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HomeMy WebLinkAbout2016-1025 VLHA Meeting MinutesMinutes Vail Local Housing Authority (VLHA) October 25, 2016 at 3:00 PM Attending the meeting were members: Molly Murphy Scott Ashburn Steve Lindstrom James Wilkins Mary McDougal Town staff attending the meeting: Alan Nazzaro George Ruther A quorum of VLHA Members being present, the meeting was called to order at 3:15 PM. Meeting Notice and Approval of minutes The Board considered the minutes sent from the VLHA Meeting held on 8/23/16. Molly Murphy moved to approve the minutes as submitted. Scott Ashburn seconded the motion. The motion passed unanimously. Update on Marriott Residence Inn proposed development VLHA representatives attended a public meeting that was put on by the developer and held on 10/17/16 at 5:00 PM in the Sonnenalp Resort. They noted that the developer is revising the proposal and resubmitting to the PEC for their Nov. 14th meeting. The following changes were noted: 107 of the 113 apartment units will be deed restricted 6 of the apartments will be market rate units The height of the building is being lowered slightly The front façade of the building will have recesses and protrusions, instead of an extremely long flat wall Discussion of Mechanics of Housing Program Staff presented a memo to Town Council to be presented at the Nov. 1st Council Meeting. The memo contained background leading up to the decision to adopt the Housing 2027 Strategy and the purpose and background for the proposed Deed Restriction Purchase Program. Staff directed the Board’s attention to the intended VLHA recommend criteria/findings, which are the crux of the memo for Council to consider. After review and a lengthy discussion of the bulleted items, the Board settled on the following recommendations: Supports and maintains a permanent year-round resident population in an effort to sustain community Furthers the goal adopted in the Vail Housing 2027 Strategic Plan Consistent with the housing policies adopted by the Vail Town Council for the acquisition of deed restrictions for resident housing Demonstrated demand exists within the resident housing market for the type of residential product (studio, flat, townhome, duplex, single family, etc.) that is to be deed restricted Fulfills a demonstrated need within a defined segment (i.e. seasonal, for rent, for sale, owner occupied, etc.) of the residential property market. Demonstrates a quantifiable return on investment based upon the conclusions of the Economic Value of the Town’s Investment in Employee Housing Report, prepared by BBC, dated March 12, 2012 The market value of the deed restriction is comparable in value to other existing deed restrictions within the community as demonstrated by a licensed real estate appraiser Most cost effective and efficient use of the Town’s limited supply of financial resources Fair market value is paid for the deed restriction relative to current market conditions (i.e. supply & demand) The discussion turned towards measures of success. The issues discussed revolved around there not being enough funding from existing sources (i.e., the Fee in Lieu Fund and Town budget) to tackle the problem, we need a dedicated funding source going forward. The initial allocation will act as a demonstration project to show that the program can work. We have to go forth and prove it. The Board also discussed the need for using Town Resources responsibly and that at the end of the day VLHA will be spending tax payer money, which brings with it a fiduciary responsibility. After further discussion the Board settled on the following recommended measures of success for reporting back to Town Council: Total number of net new deed restrictions acquired Total number of net new bedrooms restricted Total amount of new square footage restricted Average cost per square foot for deed restricted properties Average cost per net new deed restriction Total number of Vail residents housed Breakdown of household structure (i.e. household size, age of residents, adults vs. children, location of employment, etc.) Previous location of residency Approximate range of total household income Total number of net new existing dwelling units deed restricted within the reporting period Total number of for-rent homes restricted versus for-sale homes restricted George Ruther excused himself at this point to take the Board’s input and make changes to the Council Memo in order for it to be included in the packet for the next meeting. The Board next turned the discussion towards valuations of deed restriction purchases. Staff presented spreadsheet printouts of all residential sales in Vail for 2015 through August of 2016 under $1 Million in sales price. The spreadsheet was seven pages long containing over 300 sales, listed alphabetically by subdivision. The Board reviewed the information and concluded that the target price range initially for the program should be well below $1 million and more like a top price of $550,000. Each situation would be evaluated on a case by case basis as fitting the criteria/findings and the resources available at the time. Deed Restriction Purchase Request Staff presented to the Board a letter from David Fuentes a resident home owner, whose townhome had been destroyed in a fire caused by a neighbor. The Insurance Company settlement was short due to building code requiring that the entire structure be rebuilt, including the foundation, which was not in the Insurance estimate. As a result the individual owners would be responsible for coming up with the funds to finish the interior of the units from drywall. The cost to Mr. Fuentes was billed by the HOA at $44,920 and due by January 1, 2017. Mr. Fuentes doesn’t have the resources to pay the assessment and was asking for assistance from the VLHA/Town in return for placing a deed restriction on his home. Mr. Fuentes has lived and worked in the community for over 20 years and only wishes to continue to do so. If he doesn’t get assistance, he may have to sell the unit on the open market. After some discussion the Board directed staff to inform Mr. Fuentes that there is nothing they can do at the present time, since the program is not yet up and running, but they encourage him to apply to the program when it is, because this is a prime example of the kind of situation that the program is being designed for. Next Meeting Due to the amount of work to be done to get the deed restriction program up and running it was decided that the VLHA will start meeting on the second and fourth Tuesdays of the month until further notice. The Next regularly scheduled VLHA Meeting will be held at 3:00 PM on November 22, 2016 in the Large Conference Room at the Community Development Office. There being no further business a motion to adjourn the meeting was made by James Wilkins. Scott Ashburn seconded the motion and it carried unanimously. The Meeting adjourned at 5:20 PM. Respectfully Submitted, ____________________ Housing Staff INTRODUCED, READ, ADOPTED AND APPROVED this ______ day of ___________________, 2016.