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Home My WebLink About2017-04-25 VLHA Meeting Agenda.revisedPage 1 Vail Local Housing Authority Agenda Tuesday, April 25, 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 April 11, 2017 5 Min. 2. Review of Vail INDEED FAQs 15 Min. 3. Review of Vail INDEED applications 15 Min. a. 2249 Chamonix Lane Unit 2, Brandywine Trace Condo b. 1711 Geneva Drive #A, Matterhorn Village Filing 1, Lot 5, North ½ 4. Home Buyer Lottery Selection Process, next steps 15 Min. 5. Proposed Mountain View Project, Presenter: Dominic Mauriello, MPG 45 Min. 6. Chamonix Vail Mock Lottery 25 Min. Adjournment @ 5:00PM Next Meeting – May 9, 2017 Future Agenda Items: • Employee Housing Guideline review and updates • Nexus Study Review 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: Murphy Second: 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: Meza Second: Wilkins 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 From: Date: April 18, 2017 Subject: Vail Deed Restriction Program Frequently Asked Questions (FAQs) Who • Who’s eligible? Anyone who owns a property in the Town of Vail is eligible to apply. What • What is this program? • What is a deed restriction? • What are the deed restrictions? • What happens to the deed restriction when I sell my property? The restriction remains with the property for all future sales. • Can I use a free market realtor when selling my house or do I have to sell through the Town? Yes you can use any realtor of your choosing. This program does not go through the Town for re-sales. • What types of deed restrictions are there? There are • Is there a transfer tax? No, Deed Restricted unit sales are exempt from the real estate transfer tax (RETT) • Are you exempt from tax? Deed Restricted units are exempt from real estate transfer tax (RETT), all other taxes are required to be paid for instance property tax. • Can I sell back my deed restriction? • Can I rent my house, condo after signing deed restriction? Yes Town of Vail Page 2 • As an investor can I rent my property? Yes as long as the tenant is an Eagle County employee working an average of 30 hours per week and complies with the Employee Housing Guidelines. • Do I need to be a legal US citizen? No. • Are there any Tax implications when I place a deed restriction on my property? You should speak to your financial or legal advisor with regard to any financial and ownership implications. How is the value of deed restriction determined? Town Staff will review Eagle County Assessor recent sale information for similar properties. • Can I use a realtor to assist with adding the deed restriction? Yes at your cost. • Is there a finder fee? set amount or % of? • Are there local banks that are familiar with Vail Deed restricted properties? Yes. Some of them are Academy Bank, Alpine Bank, EverBank, FirstBank, Guaranteed Rate Mortgage, Macro Financial Group, Paragon Mortgage Services, US Bank, Wells Fargo. • Is there a resale Price Appreciation Cap with my deed? No When • When is my application reviewed? Any applications received will be reviewed at the next VLHA meeting. Meetings are held on the 2nd and 4th Tuesdays of each month. Town Staff will contact you to confirm you are on an agenda. where • Where can I find information on the deed restrictions? http://www.vailgov.com/housing Why • Why should I consider deed restricting my property? The Town’s goal is to continue to build community and increase residential housing for employees. Town of Vail Page 3 how • How do you qualify? Fill out the online application. The Vail Local Housing Authority (VLHA) will review all submitted applications on the 4th Tuesday of every month unless there are more applications than can be reviewed in an hour. • How do you apply? Fill out the online application. The Vail Local Housing Authority (VLHA) will review all submitted applications on the 4th Tuesday of every month unless there are more applications than can be reviewed in an hour. • How much money can you give? Maximum amount at one time is $200,000 however it does not mean you will be awarded the maximum. • How many properties can you deed restrict? There is no restriction on the number or properties you can deed restrict. • How much money can I receive to place a deed restriction on my property? The amount awarded will depend on your circumstances and what your request is. • How long do I have to wait to receive the funds from the Town if my property is accepted? Upon Board approval a request for funds will be made through the Town of Vail’s finance department. Depending on the timing it could take 2-3 weeks. No funds will be released until proof of the recorded Deed Restriction is received. 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? Vail Mountain View Residences Vail Local Housing Authority April 11, 2017 Proposed Project •12 for-sale dwelling units with 29,032 sq. ft. of GRFA •6 lock-offs to 6 of the dwelling units •9 employee housing units with 11,153 sq. ft. of GRFA •21 hotel rooms with 7,923 sq. ft. of GRFA •Parking to accommodate the proposed uses Public Beneﬁts •Employee housing far in excess of requirements (30% of the total proposed GRFA for the building) •Each EHU is in excess of 1,000 sq. ft., 2-bedroom/2-bath units •Provision of short-term accommodation units (hotel rooms) within Vail Village, enhancing revenues and vitality Public Beneﬁts •Approximately 50% of the entire building is a use deemed by the town to be a public beneﬁt •Redevelopment of an inﬁll site within Vail Village •Paved access path and stairs through the property allowing pedestrians to walk from the South Frontage Road to the recreation path along Gore Creek •Public art piece still to be determined of a value up to $50,000 Chamonix Vail Lottery Process • Doors open 5:30 • Sign in Station 5:30-6:00 o 2 Staff o 1 checks off participant on Town lottery applicant list and indicates proxy name o 1 confirms I.D. at participant / representative’s signature o Accept Proxy up until lottery begins, preferable submitted to Lynne day prior o Staff hands applicant lottery ticket • Lottery Ticket Drop Station o 2 Staff o 1 verifies ticket is for individual dropped ticket into spinner and witness participant’s as they drop ticket in bucket. Do we have them sign again after dropping ticket? o 1 to witness drop and check of in TOV list • Lottery begins 6:00 o Brief instructions how lottery will work  email participants prior to lottery with the information • Draw o 3 staff o 1 to spin o 1 to draw o 1 to record results on TOV list and flag on map (clerk’s office?) • Discrepancies o Committee of 3 • Q&A o Triumph and 359