Mountain Trace Townhomes

What Mountain Trace Townhomes's governing documents say

Mountain Trace Townhomes is an affordable housing community in Durango, Colorado. This document is a deed restriction that applies to 9 specific townhome units designated as 'Price Capped Units' under the City's Fair Share Program. It binds the unit owner — not a general homeowners association — and restricts who can buy, how much they can sell for, and how the unit can be used, in perpetuity.

• Who can buy & live here: You must be a 'Qualified Buyer' — a natural person meeting the income, residency, and other qualifications in the City's Fair Share Guidelines. You must occupy the unit as your sole and primary residence (at least 9 consecutive months per year) while you own it.
• Resale price cap & appreciation: Units can only be sold at a 'Maximum Resale Price' set by HomesFund under the Guidelines. You may add the cost of pre-approved Permitted Capital Improvements (e.g., added heated living space) but not routine upgrades or repairs. Your share of appreciation is capped at 3% per full year of ownership times your original purchase price; any excess goes to HomesFund.
• Leasing & rentals: Renting requires prior written approval from HomesFund. If approved, no lease can exceed 12 months. Short-term/vacation rentals, lease-to-purchase, and contracts for deed are strictly prohibited.
• Financing & refinancing: You may finance your purchase with a first deed of trust from an institutional lender, but refinancing requires HomesFund's written permission. Defaulting on your loan or failing to pay property taxes or HOA assessments is a breach of this agreement.
• Foreclosure protection & HomesFund's purchase option: If a lender files for foreclosure, HomesFund has the right to buy the unit from you for 95% of the Maximum Resale Price (minus any debt being assumed). If a non-qualified person inherits or otherwise gets the unit, they must sell it to a Qualified Buyer within 120 days.
• Inspections & compliance: HomesFund may inspect the unit with 24 hours' notice if it believes you are violating the agreement. You must respond to a notice of violation within 15 days; uncured breaches can trigger forced sale and loss of appreciation rights.
• What this document doesn't cover: This excerpt is a deed restriction for specific affordable units only; it does not contain the full HOA rules for Mountain Trace Townhomes. It references separate CC&Rs for the larger planned development, which govern architectural review, common areas, and other community standards not detailed here.

Plain-language summary generated from the governing documents on file for this community. It may be incomplete and is not legal advice — read the full documents below or consult the official recorded versions.