HomeMy WebLinkAbout2025-04 A Resolution Approving a Town of Vail Timber Ridge Village Employee Housing Unit Deed Restriction Credit ProgramRESOLUTION NO. 4
Series of 2025
A RESOLUTION APPROVING A TOWN OF VAIL TIMBER RIDGE VILLAGE
EMPLOYEE HOUSING UNIT DEED RESTRICTION CREDIT PROGRAM
WHEREAS, the Town wishes to adopt an Employee Housing Unit (“EHU”) deed
restriction credit program (the “Program”) in an effort to attract more buyers to purchase
homes at the new Timber Ridge Village and bring greater value to Timber Ridge Village
homebuyers and Vail community; and
WHEREAS, the Program will allow Timber Ridge Village homeowners to acquire,
through the purchase, EHU deed restriction credits that can be used by themselves, or
transferred, sold, or otherwise assigned to another person or entity to offset a future
EHU deed restriction obligation, and thereby allowing the Timber Ridge Village
development site to be a receiving site for the acceptance of EHU deed restriction
obligations generated elsewhere within the Town of Vail.
NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF
THE TOWN OF VAIL, COLORADO THAT:
Section 1.The Town Council hereby authorizes the Town Manager to
administratively create and execute the Program, in a form approved by Town
Attorney, and further authorizes the Town Manager to take any necessary step and to
execute any documents required to effectuate the intent of this Resolution.
Section 2. The Program shall contain the following parameters:
EHU credits at Timber Ridge Village shall be acquired through a purchase of a credit.
Not more than 86,500 square feet of EHU credits shall be available for purchase by
home buyers.
Individual and business owner home buyers shall be eligible for participation in the EHU
deed restriction credit program.
Future individual and business owner home buyers, as well as buyers under contract
and in good standing at the time of the adoption of the EHU credit program, are eligible
for participation.
The EHU deed restriction credit shall be purchased at the time of the closing on the
original sale of each home from Triumph Development to the first purchaser. Once the
original home sale has closed, the Town will no longer offer an EHU deed restriction
credit for purchase on the home.
The terms of an EHU deed restriction credit shall be enumerated within the special
provisions section of the purchase and sale agreement. Said terms shall be negotiated
exclusively between the Town of Vail and the home buyer. Triumph Development shall
administer the transaction at the direction of the Town of Vail.
The value of the EHU deed restriction credit shall be exempt from the earnest money
down payment calculation of the purchase and sale agreement.
All additional net sales proceeds generated from the EHU deed restriction credit
program shall be accrued to the sole benefit of the Town of Vail. The agreements
executed by and between the Town of Vail, Triumph Development, and First Bank shall
be amended accordingly.
Additional net sales proceeds collected from the EHU deed restriction credit program
should be deposited in the Town of Vail Housing Fund to aid in the creation of additional
deed restrictions through housing development, programs and initiatives.
The redemption period of all EHU credits purchased through the Timber Ridge Village
deed restriction credit program shall expire on December 31, 2035. Any unused credit
as of January 1, 2036, shall become null and void.
An EHU credit may be redeemed in full, or in part, during the redemption period. Any
unused credit balance shall become null and void as of January 1, 2036.
The Town of Vail reserves the right to terminate the EHU deed restriction credit program
at any time at its sole discretion. The Town of Vail, however, shall honor deed restriction
credits acquired prior to the termination of the program.
To the extent feasible, the Town of Vail will implement program terms which may allow
EHU deed restriction credits to be financeable through a mortgage lender. For instance,
all EHU deed restriction credits shall be fully assigned to the mortgage lender without
added cost with the assignability provision coinciding with the duration term of the
mortgage loan.
The value of the credit to be purchased is commensurate with the terms of the deed
restriction, the terms of the credit purchased, and the type of home purchased. For
instance, if the credit purchased for a four-bedroom home and is to be freely assignable,
transferrable, non-project specific, or without a limited sunset provision, its value is
different than if the credit is purchased for a two-bedroom home and cannot be
assigned, transferred, or has a limited sunset provision.
o The following flat fee values shall be added to the retail purchase price of a home
at Timber Ridge Village to acquire an EHU deed restriction credit:
Studio – 15%
One Bedroom – 25%
Two Bedroom – 20%
Three Bedroom – 10%
Four Bedroom – 10%
o An added fee of 7.5% of the retail purchase price of the home shall be applied for
an assignability and transferability clause. Mortgage lender assignability shall be
automatic and exempt from this fee.
o The future value of the EHU credit shall be determined based upon the
provisions of the Vail Town Code adopted at the time the EHU credit is
redeemed.
Recorded EHU deed restrictions or existing deed restriction obligations may be
exchanged for new deed restrictions at Timber Ridge Village, subject to the exchange
rates established in the Section 12-13-5, Employee Housing Unit Deed Restriction
Exchange Program. This shall be permitted as an administrative action provided the
request complies with the criteria and findings prescribed in 12-13-5(F)(1) and
(F)(3)(a)(1-7) and (F)(3)(b)(1-4).
o No added fees shall apply in the instance of an approved EHU exchange as the
required exchange rate multiplier compensates the Town of Vail for the
exchange.
o An EHU credit purchased through the Timber Ridge Village Deed Restriction
EHU Credit Program, regardless of deed restriction credit terms shall not apply to
an EHU exchange.
The Town of Vail Housing Department shall establish an internal accounting system and
protocol for tracking and verifying deed restriction credits acquired and redeemed
through the EHU deed restriction credit program for the term of the deed restriction. The
accounting system shall be audited annually.
All EHU credits purchased shall be documented and recorded with the Eagle County
Clerk & Recorder’s Office as an exhibit to the deed restriction.
Section 3. This Resolution shall take effect immediately upon its passage.
INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town
Council of the Town of Vail held this 21st day of January, 2025.
_________________________
Travis Coggin, Mayor
ATTEST:
____________________________
Stephanie Kauffman, Town Clerk