, 1977
TO: City Council; City Attorney
FROM: Brian Goodheim
RE: Apartment and Duplex Conversion Policies
The formulation of a public policy regarding the conversion of rented
duplexes to condominia has been substantially completed by Dorothy and
wyself this week. The formulation of a multifamily conversion policy
is substantially more complex and is not yet ready.
DUPLEX POLICY
Basically, our recommendations for a duplex policy center
around an adequate notice period and right of first refusal
being given to the tenants. Our policy recommendation is
to regulate duplex conversions by requiring the following
steps be taken, whether the subdivision exemption or sub-
division procedure is elected:
NOTICE: When an owner of a duplex structure intends to
condominiumize, notice of the proposed condominiumization
must be delivered to the tenants. This notice must make
the tenants aware of their rights as presented below.
Evidence of having so notified the tenants musLbe
supplied with th e applicants subdivision or exemption
request and a current list of tenants, their addresses,
telephone numbers, and place of employment must also be
submitted. Notice must similarly be delivered to tenants
who entered into leases subsequent to the filing of a
subdivision or exemption application.
.FIRSTRIGHT OF.REFUSAL: Upon final subdivision or
- exemption approval, a right of first refusal recorded with
the County Clerk in favor of the existing tenants. This
right of refusal extends for the term of the tenant's
lease or 90 days from the date of recording, whichever
period is longer. It may be exercised over bonafide purchase
offers which the seller receives during the term ,of the right
of refusal. The owners of the duplex must notify the
existing tenants within seven days after entering into a
bona fide sales contract. Such notification must include a
copy of the bonafide sales contract. The tenant will have
21 days from delivery of this notice to exercise his right
of first refusal and at least 30 days in addition to effect
a closing. The tenants right of first refusal is non-assign-
able as provided below.
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MEMO City Council; City At~orn~y
April 7, 1977
Page Two
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ASSIGNABILITY OF RIGHT OF REFUSAL : SECOND RIGHT OF REFUSAL . The right
of refusal given to the tenant above is non-assignable except that if
the tenant waives this right during the initial 21 days after notice
has been given, the tenant's, employer shall have a second right of
refusal. If 21 days elapses without the tenant having exercised his
right of first refusal, the tenant's employer shall automatically
enjoy a right of second refusal for a period of 9 days.
In addition to the above policy elements, the six-month lease restriction
or an equivalent covenant against short-term(non-cultural?) rental should be
required.
It is important to note that this policy does not attempt to disturb the
property rights balance between lessee and lessor. Other policy alternatives
do disturb this balance by accruing option rights to the lessee and may
force the sale of property which otherwise would remain rented although
condominiumized.
In summary, this duplex policy follows logically from an analysis of available
data.
BONAFIDE OFFER: ~ offer to sell or purchase real property on termS which have
been accepted by both seller and purchaser and where: seller and
purchaser are two separate entities, neither exerting undue pressure on
or control over the other; the seller being obligated to sell under the
terms of the sales contract; and the purchaser being obligated to purchase
under the terms of the sales contract or else forfeit purchaser's earnest
money deposit which is at least 5% of the contract price.
DUPLEX: (1) A house containing two dwelling units, side by side or one above
the other.
Or (2) A legally conforming lot containing two dwelling units which may be
unattached.
MULTIFAMILY POLICY
The formulation of a comprehensive multifamily conversion policy however,
is not so clear cut.
It has already been established that:
1. Condominiumization of existing rental apartment buildings have been
promoted by various entities including tenants, owners and third
party investors.
2. The effects of these condominiumizations differ among specific
buildings and among the sponsoring entities and their motivations.
3. The displacement effect ranged from a low of 40% in the Redwoods
and 700 W. Hopkins Projects to a high of 93% in the Aspen View condo
miniumization. The overall average displacement was 63% of the former
tenants.
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THE FUND CONCEPT
September, 1975
STATE OF FLORIDA
BEFORE THE OEPARTMENT
OF LEGAL AFFAIRS
00 CKET NO, 75-1001!!
In the Matter of
CHARLES H. MANN, JR.,
President,
Title & Trust .Companyof Florida;
disbursement practices.
DECLARATORY STATEMENT
Petitioner req'uests clarification 'Was
issued to such an agent,. and Petitioner
has set :forth matters s.howing; that his
interests, have been or may be affected
thereby. Wherefore, the Department
acceptsPetitioner'srequ~st as to the
clarification-of the previous Declaratory
Statement (Docket No. 75.10031),
without a hearing, which has been
waived by Petitioner. j
Section 62,7.784, Florida, Statutes,
is 8'l statutory provision administered
bY,the, Department of Iusllrance, and
Petidoner's 'request for a' declaratory
statement "as to the applicability of
that provision to his practices is
here by'" denied.
The previous Delcaratory Statement
(Docket No, 75,10031), with respectto
which.clarification'is sought, asserts that
an unlawfut,::GleCeptive trade practice in
violation"of',":~~f~ion .'. 501.204, ,Florida
Statutes,occp~'Where a title insurance
agentjwho'is:subjec~ to Part II, Chapter
501, Jails' to :discloseto'a purchaser that
between" "the . time:':<of the' . property
cOnveyence:ahd:the 'effeCtive date of the
title'insuran'ce alien' ma'ybe filed for
which the buyer is not proteCted.
Petitioner, points out that.. there is
more ,; than" on'tf'type;"of "real, ;property
transaction and req:uests clarification as
,to which types iDf - transactions the
necessary disclosure'applies. As a
general' st-atem'e-nt,' the "'disclosurE "must
be made in all cases where the purchaser
of the title insurance, is seeking to
protect'his' own ,ioterestin the title, has
ilo'actual kriowledg~f of' the existence of
the hiatus' or gappei'iod, and' has no
alternative insurance to protect his
iriterest during.'the hiatus or gap period.
More spe'cifically, in a cash'
transaction' where the real property
purchaser seeks title insurance t6
protecf his"title, the disclosure mu'stbe
made~o. hi~. In a mortgage tra?saction
wh~re thepurchaser/mortgagor seeks'
title" insurimce to protect his title, the
disclosure' must' be made.. regardless of
any title' insurailce that may also be
purchised for the benefit of the
lende'l-'fmorti:agee; "',;
However, the discloaure need. not be
made .to the purchaser/mortgagor where
title insurance is purchased to protect
the. intereat . of the, lend.er /mortgagee,
bu.t no insurance is purchased to protect
the title of.thepurchaser/mortgagor.
, The above statement assumes that
th'e lender/mortgage,e has actual
knowledge of any ,gap or hiatus inthe
insurance and that the disclosure
requirf,Jdby Ru~e 5-21.02, Rules of the
Department of Insurance, F AC, has
been made to the purchaser/mortgagor.
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The applicability of Section 501.204,
Florida Statutes, to situations- IV/here
these,a,ssumptions do not pertain is
beyond. the scope of this statement and
is not considered herein.
ROBERT L. SHEVIN
A'ITORNEY GENERAL AND
HEAD OF THE DEPARTMENT
OF LEGAL"AFFAIRS
J,uly 18, 1975
HUO CALLS OWNERS
ASSOCIATIONS BIGGEST
CONDO PROBLEMS
The three-volume, 774-palJe,
year-long. HUD study of condominium
and cooperative housing wall delivered
to Congress August 22, 1975, the
deadline ,called for by the 1974 Housing
Act.. Thereoo~t cited the rapid .lZJ'owth
of this type of dwelJimz and lilted a
number of problems but did not'SUlZ'lle.t
any Je'lJislative, or '. administrative
measures tor, dealing with abuses cited ~
or Breaso! 'p08lible trou.ble. '. ,
~:::iome 4.' maHon people live in'1.69
minion ,condominhifif'andcooperative
apartment units, the vast majority of
tliem' "co'nd'o,miniurris,"there,port said.
Thia is a, 15-fold increase since 1970.
The "iP'eatest, po'tential proble-n",'Cor
condominium purchasers i. the
management of their owners
associations, which' must be capable of
operating and maintaininlJ commonly
owned portions of the property, the
report said. It listed a number of other
problem areas, includine: the
complexity of the condominium
agreement, abusive practices of
developers, ,restrictions in lonlJ-term
recreation leasea, involved lelJal
docum'ents and the,' disolacement of
tenants in rental property converted to
oonaomlDlum StaLUS.
EXCEPTIONS FOIt r.1llllTGAGES
IN OWNER GUARAlIITEES
AND POLICIES
Fund owner guarantees and owner
policies should except under Schedule B
any purchase money m,orteages or other
mortgages given by the, insured as well ~
as all unsatisfied prior mort pees. See ....
Title, Note 1 09~58. The oWD,ereuarantee
or policy should never include
affirmative coverage as to the present
balance due under an existina: mortpge.
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MEMO City Council; City Attorney
April 7, 1977
Page Three
4. The average monthly housing payments required under conventional
ownership form increased from a low of 8% in the Tailings to a
high of 87% in the Aspen View condominiU!ii'ization. The overall
average monthly housing cost increased by 554.
5. The fear of tourists replacing local occupants is unfounded in the
initial transfer. Locals are replacing other locals
It has been speculated that:
1. Former tenants are being replaced by new owners who are wealthier
and have higher incomes.
2. Former tenants are being replaced ,by new owners because the former
tenants could not qualify for financing or Come up with a sufficient
down payment.
3. Rental housing for local service industry employees is being
replaced by ownership housing for local professionals.
It is'.important that answers to these questions be available in order to design
a comprehensive public policy towards multifamily conversions. Currently,
these answers are not known.
Because of the potential for rampant condominiumization to completely dry up the
existing rental market (essential in our service-based economy ",hich each
winter draws an additional 3,500 workers to the local economy) it is imperative
that the immediate effects of condominiumization be better understood and the
future impacts be more accurately projected.
In order to accomplish this, I have initiated an additional survey which is
designed to analyze the previous sample of condo conversing for income level
and inhabitant profile changes brough about by the conversion process. The
questionnaire is attached for your inspection. To date, only seven of sixty
have been returned.
Additional information is attached which illustrates how the State of Florida
is handling the problem and what the concerns of the Department of Housing
and Urban Development are with regard to condominiumization and cooperative
conversions. Similar statutes are in existance in New York and you already
have the benefit of the New Jersey ordinance.
In the absence of sufficient information, I suggest that the enclosed oridnance,
prpared by Sandy Stuller, be adopted as an interim measure until a long-term
policy can be. established. This approach has the benefit of addressing the
immediate impaCts of the conversion process(i.e., tenant displacement) while
leaving open some of the long-term questions.
So 719.401
essor may
: or part of
Ja)"IDent of
Illd operat-
es incident
I facilities,
, award ell
)f for such
as or other
'ompleted,
" facilities
teased are
id(llllyfor
a that the
.8 <JStimllt-
ilities that
lete ",hen
I equipped
commonly
on prior to
lmed over
,hall grant
,~>d proper-
late of the
h anniver-
aement, If
1 the price
:st and has
the lessor
t owner a
following
<BSOCiation
thetenns
II be axer-
the lessor
1 does not
the right,
eriod has
>edill the
~n
fret' shell
'this sub-
approval
d by the
U not ap;
, United
subdivi-
ing land
aveloper
i,by,the
~y,
;,eloper.
entex&-
mit for
lubordi-
lender,
>rtgage
very of
,e unit
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197~PLEMENT TO FLORIDA STATUTESt""',Ii
'719.402 Conversion of' existing lD1Prove-
mente to cooperative.-
(1) A developer may create a CO()perative by- con-
verting existillg, previously occupiedimprovemente
to such ownership by c01l)plying with part I of this
chapter.
(2)Jf existing,'improvements are converted-to
ownership as a residential cooperative, each reside -
tial tenant of the existi im ave
e ten anex lrin leaseortenanc u n
e same rIDS or a rI t a 0 a '7111;403 Phase cooperatives.-
t an yS r wntten notice to the tenant of . (1) A developer may develop a cooperative in
the Intended conversIOn, A tenant must give written phases, if the original cooperative documents sub-
notlce to the develope. ofhis intention to extend his mitting the initial phase to cooperative. ()wnership
lease or tenancy within 30 days afier he receives provide for and describe in detail all anticipated
notice of the intended Conversion, phases, the impact, if any, which the completion of
(3Xa) tis e li of this state that rovisions subseql\ent phases would have upon the initial
of contracts, _, or ot er un e n w ch - phase, and the time period within which each phase
o o. eve 0 rs at theIr 0 bon to cancel must be completed,
te 0 n t e (2)' , .The original cooperative documents shall de-
o and improvements co- scribe: . ..' . . .
ess an no Ice (a) The land which may become part of the coop-
IC, ny prov>- erauve and the land on which each pluiae is to be
sions in any contract, lease' or un e' ng which built, The descriptions shall include metes and
providesforcancellation or terzninati()n of the term bounds orother}egal descriptions of the land for
of anY leasefor an apa,ttment or otherresi~ellceat each. phase, Vlot. p!lI1lIl, an~su.rv"~. ..,..." ."
the optionotthe laniiiord or developer fQt realioli oi' (b)-:The number and geneiaJ. S1Zll'of'!lnitll 'to 'be
its intended conversion to a cooperative form of own- included in each phase,
ership without at least 120 days' notice shall be un- (c)- Each unit's percentage ownership in the com-
enforceable except in the following cases: - mon areas as each phase. is added, .
1,. !t the term of the lease has less than 150 days (d) The recreation areas and facilities to be
remaining after such notification is giveIl, owned as ~mmon areas by all unit owners and all
2, If the lease ants the tenant an 0 tion to personal property to be provided and those facilities
chase e a en or 0 er eSl ence In w c or areaS which may not be built or provided if any
. resl es r ess t an a 0 e !lhase or phases are not developed and added as a
non-tenants, which option. IS exerclBS . e. r..! e part of the cooperative,
tenant dunn.,; a periOd or not less than 9U days atter , (e) The membership vote and ownership in the
so9
s, 719.401
owner's share of the rent Or other exactlonsshlllln.ot
be extinguished, but shall' be foreClosed and unen-
forceable against the mortgagee with respect to that
unit's share of the rent and other exactions which
mature or become due and payable on or before the
date of the final judgment offoreclosure, in the event
of foreclosure, or on or before the date of delivery of
the deed in lieu of foreclosure, The lienmay,howev.
er, automatically and by operation of thele.ll8El or
other instrument, reattach to the unit and secure
the payment of the unit's proportioIlateshareofthe
telltor other exactions comingdl!e.Subsequent to the
date offinal decree offoreclosure"r the date of deliv-
eryofthe deed in lie.u offoreclosure;. '. .
(8) It is declared that the public lpolicy of this
stete prohibits the inclu.sipn orenforceDlellt of esca-
lstion clauses in leaSeS for recreational facilities,
land, or other commonly used facilities serving coop-
eratives, and such clauses are hereby declared void
for public policy, For the purposes of this section, an
escalation clause is any clause in a cooperative lease
which provides that the rental under the lease shall
increase at the same percentage rate;llS.any nation-
ally recognized and conveIlielltJy amiable com-
modity or consumer price indax,
BJatory,-4. 2, ch. 7&-222.
'Note.-Effeet:ive January 1, 1977.
"Note.-BrtlCketed languagesubatituted by the editors for"deed in lieu
thereof."
conversion of the
o ra
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So 719.403
the mailing of a notice of the intended conversion to
the tenant,
3, It the lease provides that the lessaror develop-
er shall not convert to cooperative ownership except
with the consent of the tenanteof not less than 60
rcent,ot tbea artments or other dweH In 1Dl~
provemen .m n .., conve.. . or ,e p
pose.ot thIS vote, unoccupIed apartments or d\Yell-
ings shall be counted and the developer or.lessor may
vote those apartments,
(b) If the lease provides for a notification to the
tenant of less than 120 days and if the term of the
lease has more than 150 dayS remainingafier notifi.
cation is given; notification of termination to the
tenant wilt be enectl5be Jl the notice nrovides ~tffae
tenant shall nave It>U daYI' or more before cance la-
tlOn Or terminstlOb',becomes ettectlve."" .. .~
(0) Leases egecu~ l:iuosequent to the developer's
or landlord's announcement of intention .to convert
to cooperative ownership may provide for cancella-
tion or termination upon not less than 60 days' no-
tice.to the tenant, provided the landlord conspicu-
ously discloses in the lease the intention to convert
the I.'roperty containing the leased premises to coop-
erative ownership and that the lease may be can-
celed upon 60. days' notice to the tenant,
(d) The notice requirements of this subsection
shall notapply to a lease entered into simultaneous.,
Iy with, or subsequent to, a contract to purchase the
unit,
(4) An notices to tenants shall beglVen when
deposited in the United States mail addressed to the
tenantlat his last\<nown residence, which may be the
address of the property subject to the lease, sent by
certified or registered mail, postage prepaid, Notice
may;nct, be:waived b~':a ~u~ti.ir-.d6iXi the t.eiUlilt'a
lease ~tates that the building is to be converted.
HfMoIy~"-";2, ch. 76-222.
'Note,-"-Effect,i."e January 1, 1977.
.;:,.
3. Employee Classificati~,.
Positio~
a Sales
o Service
D Skil:ed Labor
o Unsblled Labor
lJ Professiona~
o Technical
~ Office/Clerical
CJ Management
C1 Other
4. How long have you been an employed resident of Aspen?
5. How long have you been a local resident(irrespective of employment)?
6. How many full-time employees in your household?
7. What was your 1976 gross income(line 13, Form 1040; Line 12, Form 1040A; or a
fairly accurate estimate please)? $
8. If you have purchased a condominiumized apartment:
a. How did you come up with the downpayment?
17 By liquidating a reasonable percentage of savings or other assets.
D By liquidating almost all other assets.
C7 Borrowing from relatives or others.
b. ' How did you qualify for mortgage financing?
LJ By conventional loan approval ratios.
C1 By increasing the downpayment above 20% and lowering the loan amount.
D By borrowing from private sources.
o Used a co-signer such as a relative
CJ Paid cash and did not use mortgage financing.
9. If you did not purchase a unit in your form~r. building, why not?(Check all that apply)
CJ Lacked down payment
o Could not qualify for financing
~ Other(Please specify)
10. In what apartment building and unit were or are you residing?
o Redwoods
r:::J 700 Hopkins
o Aspen View
o Tailings
Unit II
11. If you would like to communicate your feelings about condominiumization in general
or any specific aspect (government processes, marketing, financing) of conversions,
please do so.
12. (Optional) Your name, address and telephone II:
.,'"
/-\
Dear Former Tenant or New c.....er:
As you may be aware, the City Council is in the process
the condominiumization of existing apartment buildings.
is both critical and difficult to accomplish.
of developing a policy towards
The formulation of this policy
A policy is critically needed because of the immediate housing crisis forced upon
existing tenants as well as any long-term effects of extensive condominiumization which
may reduce the town's supply of rental housing. A policy is difficult to formulate
because there are both beneficial and detrimental effects resulting from apartment
conversion. As an example, home ownership is made available to some households who
could not afford single family market housing. On the otherhand, the tenant is at
the pricing mercy of the condominiumizer and may not qualify to purchase the unit
where he has been living, sometimes for several years.
In order that we may develop a public policy towards apartment conversions which
adequately protects both rental and ownership housing opportunity for moderate income
local working persons, I am asking your help by answering the following questions
as accurately as possible. I understand the sensitive nature of some questions and,
if you desire, your responses will be held in confidence.
As the City will be contemplating some action at their April 11th meeting, your input
is needed as quickly as possible. Your help is very much appreciated.
Brian Goodheim
Housing Director
o
o
Survey responses below are confidential and may be disclosed only in
summary form without mention of names.
Survey responses and comments may be directly published.
SURVEY QUESTIONS:
1. Check each that applies:
[] Former Tenant
P New Owner
t:l Current Tenant
2. Employer Classification:
Business:
l:1
D
a
CJ
CJ
o
o Real Estate
Cl Other
Re c rea t ion
Bar & Restaurant
Retail Store
Accomodations
Government
Construction