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
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I Comparable Number 2
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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
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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
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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.
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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.
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,«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.
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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.
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.«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.
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,.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;
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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.
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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.
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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.
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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).
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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
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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
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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
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