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less 6 percent. Each year thereafter, up to 7 years after the
date of sale, the repurchase price was reduced by an additional 3
percent of the original price. Anytime after 7 years, the
repurchase price was 76 percent of the original price of the
cluster home.
Lease and maintenance fee payments that were in arrears for
more than 60 days would accumulate interest at the rate of 9
percent per annum. Such payments were considered liens on the
ownership of the cluster homes and were required to be paid in
full with interest prior to, or out of, the repurchase monies.
Cluster home owners were required to give 90 days' notice of
intent to vacate. Those owners who wished to move into a
Highland Farms apartment would receive the appropriate repurchase
price, plus a credit towards the apartment's entry fee of 1
percent of the cluster home purchase price per year of cluster
home occupancy, up to a maximum of 7 years. Where petitioner
allowed structural changes, it required the owners to pay the
cost of the addition and amended the original purchase agreement
so that the repurchase price would include not less than 76
percent of the cost of the addition.
The cluster home purchasers understood that they were
required to transfer the cluster home back to petitioner for a
percentage of the original purchase price. Petitioner has always
honored its repurchase commitment. Petitioner has not and as a
practical matter would not have allowed any cluster home owner to
sell the cluster home to a third party, nor would petitioner
approve an owner's subletting the unit, even if the potential
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Last modified: May 25, 2011