HomeMy WebLinkAbout1980-27 Providing for Certain Disclosure Requirements for Time Sharing Projects; Providing for Public Offering Statements and Setting Forth Requirements for Such Offering Statements; For the Escrowing of the Deposits or Reservation of a Time Share Unith a ~ `I
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ORDINANCE N0. --r~
Series of 1980
AN ORDINANCE PROVIDING FOR CERTAIN
DISCLOSURE REQUIREMENTS FOR TIME
SHARING PROJECTS; PROVIDING FOR
PUBLIC OFFERING STATEMENTS AND
SETTING FORTH REQUIREMENTS FOR
SUCH OFFERING STATEMENTS: FOR
THE ESCROWING OF THE DEPOSITS
OR RESERVATION OF A TIME SHARE
UNIT; AND SETTING FORTH REMEDIES
FOR VIOLATIONS OF THIS ORDINANCE.
WHEREAS, the past impact on the Town of Vail by time-share
projects has indicated a clear and convincing need for the
regulations of such projects; an d
WHEREAS, the Town Council has determined that the health
safety and welfare of the inhabitants of the Town of Vail will
be best served by requiring the disclosure of certain facts and
information relating to time-sharing projects, to the prospective
pruckaasers of tune share units.
NOW, THEREFORE, BE IT ORDAINED BY THE VA IL TOWN COUNCIL
OF THE TOWN OF VAIL, COLORADO, THAT:
Section 1.
Title 5 of the Vail Municipal Code is amended by the
addition of a new Chapter 1 to read as follows:
Chapter 5.01
DISCLOSURE REQUIREMENTS
Section 1.010 Applicability; Exemptions
(A) This chapter applies to all time--share
units, which shall include time-share
estates, fractional fees, and time-share
license, as defined in Chapter I7 of the
Nail municipal Code relating to subdivisions,
except as provided in Subsection B {below).
(B) A public offering statement need not be
prepared or delivered in the case of:
(1} a gratuitous transfer of a time-
share;
(2) a dispasition pursuant to Court
order;
(~) a disposition by government or
governmental agencies;
(~} a disposition by foreclosure or
deed in ]feu of foreclosure;
(~~) a transfer to which Section LOGO
relating to resales applies.
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Page 2
Secl;ion 1_.020 PubJ.ic Offerin~; Statement - General Provisions
(A} A public offering statement must contain
or fully and accurately disclose:
(.l) the name of the developer and the
principal address of the developer
and the unit or units offered in
the statement;
(?) a general description of the tune--share
anus, including without limitation,
the developer's schedule of commencement
in completion of all buildings, units,
and amenities;
(3) as to all units offered by the
developer in the same project;
(a} the types and number of units;
(b) identification of units that
are time--share units;
(c) the maximum number of the
c~evelopex's units that may become
time--share units;
fd) a statement of the maximum number
of time shares that may be created,
or that there is no maximum; and
(e) the number or proportion of time
shares the developer intends to
market in block=_s to investors.
(4) copies and a brief narrative
description of the significant
features of the governing instrument
and any documents referred to therein
(other than any plats and plans}
copies of any contracts or leases
to be signed by Purchasers at closing,
and a brief, narrative description
of any contracts or leases that will
or may be subject to cancellation by
the tame-share owners;
(5) any current balance sheet and a
projected budget for the time--share
units either within or as an exhibit
to the .public offering statement,
for (one) year after the date of
transfer to a purchaser, and thereafter
the current budget, a statement of
who prepared the budget, and a state-
ment of the budget's assumptions
concerning occupancy and inflation
factors. The budget must include,
without limitation;
(a) a statement of the amount, or
a statement that there is no
amount, included in the budget
as a reserve for repairs and
replacement;
(b) a statement of any other reserves;
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Page 3
(c) the projected common expense
liability by category of
expenditures for the time-share
units; and
(d) the projected common expense
liability for each time share.
(6) any services not reflected in the
budget that the developer provides,
or expenses that he pays and that
he expects may become at any subsequent
time a common expense of the time-shares
and the projected common expense
?iability attributable to each of
those services or expenses for
each time share;
{7) any initial or special fee due from
the purchaser at closing; together
v7ith a description of the purpose
and method of calculating the fee;
{ S ) a descx~ipt ion of any Iz ens , defects ,
or encumbrances on or affecting; the
i~itle to the time-share units;
(9) a description of any financing
offered by the developer;
{10) the terms and significant limitations
of any warranties provided by the
developer, including statutory
warranties and limitations on the
enforcement thereof or on damages;
(11) a statement of any judgments against
the developer and any association or
manager, the status of any pending
suits to which the developer and any
association or manager is a party,
and the status of any pending suits
material to the time-share units of
which a developer has actual knowledge;
(12) a statement that any deposit made
in connection with the purchase of a
time share will be held in an escrow
account until closing of the
transaction;
(13) any restraints on alienation of any
portion of any time share;
(l~} a description of the insurance coverage
provir~ed for the benefit of time-share
owners;
(15) any current or expected fees or
charges to be paid by time-share
owners for the use of any facilities
related to the property.
(1£) the extent to which a time--share unit
may become subject to a tax or other
lien arising out of claims against
other time-share owners of the same
time-share unit; and
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Page ~
(17) all unusual and material circumstances,
features, and characteristics of the
property.
(B} If the time-share owners are to be permitted
or required to become members of or to
participate in.any program for the exchange
of occupancy rights among themselves or with
the time-share owners of other time-share
parcels or both, the public offering
statement ar a supplement delivered therewith
r~lust contain or fully and accurately disclose:
(1) the manner in which the program is
operated, the identity of the persons
operating it, and any affiliation
between the program and the developer;
(2) whether membership or participation
in the program, ar both, are voluntary
ar r~randatory;
{3) the costs or ranges of costs of
membership and participation in the
program as of a specified date nat
r~~are than one year before the public
offering statement is delivered to
the purchaser, and whether those costs
are payable to the developer, the
persons operating the program, or the
time-share owners with whom exhanges
are made;
(~) whether and how
specified in pa
be altered and,
~~~hich are to be
case basis, the
those costs are
case;
any of the costs
ragraph (3) may
for any such cost
fixed on a case-by-
manner in which
to be f i:~ed in each
(5) the number of time shares and time-
share parcels involved in membership
or otherwise participating in the
program, and the number al' each that
may be withdrawn from the program,
as of a specified date nat more than
one year before the public offering
statement is delivered to the purchaser;
(C) A developer promptly shall amend the public
offering statement to repart any material
change in the information required by
subsection (A) and the public offering
statement or any supplement thereto to
report any material change 1~nown to him
in the information required by subsection
{B).
Section. 1.030 Same - Conversion Property
{A} The public offering statement for the
time-share units in a conversion property
must contain, in addition to the information
required by Section 1.020:
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Page 5
(1) a statement by the developer, based
on a report prepared by an independent
architect or engineer, describing the
present condition of all structural
components and mechanical and electrical
installations material to the use and
enjoyment of the time-share units.
(2) a statement by the developer of the
expected useful life of each item
reported an in paragraph (1) or a
statement that no representations are
made in that regard; and
(3) a list of any outstanding notices
of uncured violations of building code
or other municipal regulations,
together with the estimated cost
of curing those violations.
(B) This section applies only to units in
which residential use is permissable.
Section 1.040. Same -- Time--Share Securities
xf a time--share unit is currently registered with
the Securities and Exchange Commission of the United States, a developer
satisfies all requirements relating to the preparation of a public offering
statement of this Act if he delivers to the purchaser and files with the
Town a copy of the public offering statement filed with the Securities and
Exchange Commission.
Section 1.050. Time Far Provision of Public Offering Statement
(A} Before transfer of a time share and no
later than the date of execution of any
contract of sale, the developer shall
provide the intended transferee with (I)
a copy of the public offering statement
and any amendments and supplements thereto,
and (2} the disclosures required in the
case of resales by Section 1.060.
Section- ~::.Q60. Right to Recind.
The transferee of any time share unit shall
have the right to recind the transaction. until
midnight of the third business day following the
consumation or closing of the transaction, or
delivery of the disclosures required by this
chapter, which ever is later, by notifying
the Developer of his intention to do so. The
Developer shall clearly and conspicuously
notify the transferee, in writing of the
rights of the transferee under this section.
The Developer shall also provide an adequate
opportunity to the transferee to exercise
his right of recession. Within 10 days after
receipt of a notice of recession, the Developer
shall return to the transferee, any earnest
money, or down payment given by the transferee
to the Developer.
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Page 6
Section 1.D70 Resales of Time Shares
{A) In the event of a resale of a time share
by a time--share owner other than a developer,
the Seller shall furnish to the purchaser
before execution of any contract for the sale,
or otherwise before the transfer, a copy of
the governing instrument (other than the plats
and plans) and a certificate containing:
(1) a statement disclosing the effect
on the proposed disposition of any
right of first refusal or other
restraint on alienation of the time
share;
(2) a statement setting forth the amount
of the common expense liability and
any unpaid common expense assessment
ar other sums currently due and payable
from the seller;
(3) a statement of any other fees payable
by time-share owners; and
(4) a statement of any judgments or other
matters which are nr may become liens
against the time share or the time-share
unit and the status of any pending
suits which may result in such liens.
(B) If the seller awns or offers fox sale more
than an aggregate of 12 time shares in
more than one time--share unit in the same
project and the managing entity of those
tithe-share units is an association or
manager, the seller shall include in the
certificate furnished pursuant to subsection
(A)•
{1) a statement of a.ny capital expenditures
proposed by the managing entity for
the current and the next succeeding
fiscal year;
(2) a statement of the amount of any
reserves for capital expenditures
and of any portions of those reserves
designated by the managing; entity fax
any specified projects;
(3) the most recent regularly prepared
-aaI.arAce sheet and income n,n.d. o~.~~~~.nP
statement , if any for the ~ ~~~-„,f? ~ t~r °
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Page 7
(~) the current operating budget for
the property;
(5) a statement describing any insurance
coverage provided for the benefit
of time-share owners;
(6) a statement as to whether the managing
entity has knowledge that any alterations
or improvements to the time-share unit
violate any provision of the governing
instrument;
(7) a statement as to whether the managing
entity has knowledge of any violations
of the health or building codes which
with respect to the time-share unit,
or any other portion of the property;
an d
(S} a statement of the remaining term of
any leasehold estate affecting the
property and the provisions governing
any extension or renewal thereof.
(C) Any association or manager, within ZO days
after a request by a time-share owner,
sha11 furnish a certificate containing the
information necessary to enable the time-
share owner to comply with this section.
A time--share owner providing a certificate
pursuant to subsection (A} is not liable
to the purchaser for any erroneous
information provided by the association
or manager and included in the certificate.
(D) A purchaser is not liable for any unpaid
common expense liability or foe greater than
the amount set forth in a certificate prepared
by an association or manager. A time-share
owner is not liable to a purchaser for the
failure or delay of an association or manager
to provide the certificato in a timely manner.
Section I.Q80. Escrow of Deposits.
Any deposit made in connection with tho purchase or
reservation of a tir.~e share from a developer must be placed in
escrow and held in an account designated solely for that purpose
by a ti.tlo insurance company licnesed in this Stato, an
institution whose accounts are ;insured by a governmental agency
or instrumentality until (1) dolivered to the developer at the
expiration of the time for rescission or such later time as may
be specified in any contract of sale; (2} delivered to the
developor because of purchaser's default under a contract
to ~rurchase the time share; or ( 3) refunded to the purc?~.as~:~•.
~~
Section 1.00. Labeling of ?'r~
Ii any improvement to the
Vic' be k~uil~G, no promotional material
dclivc~~°ed to prospective purchasers
c.lepicts that improvement unless the
of tl~e inzpxovement is conspicuoual~.T
as "NEEI3 NOT 13E LUILT" .
Page S ~~
emotional Material
property is not required
may be displayed or
which describes or
description or depiction
labeled or identified
Section 1.100. Developer's Obligation to Cor~~plete
The developer shall complete dl promised improvements
described in the governing instrument and promotional materials.
Section 1.101. }temedies far Violations.
(A) In addition to all remedies provided by
law, the Town of Vail sha11 be authorized
to enforce these time--share regulations
as follows:
(1) the Town, in addition to other remedies
provided, may institute an injunction,
mandamus, abatement, or other appropriate
action or preceding to prevent, enjoin,
abate, remove an unlawful construction,
use, occupancy or conveyance or to enjoin
any developer from selling, agreeing to
sell, or offering to sell, or otherwise
convey, before full compliance with
the provision of this chapter;
{2) no Pudding Permit shall be issued for
any lot or parceled land which has been
transfered, conveyed, sold, or acquired
in violation of this chapter. Any
transferee who acquires a time-share
unit in violation of this chapter without
knowledge of such violation, any subsequent
transferee, shall have the right to rescind
and/or receive damages fror~l any transferor
~-rho violates the provision of this
(3) the Planning and Environmental Commission
may withdraw any approval of a plan or
plat or require certain corrective
~:easures to be taken following the
determination that information provided
Uy the developer, or by anyone on his
behalf, upon which a decision was
based, is false or inaccurate. The Planning
and Environmental Camznission shall cause
ti~,rritten notice to be served on the
developer, or his assagnes, setting out
rt clear and concise statement of the dleged
false or inaccurate ~nf~a oration provided
by the developer, °w~ agents on
his beh~~.1f, and directing the developer
to appear at a time certain for a hearing
be.~ore the Planning and Environment d
Commission not less than ten days
nor more than thirty days after the date of
service of notice. The Planning and
and Environmental Commission shall
determine at the hearing the nature
and extent of the alleged false or
inaccurate information and shall
have power, on Y;ood cause being shown,
to Gvithclraw any approval or require
certain corrective measures to be
taken IIowever, withdrawl of approval
or :imposition of corrective requirer~sents
shall. not be an exclusive remedy on
findinE; by the Com:r~ission that false
or inaccurate information has been
rc~ceiveQ, and any and all remedies
nrn~•i clr~ci ht' ] ~tt~~ rna.`> >>e exercised.
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Page 9
Section 2.
If any part, section, subsection, sentence, clause
or phrase of this ordinance is for any reason held to be invalid,
such decision shall not effect the validity of the remaining
portions of this ordinance; and the Town Council hereby declares
it would have passed this ordinance, and each part, section,
subsection, sentence, clause or phrase thereof, regardless of the
fact that any one or more parts, sections, subsections, sentences,
clauses or phrases be declared invalid.
Section 3.
The Town Council hereby finds, determines and declares
that this ordinance is necessary and proper for the health safety
and welfare of the Town of Vail and the inhabitants thereof.
Section 4.
The repeal or the repeal and reenactment of any
provision of the Vail A4unicipal Code as provided in this ordinance
shall not affect any right which has accrued, any duty imposed,
any violations that occurred prior to the effective date hereof,
any prosecution commenced, nor any other action or proceeding
as commenced under or by virtue of the provision repealed or
repealed and reenacted. The repeal of any provision hereby shall
not revive any provision or any ordinance previously repealed
or superseded unless expressly stated herein..
INTRODUCED., READ ON FIRST READING, APPROVED AND ORDERED
PUBLISHED ONCE IN FULL THI S ~ ~~~ DAY OF rr~ Y~~~ .,!:~..
,,., ~ , , 1980
and a public hearing on this ordinance shall be held at the regular
meeting of the Tgwn Council of the Town of Vail, Colorado, and the
/~`~~ day of ~--~~( •L.t J.-- 1980, at 7:30 P.M. in the Municipal
~~ 1,/
Building of the Town. f
Mayor / ~ `
ATTES'P-:
7 ~ ..
.f, r ~ A
C ~, .~~-~( rod ~~~4~
Town Clerk
Page 10 `
TNTRODUCED, READ, APPROVED ON SECOND READTNG AND ORDERED
~ 4
PUBLISHED BY TITLE ONLY THIS ~~~ DAY OF ~ ,~(. , Zggp.
ayor
ATTEST:
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• • •
Sera€Dn 1.101 - Remetlles for Violations.
• '{A} In atldlllon to ell remedies provided by
law, the Town of Vall shall be authorized to
enforce those time-share regulations as
fat lows:
{i} the Town, In addition to other remedies
provided, may institute an injunction,
mandamus, abelement. or other appropriate
action or preceding to prevent, enlein, abate,
remove an unlawful construction. use,
occupancy or conveyance dr to enjoin any
tlevaloper from selling, agreeing to sari, or
offering t0 sell, orotherwise convery, before lull
compliance with the provision o1 /his chaplet,
(2y no Building Permit shall ha issued for any
lot or~arceled lantl which has been [ransterred.
conveyed, sdld, ar eaqulred In violation of this
chapter. Any transferee who acquires a
lima-share unit im violation v1 this chapter
wilhdut knowledge ~of such violation, any
aubsaqueM transferee, shah have the right to
reecintl and/or receive damages from any
transferor who violates the provision of Ihis
chapter.
(3J the Planning and Enviranmenlal
Gammiseivn may withdraw any approval of a
plan ar plat or require certain corrective
meaevrea to be taken following the
determination that information pprovided by the
developer, or byy anyone an his behalf, upon
which a decision was basetl, is false nr
inaCCUrate. The Planning and Environmental
Commission shall cause wNttan natlca to ba.
served on the developer, or his asslgnes, setting
out a clear and canci se statement of [he alleged
false or inaccurate Information provided by the
tleveloper, whereas agents on his behalf, and
dlracting the developer.to appear at a time
oerfaln for a hearing before~tho Planning and
Environmental Commissla7t not less than ten
days nor more than thirFy days after the date of
service of notice. The Planning and
Environmental Commission shall determine al
the sharing the nature and extent of the alleged
isles or Inaccurate information and shall have
power, on good cause being shown, to
withdraw any approval or require certain
cgrreclive measures to ba taken. However,
withdrawal of approval pr Imposition of
OOrreCtive requiremama shall not 6e an
exclusive remedy on finding by the
Commission that fnlee or inaccurate
information has bean received, rind nny antl nn
remedlas provided by taw may ba exercised.
SECTION R. II any part, section, subsection,
sentence, clause yr phrase of Ihis ordinance fa
Tor any reason held to be fnvelltl, such tlecision
shall not effect the validity of the remaiMng
porticna of this ordinance; and the Town
Cauncfl hereby declares It would have passed
this ordinance, antl each part, section,
su bsaction, sentence. C f eu se c r phrase thereof,
regardless of the fact that any ono or more
parts, sections, subsections, sentences,
clauses or phrases be declared invalid.
SECTION 3. The Town Council hereby Ilnds,
determines and declares that this ordinance is
necessary end proper forlha health, safety and
welfare of the Town of Ve6 and the inhabitants
thele0f.
SECTION 4. The repeal or fire repeal and
reenactment of any provision of the Vail
Municipal Cvtle as provided In this ordinance
shall not affect any right which has accrued,
any duty imposed, any violations that occurred
prior tp the effective date hereof, any
prOSeCUti0n Commenced, nor any other aCLOn
or proceeding ae commenced under or 6y
virtue of the provision repealed or repealed and
reenacted. The repeal of any provision hereby
shall not revive any provision or any ordinance
previously repealed or superseded unless
expressly stated herein.
INTRODUCED, READ ON FIRST READING.
APPROVED AND OADERE6 PUBLISHED
ONCE IN FULL this 1st day o1 July, 1980 a rid a
public hearing vn this ordinance shell be held at
the regular meeting of the Town Council of the
Town of Vail, Colorado, on the t5th day o}July.
• 1880 at T:30 p.m. in the Municipa{ Building of
the Town.
TOWN OF VAIL
- _ ' ~ _~ Rodney E Sl+ler
Mayor
ATTEST:
Colleen M. f(lins
Town Clerk
INTRODUCEp, •READ, APPROVED ON
f~$E~ON~D ftEADINO AND ORDEREb
• PUBLISHED EN 1•UkL Ihis 15th day of July,
1880, .
TOWN OF VAIL.
' t - Rodney E. Slifer
' Mayor
ATTEST:
Cvlisen M. Kline
Town Clark ,
Publiahad In The Vaif Troll on July 1B, 1960
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