Are Deed Restricted Units Second Homes?

Kirk and Pam Alter thought they had the cat's meow - a low-priced home in Breckenridge where they could vacation (live?).  New construction as well.  The problem was that the property was deed restricted to locals only. 

You see, as prices rise in resorts, locals increasingly get priced out of real estate.  The privilege of living and working here has a decreasing ability to actually live here.  So, to counter the problem and increase the ability for locals to actually purchase homes, nearly every resort establishes some rules. 

Sometimes it means that each new development have a few "locals dedicated" units.  Sometimes, as in this case, the entire subdivision is for locals only.  The rules are made quite clear to anyone purchasing, and they actually have to sign an affidavit that they will be living full time in the property, that they are employed locally, and that they fall within certain income guidelines.  Mr. Alter is actually employed as a professor at Purdue University.  And, eventually, someone at the Town found out.  And the Town took it seriously - filed criminal charges. 

The couple recently pleaded no contest and the case was settled, but the message is clear.  If you are a second home buyer, make sure you are purchasing a true second home.  And leave the locals units for locals.