HomeMy WebLinkAbout11170Docusign Envelope ID: 9C39B890-5B14-87B0-82C4-F6D4574F15B6
ORDINANCE NO. 11170
AN ORDINANCE APPROVING AN AGREEMENT TO BUY AND
SELL REAL ESTATE BETWEEN THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION, AND HABITAT FOR
HUMANITY OF PUEBLO, INC., A COLORADO NONPROFIT
ORGANIZATION, RELATING TO THE SALE OF PROPERTY
DESCRIBED AS LOT 42 BLK 3 OAKSHIRE HILLS FILING NO. 2
FORMERLY #04-282-32-042, PARCEL # 04-282-42-042, FOR
ONE DOLLAR ($1.00), AND AUTHORIZING THE MAYOR TO DO
THE SAME
WHEREAS The City of Pueblo acquired this property to be used for deed -restricted affordable
housing, and
WHEREAS The City intends to transfer this property below market value as an incentive to help
create affordable housing.
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Agreement to Buy and Sell Real Estate ("Agreement") dated <>, between the City of
Pueblo, a Municipal Corporation, and Habitat for Humanity of Pueblo, Inc., A Colorado Non-profit
Organization, a drafted copy of which is attached hereto and is incorporated herein by this
reference, having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The Mayor is authorized to execute and deliver the Agreement in the name of the City and
the City Clerk is authorized to fix the seal of the City thereto and attest same. The Mayor is further
authorized to execute and deliver the accompanying Deeds and related documents at closing,
transferring the property owned by the City to Habitat for Humanity of Pueblo in the manner
described in the Agreement.
SECTION 3
Proceeds from the sale in the amount of $1.00 are to be deposited into General Fund.
SECTION 4.
The officers and staff of the City are authorized to perform any and all acts consistent with
this Ordinance and the attached Agreement appropriate to implement the transactions described
therein.
SECTION 5.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
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Action by City Council:
Introduced and initial adoption of Ordinance by City Council on April 27, 2026.
Final adoption of Ordinance by City Council on May 11, 2026.
FADacusigned by:
au(f
President o I7tyF ouncil
Action by the Mayor:
[)� Approved on 05/12/2026
❑ Disapproved on
based on the following objections:
Mayor
Action by City Council After Disapproval by the Mayor:
❑ Council did not act to override the Mayor's veto.
❑ Ordinance re -adopted on a vote of , on
❑ Council action on failed to override the Mayor's veto.
President of City Council
ATTEST by:
FiD;0GISigned
City Clerk
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City Clerk's Office Item # R1
big of
I SIR �P U Ems' �B LO
-
__ 6
COUNCIL MEETING DATE: May 11, 2026
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Clyde Bishop, City Clerk
FROM: Melissa Cook, Director Department of Housing & Citizen Services
SUBJECT: AN ORDINANCE APPROVING AN AGREEMENT TO BUY AND SELL
REAL ESTATE BETWEEN THE CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION, AND HABITAT FOR HUMANITY OF
PUEBLO, INC., A COLORADO NONPROFIT ORGANIZATION,
RELATING TO THE SALE OF PROPERTY DESCRIBED AS LOT 42 BLK
3 OAKSHIRE HILLS FILING NO. 2 FORMERLY #04-282-32-042,
PARCEL # 04-282-42-042, FOR ONE DOLLAR ($1.00), AND
AUTHORIZING THE MAYOR TO DO THE SAME
SUMMARY:
Attached is an Ordinance approving, and authorizing the Mayor to sign, an agreement
for the City to sell an unaddressed parcel of unimproved land located in the 1900-Blk of
Calderwood Lane, Pueblo, CO 81001 to Habitat for Humanity of Pueblo, Inc., for one
dollar ($1.00).
PREVIOUS COUNCIL ACTION:
Not Applicable.
BACKGROUND:
The unaddressed property located in the 1900 block of Calderwood Lane was acquired
by the City of Pueblo in 2003 from the Housing Authority of the City of Pueblo. The
property is more specifically described as:
Parcel Number: 0428242042
Legal Description: Lot 42, Block 3, Oakshire Hills Filing No. 2, formerly #04-282-32-042,
County of Pueblo, State of Colorado.
As a condition of the transfer, Habitat for Humanity is required to construct
deed -restricted affordable housing on the lots. Construction must begin no later than
December 31, 2027. If this requirement is not met, ownership of the properties will revert
to the City of Pueblo. This incentive is intended to support nonprofit partners by reducing
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development costs and enabling the construction of homes targeted to families earning
up to 80 percent of the Area Median Income (AMI) for homeownership opportunities or
up to 60 percent of AM for rental housing.
Habitat for Humanity plans to build a single-family home which will be available for
homeownership.
This is being sold under market value as an incentive to help create affordable
housing. The property was initially acquired using HOME Investment Partnership Act
funding (Federal pass -through) with the intent to create deed -restricted affordable
housing.
FINANCIAL IMPLICATIONS:
The City will receive $1.00 from the sale. Closing costs and fees will be paid by Habitat
for Humanity of Pueblo. Proceeds of the sale will go to the City's general fund.
After the transfer of this lot, the Department of Housing and Citizen Services will no longer
be responsible for the maintenance and upkeep of this lot, reducing ongoing costs.
BOARD/COMMISSION RECOMMENDATION:
Not Applicable.
STAKEHOLDER PROCESS:
Not Applicable.
ALTERNATIVES:
City Council may decide not to sell this property.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
1. Agreement to Sell Real Estate - Habitat Lot 1 04.02.2026
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AGREEMENT TO BUY AND SELL REAL ESTATE
'ITUS AGRI l "ll:N'T (A°pqmg)t') is inade the /t�2/i"day of7n& 2026 C ]-;,`J cctive Date"),
between the City of Pueblo, a Colorado municipal corporation, (hereinafter ca ed the ", pll r"')„ and Habitat
f"or FlUnlanity of Pueblo, h1c., a nonprofit organization in the State of Colorado (hereinafter called the
«,(' i mQ t uC)
NOW, THEREFORE, in consideration of the foregoing recitals and the covenants, terms and
conditions set forth herein, the parties agree as follows:
I • )�i wrt IN . The Seller agrees to sell and convey to the Purchaser, and the Purchaser
agrees to purchase from the Seller, all the certain plat, piece, and parcel of land having the following legal
descriptions:
Parcel: 04-282-42-042
Legal Description: LOT 42 BLK 3 OAKSHIRE HILLS FILING NO 2 FORMERLY #04-282-32-042
all in the County of Pueblo, State of Colorado
Upon full payment to Purchaser of all sums due, the Property shall be conveyed by Quit Claim Deed
("Deed"), the form of which, marked as Appendix 1, are attached hereto, and incorporated herein by
reference. Subject to Purchaser's right to object to title exceptions established by Section 5,, the property
shall be conveyed subject to and subordinate to all easements, reservations, restrictions, covenants,
limitations, rights -of -way, and conditions of record and zoning and subdivision regulations and regulations
of the City of Pueblo and the Permitted Exceptions (as hereinafter defined), which shall be listed as
exceptions in the Quit Claim Deed, subject to satisfaction of the conditions listed in this Agreement.
2. Puich 11trrcha7sser shall pay $1.00, to be paid as provided in, and subject to,
Paragraph 3 below (the "t1 i(t±g1jc 1[i.Ce r). .
3. 1'�� �i 1 wt ,,.c "Purclume Price. The Purchase Price for the Property shall be payable at Closing
in cash or certified funds.
4. im�il .Nap uml+Were. Real property taxes and assessments for tax year 2026, if any, shall
be prorated and paid at Closing by the Purchaser on the basis of the 2025 tax year.
5.
6. Closing "lime and Place. Closing of the transaction contemplated hereby ("Closing") shall
be held at at a mutually agreed location, at a date and time as agreed by Seller and Purchaser.
7. ciosing costs. The Purchaser shall be responsible for all closing costs.
8. Broker. Purchaser and Seller represent and warrant to the other that no broker or finder has
been engaged by such Party in connection with this transaction. Purchaser agrees to indemnify, defend and
hold Seller harmless from and against any and all claims, loss, liability, costs and expenses (including
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reasonable attorneys' fees), resulting from any claims that may be made against Seller by any broker or
other person claiming a commission, fee or other compensation by reason of the transaction contemplated
hereby if the same shall arise by, through or on account of Purchaser.
9. Disclaimers. Except as expressly set forth in this agreement, it is understood and agreed that
Seller is not making and has not at any time made any warranties or representations of any kind or character,
expressed or implied, with respect to the property, including, but not limited to, any warranties or
representations as to habitability, merchantability, fitness for a particular purpose, title (other than Seller's
special warranty of title to be set forth in the Quit Claim Deed), zoning, tax consequences, physical or
environmental condition (including, but not limited to, hazardous materials contamination), utilities,
operating history or projections, valuations, governmental approvals, the compliance of the property with
governmental laws, or any other matter or thing regarding the property. Purchaser acknowledges and agrees
that, except as expressly set forth in this Agreement, upon closing Seller shall sell and convey to Purchaser
and Purchaser shall accept the property "as is, where is, with all faults." Purchaser and Seller agree that the
provisions of this paragraph 9 shall survive the closing of the transaction contemplated by this Agreement
and the recording of the Quit Claim Deed hereunder.
10. In addition to Paragraph 9 hereof, Seller and Purchaser agree that the provisions of this
Agreement shall survive Closing and the recording of the Quit Claim Deed.
It. All understandings and agreements heretofore had between the parties hereto are merged
into this Agreement, which alone fully and completely expresses their agreement, and this Agreement is
entered into after full investigation, neither party relying upon any statement or representation not embodied
in this Agreement and made by the other. This Agreement may not be changed or terminated orally.
12. Use of the Property. Purchaser shall use the Property and construct deed restricted residential
dwelling unit(s) for sale or for rent to occupants with incomes as outlined in Exhibit A. Purchaser must
commence construction on the Property within eighteen months from the Effective Date. Seller hereby
intends to create a new special limitation and possibility of reverter, and Seller intends the same to be in
addition to any other special limitation and possibility of reverter and any other condition subsequent and
right of entry which may be in existence. In the event Purchaser fails (i) to pay all amounts due under this
Agreement, (ii) to construct deed restricted residential dwelling unit(s), or (iii) to commence construction
on the Property within eighteen months from the Effective Date, the Property shall automatically revert to
Seller at no additional cost and Purchaser shall execute any and all documents needed to effectuate such
reverter. The parties acknowledge and agree this possibility of reverter is for a public purpose.
13. The provisions in this Agreement are to apply to and bind, and inure to the benefit of, the
heirs, executors, administrators, successors, and assigns of the respective parties.
14. If any provision of this Agreement is determined by a court of competent jurisdiction to be
invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect.
15. 1,l I 1 i q1
We L iLy. This agreement shall in all respects be governed by, and construed in
accordance with, the laws of the State of Colorado. Seller and Purchaser hereby irrevocably submit to the
personal and subject matter jurisdiction of the District Court, Pueblo County, State of Colorado in any
action or proceeding arising out of or relating to this agreement and hereby irrevocably agree that all claims
in respect of such action or proceeding shall be heard and determined in the District Court of Pueblo County,
State of Colorado. Purchaser and Seller agree that the provisions of this Paragraph 15 shall survive the
closing of the transaction contemplated by this agreement and the recording of the Quit Claim Deed
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hereunder. To the full extent permitted by law, Purchaser and Seller hereby waive their rights to a trial by
jury.
16. The provisions of this Agreement and of the documents to be executed and delivered at
Closing are and will be for the benefit of Seller and Purchaser, and their respective heirs, executors,
administrators, successors and assigns only and are not for the benefit of any third party, and accordingly,
no third party shall have the right to enforce the provisions of this Agreement or of the documents to be
executed and delivered at Closing.
17. The following schedules or appendices attached hereto shall be deemed to be an integral part
of this Agreement: Appendix I — Quit Claim Deed.
18. The section headings appearing in this Agreement are for convenience of reference only and
are not intended, to any extent and for any purpose, to lirnit or define the text of any section or any subsection
hereof.
19. Lkdii �l p ot.Sklley. In no event shall Seller, its officers, agents, or employees be liable to
Purchaser for damages, including without limitation, compensatory, punitive, indirect, special, or
consequential damages, resulting from or arising out of or related to this Agreement or the performance or
breach thereof by Seller or the failure or delay of Seller in the performance of any covenant or provision
under this Agreement on its part to be performed. In consideration of Seller entering into this Agreement,
Purchaser hereby waives and discharges Seller, its officers, agents, and employees from all claims for any
and all such damages. Except in the event of a material breach by Seller, no breach, default, delay, or failure
of Seller under this Agreement shall be or be construed to be a waiver, discharge, or release of Purchaser's
obligation to pay the Purchase Price under Section 3 hereof. In the event of a breach of this Agreement by
the Seller, Purchaser's sole and exclusive remedy shall be to terminate this Agreement. Such violations may
be restrained, or such obligations enforced by injunction at the instance and request of Purchaser without
the showing of any special damages or an inadequate remedy at law.
20. C o.gnt .M,, ris. This Agreement may be executed in any number of counterparts, and each
such counterpart shall be deemed for all purposes to be an original, and all such counterparts shall together
constitute but one and the same original.
21. The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation of this Agreement or any exhibits or
amendments hereto.
22. The failure to enforce any provision of this Agreement shall not operate as a waiver of any
preceding or future breach of any such provision or any other provision hereof.
23. Neither party shall record this Agreement or any short form memorandum of this Agreement.
24, The City's Request for Proposals for the sale of the Property and Purchaser's Proposal in
response thereto are incorporated into this Agreement, as if set forth verbatim.
Executed at Pueblo, Colorado, as of the Effective Date.
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SELLER:
CITY OF PUEBLO, COLORADO
A MUNI 'RI'{3kATION
BY
_..
Heather Graham
Mayor .. ooauSiga.d by:
e
ATTESTED BY
CITY I;`I..ER
PURCHASER:
HABITAT FOR HUMANITY OF PUEBLO, A NONPROFIT ORGANIZATION
OF THE STATE O (,',0L0i .A1)0
ATTESTED BY:_
Secretary / Exe..... cutic Director
STATE OF COLORADO )
) ss.
COUNTY OF PUEBLO 1
e foregoing instrume
nt was acknowledged before me this _Zj- day of �, 2026 by
-_m � � � �- , as Purchaser.
Witness my hand and official seal.
My commission expires: s2G� 4,tog &M.
NotaryPublic c
i 4 y
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APPENDIX I
QUIT CLAIM DEED
THIS DEED, made this 0"'day of , 2026, between the City of
Pueblo, a Colorado municipal corporation, whose address is ! Kifty Hall Place, Pueblo, Colorado
81003 (hereinafter referred to as "Grantor"), and Habitat for Humanity of Pueblo, Inc., a nonprofit
organization in the State of Colorado, (hereinafter referred to as "Grantee"):
WITNESSESTH, that the Grantor, for and in consideration of the One Dollar (U.S.
$1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, has granted, bargained, sold and conveyed, and by these presents does grant,
bargain, sell, convey, and confirm, unto the Grantee, its heirs, successors and assigns forever, all
the real property, together with improvements, if.any, described as:
Parcel: 04-282-42-042
Legal Description: LOT 42 BLK 3 OAKSHIRE HILLS FILING NO 2 FORMERLY#04-282-32-042
all in the County of Pueblo, State of Colorado
for all purposes, together with all and singular the rights, benefits, privileges, easements,
tenements, hereditaments and appurtenances thereto belonging, or in anywise appertaining, and
the reversion and reversions, remainder and remainders, rents, issues and profits thereof, and all
the estate, right, title, interest, claim and demand whatsoever of the Grantor, either in law or equity,
of, in and to the above bargained premises, with the hereditaments and appurtenances.
Grantee shall use the real property and construct deed restricted residential dwelling
unit(s) at incomes as outlined in Exhibit A. Grantee must commence construction on the property
within eighteen months from the date of execution of this agreement, but in no event later than
December 31, 2027. Grantor hereby intends to create a new special limitation and possibility of
reverter, and Grantor intends the same to be in addition to any other special limitation and
possibility of reverter and any other condition subsequent and right of entry which may be in
existence. In the event Grantee fails (i) to pay all amounts due, (ii) to construct deed restricted
residential dwelling unit(s), or (iii) to commence construction on the real property within eighteen
months from the date of execution of this agreement, but in no event later than December 31, 2027,
the real property shall automatically revert to Grantor at no additional cost and Grantee shall
execute any and all documents needed to effectuate such reverter. The parties acknowledge and
agree this possibility of reverter is for a public purpose.
This conveyance is of the surface estate only and no mineral rights are conveyed
by this instrument.
This conveyance is made subject to and subordinate to all easements, reservations,
restrictions, covenants, limitations, rights -of -way, and conditions of record.
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TO HAVE AND TO HOLD the said premises, and all the estate, right, title and
interest of the grantor, subject to the exceptions and conditions above bargained and described,
with the appurtenances, unto the Grantee, its heirs, successors and assigns. Grantee takes said
estate, right, title, and interest of the grantor, either in law or equity, to the only proper use, benefit
and behoof of the grantee, his heirs and assigns subject to all liens, easements, encroachments and
environmental conditions, including both those of record and those not of record.
IN WITNESS WHEREOF, this Quit Claim Deed is executed by Grantor to be effective the day
and year first above written.
GRANTOR:
City of Pueblo
a Colorado municipal corporation
-naanv4 by:
By (kt a�{- v� a
Name: H
eather Graham
Title: Mayor
STATE OF COLORADO )
) SS.
COUNTY OF PUEBLO )
The foregoing instrument was acknowledged before me on this day of , 2026,
by Heather Graham as Mayor of the City of Pueblo, a Colorado municipal corporation.
Witness my official hand and seal.
My Commission Expires: C?C.40k1T Od� UM
—I—�
Not � ..
ary Public
NOTARY PUBLIC
STATE OF COLORADO
STAY ID 20244037277
NAY COMMISSIM t RRP S KIOBER C8, 202
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EXHIBIT A
INCOME REQUIREMENTS
Appendix A: Income Eligibility and Affordability
Effective Date: [Insert Date]
Parcel: 04-2 82-42-051
Legal Description: LOT 51 BLK 3 OAKSHIRE HILLS FILING NO 2 FORMERLY #04-282-32-051
all in the County of Pueblo, State of Colorado
This unit is assisted with HOME Investment Partnership Funding and must abide by the
following guidelines:
This Appendix is attached to and incorporated into that certain Agreement to Buy and Sell Real
Estate [Insert Date] (the "Agreement") between City of Pueblo, a Colorado municipal
corporation, (hereinafter called the "Seller"), and the Habitat for Humanity of Pueblo, Inc, a
nonprofit organization in the State of Colorado (hereinafter called the "Purchaser").
This Appendix sets forth the income eligibility requirements and affordability restrictions
applicable to the occupancy of the Property, in compliance with the U.S. Department of Housing
and Urban Development ("HUD") HOME Investment Partnerships Program ("HOME Program")
and Housing Trust Fund Program ("HTF Program") for for -sale units, and HUD affordable rental
housing guidelines for rental units. These restrictions are intended to ensure the Property remains
affordable to low- and very low-income households as defined by applicable federal regulations
for a minimum of 20 years after the execution of this agreement.
1. Applicability
For -Sale Units (Homeownership): If the Property is sold for owner -occupancy (e.g.,
single-family home or condominium), the initial Buyer and all subsequent owners during
the Affordability Period must meet the income limits specified in Section 2(a) below.
This applies to units assisted under the HOME Program (24 CFR Part 92) or HTF
Program (24 CFR Part 93).
Rental Units: If the Property is rented (e.g., multi -family building), all tenants must meet
the income limits specified in Section 2(b) below, and rents must comply with HUD
maximum rent limits (calculated as 30% of the applicable income limit for the unit size).
Affordability Period:
o For HOME -assisted for -sale units: 20 years (per 24 CFR § 92.254).
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Enforcement: The Buyer (or subsequent owner/landlord) agrees to monitor compliance
annually, maintain records for HUD audits, and notify the City of Pueblo's Housing and
Citizen Services of any non-compliance. Violation may result in repayment of subsidies,
fines, or reversion of the Property to affordable status.
Monitoring: The Buyer (or subsequent owner/landlord) agrees to annual compliance
monitoring by the City of Pueblo's Housing and Citizen Services Department, or as
required by HUD.
2. Income Limits
Income eligibility is based on the household's gross annual income at the time of initial
occupancy (for -sale) or lease execution (rental), adjusted for family size and geographic area.
Income includes all sources (e.g., wages, assets, benefits) as defined by HUD in 24 CFR § 5.609.
Limits are published annually by HUD and must be verified using the current fiscal year's data.
(a) For -Sale Units (HOME/HTF Limits):
• Households must have incomes at or below 80% of Area Median Income (AMI),
adjusted for family size, at the time the purchase contract is executed.
• Current limits are available via HUD's online tool I'll 1�lr plt . j llwt its Search, or by
contacting the City of Pueblo's Housing and Citizen Services.
(b) Rental Units (HUD 60% AMI Limits):
• All tenants must have incomes at or below 60% of AMI, adjusted for family size.
• At least 20% of units must be occupied by very low-income households (S50% AMI),
with rents not exceeding Low HOME Rent (30% of 50% AMI).
• The remaining units may be rented to low-income households (<_80% AMI) but must
adhere to the 60% AMI cap for overall project compliance.
• Current limits are available via HUD's online tool H�t PI iilcolir�,mwfl Jw'mlIs_ '"e:ar�;h, or by
contacting the City of Pueblo's Housing and Citizen Services.
3. Income Verification and Certification
The Buyer (or Seller, if designated as the monitoring entity) shall obtain and retain third -
party source documentation (e.g., federal tax returns, consecutive pay stubs, bank
statements, and asset certifications) from the initial homebuyer or tenant, and shall verify
income eligibility in full compliance with HUD's Part 5 Income Verification
Requirements (24 CFR § 5.609 and § 5.617). Verification must be completed prior to
execution of the purchase contract (for -sale units) or lease agreement (rental units) and
retained in the project file for the duration of the Affordability Period plus three (3) years.
Annual Recertification: For rental units, income must be recertified annually during the
Affordability Period. For for -sale units, resale to a new owner requires re -verification
against current limits.
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Family Size Adjustments: Limits increase by 8% per additional household member
beyond 8 (e.g., 9-person: 140% of • limit, rounded to nearest $50 for
HOME/HTF).
5. Remedies for Non -Compliance
a 11i'mogwrill 1101! P IM-1 M-NIC'