Mapleton Mobile Home Park Master Land Lease
MAPLETON MOBILE HOME PARK
MASTER LAND LEASE
THIS LEASE (“this Lease” or “the Lease”) made and entered into this eighth day of December, 2004, by and between Mapleton LLC, a Colorado limited liability company (“MLLC” or “Lessor”), whose address is 1845 Folsom Street, Boulder, Colorado 80302, and The MAPLETON HOME ASSOCIATION, a Colorado non-profit corporation (“MHA” or “Lessee”), whose address is 2635 Mapleton, Boulder, Colorado 80304. The following exhibits are attached hereto and incorporated by Reference:
1. Exhibit COVENANT
2. Exhibit PREMISES
3. Exhibit LOT LEASE
4. Exhibit INFRASTRUCTURE
5. Exhibit DEED
6. Exhibit PERMITTED MORTGAGES
7. Exhibit PURCHASE RIGHT.
NOTICE TO LENDERS, CREDITORS, LESSEE: Under no circumstances shall Lessee or Lessee’s lenders or creditors encumber or purport to encumber the Land, the Infrastructure, Lessor’s interest in the Premises or this Lease, or any other interest of Lessor. Any such action shall be a violation of the Land Lease, is void, does not create a claim, lien, encumbrance or property interest of any type in favor of Lessee or its lenders or creditors, and creates liability from such party to Lessor including without limitation, liability under C.R.S. § 38-35-109 (3), as amended from time to time. Only Permitted Mortgages, as described in Article 8, herein, are allowed on the Lessee’s interest in this Lease.
Preface: Permanent Affordability – Foundation for this Partnership, Spirit of this Agreement
WHEREAS it is mutually understood that the purpose and intentions of the good faith
partnership between MHA and MLLC represents a balance of interests as outlined below. All those reading this document should recognize that the mutual shared best interest and intent of all parties engaged in this legal document and the bargaining process is based upon the vision and spirit of permanent affordability, Park sustainability and residents having oversight of the management of the Park. Therefore, let it be recognized that the intentions of the founders of this document are that all successors to this agreement best preserve that original spirit and vision as long as this legal document is binding.
Recitals:
WHEREAS MLLC is organized exclusively for charitable purposes, including the development and preservation of decent, sustainable, permanently affordable housing for low and moderate income people in Boulder County and nearby areas; the conservation of land and natural resources by means such as fostering responsible long-term occupancy; the promotion of neighborhood stability and the creation of a more equitable and stable system of property and housing opportunities in Boulder County and nearby areas; and the creation of home ownership opportunities for Low and Moderate income people, who otherwise would be denied such opportunities because of limited financial resources;
WHEREAS, it is a goal of MLLC is to stimulate the conveyance of decent, affordable housing among Low and Moderate income people by providing access to housing for such persons at affordable prices through the long-term leasing of land under said housing;
WHEREAS MHA is organized as the homeowner’s association for Mapleton Mobile Home Park (“the Park”) and as a democratically run not-for-profit corporation for purposes that include providing and preserving decent, modern, permanently affordable housing for low and moderate income people residing in the Park, providing these residents with oversight of the management of the Park and reasonable control over financial decisions pertaining to the Park; and providing protection of the rights, interests and privileges of these residents as Sublessees under the terms of this Lease;
WHEREAS the City of Boulder has sold the Park and the land on which it is situated to MLLC on the condition that the Park be managed so as to provide decent, affordable housing on a continuing basis for low and moderate income households;
WHEREAS MLLC has purchased the Park with the intention of seeing that it is managed so as to provide decent, affordable housing on a continuing basis for low and moderate income households and with the residents of the Park having a reasonable degree of control over its management;
WHEREAS the members of MHA have voted to “join the Community Land Trust program” operated by MLLC, with the understanding that such action would involve MHA’s leasing the Park from MLLC on terms that would provide for continuing affordability for low and moderate income households, while giving the MHA or its approved assignees oversight of the management of the Park;
WHEREAS MLLC and MHA recognize the special nature of the terms and conditions of the Lease, and each of the parties hereto, with the independent and informed advice of legal counsel, freely accepts said terms and conditions, including, without limitation, such terms and conditions as might affect the marketability or resale price of any improvements owned by MHA;
WHEREAS It is mutually understood and accepted by MLLC and MHA that the terms and conditions of this Lease further the parties’ shared goals over an extended period of time and shall continue to do so in the event that either party assigns its interest to another; and
NOW, THEREFORE, in consideration of the foregoing recitals, of mutual promises of the parties hereto, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1: Demise of Leased Premises
1.1 PREMISES: The Lessor, in consideration of the rents reserved and the terms and conditions of this Lease, and subject to the terms and conditions of the Permanently Affordable Housing Covenant (“the Covenant”) granted by Lessor to the City of Boulder, which is attached hereto as Exhibit COVENANT, and subject to the terms and conditions of the Affordability Memorandum of Understanding (“the Affordability MOU”), executed by Lessor and the City of Boulder, does hereby demise and leave unto Lessee, and Lessee does hereby take and hire from Lessor, the property (referred to in this Lease as the “Leased Premises”) described in the attached Exhibit PREMISES. Lessor has furnished to Lessee a copy of the most current, if any, title report previously obtained by Lessor for the Premises, and Lessee accepts title to the Leased Premises in their condition “as is” as of the execution of this Lease. Lessee understands that Lessee’s right regarding the Leased Premises are limited in certain ways by the terms of the Covenant.
1.2 RESERVATION OF MINERAL RIGHTS: Lessor reserves to itself all the minerals and other extractive resources of the Leased Premises. This reservation shall not diminish the right of the Lessee under this Lease to occupy and freely use the Leased Premises. Any eventual extraction by the Lessor of minerals or other extractive resources shall be carried out with as little disruption to the Lessee as is reasonably possible. In instances requiring a material disruption of the Lessee’s right of use and occupancy of the Leased Premises, the Lessor shall not make such extraction without the consent of the Lessee. Notwithstanding the foregoing reservation, Lessee shall have the right to extract such quantities of water as are necessary for the operation of the Park and as can be extracted in accordance with all applicable laws and regulations and reasonable policies of water conservation.
ARTICLE 2: Duration of Lease
2.1 PRINCIPAL TERM: The term of this Lease shall be 99 years, commencing on the 8th day of December, 2004, and terminating on the 8th day of December, 2103, unless terminated sooner or extended as provided below.
2.2 LESSEE’S OPTION TO EXTEND: Lessee may extend the principal term of this Lease for one (1) additional period of 99 years, subject to all of the provisions of this Lease; provided that Lessor may make changes to the terms of the Lease for the renewal period prior to the beginning of such renewal period but only if these changes do not materially and adversely impair Lessee’s rights under the Lease. Not more than 365 nor less than 180 days before the last day of the current term, Lessor shall give Lessee written notice, stating the date of expiration of the Lease, describing any changes that Lessor intends to make to the terms of the Lease as permitted above, and reiterating the conditions for renewal as set forth immediately below (“the Expiration Notice”).
Lessee’s right to exercise the option to extend is subject to the following conditions: (a) within 60 days of receipt of the Expiration Notice, Lessee shall give Lessor written notice, irrevocably exercising the option to extend (“the Extension Notice”); (b) this Lease shall be in effect at the time the Extension Notice is given and on the last day of the term, and (c) there shall not be an Event of Default by Lessee under this Lease or under any loan documents between Lessee and any Permitted Mortgagee at the time the Extension Notice is given and on the last day of the term.
When Lessee has rightfully exercised the option to extend, each party shall execute a memorandum, in mutually agreeable recordable form, acknowledging the fact that the option has been exercised and otherwise complying with the requirements of law for an effective memorandum or notice of lease, and such memorandum or notice of lease shall be recorded in accordance with the requirements of law on or promptly after the commencement of such renewal period of the Lease.
2.3 CHANGE OF LESSOR; LESSEE’S RIGHT TO PURCHASE: In the event that ownership of the land comprising the Leased Premises (the “Land”) is conveyed or transferred (whether voluntarily or involuntarily) by Lessor to any other person or entity, this Lease shall not cease, but shall remain binding and unaffected. Prior to selling or conveying the Land the Lessor shall offer to convey the Land to Lessee as provided in the attached Exhibit PURCHASE RIGHT. Any sale or other transfer contrary to this Section 2.3 shall be null and void.
ARTICLE 3: Use of Leased Premises
3.1 USE AS MOBILE HOME PARK: Lessee shall perpetuate the present use of the Leased Premises as a mobile home park providing sites for manufactured housing together with appropriate infrastructure and services for such housing and the residents of such housing in accordance with the Master Site Plan. Lessee shall sublease lots for such housing to qualifying households (“Sublessees) on the terms and conditions identified in Article 10 of this Lease, and shall maintain all roadways and other common areas and infrastructure for the benefit of the Sublessees. Lessee may use the Premises for other purposes only with the written permission of Lessor.
3.2 RESPONSIBLE USE AND COMPLIANCE WITH LAW: Lessee shall use the Leased Premises in a manner so as not to cause actual harm to others or create any nuisances, public or private, and shall require all Sublessees to do the same. Lessee shall maintain Lessee’s Improvements and all common areas of the Leased Premises in good, safe, and habitable condition in all respects, except for normal wear and tear, in full compliance with all applicable laws and regulations, and shall require all Sublessees to do the same with regard to the portions of the premises subleased to them.
3.3 RESPONSIBLE FOR USE BY SUBLESSEES AND OTHERS: Lessee shall be responsible for the use of the Leased Premises by all employees and associates of Lessee and all Sublessees and their families, friends and visitors and anyone else using the Leased Premises with the consent of Sublessees or Lessee, and shall make all such people aware of the spirit, intent and appropriate terms of this Lease.
3.4 USES PERMITTED FOR SUBLESSEES: The uses permitted for Sublessees shall be those permitted by the Mapleton Mobile Home Park Standard Lot Lease (including the Mapleton Rules and Regulations referenced therein), which has been approved by both Lessor and Lessee and which is attached hereto as exhibit LOT LEASE. Any future modification by Lessee of the Mapleton Mobile Home Park Standard Lot Lease shall not become effective until approved in writing by MLLC or its successor as Lessor under this Master Lease. The Rules and Regulations referenced in the Lot Lease may be modified as outlined in the Mapleton By-laws and Management Plan.
3.5 INSPECTION: Lessor may inspect any portion of the Leased Premises except the interior(s) of Improvements owned by Sublessees, at any reasonable time, and in any reasonable manner, upon at least 72 hours oral notice to Lessee. In the event of emergency, Lessor may inspect any portion of the Leased Premises except the interior(s) of Improvements owned by Sublessees without notice provided the Lessor shall have made reasonable efforts to give 24 hours advance notice to Lessee, if possible. Lessor may not enter or inspect the interiors of homes or other improvements or enclosed property, including vehicles, of Sublessees without the permission of such Sublessees. With notice, the Lessor may enter the homesite to inspect the pad and area underneath the home as needed for infrastructure work.
3.6 RIGHT TO PEACEFUL ENJOYMENT: Lessee and all Sublessees have the right to undisturbed enjoyment of the Leased Premises, and Lessor has no desire or intention to interfere with the personal lives, associations, expressions, or actions of Lessee or Sublessees, subject to the provisions of this Lease.
ARTICLE 4: Ground Lease Fee
4.1 GROUND LEASE FEE: In consideration of the possession, continued use and occupancy of the Leased Premises, Lessee shall, or have its Agent, pay to Lessor a monthly ground lease fee (the “Lease Fee”). Until such time as the Lease Fee is adjusted in accordance with section 5.4 below, the monthly amount shall be One thousand two hundred and fifty dollars ($1,250.00).
4.2 PAYMENT OF GROUND LEASE FEE: The Ground Lease Fee shall be payable to Lessor, at the address specified in this Lease as Lessor’s address, on the first day of each month for as long as this Lease remains in effect.
4.3 CALCULATION OF GROUND LEASE FEE: The Lease Fee described in Section 4.1 above has been calculated based on three considerations described in this Section. First, Lessor needs to receive a Lease Fee large enough to cover its direct costs as land owner, including, in so far as possible, the administrative cost of monitoring the Lease over time. Second, Lessee cannot afford to pay a Lease Fee greater than what it can cover with its gross income from fees charged to Sublessees. Third, the net income that Lessee can generate from fees charged to Sublessees is limited by the need to keep such fees affordable for low and moderate income Sublessees.[i] The Ground Lease Fee described in section 4.1 does not include the land taxes, which are described in Article 5.
4.4 ADJUSTMENT OF GROUND LEASE FEE: In order to keep the Lease Fee reasonably current, the amount specified in Section 4.1 may be recalculated every year during the term of the Lease. At such intervals, Lessor may recalculate the Lease Fee based upon the considerations set forth in Section 4.3 above. Lessor shall notify Lessee promptly upon recalculation of the new Lease Fee amount, and if Lessee does not state objections to the recalculated amount within thirty (30) days after receipt of this notice, the Lease Fee shall then be as stated by Lessor in the notice. If Lessee does state objections to the recalculated Lease Fee, and Lessor and Lessee are then unable to agree on a recalculated Lease Fee within fifteen (15) days of Lessor’s receipt of Lessee’s objection, the dispute shall be resolved according to the mediation or arbitration process set forth in Article 14 below. Upon the final determination of the recalculated Lease Fee in accordance with the terms of this section, Lessor shall maintain in its file a notarized certification of the amount of such recalculated Ground Lease Fee and the process by which it was determined. At no time shall the amount of the Lease Fee be greater than the amount required to cover the direct and indirect costs incurred by Lessor as a result of its ownership of the Premises and its responsibilities under the terms of this Lease.
ARTICLE 5: Taxes and Assessments
5.1 TAXES AND ASSESSMENTS: Lessee shall be responsible for providing to Lessor the funds that cover the payment of all taxes and governmental assessments that relate to the Leased Premises. Lessee shall be responsible for payment of all taxes and governmental assessments that relate to any Improvements that are owned by Lessee on the Leased Premises but not those Improvements that are owned by Sublessees. Lessee shall also pay directly, when due, all other service bills, utilities charges, or other bills charged against the Leased Premises.
5.2 TAXES ON LEASED PREMISES: In the event that the local taxing authority bills Lessor for the taxes on the Leased Premises, Lessor shall pass the responsibility for this expense to Lessee, and Lessee shall promptly provide the funds to Lessor to pay this bill.
5.3 LESSEE’S RIGHT TO CONTEST: Lessee shall have the right to contest the amount or validity of any taxes relating to the Leased Premises and Lessee’s Improvements. Lessor shall, upon written request by Lessee, join in any such proceedings if Lessee reasonably determines that it is necessary or convenient for Lessor to do so. All other costs and expenses of such proceedings shall be paid by Lessee.
5.4 PAYMENTS IN EVENT OF DELINQUENCY: In the event that Lessee fails to provide funds to pay the taxes or other charges or fails to pay other charges specified in Section 5.1 above, Lessor may increase, but shall not be obligated to increase, Lessee’s Lease Fee in an amount that will offset the cost of any delinquent and current taxes or other charges relating to the Leased Premises and Lessee’s Improvements. Upon collecting any such amount, Lessor shall pay the amount collected to the taxing authority in a timely manner.
5.5 PROOF OF COMPLIANCE: Concurrently with the payment of any taxes, assessments, and charges required or permitted by the provisions of this Lease, each party shall furnish evidence satisfactory to the other documenting the payment. A photocopy of a receipt for such charges showing payment prior to the due date shall be the usual method of furnishing such evidence.
6.1 OWNERSHIP: It is agreed that all buildings, structures, fixtures, and other Improvements purchased by the Lessee or constructed or placed by the Lessee on any part of the Leased Premises at any time during the term of this Lease (“Lessee’s Improvements”) shall be property of the Lessee. Lessee’s Improvements do not include (a) improvements on subleased lots that are purchased or constructed by Sublessees and (b) the elements of infrastructure identified in Exhibit INFRASTRUCTURE. Title to Lessee’s Improvements shall be and remain vested in the Lessee. However, Lessee’s exercise of the rights of ownership is subject to the provisions of this Lease, including but not limited to provisions regarding the disposition of Lessee’s Improvements by the Lessee. Lessee may sever Lessee’s Improvements from the Leased Premises and, upon severance, may sell Lessee’s Improvements, exclusive of any and all of Lessee’s rights to the Leased Premises, to any willing buyer. In all other circumstances, Lessee may sell Lessee’s Improvements only in accordance with Article 11 below.
6.2 PURCHASE OF LESSEE’S IMPROVEMENTS BY LESSEE: Lessee will acquire the Lessee’s Improvements now located on the Leased Premises and described in the Deed, the form of which is annexed to this Lease as Exhibit DEED.
6.3 CONSTRUCTION AND ALTERATION: Any construction in connection with an existing or new Improvement developed by Lessee is subject to the following conditions: (a) all costs shall be borne and paid for by the Lessee; (b) all construction shall be performed in a workerlike manner and shall comply with all applicable laws and regulations; (c) all construction shall be consistent with the permitted uses set forth in Article 4; (d) the exterior (including height) of such Improvements shall not be increased or expanded and new Improvements shall not be constructed without the prior written consent of Lessor, who, however, shall not unreasonably withhold such consent; and (e) Lessee shall furnish to Lessor a copy of any plans and all building permits for such construction prior to commencing construction.
6.4 SUBLESSEE’S IMPROVEMENTS: Lessee shall assure that any improvements purchased or constructed by Sublessees on their subleased premises shall comply with the requirements of the Standard Lot Lease, including the Rules and Regulations referenced therein, which is annexed to this Lease as Exhibit LOT LEASE. Lessee shall enforce all terms and conditions of the Standard Lot Lease, including the Rules and Regulations referenced therein, relating to the maintenance and condition of Sublessee’s Improvements.
6.5 PROHIBITION OF LIENS: No lien of any type shall attach to the Lessor’s title to the Land or to Lessor’s interest in the Leased Premises or to any other property owned by the Lessor. Lessee shall not permit any statutory or similar lien to be filed against the Land, the Infrastructure, the Premises, or Lessor’s Interest in this Lease. Lessee shall not permit any statutory or similar lien to be filed against Lessee’s Improvements, or any interest of Lessor or Lessee which remains more than sixty (60) days after it has been filed. Lessee shall cause any such lien to be discharged of record by payment, deposit, bond, order of a court of competent jurisdiction or as otherwise permitted by law. If Lessee fails to cause such lien to be discharged within the sixty-day period, then, in addition to any other right or remedy, Lessor may, but shall not be obligated to, discharge the lien by paying the amount in question. Lessee may, at Lessee’s expense, contest the validity of any such asserted lien, provided Lessee has furnished a bond in an amount sufficient to release the Leased Premises from such lien. Any amounts paid by Lessor to discharge such liens shall be deemed to be an additional Ground Lease Fee payable by Lessee upon demand.
6.6 MAINTENANCE AND SERVICES: Lessee shall, at Lessee’s sole expense, maintain Lessee’s Improvements and all common areas of the Leased Premises as required by Section 3.2 above. Lessor shall not be required to furnish any services or facilities except those elements of infrastructure and related services identified in Exhibit INFRASTRUCTURE, or to make any repairs to Lessee’s Improvements, and Lessee hereby assumes the sole responsibility for furnishing all services or facilities except for those identified as the responsibility of Lessor in Exhibit INFRASTRUCTURE and those for which responsibility is assigned to Sublessees by the Standard Lot Lease.
6.7 DISPOSITION OF IMPROVEMENTS UPON EXPIRATION OF LEASE TERM: Upon the expiration of the term of this Lease as such term may be extended or sooner terminated in accordance with this Lease, Lessee shall surrender Lessee’s Improvements together with the Leased Premises to the Lessor. Ownership of Lessee’s Improvements shall thereupon revert to Lessor, provided, however, that Lessor shall promptly pay to Lessee as compensation an amount equal to the appraised value of Lessee’s Improvements calculated in accordance with Section 11.3 below, less the total amount of any unpaid Lease Fee including any charges that may have been added to the Lease Fee in accordance with this Lease.
ARTICLE 7: Lessor’s Financing
7.1 LESSOR’S MORTGAGE ON THE PROPERTY: In order to purchase the Park, the Lessor is securing a mortgage (the “Mortgage”). The Lessor, with the assistance of the Lessee, shall work to secure terms as favorable as possible. If so requested by Lessor the Lessee shall directly pay the financial institution(s) in a timely fashion the amount due on the Mortgage(s) and shall provide proof to Lessor of payments. The Lessee shall receive any notice of non-performance, as outlined in the Covenant. At the request of Lessor, Lessee agrees to execute a Leasehold Deed of Trust to the Mortgage Holder in the form reasonably required by the Mortgage Holder, which encumbers Lessee’s interest in this Lease, Lessee’s Improvements, and Lessee’s interest as sublessor under any subleases permitted herein, and which permits Lessor to cure any default of Lessee thereunder.
8.1 NO MORTGAGE, DEED OF TRUST OR LIENS ON LAND, LESSOR’S INTEREST IN PREMISES OR LEASE: Under no circumstances shall Lessee or Lessee’s lenders or creditors purport to encumber the Land, the Infrastructure, Lessor’s interest in the Premises or this Lease, or any other interest of Lessor. Any such action shall be a violation of the Land Lease, is void, does not create a claim, lien, encumbrance or property interest of any type in favor of Lessee or its lenders or creditors, and creates liability from such party to Lessor including, without limitation, liability under C.R.S. § 38-35-109 (3), as amended from time to time.
8.2 PERMITTED MORTGAGE: Lessee may mortgage Lessee’s Improvements and interest in the Leased Premises only with the written consent of Lessor. Lessee may not encumber Lessor’s interest in the Premises or create any obligation or liability on Lessor’s part. Not less than thirty (30) days prior to the date on which Lessee requests Lessor’s consent to a mortgage to be effective, Lessee shall furnish to Lessor copies of every document to be executed in connection with the transaction represented by such mortgage. Lessor may choose to consent to any mortgage, and in so doing shall designate such mortgage as a “Permitted Mortgage.” Lessee shall pay to Lessor at Lessor’s option, as additional Lease Fee, all fees, costs and expenses, including, without limitation, reasonable attorneys’ fees, incurred by Lessor in connection with any Permitted Mortgage.
Persons who sublease lots in the Park as sites for manufactured housing may mortgage such housing and other improvements without Lessor’s consent provided such mortgage does not in any way encumber Lessor’s interest in the Premises or create any obligation or liability on Lessor’s part.
8.3 RIGHTS OF PERMITTED MORTGAGEE: Any holder of a Permitted Mortgage (Permitted Mortgagee) shall without requirement of consent by the Lessor have the rights identified and defined in the attached Exhibit PERMITTED MORTGAGES.
8.4 AMENDMENTS SUBJECT TO APPROVAL BY PERMITTED MORTGAGEE: Any amendments to this Lease shall be subject to the written approval of Permitted Mortgagee, which approval shall not be unreasonably withheld or delayed. The passage of thirty (30) days after submittal to Permitted Mortgagee of a proposed amendment without approval or disapproval by Permitted Mortgagee shall be deemed approval thereof.
ARTICLE 9: Liability, Insurance, Damage and Destruction, Eminent Domain
9.1 LESSEE’S LIABILITY: Lessee assumes sole responsibility and liability to all persons and authorities related to its possession, occupancy and use of the Leased Premises.
9.2 INDEMNIFICATION OF LESSOR: Lessee shall defend (with an attorney of Lessor’s choice), indemnify and hold Lessor harmless against all liability and claims of liability for injury or damage to person or property from any cause on or about the Leased Premises. Lessee waives all claims against Lessor for such injury or damage, including for any matters which are known or unknown at the time of this Lease. However, Lessor shall remain liable (and Lessee shall not indemnify and defend Lessor against such liability or waive such claims of liability) for injury or damage due to the grossly negligent or intentional acts or omissions of Lessor or Lessor’s agents or employees, in which event liability shall be apportioned according to Colorado law.
9.3 PAYMENT BY LESSOR: In the event the Lessor shall be required to pay any sum that is the Lessee’s responsibility or liability, Lessee shall reimburse Lessor for such payment and for reasonable expenses caused thereby.
9.4 INSURANCE: Lessee shall, at Lessee’s sole expense, keep all of Lessee’s Improvements continuously insured against loss or damage by fire and the extended coverage hazards for the full replacement value of such Improvements. Lessee shall also have Directors and Officers and Errors and Omissions Insurance.
Lessee shall, at Lessee’s sole expense, maintain continuously in effect liability insurance covering the Leased Premises and Lessee’s Improvements in the amounts of not less than
one million dollars ($1,000,000.00) for injury to or death of any one person; and two million dollars ($2,000,000.00) for injury to or death of any number of persons in one occurrence; and
five thousand dollars ($5,000.00) for property damage; and lost income coverage no less than one hundred thousand dollars ($100,000.00) and in accordance with financial and Lessor requirements. The dollar amounts of this coverage shall be adjusted at two-year intervals, beginning on the date this Lease is signed, or upon Lessor’s demand given not more often than annually, upon 30 days notice to Lessee. This adjustment shall be equal to the percentage of change (positive or negative), over the period in question, of the Consumer Price Index for urban wage earners and clerical workers for the urban area in which the land is located or such other index as reasonably measures adjustments in coverage amounts for the applicable type of insurance. Such index is maintained by the Office of Prices and Living Conditions of the Bureau of Labor Statistics, of the U.S. Department of Labor. Such insurance shall specifically insure Lessee against all liability assumed under this Lease, as well as all liability imposed by law, and shall also insure Lessor as an additional insured so as to create the same liability on the part of insurer as though separate policies had been written for Lessor and Lessee.
Lessee shall provide Lessor with copies of all policies and renewals of policies. All policies shall also contain endorsements providing that they shall not be cancelled, reduced in amount or coverage or otherwise modified by the insurance carrier involved without at least thirty (30) days prior written notice to Lessor. Lessor shall be entitled to participate in the settlement or adjustment of any losses covered by such policies of insurance.
9.5 DAMAGE OR DESTRUCTION: In the event of fire or other damage to Lessee’s Improvements, Lessee shall take all steps necessary to assure the repair of such damage and the restoration of such Improvements to their condition immediately prior to the damage or to such condition as, at the time, will allow MHA to carry out its mission successfully. All such repairs and restoration shall be completed as promptly as possible. Lessee shall also promptly take all steps necessary to assure that the Leased Premises are safe and that the damaged Improvements do not constitute a danger to persons or property.
The insurance proceeds shall be paid first to cover any expenses of collecting the proceeds. Remaining proceeds shall be paid to the Lessee (or its Permitted Mortgagee to the extent required by a Permitted Mortgage) up to the then applicable Permitted Price (as of immediately prior to the damage) calculated according to the provisions of Sections 11.2 and 11.3 below. The balance of such proceeds, if any, shall be paid to Lessor.
9.6 EMINENT DOMAIN: In the event of a taking of the Leased Premises, either in its entirety or to such extent that it can no longer be used as a mobile home park, by reason of eminent domain or other action of public authority prior to the expiration of this Lease, the Lease shall terminate as of the date Lessee is required to give up possession of the Leased Premises. In such event, the proceeds of the award for such taking shall be allocated as follows: first to the repayment of any debt secured by the Land or Lessor’s or Lessee’s interest in the Leased Premises; second to repayment of any Permitted Mortgage of Lessee secured by Lessee’s interest in the Leased Premises; third, to cover any expenses of collecting the proceeds; and, fourth, to a “relocation fund,” to be managed jointly by Lessor and Lessee for the purpose of assisting Sublessees in relocating their homes from the Park.
In the event of a taking of a portion of the Leased Premises such that the remaining portion can still be used as a mobile home park, though perhaps with a lesser number of mobile home sites than previously existed, this Lease shall not terminate. The proceeds of the award for such partial taking shall be allocated as follows: first to the repayment of any debt that Lessor is obligated to repay as a consequence of such taking; second to the repayment of any debt that Lessee is obligated to repay as a consequence of such taking; third to cover any expenses of collecting the proceeds; and, fourth, to a fund, to be managed jointly by Lessor and Lessee, to be used as they shall determine most appropriate to assist any displaced Sublessees in relocating their homes from the Park and/or to repair or replace infrastructure and improvements necessary to the continued functioning of the Park.
Any and all proceedings brought by a party in connection with any damages as a result of any taking referred to in this Section shall be conducted at the sole expense of such party. If any provision of law requires that such proceedings be brought by or in the name of any owner or lessee or sublessee of the premises, such party shall join in such proceedings or permit the same to be brought in its name. Each party agrees to do all acts and to execute all documents that may be required to enable the other to maintain such proceedings. If the party required to join in the proceedings incurs any cost or expense in doing so, such party shall be entitled to reasonable reimbursement and this entitlement shall constitute a first charge against any award.
9.7 RECALCULATION OF LEASE FEE: In the event of any taking that reduces the size of the Leased Premises but does not result in the termination of the Lease, Lessor shall recalculate the Lease Fee for the remaining Premises, based upon the three considerations identified in Section 4.3 and taking into account the reduced size of the Leased Premises and any reduction in the number of mobile home sites. Lessor shall notify Lessee of the recalculated Lease Fee, and thereupon the procedures to be followed by the two parties and the rights and obligations of each shall be as stated in Section 4.4 above.
ARTICLE 10: Management of the Park
10.1 LESSEE’S RESPONSIBILITIES: As the Park will be resident managed, Lessee shall be responsible for the oversight of the management of the Park. A management company will be employed, a contact shall be executed, and Lessee shall oversee said management company. Lessee shall ensure that the Park remains financially viable and will be managed to meet the requirements of the Covenant, the Affordability MOU, this Land Lease and all its exhibits, and the Mortgage. Refer to Article 13 for default situations.
ARTICLE 11: Sale of Lessee’s Improvements and Transfer of Lessee’s Interest in Leased Premises
11.1 LESSOR’S PERMISSION REQUIRED: Except in instances where Lessee’s Improvements have been or are being severed from the Leased Premises and none of Lessee’s rights to the Leased Premises are to be assigned, Lessee shall not sell Lessee’s Improvements or assign or transfer its interest in the Leased Premises without the explicit written permission of Lessor. Lessee agrees that Lessor shall have broad and full discretion to withhold such permission in order to further the mutual purposes and goals set forth in this Lease. Lessee acknowledges that no such sale and assignment shall be permitted if Lessor determines that it does not support or is inconsistent with the shared purposes stated in the Recitals above and the permitted uses indicated in Article 3 above and that there is no compelling reason why such purposes and uses must be abandoned.
11.2 PROPOSAL-TO-SELL NOTICE: In the event that Lessee proposes to sell Lessee’s Improvements and assign its interest in the Leased Premises, Lessee shall notify Lessor, in writing, of such proposal (the Proposal-to-Sell Notice). Such Notice shall identify the proposed buyer/assignee and the proposed terms of sale, including a price that shall not exceed the value of Lessee’s Improvements determined in accordance with Section 11.3 below (the “Permitted Price”). Such Notice shall also explain Lessee’s reasons for wanting to sell its improvements and its reasons for believing that the shared purposes and required uses will continue to be supported subsequent to the proposed sale/assignment. A copy of the Appraisal shall be attached to the Proposal-to-Sell Notice.
11.3 APPRAISAL: If Lessee proposes to sell Lessee’s Improvements and transfer its interest in the Leased premises, Lessee shall commission, at its own expense, a valuation of the Improvements (the “Appraisal”) by a duly licensed appraiser for the purpose of determining the Permitted Price. The Appraisal shall calculate the value of Lessee’s Improvements based upon their replacement cost, minus depreciation as of the date of the Appraisal, and shall exclude altogether the value of the Land. Because of the unique restrictions imposed by this Lease and the goal, acknowledged and shared by Lessee, of continuing to support the purposes and uses identified herein, the Appraisal shall not be based upon a market comparison with other properties.
11.4 LESSOR’S RESPONSE: Lessor shall respond in writing to Lessee’s proposal to sell within forty-five (45) days of receipt of Lessee’s Intent-to-Sell Notice. In responding, Lessor may either grant or deny permission to sell on the proposed terms, or, at its discretion, may offer a counter-proposal stating alternative terms on which it would permit the sale. Should Lessor fail to respond within said 45-day period, such failure shall constitute denial of permission to sell on the proposed terms.
Article 12: Sublease
12.1 LIMITATIONS ON ASSIGNMENT AND SUBLEASE: Except as provided in this Article 11 below, Lessee shall not assign, sublease, sell or otherwise convey any of Lessee’s rights under this Lease without the prior written consent of the Lessor; see Exhibit LOT LEASE.
12.2 SUBLEASING OF MOBILE HOME SITES PERMITTED: Lessee may sublease portions of the Leased Premises as sites for mobile homes owned by the respective Sublessees without seeking or receiving permission from Lessor for each such sublease, provided that the following requirements are satisfied.
a. All terms and conditions of mobile home site subleases shall be established in duly executed lease documents that conform in all respects to the Standard Lot Lease either in the form in which it is attached hereto at the time this Lease is executed or in the form it shall have if later amended with Lessor’s approval as provided in Section 12.3 below.
b. All of the policies and procedures established by MHA to implement or enforce the terms and conditions of such Subleases shall comply with the Colorado Mobile Home Park Law and other applicable public laws and regulations.
c. The rents charged to Sublessees shall comply with the requirements stated in the attached Exhibit COVENANT or as they may later be modified in a written agreement between the parties.
d. The total number of lots available for sublease to homeowners with owner-occupied mobile homes shall be 129 - 135 or such number as the parties may later agree upon in writing. All boundaries of such lots shall be as they exist at the time this Lease is executed, in accordance with the Master Site Plan or as they may later be modified in a written agreement between the parties.
12.3 AMENDMENT OF STANDARD LOT LEASE: Lessee may amend the Standard Lot Lease only with the written approval of Lessor. Any amendments proposed by Lessee shall be submitted in writing to Lessor for Lessor’s consideration. Lessor shall have thirty (30) days from the receipt of such proposed amendments in which to notify Lessee in writing of its approval or rejection of the proposal. Failure by Lessor to approve or reject an amendment within such 30 day period shall constitute approval.
12.4 LESSOR’S OPTION TO PURCHASE SUBLESSEE’S IMPROVEMENTS: Section 15 of the Standard Lot Lease provides that, should the Sublessee decide to sell his or her mobile home, MHA shall have the option to purchase such mobile home on terms specified in such Lot Lease. If Lessee decides not to exercise this option, it shall notify Lessor of such decision no later than the date on which Lessee’s option will expire. Thereupon, for an additional seven-day period, Lessor shall have the option to purchase the mobile home on the same terms as are established for Lessee’s option in Section 15 of the Standard Lot Lease.
Article 13: Default
13.1 FORCE MAJEURE: In the event Lessor or Lessee is 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, and 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 parties performance shall be extended one day for each day’s prevention, delay or stoppage by reason of such event of Force Majeure.
13.2 MONETARY DEFAULT BY LESSEE: It shall be an event of default if Lessee fails to pay the Mortgage, taxes, Lease Fee or other charges required by the terms of this Lease and such failure is not cured by Lessee or a Permitted Mortgagee within thirty (30) days after notice of such failure is given by Lessor to Lessee and any Permitted Mortgagee. However, if Lessee shall make a good faith partial payment of at least two-thirds (2/3) of the amount owed of the Lease Fee during such initial 30 day period, then such period shall be extended one additional 30-day period for payment of the Lease Fee.
13.3 NON-MONETARY DEFAULT BY LESSEE: It shall be an event of default if Lessee fails to abide by any other material term or condition in this Lease, and such failure is not cured by Lessee or a Permitted Mortgagee within sixty (60) days after notice of such failure is given by Lessor to Lessee and Permitted Mortgagee. However, in the case where the Lessee or Permitted Mortgagee has commenced to cure such default within such 60-day period and is continuing such cure with all due diligence but cannot by the exercise of due diligence cure such default within such period, such period shall be extended for such additional period as may be reasonably required under the circumstances to complete such cure.
13.4 DEFAULT BY LESSEE RESULTING FROM JUDICIAL PROCESS: It shall be an event of default if the estate hereby created is taken on execution or by other process of law, or if Lessee is judicially declared bankrupt or insolvent according to law, or if any assignment is made of the property of Lessee for the benefit of creditors, or if a receiver, trustee in involuntary bankruptcy or other similar officer is appointed to take charge of any substantial part of Lessee’s property by a court of competent jurisdiction, or if a petition is filed for the reorganization of Lessee under any provisions of the Bankruptcy Act now or hereafter enacted, of if Lessee files a petition for such reorganization, or for arrangements under any provision of the Bankruptcy Act now or hereafter enacted and providing a plan for a debtor to settle, satisfy or extend the time for payment of debts.
13.5 TAKING OVER MANAGEMENT OR TERMINATION:
In the case of any of the events of default described above, Lessor may take over the management of the Park in which event Lessor shall be entitled to payment of all rents and payments due under the subleases, and shall be entitled to take all actions necessary to operate the Park. The Lessee’s contract with the management company must include this provision.
In the case of any of the events of default described above, Lessor may terminate this Lease and initiate summary proceedings against Lessee. Pursuant to such proceedings, without demand or notice, Lessor may enter any part of the Leased Premises and repossess the entire Leased Premises and without prejudice to any remedies which might otherwise be used for arrears of rent or preceding breach of covenant. If this Lease is terminated by Lessor, or if Lessor re-enters the Leased Premises pursuant to an Event of Default, the Lessee agrees to pay and be liable for any unpaid Ground Lease Fee, damages which may be due or sustained prior to or in connection with such termination or re-entry, and all reasonable costs, fees and expenses (including, without limitation, reasonable attorneys’ fees) incurred by Lessor in pursuit of its remedies under this Lease.
If Lessor elects to terminate the Lease as permitted by this Section 13.4, then the Permitted Mortgagee shall have the right (subject to Article 7 above) to postpone and extend the specified date for the termination of the Lease for a period sufficient to enable the Permitted Mortgagee or its designee to acquire Lessee’s interest in the Leased Premises by foreclosure of its mortgage or otherwise.
13.6 DEFAULT BY LESSOR: Lessor shall in no event be in default in the performance of any of its obligations under the Lease unless and until Lessor has failed to perform such obligations within sixty (60) days, or such additional time as is reasonably required to correct any default, after notice by Lessee to Lessor properly specifying Lessor’s failure to perform any such obligation.
Article 14: Mediation and Arbitration
14.1 MEDIATION AND ARBITRATION PROCESS: Should any grievance or dispute arise between Lessor and Lessee concerning the terms of this Lease which cannot be resolved by normal interaction, the dispute or grievance shall be submitted to a mediator approved by both parties, the cost of whose fees will be shared equally by Lessor and Lessee. This process shall be initiated by written notice of either party. If no agreement can be reached through work with this mediator in ninety (90) days, the dispute will be submitted to arbitration in accordance with the following process
Lessor or Lessee shall give written notice to the other of its selection of a disinterested arbitrator. Within fifteen (15) days of the receipt of this written notice, the other party may give written notice to the first party appointing a disinterested arbitrator of its own choice. These two
arbitrators shall select a third arbitrator. If the other party fails to name an arbitrator within fifteen days of receiving the notice from the first party, the arbitrator selected by the first party shall be the sole arbitrator.
The arbitrator or arbitrators shall hold a hearing within thirty (30) days after the initial written notice by the initiator of the arbitration process. At the hearing Lessor and Lessee shall have an opportunity to present evidence and question witnesses in the presence of each other. As soon as reasonably possible, and in no event later than fifteen days after the hearing, the arbitration panel shall make a written report to the Lessor and Lessee of its findings and decisions, including a personal statement by each arbitrator of his/her decision and the reasons for it. The arbitrators shall decide the dispute or claim in accordance with the substantive law of the jurisdiction and what is just and equitable under the circumstances. The decisions and awards of the majority of the arbitration panel shall be binding and final. Each party shall pay for the costs of its respective arbitrator. The costs of any third arbitrator selected as provided herein shall be borne equally by the parties.
Article 15: General Provisions
15.1 NOTICES: Whenever this Lease requires either party to give notice to the other, the notice 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 like written notice:
If to Lessor: Mapleton LLC, 1845 Folsom Street, Boulder, CO 80302
with a copy to: Allan C. Beezley, P.C., 1327 Spruce Street, Boulder, CO 80302 (Lessor’s attorney)
If to Lessee: Mapleton Home Association, MHA Office, 2635 Mapleton Avenue, Boulder, CO 80304
All notices, demands and requests shall be effective upon being deposited in the United States Mail or, in the case of personal delivery, upon actual receipt.
15.2 SEVERABILITY AND DURATION OF: If any part of this Lease is unenforceable or invalid, such material shall be read out of this Lease and shall not affect the validity of any other part of this Lease or give rise to any cause of action of Lessee or Lessor against the other, and the remainder of this Lease shall be valid and enforced to the fullest extent permitted by law. It is the intention of the parties that their respective options to purchase and all other rights under this Lease shall continue in effect for the full term of this Lease and any renewal thereof, and such options and other rights shall be considered to be coupled with an interest. In the event any such option or right shall be construed to be subject to any rule of law limiting the duration of such option or right, the time period for the exercising of such option or right shall be construed to expire twenty (20) years after the death of the last survivor of the following persons: Children born at Boulder Community Hospital, Foothills Community Hospital, and Avista Hospital for the one year period prior to the date of this Lease.
15.3 WAIVER: The waiver by Lessor or Lessee at any given time of any term or condition of this Lease, or the failure of such party to take action with respect to any breach of any such term or condition by the other party, shall not be deemed to be a waiver of such term or condition with regard to any subsequent breach of such term or condition, or of any other term or condition of the Lease. Either party may grant waivers of specific requirements imposed by this Lease upon the other party, but such waivers must be in writing and signed by the party granting the waiver before being effective.
The subsequent acceptance of Lease Fee payments by Lessor shall not be deemed to be a waiver of any preceding breach by Lessee of any term or condition of this Lease, other than the failure of the Lessee to pay the particular Ground Lease Fee so accepted, regardless of Lessor’s knowledge of such preceding breach at the time of acceptance of such Ground Lease Fee payment.
15.4 LESSOR’S RIGHT TO PROSECUTE OR DEFEND: Lessor shall have the right, but shall be under no obligation, to prosecute or defend, in its own or the Lessee’s name, any actions or proceedings appropriate to the protection of its title to, and Lessee’s interest in the Leased Premises. Whenever requested by Lessor, Lessee shall give Lessor all reasonable aid in any such action or proceeding.
15.5 LESSEE’S RIGHT TO PROSECUTE OR DEFEND: Lessee shall have the right, but shall be under no obligation, to prosecute or defend, in its own name, any actions or proceedings appropriate to the protection of its interest in the Leased Premises. Whenever requested by Lessee, Lessor shall give Lessee all reasonable aid in any such action or proceeding.
15.6 CONSTRUCTION: Whenever in this Lease a pronoun is used it shall be construed to represent either the singular or the plural, masculine or feminine, as the case shall demand.
15.7 CAPTIONS AND TABLE OF CONTENTS: The captions and table of contents appearing in this Lease are for convenience only, and are not a part of this Lease and do not in any way limit or amplify the terms or conditions of this Lease.
15.8 PARTIES BOUND: This Lease sets forth the entire agreement between Lessor and Lessee with respect to the leasing of the Land; it is binding upon and inures to the benefit of these parties and, in accordance with the provisions of this Lease, their respective successors in interest. This Lease may be altered or amended only by written notice executed by Lessor and Lessee or their legal representatives or, in accordance with the provisions of this Lease, their successors in interest.
15.9 GOVERNING LAW: This Lease shall be interpreted in accordance with and governed by the laws of Colorado. Venue for any dispute shall be Boulder County. The language in all parts of this Lease shall be, in all cases, construed according to its fair meaning and not strictly for or against Lessor or Lessee.
15.10 RECORDING: The parties agree, as an alternative to the recordation of this Lease, to execute a so-called Notice of Lease or Short Form Lease in form recordable and complying with applicable law and reasonably satisfactory to Lessor’s attorneys. In no event shall such document set forth the rent or other charges payable by Lessee under this Lease; and any such document shall expressly state that it is executed pursuant to the provisions contained in this Lease, and is not intended to vary the terms and conditions of this Lease.
15.11 PRIVACY: Lessor and Lessee shall work to protect the privacy of Sublessees.
IN WITNESS WHEREOF, the parties have executed this lease at 3:00pm on the day and year first above written.
LESSOR:
MAPLETON LLC, a Colorado limited liability company
By: THISTLE COMMUNITY HOUSING
a Colorado non-profit corporation, its sole member
By: ____________________________
Title: Executive Director
The foregoing instrument was acknowledged before me this _____ day of December, 2004, by Aaron Miripol as Executive Director of Thistle Community Housing, a Colorado non-profit corporation, as sole member of Mapleton LLC, a Colorado limited liability company.
WITNESS my hand and official seal.
My commission expires: _________________________.
(SEAL)
_____________________________________
Notary Public
LESSEE:
MAPLETON HOME ASSOCIATION, a Colorado non-profit corporation
By: ____________________________
Mark Reeder
Title: President
The foregoing instrument was acknowledged before me this _____ day of December, 2004, by Mark Reeder as President of Mapleton Home Association, a Colorado non-profit corporation.
WITNESS my hand and official seal.
My commission expires: _________________________.
(SEAL)
_____________________________________
Notary Public
Exhibit COVENANT
LIMITATIONS ON
SPACE RENTAL FEES
AND
BUYER INCOMES
Compliance with the provisions of this Covenant shall be deemed to be a requirement of title.
PERMANENTLY AFFORDABLE HOUSING COVENANT
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.
RECITALS
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;
d) $75,000: CHAP (2003) funds for infrastructure work; and,
e) $70,000: CHAP (2004) funds for predevelopment and project management.
WHEREAS, the Grantor has benefited from these funds;
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:
Definitions
The following terms shall have the following meanings herein:
“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.
“HUD” means the United States Department of Housing and Urban Development.
“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.
“Unit” means a manufactured or mobile home on a space, as defined above.
Covenants
I. 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
Tier 5: No more than 15 units shall be market rate.
See also Memorandum of Understanding Mapleton Mobile Home Park Affordability dated ___ of ___________, 2004 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:
Tier 1: for no fewer than 65 of the units, rent shall not exceed $330;
Tier 2: for no fewer than 30 of the units, rent shall not exceed $355;
Tier 3: for no fewer than 15 of the units, rent shall not exceed $375; and,
Tier 4: for no fewer than 10 of the units, rent shall not exceed $425.
1. 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;
F. Agreement by the Resident to waive any right to a trial by jury;
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 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.
The affirmative marketing requirements and procedures adopted must include:
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,
A. 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.
26. Miscellaneous:
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:
City of Boulder, Colorado
P.O. Box 791
Boulder, CO 80306
Attn: City Manager
with a copy to:
Director of the Division of Housing
City of Boulder
P.O. Box 791
Boulder, CO 80306
Notices to the Owner may be given in like manner addressed to the Property, with a copy to:
Mapleton LLC
1845 Folsom
Boulder, CO 80302
Notices to the Resident Association shall be given in like manner addressed as follows:
Mapleton Home Association (MHA)
MHA Office
2635 Mapleton Avenue
Boulder, CO 80304
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.
MAPLETON LLC, a Colorado limited liability company
By: THISTLE COMMUNITY HOUSING
a Colorado non-profit corporation, its sole member
By: ____________________________
Title: __________________________
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.
WITNESS my hand and official seal.
My commission expires: _________________________.
(SEAL)
_____________________________________
Notary Public
CITY OF BOULDER
By:______________________________________ ________________________
Frank W. Bruno, City Manager Date
City of Boulder
Attest:
_________________________________________ ________________________
City Clerk on behalf of the Date
Director of Finance and Record
Content Approved (Initialed):
_______________________ _________ _____________________ _________
John Pollak, Co-Director, Date Aaron Miripol, Agent of Date
Housing and Human Services Mapleton LLC
City of Boulder
Exhibit PREMISES
Lots 1 and 2,
MAPLETON MOBILE HOME PARK SUBDIVISION
County of Boulder, State of Colorado,
According to the plat thereof recorded October 6, 2004 in Plan File P-61 F-4 #2-3 as Reception No. 2632927.
Exhibit LOT LEASE
MAPLETON MOBILE HOME PARK LEASE
2635 Mapleton Avenue
Boulder, Colorado 80304
1. Parties
This Lease (the “Lease”) is made by and between Hast & Company (hereinafter referred to as “Agent”), as Agent for Mapleton Home Association, a Colorado non-profit corporation, (the “MHA”), and _____________________ , undersigned Homeowner(s) (hereinafter referred to as “Homeowner”). MHA has been assigned the oversight of the management of the Mapleton Mobile Home Park (the “Park”) by Mapleton LLC, a Colorado limited liability company (the “Owner”), whose sole member is Thistle Community Housing.
During the term of this Lease, Homeowner is a member of MHA and is bound by its documents, including the By-Laws and Rules and Regulations (the “Rules”). Each household is entitled to one (1) vote.
2. Homesite, Home and Parking Spaces
A. Agent hereby leases to Homeowner the homesite described below (“the Homesite”):
Homesite Lot Number: #_____
Address: 2635 Mapleton Avenue, Boulder, Colorado 80304
B. Homesite: The homesite shall be used for the installation thereon of Homeowner’s mobile or manufactured home (the “Home”).
The Homesite Attachment contains more information on Homesite, such maximum home replacement size and size and placement of other structures.
C. Home: Any Home replacement and/or additional improvements must meet Master Site Plan guidelines. Any Home replacements and/or additional improvements must be pre-approved by the Agent. Please refer to the Rules for more information.
D. Parking: The leasing of the Homesite comes with the use of two (2) parking spaces as determined by Agent. Please refer to the current version of the Rules for more definition.
3. Lease Term
Homeowner must have a current Lease signed by all Parties and on file with the Agent to reside lawfully in the Mapleton Mobile Home Park. The term of this Lease shall commence on ____________, _____ and end at midnight on ____________, ______. Following the initial period of this Lease as set forth above; the term of the Lease shall be a month-to-month lease beginning on the first day of the month unless the parties have agreed otherwise in writing. The Lease shall automatically be renewed for additional periods of one month each, unless terminated by either party as prescribed herein.
4. Rent
I. This Homeowner, on this Homesite, is participating in the Affordable Rent and Resale program rate as described in Section 4B or is market rate (mark the correct box):
( I/we am/are participating in the Affordable Rent and Resale program.
( I/we am/are are a market rate Homeowner.
I. Rent Tier: This lease is for the Rent Tier at ______% of the Area Median Income (AMI) which the Homeowner acknowledges is a below market Affordable Rent. In exchange for Affordable Rent, the Homeowner agrees to certain resale restrictions as outlined in Section 16 and the Affordability Addendum.
II. Rent: The full monthly rental price for the term of this Lease is $____________ payable monthly, due on the first (1st) day of each month, beginning ______________, _____. Prorated rent for the balance of the first month, if any, is $_______, payable upon execution of this Lease. Rent shall be paid by check, cashier’s check or money order. The rental rate may not be changed without sixty (60) days written notice prior to the end of the rental month.
III. Payments: Rent payments shall be made to Mapleton Home Association and mailed or hand
delivered to Agent, Hast Company, 525 Canyon Boulevard, Boulder, CO 80302, or may be hand-delivered to the Park’s Resident Manager. Homeowner should work with Agent regarding direct deposit option(s).
I. Late Fee: Homeowner shall incur and be charged Twenty-five dollars ($25.00) for rent not received before midnight on the fifth (5th) day of the month. Such fee, which will be considered additional rent, and may be collected immediately by Agent. As of October 2004 the Late Fee is $25.00. This Late Fee may change over time; please refer to the current versions of the Rules and Regulations for any changes.
II. Insufficient Funds Fee: A charge of up to Twenty-five dollars ($ 25.00) may be imposed for any Homeowner's check returned to Agent because of insufficient funds, whether the check is for rent, security deposit, or other payment. As of October 2004 the Insufficient Funds Fee is $25.00. This Fee may change over time; please refer to the current versions of the Rules and Regulations for any changes.
5. Notice
Unless otherwise specified in this Lease, all notices provided by this Lease shall be in writing and shall be delivered to the other party person