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HomeMy WebLinkAbout2017-04-11 VLHA Meeting AgendaPage 1 Vail Local Housing Authority Agenda Tuesday, April 11, 2017 3:00 PM – 5:00 PM Community Development Large Conference Room 75 South Frontage Road West, Vail, Colorado 81657 MEMBERS PRESENT MEMBERS ABSENT 1. Approval of Meeting Results March 28, 2017 5 Min. 2. Vail inDeed Marketing review, Presenter: Susan Mitchell, Kelli McDonald 10 Min. 3. Vail inDEED (Deed Restricted Program) FAQs 25 Min. 4. Proposed Mountain View Project, Presenter: Dominic Mauriello, MPG 20 Min. 5. Annual Resale Lottery Criteria Process and Options for Consideration 25 Min. 6. Vail inDEED review of 2249 Chamonix Lane 5 Min. 7. Mock Chamonix Vail Lottery Run Through 30 Min. Adjournment @ 5:00PM Next Meeting – April 25, 2017 Future Agenda Items: • Review and update of Employee Housing Guidelines 10-19-1999 • Nexus Study review of final draft Vail Local Housing Authority Meeting Results Public Meeting March 28, 2017 Community Development Large Conference Room 75 South Frontage Road West - Vail, Colorado, 81657 Members Present: Steve Lindstrom James Wilkins Mary McDougall Molly Murphy Francisco Meza Staff Present: George Ruther Lynne Campbell Kelli McDonald Susan Mitchell A quorum of VLHA members being present Steve Lindstrom called the meeting called to order at 3:00 PM. The VLHA (Board) reviewed and approved March 14, 2017 meeting results. Motion to Approve: Molly Murphy Second: Mary McDougall Vote: 5-0 Susan Mitchell presented the concept brand name and logo ideas for the Deed Restricted Purchase Program. Susan requested the Board provide one direction in order to move forward. The Board reviewed, commented and provided Susan with next steps direction to be presented at the April 11, 2017 meeting. George Ruther reviewed with the Board the current annual lottery process and concerns know and conveyed by past and current lottery participants. • Lottery held once annually • Applicants must resubmit annually • Tiered system • Unfair 3 bedroom restriction • Can not own Eagle County property at time of submission Members questioned the logic behind the tiered drawing. Ruther explained it applies another layer of fairness. He went on to suggest the Board review the lottery objective and should the Town keep the same or propose to council an alternative system. The current system has run its course and discourages young professionals and families. What’s the housing objective? 1. Building community. 2. Maintain an interested party list. 3. Challenges with new people in town who can afford “affordable units”. 4. Level the playing field with full lottery The Board discussed potential options to update the current lottery process and concluded to run the annual lottery similar to Chamonix Vail. Motion: Second: Vote: 5-0 Next up on the agenda was Chris Neuswanger from Macro Financial Group who discussed loan prospective regarding the Town’s deed restrictions as it relates to foreclosures, survivorship and owner financing. Problems identified: • Underlying zoning – deed in place after zoning • 30 day foreclosure notice Solutions: • Allows for refinancing • Appraisal easier • Improves community – long term residents Molly Murphy mentioned Mike Coughlin of Coughlin Property Management who manages Middle Creek Apartments has offered the Board a tour. Francisco Meza will attend open lands meetings and report back to group. Future Agenda Items: Board will review and recommend possible changes to the Town of Vail Employee Housing Guidelines 10-19-1999. Lynne Campbell presented a potential Deed Restricted Program applicant and current deed restricted owner’s request to rent their unit. The Board requested additional information from both individuals. Campbell will report back to the group once information has been received. Respectfully submitted, Lynne Campbell, Housing Coordinator Vail in Deed Review Form Page 1 of 2 03/29/2017 Insert VAIL inDEED logo here VAIL inDEED (Deed Restricted Purchase Program) Purchase Evaluation Form Date of Application: Applicant/Owner Name: Contact Info: Phone: email: Mailing Address (include city/St/zip): Property Address: Applicant/Owner has confirmed with lender deed restriction OK: Reason for Applying: If additional space is required provide separate justification page. Criteria according to Section 3 of Resolution 34, Series 2016 “the following criteria and findings shall be used by the VLHA when determining whether to acquire a deed restriction:” 1. Supports and maintains a permanent year- round resident population that grows a diverse community where a wide range of demographics, economics, occupations and family household sizes are served. 2. Furthers the goal adopted in the Vail Housing 2027 Strategic Plan. 3. Consistent with the housing policies adopted by the Vail Town Council for the acquisition of deed restrictions for resident housing. 4. 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. 5. Fulfills a demonstrated need within a defined segment (i.e. for rent, for sale, owner occupied, etc.) of the residential property market. Vail in Deed Review Form Page 2 of 2 03/29/2017 6. 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. 7. 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. 8. Most cost effective and efficient use of the Town's limited supply of financial resources. 9. Fair market value is paid for the deed restriction relative to current market conditions (i.e. supply & demand). FMV = 10. A transaction cap of $200, 000 per dwelling unit to be deed restricted. List amount approved Reviewed and approved by the Vail Local Housing Authority on , 2017. Motion: Second: Vote: 1 Memorandum To: Vail Town Council From: George Ruther, Director of Community Development Steve Lindstrom, Vail Local Housing Authority Date: April 4, 2017 Subject: Town of Vail Annual Resale Lottery Criteria Process and Options for Consideration for Process Amendments ____________________________________________________________________________ I. Purpose of this Memorandum The Vail Local Housing Authority and the Community Development Department requested a worksession with the Vail Town Council to discuss the Town of Vail Annual Lottery Criteria Process. The purpose of this memorandum is to share the adopted Town of Vail Annual Resale Lottery Criteria Process and present options for considerations if process amendments are desired. II. Background The Town of Vail Community Development Department conducts an annual resale lottery selection process to determine eligibility to bid and purchase for-sale deed restricted employee housing units which may become available for purchase in the coming year. This lottery selection process occurs the first week of June, annually. The procedures for the Town’s annual resale lottery process are outlined in the Town of Vail Employee Housing Guidelines, adopted October 10, 1999. By and large, the Guidelines have remained unchanged since their original adoption nearly twenty years ago. The Community Development Department routinely receives feedback from resale lottery participants about the process. Unfortunately, not all feedback is positive. Some of the more frequently shared negative feedback includes comments regarding the following: • Participants must meet the deed restriction criteria at the time of application instead of the time of purchase. • Household size requirements limit home purchase options and future changes in lifestyle or family sizes. • Telecommuting for employment is not allowed. • The weighted preference system limits participation and prevents persons from moving back into Town. • The tiered system conflicts with the weighted preference system. • The process is time consuming and inefficient. • The current process is anything but a true lottery. 2 • Persons that currently own a home in Eagle County can not participate. III. Existing Annual Lottery Resale Criteria and Process A copy of the Resale Lottery Criteria is outlined below: Resale Lottery Criteria A. There are six basic eligibility requirements which must be met prior to an individual submitting a bid to purchase an employee-housing unit. 1. The applicant must intend to use the unit as his/her primary residence and maintain it as his/her primary residence in the future. 2. The applicant must be currently employed at a business located within Eagle County which holds a business license with the appropriate jurisdiction (Town of Vail, Town of Avon, etc.), must be employed an average of 30 hours each week on an annual basis, and must maintain this level of employment for as long as he or she owns the unit. 3. The applicant must demonstrate that at least 75% of his/her income and earnings are earned by working at a licensed Eagle County business. 4. Neither the applicant nor any member of the applicant’s immediate family (including, but not limited to, spouse and children under 18 years of age) may own residential real estate in Eagle County at the time of application, except where that real estate is deed restricted as a Town of Vail employee housing unit with a resale appreciation cap. A current residence may not be deeded to a corporation or other entity in order to qualify the applicant for a Town of Vail deed restricted unit. 5. The applicant must be prequalified with a mortgage lender. 5. For all Town of Vail deed restricted three bedroom units, the applicant must have a household size of 3 or more persons. For the purposes of determining household size, applicants may include all persons related to the applicant by blood, marriage, or adoption. If the applicant plans to include dependents, they must be continuously listed on federal income tax forms and reside in the household at least six months and one day out of every 12 month period of time. A pregnancy may be counted towards the family size requirement as long as a note from an Eagle County doctor is provided. B. Once basic eligibility has been met, the qualified person(s) submitting the highest bid price (not to exceed the maximum bid price) during a bidding period shall have the first right to negotiate purchase of the unit. If two or more qualified bids are submitted at the highest bid price, they shall receive preference and be prioritized for selection as the top bidder based on the highest score using the criteria listed below. Each year of residency and employment in Eagle County will count as one point in determining the total score. Additional points will be determined as follows: 3 1. All current years of employment in Vail shall be weighted at 3:1 over years of employment in Eagle County. 2. All current years of residency in Vail shall be weighted at 3:1 over years of residence in Eagle County. 3. All years of residency and/or employment prior to a leave from Eagle County shall be given points at a 1:1 ratio regardless of location of residency or employment within Eagle County. C. Notes: 1. The physical place of residence and employment is what counts, not the mailing address. 2. Employment physically located on Vail Mountain shall be considered inside the Town of Vail. 3. Employment requiring work to be completed at locations “on-site” throughout Eagle County (e.g., construction sites) shall be considered outside the Town of Vail. 4. Seasonal work and part time work shall be counted on a pro-rata basis. Seasonal work and part time work alone may not be adequate to meet the 30 hours/week average annual requirement. This type of work may need to augment other employment to meet the minimum eligibility. 5. For the purposes of determining the standing of each applicant, each year of residency (or employment) reflects one point. For the portion of time in excess of a complete year, the Town will round to the next highest number if the time exceeds six months and one day. If the time is less than six months, the Town will round down. 6. If two individuals are applying jointly, the years of employment and/or residency shall not be combined. The single individual with the longest record of employment and/or residency shall use his or her record for the purposes of determining longevity. 7. Persons who own residences located in Vail or Eagle County at the time of the application deadline are not eligible. 8. All claims will be verified by Town of Vail staff. Claims of residence or employment that do not check out or are un-verifiable will not be counted in determining your longevity. 9. If there is a sole applicant in the top tier of the lottery, the scheduled lottery will not be conducted and the unit will be awarded to the top tier applicant. A drawing to establish the reserve list will be held in the Community Development office during regular business hours and shall be witnessed by the Town Clerk. 10. The application and any accompanying documentation shall become the property of the Town of Vail and will not be returned to the applicant. 4 C. For all resales of existing Town of Vail deed restricted units, a permanent reserve lottery list will be used. The reserve list will be created using the exact same criteria outlined above. 1. The first person on the list will be offered the unit available for resale. If that person chooses not to take the unit, they will be dropped to the end of the list and the next person will have the option to purchase the available unit and so on, until a buyer is found. 2. The list will be updated by an annual lottery. 3. Separate reserve lists will be created for two bedroom and three bedroom units. IV. Options for Consideration for Process Amendments The resale lottery criteria and selection processes should be aligned with Town’s goals and objectives for employee housing in Vail. In the absence of alignment, it is unlikely that the Town will realize its desired results when it comes to housing in the community. To that end, the Vail Local Housing Authority and the Community Development Department have reviewed the current criteria and recommend that Vail Town Council further evaluates the following options for amendments to the annual resale lottery criteria and process: 1. Clearly define the goals and objectives of the Town’s lottery criteria and process. 2. Allow current residential property owners to participate in the lottery. 3. Create circumstances where telecommuting as an acceptable form of qualifying employment. 4. Phase out the weighted preference and tier systems and replace them with a true lottery process. 5. Replace the annual lottery process with an individual and separate process for each home when it becomes available for purchase. V. Vail Town Council Instruction The Vail Local Housing Authority and the Community Development Department are prepared to move forward with evaluating the merits of possible amendments to the lottery criteria and process and propose implementation strategies for said amendments to the Town Council for review and approval. Given the timeframe involved, and the impending annual lottery process in June, consideration should be given to those amendments which can be made now and those which may require additional time. At this time, the Vail Local Housing Authority and the Community Development Department are seeking instruction from the Vail Town Council. Which of the recommended amendments, if any, should be further evaluated and considered for adoption? Are there additional amendments which have not been listed that should be considered? From:Tom Ruemmler To:George Ruther Cc:Lynne Campbell Subject:Affordable housing proposal Date:Tuesday, April 4, 2017 6:14:00 AM Mr. Ruther, If the Town of Vail will pay me $200,000 I will consider deed restricting my 2 bedroom 2 bath remodeled Unit #1 located at 2249 Chamonix Lane that has a fireplace for $325,000. My condo has two parking places and is a very short walk to the bus stop and Safeway. A person living at my condo will not need a car and thus can save an additional $300 per month. I will consider carrying a loan under similar terms as the 34 Chamonix Lane units being built. Please call me so we can chat so I can understand if my proposal would be compatible with Vail's affordable housing program? Tom Ruemmler 719 293-0655