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HomeMy WebLinkAbout2016-0322 VLHA Meeting MinutesMinutes Vail Local Housing Authority (VLHA) March 22, 2016 at 3:00 PM Attending the meeting were members: Scott Ashburn Steve Lindstrom Mary McDougall James Wilkins Town staff attending the meeting: Alan Nazzaro George Ruther Invited Guests: Presley T. Ilieva, VP FirstBank A quorum of VLHA Members being present, Steve Lindstrom called the meeting to order at 3:05 PM. I. Meeting Notice and Approval of minutes The Board considered the minutes sent with the Meeting Packet for previous VLHA Meeting held on 3/3/16. James Wilkins moved to accept all of the minutes as presented. Mary McDougall seconded the motion and it passed unanimously. II. Employee Housing Guidelines Update Lottery Process Deed Restriction Process Due to the length of time needed to review and discuss the Chamonix Neighborhood RFP and in deference to our guest presenters from FirstBank, this item was tabled until the next special meeting of the VLHA scheduled for March 31, 2016 at 11:00 AM. III. FirstBank Lender Discussion In order to allow our guests time to present and answer questions, regarding lender issues with deed restricted properties, the order of the Agenda was changed to have the discussion before the RFP item. The representatives from FirstBank passed out fact sheets with calculations showing maximum loan payment amounts for a few scenarios of borrowers and presented some facts about the lending environment for deed restricted properties: Private Mortgage Insurance (PMI) is required for any loan with less than a 20% down payment - 0.67% of loan amount per month for borrowers with good credit Down Payment Assistance, regardless of source can help to get to the 20% Lenders will do 80-10-10 loans, 80% LTV loan with 10% down and a 10% second mortgage for the remaining down payment, which is acceptable to the secondary market as well Deed Restrictions can not survive foreclosure or must be a guaranteed buy-out FirstBank offers more flexible underwriting for portfolio loans When loans are sold on secondary market – must meet the criteria of the secondary buyer No single entity can own more than 10% of condominium units No more than 30% of units in any single HOA can be rentals (70% owner-occupied) Up to 6-unit HOAs are exempt form the 30% rule Townhomes are classified as single family attached units by banks and secondary market A question arose regarding the ability to lend on single family homes that are on leased land. Some concern was expressed by the bankers about the ability to appraise that type of product, if there would be comparable sales in the market. The bankers said they would check with underwriting and their appraisers to get an answer and get back to the VLHA with an answer. After a considerable amount of discussion back and forth, the following key points were madeto be kept in mind when approaching a new development: What does the HOA cover – all utilities, common elements insurance and maintenance, trash & snow removal? Banks & secondary market don’t care what is covered, just how high the HOA Fees are, because it counts towards the 45% limit on monthly expenses Down payment assistance form any source helps the borrower. Even deferred payment loans for DP Is the land lease required to be a 99-year lease by statute? IV. Draft RFP George Ruther presented the Draft RFP to the VLHA at the meeting and passed out copies of it. He went through the RFP page by page and highlighted the following: It was decided that the RFQ was an unnecessary step and that the qualifications would be included in the RFP in the Selection and Evaluation Criteria. The logistics of the process were discussed and the following points were made: There would be one main information portal for all bidders with FAQ’s from bidders for all to see- levels the playing field Proposals will be on a pre-established site plan with entitlements in place Town is giving the land, the main infrastructure and free-market opportunities in the deal There is flexibility within reason and the given parameters of the development All supporting documentation will be available to the bidders on a share file site- soils tests, engineering reports, PEC, Master Plans, etc. We will know who accesses the share file site and thereby, who has done their research for the proposal The RFP includes: Draft Development Schedule with construction phasing plan Ability for some flexibility (but the basic product is set) How will you achieve our goals and objectives Some free market units Design-build Vertical construction sold to Town at set price Town resells to public Warranties – work out relationship among Builder/Town/buyer The group discussed some of the elements of the RFP and/or development agreement that would be needed to achieve success. Those included: Fillable spreadsheet for important elements to compare apples to apples Complete specifications Specifying the unit type with some flexibility on count if possible Phasing will need to go on TOV cash flow – bonded project Most dollars = Least risk on the free market lots HOA Reserve Study In closing the group was asked to take a closer look at the Draft RFP and return comments to Community Development ASAP. V. Next Meeting It was decided that there needs to be a special follow-up meeting with the staff and VLHA to look at Deed Restriction and recommended changes to the Employee Housing Guidelines to bring to Town Council in mid-April. It was decided to meet the 31st of March at 11:00 AM to continue that discussion. There being no further business the meeting adjourned at 5:30 PM. Respectfully Submitted, ____________________ Housing Staff INTRODUCED, READ, ADOPTED AND APPROVED this ______ day of ___________________, 2016.