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HomeMy WebLinkAbout991918.tiff RESOLUTION RE: THE BOARD OF EQUALIZATION, 1999, WELD COUNTY, COLORADO - ADJUST VALUE IN PART PETITION OF: HIGH PLAINS HOUSING DEVELOPMENT CORP PO BOX 8 GREELEY, CO 80632-0008 DESCRIPTION OF PROPERTY: ACCOUNT #: R7320098 PARCEL #: 096106128001 - GR SCG L1 BLK1 STAGECOACH GARDENS PUD WHEREAS, the Board of County Commissioners of Weld County, Colorado, convened as the Board of Equalization for the purpose of adjusting, equalizing, raising or lowering the assessment and valuation of real and personal property within Weld County, fixed and made by the County Assessor for the year 1999, and WHEREAS, said petition has been heard before the County Assessor and due Notice of Determination thereon has been given to the taxpayer(s), and WHEREAS, the taxpayer(s) presented a petition of appeal of the County Assessor's valuation for the year 1999, claiming that the property described in such petition was assessed too high, as more specifically stated in said petition, and WHEREAS, said petitioner being represented by Tom Teixeira, and WHEREAS, the Board has made its findings on the evidence,testimony and remonstrances and is now fully informed. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, acting as the Board of Equalization, that the evidence presented at the hearing supported, in part, the value placed upon the property by the petitioner. The assessment and valuation of the Weld County Assessor shall be, and hereby is, adjusted as follows: ACTUAL VALUE AS DETERMINED ADJUSTED BY ASSESSOR ACTUAL VALUE Land $ 60,389 $ 60,389 Improvements OR Personal Property 1,238,710 1,187,611 TOTAL ACTUAL VALUE $ 1,299,099 $ 1,248,000 991918 + AS0043 / rid � S Te— RE: BOE - HIGH PLAINS HOUSING DEVELOPMENT CORP Page 2 BE IT FURTHER RESOLVED that a denial of a petition, in whole or in part, by the Board of Equalization may be appealed by selecting one of the following three options; however, said appeal must be filed within thirty (30) days of this resolution: 1. Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's(CBOE's)decision to the Board of Assessment Appeals (BAA). Such hearing is the final hearing at which testimony, exhibits, or any other evidence may be introduced. If the decision of the BAA is further appealed to the Court of Appeals, only the record created at the BAA hearing shall be the basis for the Court's decision. No new evidence can be introduced at the Court of Appeals. (Section 39-8-108(10), CRS) Appeals to the BAA must be made on forms furnished by the BAA, and should be mailed or delivered within thirty (30) days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 523 Denver, CO 80203 Phone: 866-5880 OR 2. District Court: You have the right to appeal the CBOE's decision to the District Court of the county wherein your property is located. New testimony, exhibits or any other evidence may be introduced at the District Court hearing. For filing requirements, please contact your attorney or the Clerk of the District Court. Further appeal of the District Court's decision is made to the Court of Appeals for a review of the record. (Section 39-8-108(1), CRS) OR 3. Binding Arbitration: You have the right to submit your case to arbitration. If you choose this option the arbitrator's decision is final and your right to appeal your cL rrent valuation ends. (Section 39-8-108.5, CRS) Selecting the Arbitrator: In order to pursue arbitration, you must notify the CBOE of your intent. You and the CBOE select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator,the District Court of the county in which the property is located will make the selection. 991918 AS0043 RE: BOE - HIGH PLAINS HOUSING DEVELOPMENT CORP Page 3 Arbitration Hearing Procedure: Arbitration hearings are held within sixty days from the date the arbitrator is selected. Both you and the CBOE are entitled to participate. The hearings are informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records, documents and other evidence. He also has the power to administer oaths, and all questions of law and fact shall be determined by him. The arbitration hearing may be confidential and closed to the public, upon mutual agreement. The arbitrator's written decision must be delivered to both parties personally or by registered mail within ten (10) days of the hearing. Such decision is final and not subject to review. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the CBOE. In the case of residential real property, such fees and expenses cannot exceed$150.00 per case. The arbitrator's fees and expenses, not including counsel fees, are to be paid as provided in the decision. The above arid foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 3rd day of August, A.D., 1999. ,: BOARD OF COUNTY COMMISSIONERS n W COUNTY, LORA O ATT r• /l� ,,77??,'�i,W• ,� r � � .,:L-r;:%� Dale K. Hall, Chair d G6unty Clerk Board EXCUSED Barbar J. Kirkmeyer, Pro-Tem B e irlr{S\i Board eorg cter APPROVED AS TO FORM: Gei A stant C rty ttorney> A i'tuq l/e 71j Glenn Vaa 991918 AS0043 • NOTICE OF ADJUSTMENT OFFICE OF COUNTY ASSESSOR � GR SCG Ll BLK1 STAGECOACH GARDENS GREELEY,CO 80631 Kel 0 1400 NORTH 17th AVE':. PUn--- PHONE(970)353-3845,EXT.3650 WIOC. COLORADO OWNER: HIGH PLAINS HOUSING DEVELOPMENT CORP HIGH PLAINS HOUSING DEVELOPMENT CORP LOG 2564 PO BOX 8 PARCEL 096106128001 ACCOUNT R7320098 GREELEY, CO 80632-0008 YEAR 1999 06/11/1999 The appraised value of property is basec'.on the appropriate consideration of the approaches to value required by law. The Assessor has determined that your property should be included in the following category(ies): ALL OTHER PROPERTY, INCLUDING VACANT LAND, IS VALUED BY CONSIDERING THE COST, MARKET, AND INCOME APPROACHES. If your concern is the amount of your property tax,local taxing authorities(county,city,fire protection,and other special districts)hold budget hearings in the fall. Please refer to yoJr tax bill or ask your Assessor for a listing of these districts,and plan to attend these budget hearings. The Assessor has carefully studied all mailable information,giving particular attention to the specifics included on your protest,and has determined the valuation(s)assigned to your property. The reasons for this determination of value are: BASED ON A STUDY OF COMPARABLE PROPERTIES THAT SOLD FROM 1/1/97 TO 6/30/98 WE HAVE ADJUSTED YOUR PROPERTY TO THE 1999 LEVEL OF VALUE AS SHOWN BELOW. PETITIONER'S ASSESSOR'S VALUATION PROPERTY CLASSIFICATION ESTIMATE OF VALUE ACTUAL VALUE ACTUAL VALUE PRIOR TO REVIEW AFTER REVIEW LAND 60389 60389 IMPS 1804400 1238710 TOTALS $ $ 1864789 $ 1299099 If you disagree with the Assessor's decision,you have the right to appeal to the County Board of Equalization for further consideration,39-8- 106(1)(a),C.R.S. Please see the back of this form for detailed information on filing your appeal. 06/11/1999 By: Stanley 1'. Sessions WELD COUNTY ASSESSOR DATE 15-DPT-AR ., Form PR-207-87/99 ADDITIONAL INFORMATION ON REVERSE SIDE // X 7 YOU HAVE THE RIGHT TO APPEAL THE ASSESSOR'S DECISION The County Board of Equalization will sit to hear appeals beginning July 1 and continuing through August 5 for real property (land and buildings) and personal property (furnishings, machinery, and equipment) 39-8-104 and 39-8- 107(2), C.R.S. APPEAL PROCEDURES: If you choose to appeal the Assessor's decision, you must appeal to the County Board of Equalization. To preserve your right to appeal, your appeal must be POSTMARKED OR DELIVERED ON OR BEFORE JULY 15 FOR REAL PROPERTY, AND JULY 20 FOR PERSONAL PROPERTY. WELD COUNTY BOARD OF EQUALIZATION 915 10th Street, P.O. Box 758 Greeley, Colorado 80632 Telephone (970)356-4000 Ext. 4225 NOTIFICATION OF HEARING: You will be notified of the time and place set for the hearing of your appeal. COUNTY BOARD OF EQUALIZATION'S DETERMINATION: The County Board of Equalization must make a decision on your appeal and mail you a determination within five business days of that decision. The County Board must conclude their hearings by August 5. TAXPAYER RIGHTS FOR FURTHER APPEALS: If you are not satisfied with the County Board of Equalization's decision you must file within thirty days of the County Board of Equalization written decision with ONE of the following: Board of Assessment Appeals (BAA): Contact the BAP, at 1313 Sherman, Room 315, Denver, Colorado 80203, (303)866-5880. District Court: 9th Avenue and 9th Street, P.O. Box C Greeley, Colorado 80632 Telephone (970) 356-4000, Ext. 4520 Arbitration: WELD COUNTY BOARD OF EQUALIZATION 915 10th Street, P.O. Box 758 Greeley, Colorado 80632 Telephone (970) 356-4000, Ext. 4225 If you do not receive a determination from the County Board of Equalization, you must file an appeal with the Board of Assessment Appeals by September 10. TO PRESERVE YOUR. APPEAL RIGHTS, YOU MUST PROVE YOU HAVE FILED A TIMELY APPEAL; THEREFORF., WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF OF MAILING. PETITION TO THE COUNTY BOARD OF EQUALIZATION In the space below, please explain why you disagree with the Assessor's valuation. IN ACCORDANCE WITH 39- 8-106, C.R.S., YOU MUST STATE YOUR OPINION OF VALUE IN TERMS OF A SPECIFIC DOLLAR AMOUNT. Attach additional documents as necessary. siuNA I UKE Ui PE I I I IUNEK/ �/ - G High Plains Housing Development Corp 315 N. 1 lth Avenue, Bldg... B P.O. Box 8 Greeley, CO 80632-0008 July 15, 1999 Weld County Boa:-d of Equalization P.O. Box 758 Greeley, CO 80632 RE: Stagecoach Gardens Apartments LTD • These apartments were constructed by High Plains Housing Development Corp (a non-profit) and The Greeley Urban Renewal Authority for low income seniors. They were finance in part under section 42 of the IRS code of 1986 as such they have a Low-Income Housing Tax Credit Land Use Restrict ton Agreement for 30 years with Colorado Housing and Finance Authority(inclosect). This restricts both the income of eligible tenants and also the rents that may be charged for a period of 30 years. We appealed to the Assessor's office and they have reduced the value of the property from $1,864,789 to $1,299,099 however this was done because the property in comparison to other like (with unrestricted rents) apartments projects was over valued. The rent restrictions and the restriction on eligible tenants makes these properties different from normal commercial apartment projects. We are therefore asking for consideration of the Board of Equalization. This was l:he first low income new construction apartment project built using tax credits in Weld County. No similar properties have ever been sold in Weld County. They were opened in July of 1998 so they do not have a full year of operating experience. I have a inclosed the 1999 operating budget and using an income approach these properties have an net operating income of$71,615 if this is capitalized at 9% this would equal a value $795,722 for the property. Sincerely; Thomas Teixeira Executive Director Stagecoach Gardens Apartments 1999 budget # 1 Gross Rental $143,508 Other Income $1,545 Less Vacancy ($7,175) $137,878 Property Management fee $8,703 Manager Salary $11 ,484 Legal & Accounting $4,000 Advertising $624 Telephone $1 ,200 Office Supplies $624 Repairs & Supplies $9,000 Lawn & Landscape $1 ,248 Trash Removal $1,560 Snow Removal $260 Gas/Heat $2,545 Electricity $2,050 Sewer& Water $9,464 Property Insurance $7,500 Replacement Reserve $6,000 $66,262 Net Operating Income $71 ,615 First Mortgage Principal $4,029 Interest $41 ,120 Total $45,149 Net $26,466 Page 1 YOUR REALYPROPERTTHE VALUE OR ITTS CLASSIFICATION, APPEAL PROCEDURES REAL PROPERTY APPEAL PROCEDURES APPEAL BY MAIL: If you choose to mail a written appeal, you may elect to complete the appeal portion of this form, detach it, and mail or FAX it to the Assessor at the address listed on this Notice of Valuation. To preserve your right to sippeal, your mailed appeal must be postmarked no later than May 27. TO PRESERVE YOUR APPEAL RIGHTS YOU MAY BE REQUIRED TO PROVE YOU HAVE FILED A TIMELY APPEAL; THEREFORE, WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF OF MAILING. APPEAL IN PERSON: If you choose to present oral or written objections to the Assessor in person, you may elect to complete the appeal form at the bottom of this page and deliver it to the Assessor at the address listed on this Notice of Valuation. Appeal in person between May 3 and June 1. ASSESSOR'S DETERMINATION: The Assessor must make a decision on your appeal and mail a Notice of Determination to you by the last regular working day in June. APPEALING THE ASSESSOR'S DECISION: If you are not satisfied with the Assessor's determination, or if you do not receive a Notice of Determination from the Assessor, you must file a written appeal with the County Board of Equalization on or before July 15. REAL PROPERTY APPEAL FORM YOU MAY ELECT TO COMPLETE THE FORM WHICH FOLLOWS TO APPEAL YOUR PROPERTY VALUATION OR CLASSIFICATION. Completing the Real Property Questionnaire which follows will help you determine an estimate of value for your property. Which can be ccmpared to the value determined by the Assessor. Colorado law requires consideration of the market approach to value for residential properties(includes apartments)and the cost, market, and income approaches to value for vtcant land, commercial, and industrial properties. - --------------------------------- ------------------------------ REAL PROPERTY QUESTIONNAIRE ATTACH ADDITIONAL DOCUMENTS AS NECESSARY MARKET APPROACH: This approach to value uses sales from the appropriate time period to determine the actual value of your property. The following items, if known, will help you estimate the market value of your property. If available, attach a copy of any appraisal or written estimate of value. Have similar properties in your immediate neighborhood sold? DATE SOLD PROPERTY ADDRESS SELLING PRICE Note: The Cost and Income Approaches are used for Non-Residential properties only. COST APPROACH: This approach uses replacement cost new, less depreciation and is best when the structures are new or less than 5 yrs old. If the structure is less than 5 yrs old- lease answer the following: Type of Structure Cost to construct new Have changes been made since con lructron. Please describe them. Type of change Cost Type of change - Cost Type of change Cost INCOME APPROACH: This approach uses net income from operation of a property which was rented or leased the previous year and converts the net income into actual market value. Please attach operating statements showing income and expenses related to operation of the buildings only, These statements should reflect the past 3years of operation if possible. Also show rents of comparable properties.if you have that information available. It-you have an appraisal showing the income approach which was done in the past 2 years, please attach also. Based upon the information shown above please give your estimate of the true market value of your property as of June 30, 1998 $ 21127 NOTICE OF VALUATION REAL PROPERTY This Is Not a Tax Bill LEGAL DESCRIPTION: ` � > q'?r Fa r" Stanley F. Sessions Weld County Assessor GR SCG LI BLKI STAGECOACH GARDENS PUD= 1400 N. 17th Avenue r Greeley, CO 80631 H Date: May 1, 1999 HEARINt'D'ATES: 5/3/99-6/1/99 LOCATION: 1400 N 17th Avenue HIGH PLAINS HOUSING DEVELOPMENT CORP OFFICE HOURS: 8:30-4:00 2448 1 AVE TELEPHONE NO: 970 353-3845 x-3650 GREELEY CO 80631 NO: (970) 35 I-0978 TAX YEAR: 1999 TAX AREA: 0696�106128001 PARCEL NO: ACCOUNT NO: R7320098 PROPERTY PRIOR YEAR CURRENT YEAR INCREASE/ CLASSIFICATION ACTUAL VALUE ACTUAL VALUE DECREASE RESIDENTIAL 60389 1864789 1804400 TOTAL 60389 1864789 1804400 Parcel# 096106128001 Account # R7320098 To appeal by mail, list your name, address, and phone # below, detach the lower portion of this notice and mail in accordance with instructions on the reverse side to: Name: YAomar —Thre;rc/tu. Weld County Assessor Address: A o. _at, P- 1400 N. 17th Avenue 0-ree/e/ e o 8 cCf_•- Greeley, CO 80631 Phone: 3 S-z - /s's/ -u./ c crio An assessment percentage will be applied to the actual value of your property before taxes are calculated. The assessment percentage for residences is projected to be 9.74 %. Generally, all other property, including vacant land, is assessed at 29% of actual value (39-1-104(1) and (1.5), C.R.S.). A change in the projected residential assessment percentage is not grounds for an appeal of value or abatement of taxes. (39-5-121(1), C.R.S.) For oil and gas leaseholds, the value shown above is the taxable value of your property. Appraisal data used to establish value were gathered from the 18 month period ending June 30 1998. If data from that period were insufficient, data from the five year period ending June 30 1998 were used. Your property was valued as of January 1 of the current year. The "current year actual value" represents the actual or market value of your property. The tax notice you receive next January from the treasurer will he based on that value. DOCUMENTATION - REASON FOR REQUESTING A REVIEW: es a lap Cnt/•A e'er-f a-n/d ., - Goa.- /'ac cone /c'rn/rrs r.-t',4• a Jo roe.- er; ytir.•t/f re. on /7en7td.� /.a.rr✓. be 7'4c s.. s-. Centre/ P•r/l-e- See.e.[Ce.j. cr a..+•✓ 4, ne. -/>.o/sL /Ay f P/a:., J4n5C41_,_ o/•c-/opn..n./ Corp Si 2 a../ 6.rc// Or Sa.. /?c..e.-,/ vs,4. STANLEY F. SESSIONS WELD COUNTY ASSESSOR APPRAISAL REPORT OF MULTI-FAMILY PROPERTY FOR County Board of Equilization HIGH PLAINS HOUSING DEVELOPMENT CORP. PETITIONER vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Parcel Number: 0961-06-1-28-001 Schedule Number: R7320098 Log Number: 2564 Date: August 3,1999 Time: 11 :00 a.m. PREPARED BY APPRAISERS NAME 249 Lar Rodrigue License No. Datte ASSESS 'S FFICE STAFF APPRAISER APPRAISAL DATE JUNE 30, 1998 ASSESSOR VALUE $1,299,099 C130E_Res_Multi 071599 Page 1 GENERAL DESCRIPTION OF SUBJECT SITE This property is ocated at 1111 4th STREET in the city of GREELEY. The legal description of the property is GR SCG L1 BLK1 STAGECOACH GARDENS %1111 4 ST% • Utilities available to the site are typical for the area. IMPROVEMENTS The subject property improvements are identified as a 32 unit apartment complex, made up of 7 - 2 story 4 plexes, 2 - 1 story duplexes and an office/laundry building. These buildings being of frame/hardboard construction with a composition shingled roofs. Each 4 plex measures 3,680 square feet and the duplexes measure 2,000 square feet for sa total of 29,760 square feet. The office/laundry building measures 944 square feet. The improvements sit on 80,518 square feet of land. The Assessor has classified the property as multi/family residential of average quality. The subject is in a multi-family zoned area. SUBJECT PHOTOGRAPH CBOE_Res_Multi 071599 Page 2 II 11 pl ■ Comparable Number 1 VW S I Comparable Number 2 ,air . I f d{t att ie any • Comparable Number 3 t f in I16, • • -. GBOE_Res_Multi 071699 ,. „� , Page3 WELD COUNTY ASSESSOR'S Comparables Report with Adjustment Grid Subject Comp #1 Comp #2 Comp #3 SDate/Price 06/29/98 $1,561,000 05/09/97 $700,000 1/17/97 $690,000 Parcel# 096106'28001 096119200048 ! 096106414017 096108226002 Account# R7320098 R0108892 R3001786 R3267586 Address 1111 4 STREET 1745 30 STREET 1201 8 STREET 1508 9 AVENUE GRIEELEY GREELEY GREELEY GREELEY Neighborhood 126 132 5% 126 $0.00 126 $0.00 Land-SF 80,518 119,354 $1.00 14,000 $1.00 14,250 $1.00 Occupancy Apts> 9 Units Apts>9 Units $0.00 Apts>9 Units $0.00 Apts>9 Units $0.00 Builtt As <=3 Stories a 3 Stories $0.00 <=3 Stories $0.00 <=3 Stories $0.00 Year Built 1998 1972 8.5% 1960 11% 1973 8.5% Quality Average Average $0.00 Fair 5% Fair 5% Exterior Frame Haidboard Frame Hardboar $0.00 Frame Masonry 5% Frame Masonry 5% Building SF 29,760 40,716 $25.00 16,239 $25.00 11.520 $25.00 Basement 0 19,630 $7.00 5,494 $7.00 5,760 $7.00 Bsmt Finished 0 0 $9.00 5,494 $9.00 2,880 $9.00 Garage 0 0 $0.00 ' 0 $0.00 0 $0.00 Units 32 40 $0.00 31 $0.00 24 $0.00 Time $0.00 4.3% 5.7% Amenities S33,960 $10,032 $0.00 $4,500 $0.00 $4,400 $0.00 Adjustments Location $0 $0 $0 Land ($38,836) $66,513 $66,268 Occupancy $0 $0 $0 Built As $0 $0 $0 Age $132,685 $77,000 $58,650 Quality $0 $35,000 $34,500 Exterior $0 ($35,000) ($34,500) Build ng Size ($275,000) $338,025 $456,000 Basement ($137,410) ($87,904) ($66,240) Garage $0 $0 $0 Rooms $0 $0 $0 Bathrooms $0 $0 $0 Bedrooms $0 $0 $0 Time $0 $30,100 $39,330 Amenities $23,928 $29,460 $29,560 Total Adjustments ($294,633) $453,194 $583,568 Adusted Sale Price I $1,266,367 $1,153,194 $1,273,568 Adjusted Sale$/SF $42.55 $38.75 $42.79 $/SF Market for Subject $41.96 Final Market Value $1,248,729 _ CI3OE_Res Multi 071599 Page 4 IMPARTIALLY VALUATION Constitution of Colorado, Article X - Revenue, section 20.1 General Consideration. This section and ss 3 of this article reconciled. In order to reconcile the requirement of subsection (8)(c) of this section that residential property be valued "solely by the market approach to appraisal" with the equalization requirement of article X ss 3, the actual value of residential property must be determined using means and methods applied impartially to all the members of each class . Podoll v. Arapahoe County Board of Equalization, 920 P.2d 525 (Colo 1995) MARKET APPROACH SUMMARY Real property for the tax year 1999 must be valued utilizing the level of value for the period of one and one-half years immediately prior to July 1, 1998. A period of five years immediately propr to July 1, 1998 shall be utilized to determine the level of value if adequate data is not available from such one and one-half year period to adequately determine the level of value for a class of property. Said level of value shall be adjusted to the final day of the data-gathering period. Changes occurring between base years are riot to be accounted for until the following level of value is implemented, other than additions, change in use, detrimental acts of nature, damage due to fire, etc., creation of a condominium, new regulations restricting the use of the land, or a combination thereof (39-1-104(11)(b)(1),CRS). The Weld County Assessor has an established ongoing Confirmation and Validation Program for property transactions used in developing values. The subject property has been classified as Residential for assessment purposes, Residential property value shall be determined by appropriate consideration of the of the Marker Approach to Value (39-1-103(5)(a),CRS) INDICATED MARKET VALUE $1,248,000 CBOE_Res_Mulli 071599 i; 2... le, ' -' I l`I I S' 1 al ' tlwi IIC:71' rj ll SIM_4 ii-Iii 2.,ST ....EI El 21112 ST 4111--.0-1.' 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' Aytilt,,;-'4, 1 , I alliDEFIs 1 7' "7‘ HILLS1r;I:IA ' , l'e,: :1•21 4 1 ;Ca t '11 l 4, e' iii'.•'-'0 71..-:444f t.c.-iL.::,, i •34 EATT__ _48s ,-------- --wEt' ; 2511155S fl'I .41. 1 r r I r a [ r'll'I -.r' "RIP' apt_ i sr, ,,go'_.,1t.,,r51--, I 1 I r ; , ' ,.----S'l I I 28TH ST el ' L8.116.siolidt E NM ST • 1 , '-• ::ti•-.1.1•44,1 I .------ 0 _29111 ST 1 51 ..15 4 '= ..5'l" 9 e Fip-IrTilo 1 ,-• wr'w-ll ' •''''.0. ‘`-l' Grosley E 9 r7477:27,17,71.7171i1 llscils - l /Il ' - Slltl'll'l ' C•nlIsT --1=1"TT fr7l.'illt?,t7..lili' V-,:ir 'I' .. I 'i....."--‘'. -t - _ - , -VIT: 1 lig MSS ST iSOLIMMOOR r I : 1116.1.0046 0/601101.In&CICOPV.4",HITII _ 1 ,..., a I Milli 11111 HI 1111 Iilllll III 3111 4/98 REV 26112242 12/22/1998 01:39P Weld County CO • 1 of 15 R 76.00 D 0.00 JR 5uk1 Tsukamoto LOW-INCOME HOUSING TAX CREDIT LAND USE RESTRICTION AGREEMENT ALLOCATION OF CREDITS TO THIS PROJECT IS BASED ON THE FOLLOWING: ❑ Credits from Set-Aside for Projects involving Qualified Non-Profit Organizations • Points Given for Participation by Qualified Non-Profit Organization ❑ Special Tenant Population Setasides [Section 6] • Additional Low-Income Targeting [Section 5(a)] • Extended term of Occupancy Restriction [Section 3(a)] THIS LANE USE RESTRICTION AGREEMENT, dated as of December 18, 1998, is by and between Stagecoach Gardens Apartments Ltd., a Colorado Limited Partnership, and its successors and assigns (the "Owner"), and the Colorado Housing and Finance Authority, a body corporate and political subdivision of the State of Colorado (the "Authority"). WITNESSETH: WHEREAS, the Owner is the owner of a thirty (30) unit rental housing development located on lands in the City of Greeley, County of Weld, State of Colorado, more particularly described in Exhibit A hereto, known as Stagecoach Gardens (the "Project"); and WHEREAS, the Authority has been designated by the Governor of the State of Colorado (the "State") as the housing credit agency for the State for the allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder (the "Code"); and WHEREAS, the Owner has applied to the Authority for an allocation of low-income housing tax credits to the Project and has made certain representations to the Authority in its Low-Income Housing Tax Credii: Preliminary Reservation Request (as the same may have been amended or supplemented by the Owner's Carryover Allocation Application, if any, progress reports and the Owner's Final Allocation Application, collectively, the "Application") about the Project, including representations as to the number of Low-Income Units (hereinafter defined) and the term of occupancy restrictions, upon which representations the Authority relied in considering the Application for a reservation and allocation of credits; and WHEREAS, the Code requires in connection with the allocation of low-income housing tax credits that the Owner execute and deliver this land use restriction agreement (this "Agreement") and that this Agreement be recorded in the official land records of the county in which the Project is located in order to create covenants running with the land for the purpose of enforcing certain requirements of Section 42 of the Code and certain additional undertakings of the Owner in connection with its Application by regulating and restricting the use and occupancy of the Project as set forth herein; and ra"ruihecai"ruu,r:aew7000e1u!e.aoc x ' A- • 111111 1E11 111111 IIII 1111111 III 1111 III 1111 IIII IIII 2662242 12/22/1998 01:39P Weld County CO Land Use Restriction Agreement 2 of 15 R 76.00 D 0.00 JA Sukl Taukamoto Stagecoach Gardens WHEREAS, based upon the Owner's representations, the Authority is willing to allocate low- income housing tax credits to the Project provided that the Owner, by entering into this Agreement, consents to be regulated by the Authority in order that the Authority may enforce the occupancy restrictions and other covenants, terms and conditions of this Agreement; and WHEREAS, the Owner, under this Agreement, intends, declares and covenants that the regulatory and restrictive covenants set forth herein governing the use and occupancy of the Project shall be and are covenants running with the Project land for the term stated herein and binding upon all subsequent owners of the Project for such term. NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth, and of other valuable consideration, the Owner and the Authority agree as follows: 1. Recgrdina and Filing; Covenants to Run with the Land. (a) This Agreement shall be placed of record in the real property records of the county in which the Project is located and, except as otherwise provided herein, the covenants contained herein shall run with the land and shall bind, and the benefits shall inure to, respectively, the Owner and its successors and assigns, and the Authority and its successors and assigns, and all subsequent owners of the Project or any interest therein, for the period prescribed in Section 3 hereof. Ibl The Owner hereby agrees that any and all requirements of the laws of the State to be satisfied in order for the provisions of this Agreement to constitute restrictive covenants running with the land shall be deemed to be satisfied in full, and that any requirements of privity of estate are intended to be satisfied, or in the alternate, that an equitable servitude has been created to insure that these restrictions run with the land. During the term of this Agreement, each and every contract, deed or other instrument hereafter executed conveying the Project or portion thereof shall expressly provide that such conveyance is subject to this Agreement, provided, however, the covenants contained herein shall survive and be effective as to successors and/or assigns of all or any portion of the Project, regardless of whether such contract, deed or other instrument hereafter executed conveying the Project or portion thereof provides that such conveyance is subject to this Agreement. 2. Representations, Covenants and Warranties of the Owner. The Owner covenants, represents and warrants as follows: (a) The Owner is duly organized under the laws of the State of Colorado, and is qualified to transact business under the laws of the State. (b) The Owner has good and marketable title to the premises constituting the Project. - 2 - rentNVlhtcIiin.Nurn\08\9]000BIun.doc IIIIII IIIII 111111 Ell Ilillll liii 1111 2862242 12/22/1998 01:39P Weld County CO Land Use Restriction Agreement 3 of 15 R 76.00 D 0.00 JO Suk I Tsukamoto Stagecoach Gardens (c) Each building which is the subject of an allocation of low-income housing tax credits is, or, by not later than the last day of the first year of the "credit period," as defined in Section 42(f) of the Code ("Credit Period"), will be, a "qualified low-income building" as defined in Section 42(c)(2) of the Code ("Qualified Low-Income Building"), and the Project constitutes or will constitute a "qualified low-income housing project" as defined in Section 42(g) of the Code ("Qualified Low-Income Housing Project"). (d) The Owner shall not discriminate on the basis of race, creed, color, sex, age, marital status, national origin, disability or familial status in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the operation and management of the Project, and shall not refuse to lease a unit in the Project to the holder of a voucher or certificate of eligibility under Section 8 of the U.S. Housing Act of 1937 on account of the status of the prospective tenant as such holder. (e) The Owner shall not demolish any part of the Project or substantially subtract from any real or personal property of the Project; or permit the use of any residential rental unit for any purpose other than rental housing. (f) The Owner has not and will not execute any other agreement with provisions contradictory to, or in opposition to, the provisions hereof, and in any event, the requirements of this Agreement are paramount and controlling as to the rights and obligations herein set forth and supersede any other provisions in conflict herewith. (g) If the Owner becomes aware of any situation, event or condition which would result in noncompliance of the Project or the Owner with Section 42 of the Code, the Owner shall promptly give written notice thereof to the Authority. (h) The Owner shall insure that the Low-Income Units (as hereinafter defined) shall be of comparable quality to other units, if any, in the Project. (i) If the Project, or any part thereof, shall be damaged or destroyed or shall be condemned or acquired for public use, the Owner will use its best efforts to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction, or to relieve the condemnation, and thereafter to operate the Project in accordance with the terms hereof. 0) The Owner has obtained or will obtain the consent of any prior recorded lienholder on the Project to this Agreement. - 3 - r«arvimcvmravrsev7000ei,.•.doc • Land Use Restriction Agreement 1111111111111111111111111111111111111111111111111111111 Stagecoach Gardens • 2662242 12/22/1998 01:39P Wald County CO 4 of 15 R 76.00 D 0.00 JR Suitt Taukaooto 3. Term of Restrictions. (a) Except as otherwise provided herein, this Agreement, including the occupancy restrictions set forth in Sections 5 and 6 hereof, shall be in effect for each building which is part of the Project for a period of thirty (30) taxable years beginning with the taxable year in which each such building is placed in service or, at the election of the taxpayer, the succeeding taxable year, and the Owner hereby waives any rights under Section 42(h1161(E)li)III) of the Code to terminate the "Extended Use Period" (hereinafter defined) during such period. (b) In addition to the period described in subsection (a) above, the Owner shall comply with the occupancy requirements set forth in Sections 5 and 6 hereof at all times during the "extended use period," as defined in Section 42(h)(6)(D) of the Code ("Extended Use Period"), ending on the date which is fifteen (15) years after the close of the Compliance Period. (c) This Agreement and the Extended Use Period for any building which is part of the Project shall terminate: (I) on the date the Project or the building is acquired by foreclosure or deed in lieu of foreclosure unless the Secretary (hereinafter defined) determines that such acquisition is part of an arrangement with the Owner a purpose of which is such termination; or (d) Notwithstanding any termination pursuant to subsection (c) above, during the period of three (3) years following such termination, the Owner shall not evict or terminate the tenancy of an existing tenant of any Low-income Unit (hereinafter defined) other than for good cause and shall not increase the gross rent above the maximum allowed under the Code with respect to such Low-Income Unit. 4. Qualified Low-Income Housing Project. The Owner shall maintain the Project as a Qualified Low-Income Housing Project at all times, commencing not later than the last day of the first year of the Credit Period and continuing throughout the term of this Agreement. To this end, and without limitation, the Owner shall assure that all of the residential units in the Project are available for use by the general public, suitable for occupancy and used on other than a transient basis. 5. Occupancy Restrictions. (a) For the purpose of Section 42(g)(1) of the Code, the Owner elects that at least twenty percent (20%) of the residential rental units in the Project shall be both rent-restricted (as hereinafter defined) and occupied by individuals or families whose income is fifty percent (50%) or less of area median gross income. - 4 - ,«druwmfinsMsaeUal000eo...d« 111111111111111111111111111111111111111111111111111 Land Use Restriction Agreement 2662242 12/22/1996 01:39P Weld County CO Stagecoach Gardens 5 of 15 R 76.00 D 0.00 JR Suitt Tsukamoto (b) Notwithstanding the election described in subsection (a) above, the Owner covenants and agrees that, commencing not later than the last day of the first year of the Credit Period and continuing throughout the term of this Agreement, at least eight (8) of the residential rental units shall be both rent- restricted and occupied by individuals or families whose income is percent forty (40%) or less of area median gross income, at least ten (10) of the residential rental units shall be both rent-restricted and occupied by individuals or families whose income is forty-five percent (45%) or less of area median gross income and at least an additional twelve (12) of the residential rental units shall be both rent-restricted and occupied by individuals or families whose income is fifty percent (50%) or less of area median gross income. All of the foregoing residential rental units are collectively referred to herein as the "Low-Income Units", and, with respect to all of such Low Income Units, "median gross income" shall be determined in accordance with the Code. The Owner further agrees that additional units in the Project shall be both rent-restricted and occupied by low-income individuals or families whose incomes meet the requirements of this subsection lb) to the extent necessary to maintain the "applicable fraction," as defined in Section 42(c)(1)(B) of the Code, at not less than percentage(s) shown on Exhibit B hereto for each taxable year of the Extended Use Period. A unit is "rent-restricted' if the gross rent with respect to such unit does not exceed thirty percent (30%) of the imputed income limitation applicable to such unit (based upon the income limitations set forth in this subsection (b)), all as determined in accordance with Section 42(g) of the Code. (c) The determination of whether an individual or family is a Qualifying Tenant (that is, meets the income requirements of subsection (b) of this Section 5) shall be made at least annually on the basis of the income of such Qualifying Tenant's). Any unit occupied by an individual or family who is a Qualifying Tenant at the commencement of occupancy shall continue to be treated as a Low-Income Unit notwithstanding an increase in the income of such individual or family above the income limitation applicable under subsection (b) of this Section 5 provided that, if such Qualifying Tenant's income subsequently exceeds one hundred forty percent (140%) of the applicable income limit, such unit shall no longer be a Low-Income Unit if after the determination of such increase, but prior to the next determination, any residential unit of comparable or smaller size is rented to a tenant who is not a Qualifying Tenant. (d) As a condition to occupancy, each individual or family who is intended to be a Qualifying Tenant shall be required to sign and deliver to the Owner a fully completed Certification of Resident Eligibility in the form provided from time to time by the Authority, and the income and assets of such individual or family must be verified in the manner prescribed by the Authority. - 5 - rentelviMcii . iuraBBB]OOOehrtdoc IIII Jill Land Use Restriction Agreement 2662242 12/22/1998 01:39P Weld County CO Stagecoach Gardens 6 of 15 R 76.00 D 0.00 JA Sukl Tsukamoto (e) The form of lease to be utilized by the Owner in renting any unit in the Project to any person who is intended to be a Qualifying Tenant shall provide for termination of the lease and consent by such person to immediate eviction for failure to qualify as a Qualifying Tenant as a result of any material misrepresentation made by such person with respect to the Income Certification or the failure by such tenant to execute a Certification of Resident Eligibility annually. 6. Additional Owner Agreements. [To be completed by CHFA.) The Owner further covenants and agrees that not later than the last day of the first year of the Credit Period, as defined in Section 42(f) of the Code: (a) At least nla ( ) of the residential rental units in the Project shall be constructed, equipped, set aside and made available for occupancy on a priority basis to n(a at all times during the term of this Agreement, and the Owner shall provide evidence to the Authority of any license, permit or other governmental approval required for such occupancy. 7. Compliance Monitoring; Fees. (a) The Owner acknowledges that Section 42 of the Code requires the Authority to monitor the compliance by the Owner and the Project with the requirements of said Section 42, and agrees to strictly comply, at all times, with the Authority's Low-Income Housing Tax Credit Compliance Manual, as amended from time to time, (the "Compliance Manual"), the terms and provisions of which are by this reference incorporated in this Agreement and made a part hereof. In the event of any conflict between the provisions of this Agreement and the provisions of the Compliance Manual, this Agreement shall control. (b) In addition to its specific agreements and undertakings in this Agreement, the Owner shall take or cause to be taken all other and further actions required of the Owner by the Authority in order to satisfy such monitoring requirement, which actions shall be designated in writing by the Authority to the Owner not less than sixty (60) days (or such other period as may be required by law) prior to the date by which such actions must first be taken. (c) The Owner agrees to pay to the Authority such fees in such amounts and at such times as the Authority shall, in its sole discretion, reasonably require the Owner to pay in order to reimburse the Authority for the costs of such monitoring. 8. Owner Certifications and Reports. (a) Within ninety (90) days of the end of the first year of the Credit Period, the Owner shall provide to the Authority a copy of the First Year Certification Part II of IRS Form 8609, as filed or prepared for filing with the Internal Revenue Service and executed by or on behalf of the Owner. - 6 - .«nrwh c iiSuuraael 700081 aa.doc 1111111 Hill 111E1 11111111111 III 11111111111111111111111 Land Use Restriction Agreement 2662242 12/22/1998 01:39P Meld County CO Stagecoach Garden:; 7 of 15 R 76.00 O 0.00 JR Suitt Tsukamoto (b) The Owner shall annually provide to the Secretary of the United States Department of the Treasury (the "Secretary"), or to his or her designee, at such time and in such manner as the Secretary shall prescribe, a certification as to the continuing compliance of the Project with requirements of Section 42 of the Code. A copy of such annual certification shall be provided to the Authority. (c) The Owner shall provide to the Authority, annually, on each anniversary of the date on which the Project was placed in service, a Certification of Continuing Program Compliance and an Occupancy Report, each in the form provided, from time to time, by the Authority, together with a copy, for each building, of the most recently filed Schedule A, Annual Statement, IRS Form 8609. (d) The Owner shall maintain in its records and provide to the Authority copies of any and all notices and correspondence from or with the Internal Revenue Service concerning the Project or the Owner. (e) In addition to the information provided for in Section 7 and in this Section 8, the Owner shall provide any other information, documents or certifications requested, from time to time, by the Authority with respect to the Project's physical, operational and financial condition and residents which the Authority reasonably deems necessary to substantiate the Owner's continuing compliance with the provisions of this Agreement and Section 42 of the Code. 9, Tran:;fer Restrictions. (a) The Owner shall not sell, assign, convey, transfer or otherwise dispose of the Project or any building in the Project without the prior written consent of the Authority. Such consent shall be given provided that : (i) the Owner is in compliance with the requirements of this Agreement and of Section 42(j)(6) of the Code; (ii) the proposed transferee of the Project evidences, to the reasonable satisfaction of the Authority, by its performance with respect to other low-income housing tax credit or government-assisted housing projects and otherwise, its willingness and ability to comply with the terms of this Agreement; and (iii) the Authority shall be paid a transfer fee, as determined, from time to time, by the Authority but not to exceed $2000. In no event shall the Owner dispose of any portion of any building in the Project to any person unless all of such building is disposed of to such person. For the purposes of this subsection, transfer of fifty percent (50%) or more of the ownership interests in Owner shall be deemed a transfer of the Project. (b) The Owner shall include, verbatim or by incorporation by reference, all requirements and restrictions contained in this Agreement in any deed or other documents transferring any interest in the Project or in any building in the Project to any other person or entity to the end that such transferee has notice of and is bound by such restrictions, and shall obtain the express written assumption of this Agreement by any such transferee. - 7 - ,.Mrwh«u+nS%tM98W70008iv,.do. Land Use Restriction Agreement 11111110111111111111111111111111111111111111111111 IIII II"II 'lll 111111 II' 1111111 III 11111 'll I Stagecoach ResGarden "I 2662242 12/22/1998 01:39P %fold County COC 8 of 15 R 76.00 D 0.00 JA Suk! Tsukamoto 10. Physical Maintenance/Management/Books/Records/Inspections. (a) The Owner shall maintain each building in the Project such that all units are suitable for occupancy, taking into account applicable health, safety and building codes, and otherwise in a manner reasonably satisfactory to the Authority. (b) The Owner shall provide for the management of the Project in a manner reasonably determined by the Authority to assure compliance with this Agreement. Any management contract entered into by the Owner involving the Project shall provide that it shall be subject to termination, without penalty and with or without cause, upon written request by the Authority addressed to the Owner. Upon such request the Owner shall immediately terminate the contract within a period of not more than thirty (30) days and shall make arrangements reasonably satisfactory to the Authority for continuing proper management of the Project. (c) The books, contracts, records, computerized data, documents and other papers relating to compliance of the Owner and the Project with Section 42 of the Code and with this Agreement and to the eligibility of the Owner to claim credits with respect to the Project shall at all times be maintained at the Project, or at the Owner's principal place of business in the State of Colorado, in reasonable condition for proper audit and shall be subject to examination and inspection and copying at any reasonable time by the Authority or its authorized agents. The Authority shall also have the right to enter and inspect the Project at any reasonable time. (d) Owners are required to keep records for each Qualified Low-Income Building in the Project showing the following: (I) the total number of residential rental units in the building (including the number of bedrooms and the size in square feet of each unit); (ii) the percentage of residential rental units in the building that are Low- Income Units; (iii) the rent charged on each residential rental unit in the building (including any utility allowance); (iv) the number of occupants in each Low-Income Unit; (v) the Low-Income Unit vacancies in the building and information that shows when, and to whom, the next available units were rented; (vi) the annual income certification of each Qualifying Tenant; (vii) documentation to support each Qualifying Tenant's income certification; - 8 - ,.mrwMcainrvt..c9 ew 70008111..doc 111111111111 IIIIII IIII IIIIIII 011111111110 Land Use Restriction Agreement 2662242 12/22/1998 01:39P Weld County CO Stagecoach Gardens 9 of 15 R 76.00 D 0.00 JR Sukl Tsukamoto (viii) the eligible basis and qualified basis of the building at the end of the first year of the credit period; and (ix) the character and use of the nonresidential portion of the building included in the building's eligible basis under Section 4.2(d) of the Code (e.g., tenant facilities that are available on a comparable basis to all tenants and for which no separate fee is charged for use of the facilities, or facilities reasonably required by the Project). Owners are required to keep all records for each building for a minimum of six years after the due date (with extensions) for filing the Owner's federal income tax return for any year; provided, that the records for the first year of the credit period must be retained for at least six years beyond the due date (with extensions) for filing the federal income tax return for the last year of the compliance period of the building. 11. Enforcement. (a) The Owner covenants that it will not knowingly take or permit any action that would result in a violation of the requirements of Section 42 of the Code or of this Agreement. Moreover, the Owner covenants to take any lawful action (including amendment of this Agreement) as may be necessary, in the opinion of the Authority, to comply fully with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the United States Department of the Treasury or the Internal Revenue Service from time to time pertaining to the Owner's obligations under Section 42 of the Code and affecting the Project. (b) The Owner shall promptly advise the Authority as to the date each building in the Project is a Qualified Low-Income Building. (c) In the event of any failure of the Owner to comply with the provisions of Section 42 of the Code or of this Agreement, the Authority shall inform the Owner by written notice of such failure and provide the Owner a period of time in which to correct such failure. If any such failure is not corrected to the satisfaction of the Authority within the period of time specified by the Authority, which shall be at least thirty (30) days after the date any notice to the Owner is mailed, or within such further time as the Authority determines is necessary to correct the violation, but not to exceed any limitations set by applicable regulations, without further notice the Authority may declare a default under this Agreement effective on the date of such declaration of default, and the Authority may (i) apply to any court, state or federal, for specific performance of this Agreement or an injunction against any violation of this Agreement; (ii) secure the appointment of a receiver to operate the Project in compliance with this Agreement; or (iii) exercise any other remedies at law or in equity or any such other action as shall be necessary or desirable to correct non-compliance with this Agreement. - 9 - radd88d<UinrNura 8 W 0008I V n.d Oc Land Use Restriction Agreement I11111111111111111 MI11111111III IIIIIII Stagecoach Garden:; 2662242 12/22/1998 01:39P Wald County CO 10 of 15 R 76.00 D 0.00 JR Suitt Tsukamoto (d) The Owner and the Authority each acknowledges that the primary purpose of requiring compliance by the Owner with the restrictions provided in this Agreement is to assure compliance of the Project and the Owner with Section 42 of the Code and the Treasury Regulations thereunder, AND BY REASON THEREOF, THE OWNER IN CONSIDERATION OF RECEIVING AN ALLOCATION OF LOW-INCOME HOUSING TAX CREDITS FOR THE PROJECT HEREBY AGREES AND CONSENTS THAT THE AUTHORITY, ANY QUALIFYING TENANT AND ANY INDIVIDUAL WHO MEETS THE INCOME LIMITATION APPLICABLE TO THE BUILDING UNDER THE CODE (WHETHER PRESENT, PROSPECTIVE OR FORMER OCCUPANTS OF THE BUILDING) (ANY OR ALL OF THEM) SHALL BE ENTITLED, FOR ANY BREACH OF THE PROVISIONS HEREOF, AND IN ADDITION TO OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC PERFORMANCE BY THE OWNER OF ITS OBLIGATIONS UNDER THIS AGREEMENT IN ANY COURT, STATE OR FEDERAL. OF COMPETENT JURISDICTION, the Owner hereby further specifically acknowledging that the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder. le) In the event of the Owner's or Project's failure to comply fully with the Code, the covenants and agreements contained herein or with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the United States Department of the Treasury or the Internal Revenue Service or the Authority from time to time pertaining to the obligations of the Owner as set forth therein or herein, the Authority, in addition to all of the remedies provided by law or in equity, shall notify the Internal Revenue Service of such noncompliance. 12. Issuance of Form 8609. The Authority shall prepare and file with the Internal Revenue Service ("IRS") IRS Form 8609 with respect to each building in the Project, evidencing the Authority's allocation of low-income housing tax credits with respect to the Project. The Authority shall issue Form 8609(s) to the Owner when the following conditions have been met: (a) Each building in the Project for which a Form 8609 is issued is a Qualified Low-Income Building. (b) The Owner and the Project are in compliance with the terms of this Agreement, including particularly, but without limitation, Sections 4 and 5 hereof. (c) The Owner shall have provided, on form(s) approved by the Authority, a certification of each building's "eligible basis" as defined in Section 42(d) of the Code and the Authority shall have made its final determination of the credit amount and its final determination pursuant to Section 42(m)(2) of the Code. (d) The Owner shall have provided a copy of the executed partnership or operating agreement. - 10 - ,em.mimcvi„aauaee\a7000ew..doc 1511612121141)11112112111191118110111:31191)11welltilicol unly CO Land Use Restriction Agreement 11 of 15 R 76.00 D 0.00 JA Suitt Tsukameto Stagecoach Garden:; (e) The Owner shall have provided evidence satisfactory to the Authority of the consent of any prior recorded lienholder on the Project to this Agreement. (f) The Owner and its management agent shall have completed compliance training provided or approved by the Authority. (g) The Owner shall have paid the compliance monitoring fee. 13. Return of Unused Credit. Pursuant to Section 42(h)(3)(C) of the Code and Treasury Regulation 41.42-14(d) thereunder, the housing tax credit dollar amount allocated to the Owner with respect to the Project shall be canceled and returned to the Authority, in whole or in part, if any building in the Project is not a Qualified Low- Income Building within the time period required by Section 42 of the Code, or (ii) the "Qualified Basis" of any building in the Project is less than the qualified basis on which the credit amount was allocated by the Authority. 14. Relesise and Indemnification. The Owner acknowledges that, in issuing Internal Revenue Service Form 8609 with respect to the Project, the Authority is relying or will rely upon information and representations given by or on behalf of the Owner and has made or will make no independent investigation and does not and will not have independent knowledge of the basis for such information and representations. Accordingly, to induce the Authority to issue the Form 8609, the Owner agrees as follows: (a) The Owner agrees to release and forever discharge the Authority, its members, employees, agents, officers, successors and assigns of and from any and all claims, demands, causes of actions, judgments and executions which Owner has or may hereafter have against the Authority, whether in law or in equity, arising or resulting from, or on account of or pertaining to, whether directly or indirectly, the issuance of a Form 8609 with respect to the Project by the Authority. (b) The Owner hereby agrees to indemnify, save harmless and defend the Authority, and its members officers, agents, employees, successors and assigns from any obligation, claim, loss, demand, cost, expense (including the costs of the investigation and settlement of any claim, and including reasonable attorney's fees) or judgment against the Authority arising or resulting from, or on account of or pertaining to, whether directly or indirectly, the Authority's issuance of a Form 8609 with respect to the Project. If any such claim is asserted, any indemnified party hereunder will give prompt notice to the Owner and will cooperate in the investigation and defense of any such claim. The Owner will assume the defense of any such asserted claim by engaging counsel approved by the indemnified party (which approval shall not be unreasonably withheld), it being understood that the indemnified party shall have the right to employ its own separate counsel and participate in such proceedings at its own cost and expense. - 11 - raxMViMcVinWvnW81870008 W,Aec LandeUse hestariction rdeon Agreement I IIIIII 111111111111111111111111111111111111111111111111 12 of 16 R 76.00 D 0.00 JP Saki Tsukamoto (c) If the indemnification provided in subsection (b) is, for any reason, either unavailable to the Authority or any of the other persons intended to be indemnified thereby or insufficient to hold it or any of them harmless, then the Owner hereby agrees to contribute to all amounts paid or payable by the Authority and such other persons as a result of any such obligation, claim, loss, demand, cost, expense, or judgment. The amount to be contributed by the Owner shall be the amount that is appropriate to reflect both the relative benefits received by the Owner, on the one hand, and by the Authority and such other persons, on the other hand, and the relative degrees of fault of the Owner, on the one hand, and of the Authority and such other persons, on the other hand. 15. Miscellaneous. (a) The invalidity of any clause, part or provision of this Agreement shall not affect the validity of the remaining portions thereof. (b) All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when mailed by certified or registered mail, return receipt requested, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing. To the Authority: Colorado Housing and Finance Authority 1981 Blake Street Denver, Colorado 80202-1272 Attention: Low-Income Housing Tax Credit Program To the Owner: Stagecoach Gardens Apartments, Ltd. 2448 - 1^ Avenue Greeley, CO 80631 Attention: Thomas Teixeira The Authority and the Owner may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. (c) This Agreement shall be governed by the laws of the State of Colorado and, where applicable, the laws of the United States of America. (d) This Agreement may be amended from time to time by any written instruments signed by both the Authority and the Owner. The signing of any such instrument by the Authority shall be deemed for all purposes to be on behalf of, and shall be legally binding on, the Authority, any Qualifying Tenant and any individual who meets the income limitation applicable to the Project under the Code (whether present, prospective or former occupants of the Project). - 12 - rentalVIMeVitWJwEtflW7000OS p.dec Land Use Restriction Agreement 1111111 11111 111111 11111111111 III IIIIIII III 111111 III IR Stagecoach Gardens 2662242 12/22/1996 01:39P Weld County CO 13 of 15 R 76.00 D 0.00 JR Suki Taukamoto IN WITNESS WHEREOF, the parties have caused this agreement to be signed by their respective duly authorized representatives, as of the day and year first written above. STAGECOACH GARDENS APARTMENTS, Ltd. A Colorado Limited Partnership [SEAL] T // /� By: Q Le, 14.44 �(- , H -e GFr ..s RI rd L. Lengel 4i, • 4; Its: President %y4�::OFtPOq •• e•• q,�: i O SEAL i : ¢,' COLORADO HOUSING D INANCE .AUTHORITY u : [SEAL] r .• .t)..••,•••' e COI;AO�s �yr Da d W. a finger, five Director J STATE OF_ Cal\n{rlko 1 1 ss. _ COUNTY OF 1.132I & 1 Acknowledged before me this Ala day s�of t\eL'em62f 199$ , by Q\ r`Yvn..rc1 Q. Lep_e\ as Y� h C•fl. _ of S\n y,erne rcA,eA5 Afar rn r i en l • to , .mA F. My Commission expires: n Z'O(o I Z,Oc r. iVOPary Public 1 .......S£A'tE OF COLORADO 1 1 ss. CITY AND COUNTY OF DENVER y 1 Jbrn2S A. l V S, Direc± 1'" 02atokle./i of CH tTerfnas5 : i=0[- Acknowle�tR�before me this day of 19 b avid W. Herlinger as Executive Direg53$ di•CoJo a4o Housing and Finance A thority. My CbmiA44neitpires. , � `ter . , . v8�_V C .% ' r No ary Public vi.mw \.`"•: 0r'..... ;N1. / - 13 - ,..nrr.du�.•1dewibeoWKr 4rw..,.. Land Use Restriction Agreement Stagecoach Gardens EXHIBIT A LEGAL DESCRIPTION Lot 1 and 4, Block 7. City of Greeley, County of Weld, State of Colorado IIIIII I1111 IIIIII 11111111911 III 1111111111 UM ill ill 2662242 12/22/1998 01:39P Weld County CO 14 of 15 R 76.00 D 0.00 JR SuluTaukemoLo reMr11.waerwvtx.weke7000en...d« Land Use Restriction Agreement Stagecoach Gardens EXHIBIT B Minimum Applicable Fraction by Building Building Identification Number: CO-97-00109 Minimum Applicable Fraction1O9 % Building Identification Number: CO-97-00110 Minimum Applicable FractionlOCI % Building Identification Number: CO-97-00111 Minimum Applicable Fractionl0Q % Building Identification Number: CO-97-00112 Minimum Applicable Fraction1OQ % Building Identification Number: CO-97-00113 Minimum Applicable Fraction1O0 % Building Identification Number: CO-97-00114 Minimum Applicable Fraction1O0 % Building Identification Number: CO-97-00115 Minimum Applicable Fraction1OC % Building Identification Number: CO-97-00116 Minimum Applicable Fraction100 % 111111 11111 IIIIII IIII 1111111 III 111111 III 111111 Milli 2662242 12/22/1998 01:39P Weld County CO 15 of 15 R 76.00 D 0.00 JR Suk1 Tsukamoto rennNihtc\finaNur "98\0700081u adoc Hello