City Covenants - Mapleton Home Association, Boulder, Colorado

City Covenants

Compliance with the provisions of this Covenant shall be deemed to be a requirement of title.

This Permanently Affordable Housing Covenant (Covenant) is entered into as of the ___ day of ___________, 2004, by and between Mapleton LLC, a Colorado limited liability company (“Grantor” or “Owner”), and the City of Boulder Colorado, a Colorado home rule city (the “City” or “Grantee”).

This Covenant applies to the real property commonly known as Mapleton Mobile Home Park, 2635 Mapleton Avenue, Boulder, Colorado, 80304, a residential mobile home and manufactured housing community consisting of 135 spaces (“Property”), which is located upon a tract of land in the County of Boulder, Colorado, the legal description of which is Lot 1 and Lot 2, Mapleton Mobile Home Park Subdivision.

WHEREAS, the City has provided the following grant funds, totaling $825,004, toward predevelopment costs and project management, preliminary infrastructure, and the acquisition of this Property:

a) $130,004: Affordable Housing Fund (2002) funds for infrastructure work (payment made directly to engineering contractor, American Civil Contractors):

b) $17,800: CHAP (2003) funds for predevelopment and project management; c) $532,200: HOME (2003) funds for land acquisition;

WHEREAS, the intent of the City in providing these funds is to preserve the affordability of the Property for persons of low or moderate income;

WHEREAS, in addition to these funds, the parties acknowledge that the City owned the Property prior to its sale to Grantor and could have sold it at market rate and a higher price for other uses (such as a market rate mobile home park, a high density residential development, or other redevelopment), but instead elected to rezone the Property Mobile – Home Established (MH-E) with the intent that it be maintained as a permanently affordable mobile home park and to sell the Property to Grantor;

WHEREAS, the Grantor has agreed to control the rents charged for mobile and manufactured home spaces and manage income and asset requirements of the initial and subsequent homeowners for the occupancy of the Property;

WHEREAS, current and subsequent residents will benefit from the limitations on mobile and manufactured home space rents which this Covenant requires; and,

WHEREAS, the intent of the Grantor is to preserve through this Covenant the affordability of the Property for persons of low or moderate income, and to assign to the City the right to enforce compliance with this Covenant.

NOW THEREFORE, in consideration of the benefits received by the parties, the sufficiency of which is hereby acknowledged, the parties agree as follows:

“Area Median Income (AMI)” means the Area Median Income reported annually for single persons and households of various sizes by the United States Department of Housing and Urban Development, or by any successor United States Government department, agency, or instrumentality, for the metropolitan statistical area which includes the City of Boulder, Colorado.

“CPI-U” means the most recent United States Department of Labor (Bureau of Labor Statistics) Consumer Price Index for All Urban Consumers for the consolidated metropolitan statistical area which includes the City of Boulder. In the event that the CPI-U is substantially changed, re-named, or abandoned by the United States Government, then in its place shall be substituted the index established by the United States Government that most closely resembles the CPI-U.

“First deed of trust” means a deed of trust or mortgage which is recorded senior to any other deeds of trust or liens against the Property to secure a loan used to purchase the Property made by an Institutional Lender.

“Income” means the definition of income under Section 8 of the United States Housing Act of 1937, codified at 42 U.S.C.S. Sec. 437a(b)(1990), as further determined by the United States Secretary of Agriculture in 24 CFR Sec. 813.106 (1997). In the event that Section 8 is repealed or the definition of income under Section 8 is substantially modified, then “income” shall mean the anticipated total income for the next twelve month period received from all sources by each member of the household, excluding, however, temporary or non-recurring income (including gifts), income from the employment of children under age 18, payments for the care of foster children or foster adults, and amounts received specifically for the reimbursement of medical expenses for a member of the household.

“Institutional Lender” means any bank, savings and loan association, or any other institutional lender which is licensed to engage in the business of providing purchase money mortgage financing for real property.

“Manufactured Home” means a mobile home fabricated on or after June 15, 1976, in an offsite manufacturing facility for installation or assembly at the building site, with each section bearing a seal certifying that it is built in compliance with the federal Manufactured Home Construction and Safety Standard Act of 1974, as amended (42 U.S.C. 5401-5445).

“Mobile Home” means a structure, transportable in one or more sections, which is eight (8) body feet or more in width and which is built on an integral chassis and designed to be used as a dwelling when connected to the required utilities and includes the plumbing, heating, air-conditioning, and electrical systems contained therein.

“Owner” means the Grantor and any subsequent buyer, devisee, transferee, grantee, owner or holder of title of the Property or any portion of the Property.

“Primary Residence” means the residence which the Owner occupies for a minimum of eight (8) full months out of every calendar year.

“Real Property” means land and improvements or common interest ownership and improvements.

“Resident” means the owner-occupant of a mobile or manufactured home located on the Property.

“Resident Association” means the Mapleton Home Association, a Colorado non-profit corporation, or other formal association of Residents acknowledged by the Owner as the Residents’ representative.

“Space” means an area within the Property, distinguished from a lot in a subdivision under fee-simple ownership, upon which a single mobile home or manufactured home may be placed.

“Transfer” means any sale, assignment or transfer, voluntary, involuntary or by operation of law (whether by deed, contract of sale, gift, devise, bequest, trustee’s sale, deed in lieu of foreclosure, or otherwise) of any interest in the Property, including but not limited to a fee simple interest, a joint tenancy interest, a tenancy in common, a life estate, a leasehold interest (except for intended leases with the resident association and lot leases with residents), or any interest evidenced by a land contract by which possession of the Property is transferred and Owner retains title.

1. Affordability Requirements: The Grantor shall maintain the Property and use it only for the rental of mobile or manufactured home spaces. The Grantor shall maintain between 130 and 135 units. At least 120 of the units on the Property shall be considered affordable and occupied by low income households, as described below in sections 3 and 4. Grantor shall enforce the buyer income and asset limitations on the mobile or manufactured homes which are placed upon those spaces designated as Affordable Mobile Home Spaces. A small number of market rate spaces will be allowed, not to exceed 12 units, and these units will not be subject to the rental tiers, maximum income, maximum assets, initial or rent increase restrictions described below.

2. Rental Tiers: The following rental tiers shall be established in the park. The Grantor will maintain between 130 and 135 units.

Tier 1: No fewer than 65 of the units shall be affordable for households with incomes between 0 – 30% of the AMI;

Tier 2: No fewer than 30 of the units shall be affordable for households with incomes between 31 – 40% of the AMI;

Tier 3: No fewer than 15 of the units shall be affordable for households with incomes between 41 – 50% of the AMI;

Tier 4: No fewer than 10 of the units shall be affordable for households with incomes between 51 – 60% of the AMI; and

See also Memorandum of Understanding dated ________ and any successor agreement.

3. Maximum Income: The maximum income requirements of this paragraph are to be applied at the time a household purchases a unit and enters into a lease for a space on the Property. No single household in Tier 1 units shall have an income that exceeds 30% of the Area Median Income for the Boulder Primary Statistical Area (PMSA). No single household in Tier 2 shall have an income that exceeds 40% of the Area Median Income for the Boulder PMSA. No single household in Tier 3 shall have an income that exceeds 50% of the Area Median Income for the Boulder PMSA. No single household in Tier 4 shall have an income that exceeds 60% of the Area Median Income for the Boulder PMSA. A household whose income increases above the limits set forth above after becoming a Resident of one of the units may be allowed to renew the lease for occupancy of the space at the rent tier originally established.

4. Maximum Assets: At the time a household purchases a specified permanently affordable unit and enters into a lease for a space, Owner shall ensure compliance with City of Boulder approved asset limits.

5. Initial Rents: The initial rent charged for each specified permanently affordable mobile or manufactured home space during the year immediately following the date of this Covenant shall not exceed the following:

6. Rent Increases: Rent may be increased no more than once each year in an amount equal to, or less than, the percentage change in the “all items” figure for the prior twelve months in the most recent CPI-U, or by 3% of the prior year’s rent, whichever figure is less, with a minimum of sixty (60) days notice to Residents. A rent increase above the percentage change in the CPI-U or 3% may be granted by the City upon its receipt and review of evidence which it finds to be convincing that operating expenses during the prior twelve months have increased by a percentage higher than the change in the CPI-U or 3%. In accordance with Colorado Revised Statutes Section 38-12-204, as amended, the Grantor must provide Residents with at least sixty (60) days written notice before rent increases are implemented.

7. Temporary Free Rent Space: As executed in a separate agreement, in recognition of the years of service provided to the Mapleton and Branding Iron Mobile Home Parks by the resident managers as of the date of this Covenant, the City agreed to and Mapleton agrees to provide free space rental at Mapleton Mobile Home Park for as long as either of the same lives and continues to reside in the Park. The Agreement to provide free rent shall terminate immediately if the same either vacates or abandons the Property. This Agreement shall not be assignable or transferable, and is personal to and for the benefit only of the resident managers as of the date of this covenant.

The City and Mapleton agree that if in the future the resident managers as of the date of this Covenant continue to reside in the Park but cease to be resident managers, and a different resident manager is provided free rent, then if it is financially demonstrated that the lost rental income needs to be accommodated, a minor rent increase may be applied to all leases in the Park at the time of a regular annual rent increase. If this requires a rent increase above that which is allowed by the Covenant, the City will grant such an increase if it is demonstrated to be financially necessary.

The separately executed “Free Rent Agreement” is binding upon Mapleton as the Property owner, the City, and the resident managers as of the date of this Covenant and their respective legal representatives, successors in interest, and assignees.

8. Lease Approvals: The City Manager or his/her designee must pre-approve the original Master Lease between the Grantor and the Residents or Resident Association. The original lot lease templates between the Resident Association or other entity and residents must also be pre-approved by the City Manager or his/her designee.

9. Length of Leases: Leases (or sublease in the event the Grantor enters into a Master Lease with a resident organization) between the Grantor and residents of the specified permanently affordable unit spaces must be for not less than one (1) year, unless by mutual agreement between the Grantor and homeowner. The Resident Association may enter into sub-leases with the homeowners for more than one year, by mutual consent, so long as this is in keeping with federal, state and local ordinances, any funding requirements, and the Master Land Lease.

10. Lease Provisions: No lease for the Property or any part thereof may contain any of the following provisions:

A. Agreement by the Resident to be sued, to admit guilt, or to a judgment in favor of the owner in a lawsuit brought in connection with the lease;

B. Agreement by the Resident that the Grantor may take, hold or sell personal property of household members without notice to the Resident and a court decision on the rights of the parties. The Grantor may dispose of this personal property in accordance with state law;

C. Agreement by the Resident not to hold the Grantor or the Grantor’s agents legally responsible for any action or failure to act, whether intentional or negligent;

D. Agreement of the Resident that the Grantor may institute a lawsuit without notice to the Resident;

E. Agreement by the Resident that the Grantor may evict the Resident or household members without instituting a civil court proceeding in which the Resident has the opportunity to present a defense, or before a court decision on the rights of the parties;

A. Agreement by the Resident to waive the Resident’s right to appeal or to otherwise challenge in court a court decision in connection with the lease; or

B. Agreement by the Resident to pay attorney's fees or other legal costs even if the Resident wins in a court proceeding by the Grantor against the Resident. The Resident may be obligated to pay costs if the Resident loses.

11. Lease Termination or Renewal: The Grantor may not terminate the tenancy or refuse to renew the lease of a Resident of the Property except for: a) serious or repeated violation of the terms and conditions of the lease; b) for violation of applicable federal, state or local law; or c) for other good cause. Any termination or refusal to renew must be preceded by not less than thirty (30) days written notice served upon the Resident from the Grantor specifying the grounds for the action. If the Resident poses an imminent threat to the health, safety and well-being of other Residents of the Property, an appropriate course of action, approved by the City, may be implemented. This may include the assistance of the police, Adult Protective Services, the Mental Health Center of Boulder County, or another entity with expertise in such situations. Any termination of tenancy must be in accordance with state laws (Colorado Revised Statutes Section 38-12-202, as amended).

12. Lease Restrictions: The Grantor shall ensure that any leases with Residents include Thistle Community Housing Land Trust approved restrictions that:

A. Require Residents to maintain their mobile or manufactured homes as their Primary Residences and if homes are rented out for any allowed portion of time, Residents will charge no more for rent than what they are paying for their housing costs and will not charge a rent for profit;

B. Allow for exceptions to the primary residence requirements, which may be granted for special circumstances on a case by case basis as approved by the Grantor or its assignee;

C. Residents may rent or lease the entirety of their residence for no more than a period or periods of time aggregating one year out of every seven year period (TCH wants “in accordance with Thistle’s CLT Program”). At all other times, the only part of the residence which the Resident may rent or lease is a bedroom, subject to all requirements of Thistle Community Housing Land Trust Program and City ordinances concerning the renting of residential property;

D. Limit the income and assets of a purchaser of the home located on the space designated for low or moderate income qualified households; and,

E. Residents may own only one home in the Mapleton Mobile Home Park. Exceptions may be granted for special circumstances on a case by case basis as approved by the Grantor or its assignee; and

F. Require a City-approved fair marketing process for the sale of the mobile or manufactured homes.

13. Required Reports: In the eighteen (18) months following acquisition of the Property, Grantor shall provide the City with reports every six (6) months on the Resident Management Plan and financial performance of the park. The Resident Management Report shall include information on: 1) Board/Committee structure, composition, and activities; 2) community activities; and 3) use of the grievance process. The financial reports shall include: 1) the debt service payments; 2) debt coverage ratio (DCR); and 3) the net operating income (NOI). Additional financial reports that include full operating expenses and revenues may be required if the DCR falls below 1.15 in the first three years following acquisition of the Park, or 1.2 in the years thereafter. These reports shall be due January 31 and July 31.

Reports on the progress of the infrastructure, including the scope of work, schedule, and completion of work shall be provided every six months for four years after the point of sale, or until such time as all infrastructure work is completed. These reports shall be due January 31 and July 31.

At the time of the acquisition of the Property, the Grantor shall provide the Grantee with a Master Resident Report, which shall contain all information included in the Division of Housing’s Annual Resident Report, including, but not limited to: the unit numbers, rental tier amounts, and HOME designated units. Annually thereafter, a Resident Report, including that same information and resale information, will be due by January 31 of each year.

14. Resident Management Plan: The various documents related to the purchase of the Property include information which constitutes a written Resident Management Plan consistent with the City’s desire that the Mapleton Mobile Home Park be resident controlled as well as permanently affordable, as expressed in City Council approved Resolution #874, dated January 2, 2001 and the August 21, 2001 amendment to that resolution.

15. Fair Marketing: The Grantor shall comply with fair and affirmative marketing requirements in accordance with HUD requirements and local ordinances. Affirmative marketing steps consist of actions to provide information to the general public regarding housing availability and otherwise attract eligible persons in the housing market to the available housing without regard to race, color, national origin, sex, religion, familial status, disability, gender identity, genetic characteristics or sexual orientation.

A. Methods for informing the public, owners, and potential tenants about fair housing laws;

B. Practices to adhere to affirmative marketing procedures, including use of commercial media, use of community contacts, use of Equal Housing Opportunity logotype or slogan, and display of fair housing poster;

C. Procedures to inform and solicit applications from person in the housing market area who are not likely to apply for the housing without special outreach (e/g/, use of community organizations, places of employment, fair housing groups, or housing counseling agencies);

D. Records that are kept describing actions taken to affirmatively market units and records to assess the results of these actions; and,

E. A description of annual assessment of affirmative marketing actions and what corrective actions will be taken when affirmative marketing requirements are not met.

16. Enforceable Interest: The parties acknowledge that the Grantor is an entity which provides housing services similar to the Housing Authority for the purposes noted in Colorado Revised Statutes § 38-12-301, and that the City has obtained an enforceable interest in the Property through a separate deed of trust. If at any time state law does not require the City to have an interest in the Property through a separate deed of trust, then the City shall cause such deed of trust to be promptly released.

17. Compliance with Laws and Regulations: The Grantor shall comply with all applicable laws and regulations of the City, State, and Federal governments.

18. Default and Right to Cure: Non-payment of mortgage or other liens encumbering the Property constitutes a monetary default. The Grantor agrees that it will give immediate notice (“a default notice”) to the City upon the first to occur: a) the date any notice of foreclosure is provided to the Grantor or any foreclosure is commenced against the Property under the first deed of trust, or b) the date when the Grantor becomes twenty-one (21) days late in making a payment on any indebtedness encumbering the Property which payment is required to avoid foreclosure of the first deed of trust (“a cure payment”). The City may, but shall not be obligated to, make a cure payment to avoid foreclosure or make a payment needed in order to redeem the Property after foreclosure. Upon making a second cure payment within any six month period or after redeeming the Property from foreclosure, the City may assume all of the Grantor’s rights and obligations under the first deed of trust, subject to the terms of the Covenant. In such event, the Grantor shall forthwith quit the Property and relinquish possession thereof to the City and thereafter the City shall be responsible for all financial obligations of the Property. After the City has obtained clear title to the Property, any equity that Grantor has in the Property shall be paid to Grantor after deduction of any costs or expenses of the City in curing a default or after making the redemption payment. In the event the City redeems the Property from foreclosure, the Grantor shall have four (4) months, after the City assumes ownership of the Property, unless extended by mutual agreement, to reimburse to the City its costs plus interest and reassume ownership and all financial obligations of the Property.

In the event that the City does not elect to cure default, redeem during foreclosure proceedings, or redeem after foreclosure sale of the Property, the Resident Association may, but shall not be obligated to make any cure payment or redemption payment as provided by law. In order to redeem the Property from foreclosure proceedings or a foreclosure sale, the Resident Association must document sound organizational health, as demonstrated by: a consistent history of fiscal management and oversight of the Park; support from 60% of all households in the Park; and, proof of financial commitment from a lending institution.

19. Transfer: The Grantor shall not transfer its interest in the Property to any successor in interest without the City’s express written agreement that the City’s affordable housing interest in the Property will not be jeopardized by such transfer. To that end, no transfer shall occur unless a successor in interest qualifies as a “housing authority” or “similar agency,” as those terms are utilized in Colorado Revised Statutes Section 38-12-301, or can otherwise be legally bound by rent restrictions. In any case, at least ninety (90) days prior to the transfer of the Grantor’s interest in the Property, the Grantor shall notify the City and the Resident Association of such transfer and the Grantor shall offer the City and the Resident Association first rights to purchase the Property as described in Paragraph 21, below.

20. Purchase Price: The Parties agree that the Property is intended to remain permanently affordable and that the Grantor is not purchasing the Property in order to make a profit on any potential future sales of the Property. In order to protect the public investment in the Property as well as the ability of any Resident Association or other potential future purchasers to purchase the Property for a price that will allow the Property to continue to operate as a permanently affordable mobile home park, the maximum price for which the Property may be transferred shall be for no more than its then appraised fair market value, based on affordable rents as restricted in this Covenant and as determined through a mutually acceptable appraisal (the “Sales Price”). The Grantor may elect to sell the Park for a lower price to the Resident Association.

21. Resident Association Purchase Right and City Purchase Right: In the event the Grantor wishes to sell or transfer the Property, it shall notify the Resident Association and the City in writing as provided herein in Paragraph 19, above.

A. Resident Association Purchase Right. The Resident Association shall then have sixty (60) days in which to notify the Grantor and the City in writing of its intention to purchase the Property and to enter into an agreement to purchase the Property. The sales price may be less, but may not exceed, the price as determined in accordance with Paragraph 20 above. The Resident Association’s contract with the Grantor shall require that the provisions of Paragraph 19, above, be satisfied, and that the Resident Association shall execute such documents that are reasonably required by the City to ensure that the Property remains a permanently affordable mobile home park, which documents shall include an assumption of the responsibilities of the Grantor under any such agreements. The Resident Association must close on the purchase of the Property within one hundred and twenty (120) days of the written intent to purchase the Property, unless the Grantor and the Resident Association agree to a different closing date so long as that date is within one year from the time the Resident Association has issued its written intent to purchase the Property. If the closing date exceeds one year from the written notice of intent to purchase the Property by the Resident Association, the Grantor, the Resident Association, and the City must agree to a different closing date.

B. City Purchase Right. If the Resident Association waives its rights to purchase the Property, does not enter into a contract with the Grantor, or does not close on the Property within one hundred and twenty (120) days of the written intent to purchase the Property, or agreed upon closing date between Grantor and the Resident Association, the City shall have a right to purchase the Property. The City shall have sixty (60) days from such event to notify the Grantor and the Resident Association of its intention to purchase the Property and to enter into a contract with the Grantor to purchase the Property. The City shall close within one hundred and twenty (120) days of the written intent to purchase the Property, unless the Grantor and the City agree to a different closing date.

C. The Resident Association may exercise its Purchase Right, as described in Paragraph 21 A, above, if an acquisition plan is developed that is approved by the Grantor, with such a plan documenting sound organization health, as demonstrated by: a consistent history of fiscal management and oversight of the Park; support from 60% of all households in the Park; and, proof of financial commitment from a lending institution.

22. Financing of the Property: The Owner may only finance the Property in an amount which does not result in a Debt Coverage Ratio on the Property of any less than 1.15 for the first three years after acquisition of the Property or 1.20 in the fourth year and all years thereafter following the acquisition of the Property, without written permission from the City. Such financing must be with an Institutional Lender, and shall give the City the right to cure any monetary defaults. Institutional Lender must agree to notify the City in the event of monetary default. Lender shall not foreclose on the Property if the City has exercised its right to cure any monetary default or has exercised its right to purchase the Property. The City shall exercise its right within ninety (90) days of notice of the default or it shall expire.

23. Maintenance of Property: The Owner shall maintain the Property in good, safe, and

habitable condition in all respects, except for normal wear and tear, and in full compliance with all applicable laws, ordinances, rules and regulations of any governmental authority with jurisdiction over matters concerning the condition of the Property. The Owner shall suffer no mechanics’ liens to be recorded against the Property.

24. Enforcement of This Covenant: The Grantor hereby grants and assigns the City the right to review and enforce compliance with this Covenant. Compliance may be enforced by the City by any lawful means, including without limitation specific performance and damages to reimburse the City for its enforcement costs. The City may also require the Owner to repay with reasonable interest (not to exceed 18%) any funding received in connection with the Property purchase, and prohibit the Owner from retaining sales or rental proceeds.

Venue for a suit enforcing compliance shall be proper in Boulder County, Colorado, and service may be made or notice given by posting such service or notice in a conspicuous place on the Property. Enforcement actions may include, without limitation, repayment of City- determined overcharges to tenants, eligibility for future funding, or lawsuit. Without waiving any of its rights, Grantee shall attempt to resolve any matter prior to initiating enforcement actions.

25. Force Majeure: In the event the Parties are prevented, delayed or stopped from performing

any act, undertaking, or obligation under this lease by reason of an “event of Force Majeure” including excessive excess weather, strikes, lockouts, labor disputes, failure of power, act of public enemies of this State or of the United States of America, riots, insurrection, war, civil commotion, inability to obtain labor or materials, or any other cause (except financial) beyond the reasonable control of the party whose performance is so prevented, delayed or stopped, then the time for that party’s performance shall be extended one day for each day’s prevention, delay or stoppage by reason of such event of Force Majeure.

A. This Covenant shall run with the land. It shall bind perpetually, and the benefit hereof shall inure perpetually to the Owner, his or her heirs, legal representatives, executors, successors in interest and assignees, and to the City, its successors, designees, or assignees.

B. The Property may not be used by any other development to satisfy the requirements of Chapter 9-6.5 B.R.C, 1981 or any other off-site permanently affordable housing obligations.

C. The Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased, rented, and occupied subject to these covenants, conditions, restrictions and limitations. All of the herein-stated covenants, conditions, restrictions and limitations are intended to constitute both equitable servitudes and covenants running with the land.

D. Any buyer or transferee of the Property or of any portion of or interest in the Property, by acceptance of a deed thereof, or by the signing of a contract or agreement to purchase the same, shall, by acceptance of such deed or by the signing of such contract or agreement be deemed to have consented to and accepted the covenants, conditions, restrictions and limitations set forth herein.

E. Notices to the City shall be given in writing and delivered in person or mailed, by certified or registered mail, return receipt requested, to the party at the address set forth below, or such other address designated by the City by like notice:

Notices to the Owner may be given in like manner addressed to the Property, with a copy to:

Notices to the Resident Association shall be given in like manner addressed as follows:

F. If any provision of this Covenant shall be held by a court of proper jurisdiction to be invalid, illegal or unenforceable, the remaining provisions shall survive and their validity, legality or unenforceability shall not in any way be affected or impaired thereby.

G. The captions of the paragraphs in this covenant are for convenience only and shall not be used to interpret the meaning of any provision hereof.

H. The conditions of this Covenant shall be interpreted so as to avoid speculation on the Property and to insure to the greatest extent possible that its purchase price and rent payments remain affordable in perpetuity to persons and families of low or moderate income.

I. The City Manager or his or her designee shall have the right to modify this Covenant to address changes in federal, state, or local laws that would materially effect the permanent affordability of the housing on the Property for persons of low or moderate incomes. The City will notify Grantor of any changes and provide a sixty (60) day response period to changes. Non-response constitutes acceptance of modifications. It is intended that any modifications shall be in keeping with the spirit of this Covenant and not adversely affect the Parties.

IN WITNESS WHEREOF, the parties execute this Covenant as of the date first stated above.

The foregoing instrument was acknowledged before me this _____ day of _________, 2004, by _________________________________ as ________________________ of Thistle Community Housing, a Colorado non-profit corporation, as sole member of Mapleton LLC, a Colorado limited liability company.

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