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HomeMy WebLinkAbout2026_02_10 VLHA Agenda1.Call to Order (3:00pm) 2.Citizen Participation (5 min.) 3.Approval of Minutes (5 min.) 3.1 Approval of January 13, 2026 Meeting Minutes 2 min Presenter(s): Robyn Smith, Senior Housing Coordinator 4.Information Update 4.1 Housing Project Update 15 mins. Listen to update on Housing Development Projects. Presenter(s): Anna Bengtson, Housing Development Specialist 5.Main Agenda 5.1 Housing Colorado Annual Membership Renewal 3 min Direct staff to renew annual membership for Housing Colorado and pay 2026 dues in an amount not to exceed $400. Presenter(s): Robyn Smith 5.2 GASB Standards for 501(c)(3)'s 30 mins Listen and discuss. Presenter(s): Carlie Smith, Finance Director 5.3 VLHA + Housing Semi-Annual Update to Vail Town Council 30 mins Review, discuss, and confirm direction for the February 17 presentation and joint session with Town Council. Presenter(s): Steve Lindstrom & Jason Dietz 6.Staff Update 7.Matters from the Chairman and Authority Members 8.Executive Session 20 min. pursuant to: VAIL LOCAL HOUSING AUTHORITY MEETING Agenda Vail Town Council Chambers and virtually via Zoom. Zoom Meeting 1 | Pre-Executive Session | https://vail.zoom.us/j/83110634258 Zoom Meeting 2 | Post-Executive Session | https://vail.zoom.us/j/86430463407 3:00 PM, February 10, 2026 2026-01-13 VLHA Meeting Minutes.pdf VLHA Component Unit Discussion.pdf 2_Memo_VLHA_SemiAnnualUpdate_Prep_01132026.pdf 1 C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators, regarding: submitted Vail InDEED applications and program details. C.R.S. § 24-6-402(4)(c) to consider matters required to be kept confidential by state law, namely the review of a housing file containing personally identifiable information related to a waiver request for the deed-restricted unit located at 931 Red Sandstone, Unit 1 under the Employee Housing Guidelines, Section V.C. The executive session is necessary to prevent disclosure of confidential information protected under the Colorado Open Records Act (C.R.S. § 24-72-204) and related privacy protections. 9.Any Action as a Result of Executive Session 10.Adjournment Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vail.gov. All Town Council meetings will be streamed live by High Five Access Media and available for public viewing as the meeting is happening. The meeting videos are also posted to High Five Access Media website the week following meeting day, www.highfivemedia.org. Please call 970-479-2460 for additional information. Sign language interpretation is available upon request with 48 hour notification dial 711. 2 AGENDA ITEM NO. 3.1 Item Cover Page DATE:February 10, 2026 TIME:2 min SUBMITTED BY:Robyn Smith, Housing ITEM TYPE:Approval of Minutes AGENDA SECTION:Approval of Minutes (5 min.) SUBJECT:Approval of January 13, 2026 Meeting Minutes SUGGESTED ACTION: PRESENTER(S):Robyn Smith, Senior Housing Coordinator VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: 2026-01-13 VLHA Meeting Minutes.pdf 3 Vail Local Housing Authority Meeting Minutes of December 16, 2025 Page 1 of 3 Vail Local Housing Authority Minutes Tuesday, January 13, 2026 3:00 PM Vail Town Council Chambers and virtually via Zoom. Zoom meeting 1 | Pre-Executive Session | https://vail.zoom.us/j/81133239787 Zoom meeting 2 | Post-Executive Session | https://vail.zoom.us/j/83110634258 Present: Steve Lindstrom, Chair Dan Godec Craig Denton Kristin Kenney Williams Absent: Christine Santucci Staff Present: Jason Dietz, Director of Housing Anna Bengtson, Housing Development Specialist Robyn Smith, Senior Housing Coordinator 1. Call to Order (3:00pm) 2. Citizen Participation (5 min.) No public comment was received. 3. Approval of Minutes (5 min.) 3.1 Approval of December 9, 2025 Meeting Minutes Presenter(s): Robyn Smith, Senior Housing Coordinator Time: 2 min 2025-12-09 VLHA Meeting Minutes.pdf Kristin Kenney Williams made a motion to Approve ; Dan Godec seconded the motion Passed (4 - 0). 3.2 Approval of December 16, 2025 Special Meeting Minutes Presenter(s): Robyn Smith, Senior Housing Coordinator Time: 2 min 2025-12-16 VLHA Special Meeting Minutes.pdf Kristin Kenney Williams made a motion to Approve ; Craig Denton seconded the motion Passed (4 - 0). Board and staff briefiy discussed expectations for meeting minutes going forward, emphasizing the importance of capturing the essence and context of discussion without becoming overly verbose or transcript-like. Staff noted that minutes will continue to evolve based on Board feedback. 4 Vail Local Housing Authority Meeting Minutes of December 16, 2025 Page 2 of 3 4. Information Update 4.1 Housing Project Update Listen to update on Housing Development Projects. Presenter(s): Anna Bengtson, Housing Development Specialist Time: 15 min Bengtson provided an update on active housing development projects. Timber Ridge continues to advance toward initial occupancy, with flnal inspections underway and early buildings fully under contract. Southface remains in active construction, with site work progressing and the project moving into the next phase of development. At the East Vail CDOT parcel, due diligence activities are nearing completion, and staff is preparing to advance entitlement work as remaining technical items are flnalized. Dietz advised board of Timber Ridge Employee Home Ownership Program (EHOP) opportunity. No action was requested or taken. 5. Executive Session Kristin Kenney Williams made a motion to Adjourn Motion to adjourn to executive session pursuant to: C.R.S. §24-6-402(4)(b)(e) to hold a conference with the Vail Local Housing Authority's legal counsel, for the purposes of receiving legal advice on speciflc legal questions; to determine positions relative to matters that may be subject to negotiations, develop a strategy for negotiations, and instruct the negotiators; on the topics of: 1. contract for service with Impact Finance Center; 2. Powers and duties.; Craig Denton seconded the motion Passed (4 - 0). 6. Any Action as a Result of Executive Session Regular meeting was called to order at 4:04pm. Consensus direction was provided to direct staff to move forward with legal counsel based on the Executive Session discussion. No formal motion was recorded. 7. Main Agenda 7.1 VLHA + Housing Semi-Annual Update to Vail Town Council Review, discuss, and provide feedback Conflrm alignment on 2026 housing priorities. Provide feedback and direction on the proposed narrative spine for the February 17 presentation and joint session with Town Council. Presenter(s): Steve Lindstrom & Jason Dietz Time: 60 min Memo_VLHA_SemiAnnualUpdate_Prep_01132026.pdf Board and staff discussed preparation for the February 17, 2026 joint VLHA and Town Council session, which has been scheduled as a 60-minute meeting. The proposed format includes approximately 20 minutes for a VLHA presentation, 10 minutes for Economics & Planning Systems to present economic, environmental, and community beneflts of housing, and 30 minutes reserved for discussion with Town Council. Staff reviewed a memo framework prepared to support the session, which consolidates guiding housing documents, summarizes results delivered since the prior update, and refiects priorities identifled by the Board over the past year. Discussion focused on reflning a clear set of priorities to communicate to Town Council as part of its strategic planning process. Board members expressed general alignment with forwarding these priorities for Council consideration, emphasizing the importance of clarity, focus, and consistency in messaging. Staff reviewed a proposed narrative spine intended to guide development of the presentation deck, noting that it is intended as a 5 Vail Local Housing Authority Meeting Minutes of December 16, 2025 Page 3 of 3 fiexible framework rather than a flnal presentation. The Board provided initial feedback and direction to continue reflnement of the narrative spine at the February 10, 2026 VLHA meeting. The Board discussed and conflrmed alignment and support of three primary 2026 priority areas: • Redevelop Policy, Data, & Decision-Making Infrastructure. • Create a Financial Catalyst for Affordable Homes • Support Development Projects & Partnerships. No formal motion was recorded. 7.2 North Trail Townhomes HOA Rent Review lease rate and direct staff to maintain or modify. Presenter(s): Robyn Smith, Senior Housing Coordinator Time: 15 min 2001 Lease Agreement with North Trail Townhomes Homeowners Association Inc for Leasehold Condominium.pdf MEMO_VLHA_NorthTrailTownHomes_LandLeaseRentReview_0113206.pdf Smith presented the required land lease rent review for the North Trail Townhomes property. Discussion conflrmed that the lease provides for periodic review and that the historical and current annual rent has been $1.00. Staff recommended continuation of the existing lease rate. The Board expressed consensus direction to continue the $1.00 annual land lease rent. Dan Godec made a motion to Authorize staff to continue the $ 1 per year annual lease rate for North Trail Townhomes for the next 5 years.; Craig Denton seconded the motion Passed (4 - 0). 8. Matters from the Chairman and Authority Members Godec will be seeking reappointment to VLHA at the end of his term. The board expressed support and emphasized importance of continuity in leadership. Dietz reported reformation of the Timber Ridge Taskforce. Godec and Denton to participate and provide their expertise on lending and real estate respectively. 9. Staff Update Smith advised: • Upcoming Town Council strategic planning retreat (January 19–20) will be recorded for public access. • Habitat for Humanity Housing Collaborative meeting scheduled for 5:30pm on Thursday January 22 at CMC in Edwards. All are welcome and encouraged to attend. • Two InDEED requests and one EHU Exchange under review for potential consideration by the VLHA at their February 10, 2026 regular meeting. • Requested direction to transition to vlha.net email addresses. Board requested to revisit at next meeting. 10. Adjournment Chairman Lindstrom adjourned at 4:31pm. Next Meeting Date Tuesday, February 10, 2026 6 AGENDA ITEM NO. 4.1 Item Cover Page DATE:February 10, 2026 TIME:15 mins. SUBMITTED BY:Robyn Smith, Housing ITEM TYPE:Information Update AGENDA SECTION:Information Update SUBJECT:Housing Project Update SUGGESTED ACTION:Listen to update on Housing Development Projects. PRESENTER(S):Anna Bengtson, Housing Development Specialist VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: 7 AGENDA ITEM NO. 5.1 Item Cover Page DATE:February 10, 2026 TIME:3 min SUBMITTED BY:Robyn Smith, Housing ITEM TYPE:Main Agenda AGENDA SECTION:Main Agenda SUBJECT:Housing Colorado Annual Membership Renewal SUGGESTED ACTION:Direct staff to renew annual membership for Housing Colorado and pay 2026 dues in an amount not to exceed $400. PRESENTER(S):Robyn Smith VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: 8 AGENDA ITEM NO. 5.2 Item Cover Page DATE:February 10, 2026 TIME:30 mins SUBMITTED BY:Carlie Smith, Finance ITEM TYPE:Main Agenda AGENDA SECTION:Main Agenda SUBJECT:GASB Standards for 501(c)(3)'s SUGGESTED ACTION:Listen and discuss. PRESENTER(S):Carlie Smith, Finance Director VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: VLHA Component Unit Discussion.pdf 9 To: Vail Housing Authority From: Carlie Smith, Finance Director Date: February 10, 2026 Subject: Component Unit Discussion I. DISCUSSION Following interest from the VLHA in forming a 501c3, Town of Vail Finance reached out to our auditors, McMann and Associates to gather information on the financial impacts of creating a new entity. The Town of Vail, as well as all government entities are requested to follow Government Accounting Standard Board. The Governmental Accounting Standards Board (GASB) establishes and improves Generally Accepted Accounting Principles (GAAP) for U.S. state and local governments. Its purpose is to enhance financial reporting, providing relevant, reliable information to taxpayers, officials, and investors, ensuring accountability for public resources. GASB standards set rules around if and when an entity is considered a “component” unit of another entity. A component unit is a legally separate organization for which a primary government is financially accountable, or for which the nature and significance of its relationship with the government are such that exclusion would make the financial statements misleading. The Town of Vail currently has four component units, the Vail Local Housing Authority, the Vail Reinvestment Authority, the Vail Local Marketing District, and the Vail Home Partners. Component units are included within the town’s financial statements, and the town of Vail is then ultimately financially responsible for the entity. There are three main tests to determine if an entity is a component unit. The first is to determine if the entity is fiscally dependent, defined as not performing all of the following: - Determine the entity’s budget without Vail’s approval (this can also mean if Vail has the ability to reduce or modify the component unit’s budget) - Levy taxes (N/A for nonprofit) - Issue bonded debt without Vail’s approval The entity must also show that there is not potential for the organization to provide specific financial benefits to Vail, or impose specific financial burdens on Vail by (GASB 61, para 6b): - Vail is legally entitled to the nonprofit’s resources - Vail is legally obligated to finance the deficits or provide resources to support the organization - Vail is obligated in some manner for the debt of the organization 10 Town of Vail Page 2 While those tests are fairly straight forward, there is one last part of the standard that is solely professional judgment that our auditors stressed. An entity must be included in the primary government’s financials if the nature of the relationship is such that it would be misleading to exclude them. The newly formed nonprofit should not be an affiliation or closely related to Vail, meaning that its revenue and expense sources are not primarily to benefit Vail. What this means is not only can the town not be a main continuing revenue source or one that is soley relied upon but they also cannot only benefit Vail financially. Meaning their programs cannot just benefit the town and offset our financial housing burden. 11 AGENDA ITEM NO. 5.3 Item Cover Page DATE:February 10, 2026 TIME:30 mins SUBMITTED BY:Robyn Smith, Housing ITEM TYPE:Main Agenda AGENDA SECTION:Main Agenda SUBJECT:VLHA + Housing Semi-Annual Update to Vail Town Council SUGGESTED ACTION:Review, discuss, and confirm direction for the February 17 presentation and joint session with Town Council. PRESENTER(S):Steve Lindstrom & Jason Dietz VAIL LOCAL HOUSING AUTHORITY AGENDA ITEM REPORT ATTACHMENTS: 2_Memo_VLHA_SemiAnnualUpdate_Prep_01132026.pdf 12 Memorandum Page 1 of 12 To: Vail Local Housing Authority & Housing Department Staff From: Jason Dietz, Housing Director & Robyn Smith, Senior Housing Coordinator Date: January 8, 2026 Subject: VLHA + Housing Semi-Annual Housing Update to Council I. PURPOSE This memo supports VLHA review and preparation for the February 17, 2026 VLHA + Housing semi- annual update to the Vail Town Council. The update will present housing results delivered since the last report and outline the housing solutions to be pursued in 2026. To support informed discussion, this memo includes key excerpts, data summaries, and priority actions. The VLHA is asked to conflrm alignment on 2026 priorities and provide feedback on the proposed narrative spine that will guide the Council presentation and joint session facilitation. II. OUTCOMES TO BE ACHIEVED • Conflrm alignment on 2026 housing priorities • Provide feedback and direction on narrative spine for presentation and joint session. III. ROLES & RESPONSIBILITIES The roles and responsibilities of the Vail Town Council, the Vail Local Housing Authority, and the Vail’s Housing Department staff are uniquely different when it comes to achieving the Town’s vision and adopted housing goal. In summary, the roles and responsibilities are: Vail Town Council | policy and flnal decision maker. Vail Local Housing Authority | technical adviser and consultant Housing Department | administration and implementation The Vail Town Council shall be the flnal decision maker on these important policy matters. The Housing Authority’s role, as a commission appointed by the Vail Town Council, and further authorized by the State of Colorado (C.R.S. 29-4-209), among other matters, is to consult and advise the Vail Town Council on housing-related matters including forwarding recommendations on each of, or all the following topics: • housing policy • implementation strategy • land use regulation • negotiation strategy • program administration • funding options • project management • flnancing alternatives The Housing Department works at the direction of the Vail Town Council and Town Administration to administrate and implement the policies and objectives of the Vail Town Council. 13 Page 2 of 12 The table below highlights the varying roles and responsibilities: Vail Town Council Vail Local Housing Authority Vail Housing Department • Set policy • Direct staff • Establish priorities • Authorize funding • Incur debt • Acquire property • Identify critical actions • Adopt budgets • Forward recommendations • Lead special projects • Oversee programs • Conduct research • Commission reports and studies • Advise decision makers • Issue debt free of TABOR • Propose Initiatives • Administer programs • Manage projects • Verify code compliance • Implement day-to-day operations • Oversee budgets • Staff boards IV. GUIDING DOCUMENTS & FRAMEWORKS A. Vail Housing 2027 Principles Reference link: Vail Housing 2027 The long-standing foundation for housing work remains grounded in three elements which continue to structure the Town’s strategic approach to housing: 1. A clear goal – expanding the supply of resident-occupied deed-restricted homes. 2. Adequate and stable means – ensuring predictable funding and flnancial tools. 3. An empowered method – maintaining proactive, nimble decision making that accelerates delivery of homes. B. 2024 Housing Policy Statements (“Housing Commandments”) Reference link: 2024 Housing Policies The 2024 Housing Policy Statements adopted by Town Council via Resolution 13, 2024 continue to anchor all housing work and guide priority setting. Those policy statements are included here in their entirety: 1. Housing IS Infrastructure - Deed-restricted homes are critical infrastructure in Vail. 2. Housing Partners – We use public/private partnerships and actively pursue local and regional solutions to increase the supply of deed- restricted homes. 3. Private Sector Importance – We foster a proactive and solutions- oriented 14 Page 3 of 12 environment that promotes private sector investment to create deed-restricted homes. 4. Leverage Financial Strength – We take an entrepreneurial approach and use our flnancial strength and acumen to acquire deed-restrictions. 5. Breakdown Barriers – We align our land use regulations, building and energy conservation codes, and administrative procedures to achieve our vision and housing goal, and development applications are thoroughly, timely and efficiently reviewed….getting to “yes” is our shared objective. 6. Funding Creates Deed-Restrictions – We pursue a predictable, consistent, and reliable sources of funding to obtain deed-restrictions and maintain the Town’s housing programs, including grants, low interest loans, tax exempt bonds, and similar sources of municipal flnancing. We do this in partnership with the Vail Local Housing Authority to capitalize on the debt capacity of the Authority and minimize the Town’s exposure to flnancial risk. 7. People Promote Community – We ensure opportunity and access to the Town’s housing programs and initiatives through a clear, equitable, and easy to administer process for housing selection. 8. No Net Loss - No net loss of resident-occupied, deed-restrictions. 9. Keep Up With Demand - New development, both residential and commercial, is obligated to mitigate its incremental impact on the demand for resident-occupied, deed-restricted homes. Payment in lieu may be needed at times, is but the least preferred method of mitigation. 10. Deed-restrictions Beneflt Vail Businesses – Preference to leasing and ownership of deed-restricted homes is granted to employees and employers of businesses located within the municipal boundaries of the Town of Vail. 11. Full Range of Home Options – We pursue housing solutions that provides for the continuum of housing needs of all residents of the Vail community, including both higher and lower density residential developments for varying area median income wage earners. 12. Funding is Policy – The Vail Town Council will fund housing opportunities and solutions as deed-restricted homes are an investment in the greater Vail community. C. VLHA aligns with Housing Department Vision & Mission Reference Links: • VLHA.net • Vail.gov/housing Vision | Resident Housing as Infrastructure “We acknowledge that the acquisition of deed-restrictions on homes for Vail residents is critical to maintaining community. Therefore, we ensure an adequate supply and availability of homes for residents and recognize housing as 15 Page 4 of 12 infrastructure in the Town of Vail; a community support system not unlike roads, bridges, water and sewer systems, fire, police, and other services of the municipal government.” Mission | Deed-Restrictions – we make, manage, measure them. The Housing Department exists to advocate and advance the Town’s vision as the leader amongst mountain resort communities in ensuring the availability of homes for year-round Vail residents. We preserve and protect existing and future homes for resident occupancy by acquiring deed-restrictions obtained through public/private partnerships, strategic initiatives, regulatory obligations, innovative programs and collaboration within the community and the region. D. Vail Town Council Strategic Priorities (MONITOR FOR CHANGE JAN 2026) Reference Links: • Town Council Strategic Plan Landing Page • Town Council 5-Year Strategic Plan adopted 2024 • Town of Vail Strategic Plan Dashboard The Vail Town Council adopted its 5-Year Strategic Plan on May 7, 2024, to create real and meaningful results for our residents, businesses, and guests. It addresses the most important issues identifled in surveys, plans and community conversations and provides a framework to align both human and flnancial resources to address our community’s most important issues. Those priorities are included below in their entirety: 1. Create a strong community and create affordable housing opportunities With ever increasing housing costs causing a lack of opportunity for employees working in Vail to make a home in Vail, or even within 30 to 40 miles of Vail, the sustainability of our economy and community are threatened. This has resulted in a net loss of population for both the Town of Vail and Eagle County as a whole. Although a pioneering spirit has always been required to call Vail home, without a continuum of new housing and business opportunities in Vail the next generation of residents, community leaders, and business owners may not be readily present in the future. 2. Support our Workforce 16 Page 5 of 12 Given the high cost of living in the Vail Valley, retaining employees, and creating a succession of business and community leaders is threatened. Maintaining a high level of customer service to support Vail’s vision requires creating a succession of business leaders and retaining high performing and experienced employees in the community. 3. Provide an Authentic Vail Experience Vail’s vision of being the premier mountain resort community despite a trend towards homogeneity in the ski industry will be achieved by creating programming and events authentic to Vail’s pioneering and entrepreneurial spirit. We are a community that celebrates the sport of skiing and mountain town living. 4. Transportation The increasing number of commuters traveling to and from Vail for business and pleasure impacts public safety, generates an expensive need for parking, reduces the guest experience by causing parking on the Frontage Roads, and contributes to carbon emissions. 5. Environmental Sustainability Our sensitive alpine environment supports our economy, and the Town must continue to be a responsible steward of our sensitive natural resources and should continue to be a leader in environmental sustainability for mountain resort communities across the world. E. Eagle County Housing Needs Assessment Reference Link: 2025 Eagle County Regional Housing Needs Assessment The Eagle County Regional Housing Needs Assessment (April 2025) concludes that housing affordability and availability have reached a structural crisis driven by tourism demand, second - home ownership, wage–housing mismatches, and constrained supply, with impacts now extending county wide, and likely beyond the geographical scope of the area studied. Over the next 10 years, the study projects a countywide housing need of 6,375 units, consisting of 2,638 units to ‘catch up’ and address the existing shortage and 3,736 additional units to keep up with employment growth and retirements. If every one of the approximately 1,337 units identifled in the county-wide housing development pipeline is delivered, the net need would be reduced to 5,038 units. For Vail speciflcally, the appendices show a total 10-year housing need of 1,182 units, broken into 480 units of existing shortage and 703 units of projected future need. The approximately 570 units currently under construction at Timber Ridge and Southface are already counted as existing - the net need of 1,182 units will not be reduced upon completion. Key takeaways: 1. Vail alone accounts for ~1,180 units of need over the next decade. 17 Page 6 of 12 2. Market-rate housing does not meaningfully serve households below ~ 200% AMI. Households below this threshold generally require some form of housing subsidy or are pushed to accept unsustainable cost burdens - or displacement. 3. Over 80% of housing need in Vail and Eagle County is at or below 160% AMI. 4. Existing shortage is nearly half the problem. Of Vail’s ~1,180-unit need, ~480 units refiect current under-housing, meaning people are already doubled-up, cost burdened, displaced, or commuting long distances. 5. Employment-driven demand continues to outpace housing supply under current conditions. The HNA identifles wage stagnation, job growth, and worker replacement due to retirements as major contributors to housing need, indicating that without sufficient housing delivery, unmet demand persists and compounds over time. 6. Delay has compounding costs—flnancial, social, and political. Every year of under-production exacerbates displacement, and narrows feasible solution space. The most effective unit is the one delivered yesterday. F. EPS Environmental Value of Housing Reference: PDF attachment titled “EPS Environmental Impact of Housing” This document makes the case that investing in resident (workforce) housing in the Town of Vail produces outsized economic, environmental, and community returns that far exceed the cost of development. Using a modeled scenario of 100 housing units, it shows how local housing reduces commute times and carbon emissions, fllls critical workforce positions, boosts household spending and sales tax revenue, improves local services and the guest experience, and avoids major downstream costs like structured parking construction and chronic worker turnover. Altogether, these combined beneflts amount to an estimated $663,661 in annual return per housing unit, reinforcing that resident housing is not a subsidy but a high-leverage community investment that stabilizes Vail’s economy, character, and long-term viability Key takeaways: 1. Resident housing pays for itself many times over: ~$663k annual return per unit when economic value, community beneflts, and avoided costs are combined. 2. Big climate and mobility wins: 100 units eliminate ~39,000 commute hours and reduce ~810 MTCO₂e annually. 3. Stronger economy, better service: More fllled jobs, higher household spending, better guest experience, and more reliable local services. 4. Avoided costs matter: Millions saved by reducing parking construction, worker turnover, training, and lost productivity. V. SUMMARY OF PROGRESS ON 2024 STRATEGIC ACTIONS A. Vail InDEED Program — 2025 Performance 18 Page 7 of 12 The Vail InDEED program continues to be impacted by the rise in interest rates and the decline in inventory. • Total number of deed-restrictions purchased | 178 • Total Housing Investments to date | $13,604,118 • Total number of deed-restrictions acquired in 2025 | 2 • Cost per deed-restriction | $73,397 • Cost per square foot | $87 • Cost per bedroom | $45,680 • The Vail InDEED fund remains adequately appropriated at approximately | $4M B. Funding and Financial Tools Work in 2025 focused on strengthening predictable flnancial tools for both development and deed - restriction acquisition. • Ballot Initiative 2A – a 6% STR excise tax as dedicated funding source for housing – failed by 32 votes. • Vail Home Partners deployed as the Town’s non-proflt corporation serving as the flnancing and ownership vehicle for Southface • $3.75m Eagle County contribution for additional Habitat for Humanity units at TR2.0 • InDEED x Good Deeds joint investment in Pitkin Creek buy down • Sponsored a place-based impact investing seminar for Impact Finance Center C. Project Pipeline Progress The major housing pipeline continues to shape the supply trajectory through multiple development and redevelopment opportunities: • Timber Ridge Village Apartments — under construction, First Closings tracking for January 2026 • Southface | Under construction • East Vail CDOT Parcel | Aquired and in process for platting and re-zoning. D. Initiatives and Policy Modernization Progress continued on key initiatives intended to support the Town’s long-term housing goals. • Zoning Applied: Community Housing Zone District and West Vail Multifamily Overlay District applied to (2) private properties. • Advancement of EHU Exchange Program improvements • Eagle County Housing Needs Assessment published 19 Page 8 of 12 VI. 2026 HOUSING PRIORITIES TO ADVANCE TO COUNCIL Create a Strong Community Through a Continuum of Housing The VLHA and the Town of Vail Housing Department exist to create a continuum of deed -restricted homes — taking many forms, for all phases of life — because our people are the secret ingredient to Vail’s world-class sauce. Our mission directly supports Town Council’s priority to strengthen community by expanding affordable housing opportunities — ensuring current and future generations can live, work, and thrive in Vail. By advancing a continuum of housing, the Town can counter rising housing costs, stabilize population loss, sustain the local workforce and economy, enhance quality of life, and preserve Vail’s long-term vitality — now, and in perpetuity. A. Redevelop Policy, Data, & Decision-Making Infrastructure. Intentionally align housing policy, code, and land use with modern business intelligence, analytics, user-centered interfaces, and AI-enabled workfiows so the Town’s housing systems operate as one. Working in tandem, these tools and frameworks connect the means and methods of housing delivery directly to the outcomes the community expects—supporting innovation, excellent customer service, strong compliance, and consistent and predictable results by design. • Align housing policy, zoning, and land use through the Title 12 rewrite, including streamlined entitlements for deed-restricted housing consistent with DOLA and Prop 123 requirements, implementation of the West Vail Master Plan, and employee housing mitigation requirements designed to produce desired results. • Deliver clear, reliable reporting and analytics for staff, the VLHA, and Town Council to support timely, data-informed decisions. • Track the full lifecycle of deed-restricted homes—including resale, appreciation, default, foreclosure, and compliance outcomes—to ensure accountability and optimize policy. • Modernize compliance, lottery, and deed-restriction workfiows through a comprehensive housing database that improves consistency, transparency, and customer service. • Evolve enforcement tools and processes, including evaluation of civil penalties and administrative hearings, to support fair, efficient, and predictable compliance. • Leverage data and AI-enhanced tools to improve internal workfiows, resident services, and program design while reducing friction and administrative burden. • Refresh long-range planning goals, including a deflned target stabilized resident population, and updated inputs to the 2027 Housing Strategic Plan. B. Create a Financial Catalyst for Affordable Homes. Activate the flnancial strength and acumen of the Vail Valley to design, test, and scale market-compatible flnancial tools that lower the cost of ownership of deed-restricted homes and expand housing options across the continuum. By exploring the viability of a purpose-built 501(c)(3), a strategic partnership with a compatible organization, or impact investors aligned with the housing mission, the Catalyst enables faster iteration, disciplined risk management, and scalable impact beyond traditional municipal and market constraints. 20 Page 9 of 12 • De-risk investment opportunities to unlock lower-interest, market-compatible flnancing, using data, underwriting discipline, and deed-restriction tools (guarantees, ROFR, right to redeem). • Scale proven affordability partnerships, including Habitat for Humanity at Timber Ridge and Habitat-style mortgage buy-downs across AMI levels. • Build revolving, durable capital sources to supplement existing sales-tax and capital-fund allocations. • Advance the EHU Exchange Program and EHU Credit Program as a complementary affordability and capital-efficiency tool. • Explore alternative low-interest loan products beyond Fannie/Freddie to expand access and reduce long-term housing costs. • Evaluate lodging and STR-based revenue options, informed by legal constraints, ballot history, and stakeholder engagement. C. Support Development Projects & Partnerships. Focus on delivering housing by actively advancing priority projects, securing strategic sites, and partnering with public and private developers to move homes from concept to completion. This initiative positions the Town as a coordinated, capable facilitator—aligning land, capital, policy, and infrastructure to accelerate delivery of deed-restricted and workforce housing while reducing friction for development partners. • Deliver priority Town-led housing projects, including Timber Ridge Village, Southface, and the East Vail CDOT parcel. • Position the Town to partner or lead State Land Board Phase I development, advancing the continuum of housing opportunities. • Advance land banking and redevelopment readiness, including positioning for acquisition of strategic parcels. • Actively facilitate private-sector housing development by coordinating approvals, infrastructure, and policy alignment. • Support major mixed-use and workforce housing partnerships, including West Lionshead (Vail Resorts / East West), Cascade Village, Lunar Vail, Highline, and West Vail Commercial. • Reduce development friction through coordinated Town support, ensuring projects move predictably from entitlement to delivery. VII. PROPOSED NARRATIVE SPINE FOR THE FEBRUARY 17 SEMI-ANNUAL UPDATE AND JOINT SESSION The February 17 joint session and semi-annual update is anticipated to be a 60-minute session, including a 20-minute presentation from the VLHA, a 10-minute contribution from Economics & Planning Systems, and 30 minutes reserved for discussion. The narrative spine is offered as a proposed framework to help structure the semi -annual update— supporting presentation fiow, effective time management, and a focused, productive conversation with Town Council. By establishing a shared sequence and emphasis, the spine is intended to promote clarity, keep the discussion anchored on outcomes and priorities, and create space for meaningful dialogue rather than reactive or fragmented conversation. 21 Page 10 of 12 The VLHA is encouraged to review the proposed narrative spine and share feedback, suggestions, or reflnements to ensure it refiects the Authority’s intent and supports a successful February 17 session. A. The Work in 2026: Three Priorities (What We Are Doing) • Redevelop Policy, Data, & Decision-Making Infrastructure • Create a Financial Catalyst for Affordable Homes • Support Development Projects & Partnerships These priorities describe how housing work is being operationalized across policy, capital, and delivery. B. The Means in 2026: How the Work Is Being Done Execution is guided by a shared operating posture: • Entrepreneurial | Willing to test, iterate, and scale solutions—retiring what does not work and doubling down on what does. • Innovative | Applying modern tools, data, and flnancial approaches to solve today’s housing challenges. • Dynamic | Responsive to market conditions, project realities, and community needs as they evolve. These efforts are enabled by 3 core means: • Support for action • Alignment on outcomes • Exceptional communication C. Proof of Progress: Results Since the Last Update The update will highlight tangible housing results delivered since the prior semi-annual update. These outcomes demonstrate execution capacity and organizational alignment. • Timber Ridge, Southface, East Vail CDOT • Habitat x ECO x Timber Ridge Partnerships • Progress toward 2027 Housing Goal D. Why the Work Continues: Persistent Need 22 Page 11 of 12 Housing need remains measurable and ongoing, as documented in the Housing Needs Assessment. E. Human Context: Persistent Need For many working residents, housing insecurity is not a temporary condition but a long -term reality without intervention. F. Why the Work Continues: Economic & Community Beneflts Housing stability supports workforce retention, service quality, business continuity, and long -term community vitality. G. Human Context: Economic & Community Beneflts People are — and have always been — Vail’s essential ingredient. Housing is how that ingredient is retained. H. Why the Work Continues: Public Mandate Community engagement, surveys, and feedback consistently demonstrate support for housing solutions, even when speciflc tools are debated. I. Human Context: Public Mandate The data show a clear mandate: meeting basic needs such as housing, childcare, and mental health creates the conditions for alignment around what makes Vail, Vail — land, water, wildlife, experience, and culture. 23 Page 12 of 12 J. Why the Work Continues: Displacement Upon sale, approximately 95% of locally owned and occupied homes convert to second homes or investment properties. This condition is observable and ongoing. K. Human Context: Displacement The community’s longing for what once was is an indicator of neighbors, workers, and vibrancy already lost. L. Banner / North Star The VLHA and the Town of Vail Housing Department exist to create a continuum of deed -restricted homes — taking many forms, for all phases of life — because our people are the secret ingredient to Vail’s world-class sauce. Goal: Create a Strong Community Through a Continuum of Housing. VIII. ACTION REQUESTED • Review, discuss, and provide feedback • Conflrm alignment on 2026 housing priorities. • Provide feedback and direction on the proposed narrative spine for the February 17 presentation and joint session with Town Council. Provide feedback and direction on the proposed narrative spine for the February 17 presentation and joint session with Town Council. IX. NEXT STEPS • February 10, 2026 | VLHA Meeting – flnal review of narrative spine. • February 17, 2026 | Semi-annual update and joint session and to Town Council. • March 10, 2026 | Align the 2026 priorities with staff work plans and VLHA calendar. 24