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Home My WebLink About2017-05-23 VLHA Meeting Agenda Vail Local Housing Authority Agenda Tuesday, May 23, 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 May 9, 2017 5 Min. 2. Vacation Rental By Owner (VRBO) Discussion 15 Min. 3. Vail INDEED Application Review 15 Min. 4. Vail INDEED FAQs 45 Min. Adjournment @ 4:30PM Next Meeting – June 13, 2017 Page 1 Vail Local Housing Authority Results Tuesday, May 9, 2017 Community Development Large Conference Room 75 South Frontage Road West, Vail, Colorado 81657 MEMBERS PRESENT MEMBERS ABSENT Steve Lindstrom James Wilkins Molly Murphy Francisco Meza Mary McDougall Staff Present George Ruther Shelley Bellm A quorum of VLHA members being present, Steve Lindstrom called the meeting to order at 3:20pm 1. Approval of Meeting Results April 25, 2017 The board reviewed and approved the April 25, 2017 meeting results. Motion: Murphy Second: Meza Vote: 4-0 2. Mountain View Proposal Discussion No discussion. A letter of support was emailed to the board for review. 3. Open Lands Discussion, Kristen Bertuglia, presenter Criteria for acquisition was created: 1. Ability to maximize density, but also include mixed type/use 2. Buildable (not too steep/costly) 3. Proximity to bus route 4. Walkability and proximity to bike/rec paths 5. Not in big horn sheep habitat 6. Utilities present 7. East Vail should be a priority for dispersed housing/affordability 8. Located in Historically/traditionally a “locals neighborhood” (e.g. Matterhorn) 9. USFS list – what is their criteria for when they dispose/divest a property Board was invited to Open Lands meeting on June 15. Location of meeting still to be determined & will be forwarded to group when finalized. 4. Chamonix Vail Lottery Results Page 1 Lottery results were reviewed. As of meeting, 21 lottery winners had submitted their reservation agreements and deposits. 5. Review of Vail INDEED FAQs FAQ’s were not circulated to board for review & discussion. These need to be forwarded before next VLHA meeting. 6. Home Buyer Lottery Selection Process, next steps Update to council on Tuesday, May 17. 7. Review of Vail INDEED applications Board authorized George to respond to Mr. Ruemmler offering a range of 15%-20% of sale price/appraised value. Board does not support the $200,000 request. 8. Nexus Study Not discussed as board felt this was carry over from previous meeting 9. Other Business: a) VRBO discussion. Board feels it is important to be part of this discussion before any further decisions are made. They have requested that this item be added to the May 23 meeting and an invitation extended to Kelly McDonald and Kathleen Halloran to attend and update the board. May need to have a study on the impact of the VRBO & Airbnb programs have on housing markets. b) Chamonix ground breaking ceremony. West Vail Fire Station, 11:30-12:30, May 16, 2017. Adjournment @ 5:00PM Next Meeting – May 23, 2017 Future Agenda Items: • VRBO & Airbnb impacts on housing market Page 2 _________ TO: FROM: DATE: SUBJECT: I. SUM The purpose comprehens consider op with addition II. BAC The Vacatio Vacation ren rented their Short-term r period of tim ranging from such rentals The current significant in evolution of Town of Va In the fall of by owners r property ma obtain a bus property ma license for t responsible the unit inde _________ Vail Tow Finance May 2, 2 : Rental b MMARY e of this mem sive study of tions for reg nal informati CKGROUND on Rental In ntals have in homes on a rental is defi me not to exc m the rental s were spora “sharing ec ncrease in re companies ail’s Current f 2015, Coun renting units anagement c siness licens anagement s hat property for remitting ependently o __________ wn Council e Departme 2017 by Owner S mo is to sum f the RBO (r gulation of sh ion and reco D ndustry ncreased dra a short-term ned as a res ceed 30 con of a single b adic and inci onomy” grow esidential sh created to fa t Regulation ncil passed a for greater t companies th se regardles service then y manageme g sales tax o of rentals thr __________ nt and Eco Study Resul mmarize info rent by owne hort-term ren ommendation amatically ov basis to visi sidential dwe secutive day bedroom, to dental. wing out of a hort-term ren acilitate this ns an Ordinanc than 14 days hat rent units ss of the loca an individua ent service c on the owner rough that re _________ nomic Deve ts rmation gath er) market an ntals. Based ns for poten ver the last 2 iting vacation elling rented ys. Short-te several bed almost unive ntal activity in type of vaca ce requiring a s per year. s within the ation of the m al license is overs the in r’s behalf. H ental or man __________ elopment D hered by De nd provide a d on Council tial policy ch 20 years. V ners. d for the purp erm rentals fa rooms, to an ersal internet n Vail. This g ation rental, an annual bu Short-term r Town of Vai managemen not required dividual own However, if th agement se _________ Me Department estiMetrics in an opportuni l’s feedback hanges. Vail property pose of trans all into seve n entire hom t usage has growth has b such as Air usiness licen rental establ il boundaries nt office. If a d. The Town ner, and the he owner ad ervice, then a __________ emorandu t n the first pha ty for Counc k, staff will re owners hav sient lodging eral categorie me. Previous caused a been spurre rbnb and VR nse to be ob lishments or s are require an owner is u n of Vail bus manager is dvertises and a unique bus ______ m ase of a cil to eturn ve long g for a es, sly, ed by the RBO. btained r ed to using a iness also d rents siness - 2 - license is required. All advertisements for short-term rental units must include a Town of Vail sales tax account number. Currently, there are no land use regulations, building code, or fire life safety requirements affecting short-term rentals of residential properties in Vail. In addition, the Town does not monitor or rate properties for quality of amenities or guest service levels, parking impacts, trash and recycling disposal, or the effect of short-term rental units on the long-term rental market. Since January 1, 2016 the town has licensed approximately 310 individual “Rental by Owner” businesses and another 620 short-term rental units through local property management companies for a total of 930 licensed short-term rental units. Current research from DestiMetrics shows that there are approximately 2,352 short-term rentals available within the Town, leaving approximately 1,422 unlicensed. Around the Nation The Town of Vail is not unique regarding short term rental properties. Many jurisdictions’ reactions to the short-term rental boom have been mixed, ranging from a relatively hands-off approach to permanent moratoriums on their operation. Some municipalities have amended their code to regulate short-term rentals. The regulations intend to address concerns such as the protection of neighborhood character, tax revenues, fair competition with licensed hotels and resorts, and the safety of renters. Regulations on short-term rentals have included geographic-based or zoning restrictions, quantitative or operational restrictions, and registration / licensing. Operational regulation standards have included:  Occupancy Limits  Parking Requirements  Emergency Access Requirements  Fire / Life Safety Requirements  Designated Local Representative  Trash and Recycling Facilities As a part of the RBO Study, DestiMetrics gathered detailed information on the various ways other communities are addressing the RBO market. Please see the below discussion for an analysis of regulations and licensing implemented by competitive resort areas. III. DISCUSSION DestiMetrics Report Attached are the results from the RBO Study that DestiMetrics began in January 2017. The enclosed document contains two elements. The first part is a summary of the Town of Vail Broader Bed-Base Analysis completed by RRC & Associates. This rental by owner inventory analysis was designed to identify the existing supply of residential short-term rental units. The second part is an Executive Summary of ski town requirements for operating residential short- term rentals. DestiMetrics findings reveal that the Town of Vail has established the foundation of a short-term rental licensing, administration and compliance program, but is conservative when - 3 - compared to other similar resort town destinations. DestiMetrics has recommended a set of policies and related programs based on the best practices of other destinations that balances the monitoring and measuring of short-term rental properties with a business-friendly environment. Considerations  Lost Revenue - With approximately 40% of the identified short-term rentals currently licensed, the Town is missing a significant amount of tax and licensing revenue. Staff does not have an effective way to monitor or track the variable short-term rental market. Numerous software applications are now available that can update on a daily basis the specific properties that are offered for short-term rentals and the number of nights that they are rented. The current ordinance that allows a property to be exempt from licensing if rented fewer than 14 days is very difficult to audit and monitor. In addition, the majority of property owners who do not have the business license do not remit sales and lodging taxes on the 14 days, as there is no tracking mechanism for the town to verify that rentals transactions are happening.  Life Safety – Currently, there are fire and life safety codes that apply to short term rentals within the town’s adopted fire code, however we do not have a mechanism in place to enforce them. Hotels and resorts are required to abide by numerous life safety regulations, such as maximum occupancy, emergency exiting, fire suppression systems, alarms, and carbon monoxide detectors. Guests have become accustomed to the understanding that these regulations are in place and they travel with the expectation that any property they are going to rent is a safe place for them to stay. If Council was interested in addressing this issue, the town should amend the code to make it more attainable for the rental market.  Vail Quality Standards - Beginning in 1999, all lodging, with the exception of rental by owner units, are currently rated through the Lodging Quality Assurance Program (LQA). The program was put in place to ensure an un-biased and accurate depiction of each lodging property. During the LQA inspection process, every interior detail of a property is inspected and scored. The details are then compiled, and each property is assigned an overall lodging quality score that will fall into one of four levels from platinum to bronze. The level of management and supervision of short-term rental properties vary. Unlike a hotel or resort, there isn’t a guarantee that someone is available to assist with issues or questions during a stay. Town staff has received complaints from guests that they have called property owners and listing sites with issues during their stay and received no response or assistance.  Quality of Life / Community - Short-term rentals can generate issues by creating commercial activity in residential areas (mini-hotels in neighborhoods). Problems can include noise levels, inadequate parking, onsite trash and recycling disposal, traffic congestion, and overburdened infrastructure intended for residential use. A large area of concern in the community has been the impact to long-term housing for locals. A lack of property management with RBO units also impacts the neighbors of short-term rental properties. We have received multiple complaints that neighbors don’t know who to contact - 4 - regarding noise, trash, or parking violations. Neighbors also complain that a problem ends as one renter leaves and begins again as new renters arrive. The out-of-state property owner may not even be aware of the issues created by their renters or with the constant turnover of the property. Long-term rentals are not required to be licensed by the Town. Licensing these properties would allow us to track the movement between short and long-term rental base and to require that proper health and safety standards are maintained for these properties as well.  Fair Competition - Concerns have been raised about the fairness of the gap of regulation between hotels, resorts and short-term rentals. Additional standards and regulations may be viewed as a way to level the playing field between short-term rental properties and competing hotels and resorts that are commercially regulated.  Enforcement / Fines / Incentives - There is no enforcement program or fines currently in place for property owners who do not comply with the current short-term rental licensing requirements. Staff will return to Council with a proposal of enforcement options, including penalties and/or incentives for compliance. IV. REQUEST OF COUNCIL Upon review of the DestiMetrics RBO Study, staff is requesting feedback on the direction Council would like staff to move forward, or if any of the specific considerations listed above should be considered a priority. Staff will then return to Council with additional information and/or proposed policy changes. . Vail Rent-by-Owner: Comprehensive 2017 Study March Update Presented by: Ralf Garrison, Chris Cares, Brumby McLeod Vail Rent-by-Owner: Comprehensive 2017 Study Council Update Presented by: Ralf Garrison & Brumby McLeod 2 Presentation Agenda 1.Introduction 2.Transient Inventory and the Housing Component 3.Scope of Work •Broader Bed-base Context for TOV •Residential STR Municipal Assessment 4.Findings 5.Recommendations/Considerations/Next Step Transient Inventory Program Fact Base MUNICIPAL LICENSING Prof Managed ( DestiMetrics) ALL BED BASE SUPPLY (GIS Bed-base Data) INTERNET LISTINGS ( RBO & Prof Managed ) Transient Inventory Bed-base Mapping System Sources of Transient Inventory Residential housing (single family homes, condominiums and apartments) represent the largest and most dynamic source of transient housing inventory in a destination. Hotels Other Interval Single Family Homes Condominiums and Apartments 5 Scope of Work: Broader Bed-Base Context The broader bed-base portion of the study utilized existing information on housing and short-term rentals from multiple sources to quantify the short- term rentals in the Town of Vail and other communities from the assessment. Sources of Transient Housing Inventory Single Family Homes Condominiums and Apartments Long-term, seasonal housing Short-term rentals Blocks represent total housing units in a destination. Determining the Housing Inventory Mix Four usage categories of housing. Owner Occupied Second-home not for rent 8 Scope of Work: STR Assessment for other Municipalities The assessment portion of the study collected, summarized and evaluated the short-term rental requirements and ordinances of 10 ski towns in the western region of the United States. Municipality Zoning Life Safety Public Notice HOA Tax Business License Permit Education Quality Rating Fees City of Aspen X X X X X $150 + Town of Breckenridge X X X X $75 + Town of Crested Butte X X $10 + City of Durango X X X X X X X $750 + Town of Jackson X X X X X X X $37 + Park City Municipal Corporation X X X X X $149 + City of South Lake Tahoe X X X X X X X $545 + City of Steamboat Springs X X X X X $500 + Town of Telluride X X X $187 + Town of Vail X X X $162 + Passive Aggressive Municipal Residential Short-term Rental Requirement and Engagement Index Durango South Lake TahoeBreckenridge Vail Jackson Park City Crested Butte TellurideAspen Steamboat Springs Municipality Total Housing Units Owner Occupied Units Renter Occupied Units Vacant Housing Units Percentage of Vacant Units Town of Breckenridge 7,146 1,017 937 5,128 71.7% Park City Municipal Corporation 10,715 1,835 1,274 7,607 71.0% Town of Vail 7,366 1,223 1,493 4,649 63.1% Town of Telluride 2,145 464 616 1,065 49.6% City of Steamboat Springs 10,308 3,386 2,036 4,886 47.4% City of Aspen 6,364 1,899 1,816 2,649 41.6% City of South Lake Tahoe 16,602 3,722 6,091 6,789 40.9% Town of Crested Butte 1,090 372 353 344 31.6% Town of Jackson 4,758 1,526 2,370 862 18.1% City of Durango 8,482 3,560 4,046 876 10.3% Blocks represent total housing units in the Town of Vail. What is the Town of Vail’s Housing Inventory Mix? 13 Findings 1.The Town of Vail has taken a conservative approach to regulating short-term rentals when benchmarked against other ski towns 2.STR and RBO programs will require fully quantifying and identifying all short-term rental units by address 3.This foundation will provide for future consideration of elements related to items such as life safety, occupancy limits, and parking 14 Recommendations 1.Continue toward creating a fact-base on short-term rental housing in the community 2.Incorporate an electronic database to house the information and share with other departments 3.Build the database by improving the registration and licensing systems. 4.Add enabling systems to capture Internet listings to validate against the database for compliance 5.Improve compliance to fund the program and any new initiatives such as life safety and quality Develop and implement a more progressive “ Fact Based” RBO/STR program based on the following: Thank you, and now to the Town Staff. Q & A From: Date: Subject: Vail INDEED, Vail’s Deed Restriction Program Frequently Asked Questions (FAQs) Who Q. Who’s eligible? A. Anyone who owns or wants to acquire property in the Town of Vail is eligible to apply for funds and in return will record a Type III Deed Restriction on that property. What Q. What is this program? A. Vail INDEED, the Town’s new deed restriction purchase program, is created to incentivize homeowners and real estate buyers/sellers to deed restrict their property to help the Town meet the 2027 Housing Strategic Plan meet the goal of acquiring an additional 1,000 deed restricted units by the year 2027 and helps to reach the goal of maintaining and sustaining homes for residents within the community. Q. What is a deed restriction? A. A deed restriction helps keep local employees housed in Vail thereby helping to maintain our community. It sets occupancy requirements and in some cases resale price limitations in order to maintain residential housing for Vail and Eagle County employees. In all cases a restricted property shall house an employee working an average of 30 hours per week in Vail / Eagle County. Q. What are the deed restrictions? A. A Type III Deed Restriction will be recorded on your property in exchange for some amount of funding from the Vail INDEED program. The maximum amount for which you can apply is $200,000. Q. What happens to the deed restriction when I sell my property? A. The restriction remains with the property for all future sales. Q. Can I use a free market realtor when selling my house or do I have to sell through the Town? A. Yes you can use a realtor of your choosing and cost. This program does not go through the Town for re-sales nor is there a price appreciation cap. Q. Is there a transfer tax? A. No, Deed Restricted unit sales are exempt from the real estate transfer tax (RETT). Q. Am I exempt from tax? A. Deed Restricted units are exempt from real estate transfer tax (RETT) only all other taxes are required to be paid by the property owner, for instance property tax. Q. Can I sell back my deed restriction to the Town of Vail? A. No, once deed restriction has been recorded on the property it remains with the property and all future sales. Q. Can I rent my property after signing the deed restriction? A. Yes you may rent as long as the tenant is an Eagle County employee working an average of 30 hours per week and complies with the Town of Vail Employee Housing Guidelines. Q. As an investor can I rent my property? A. Yes you may rent as long as the tenant is an Eagle County employee working an average of 30 hours per week and complies with the Town of Vail Employee Housing Guidelines. Q. Do I need to be a legal US citizen? A. No you are not required to be a U.S. citizen to place a deed restriction on your property. Q. Are there any Tax implications when I place a deed restriction on my property? A. The town cannot advise you to any potential tax implications. We recommend you speak to a financial or legal advisor with regard to any financial and ownership implications. Q. How is the value of a deed restriction determined? A. The Town will use the following methods to determine fair value of your property: a. Using comparisons from two properties side by side property values from most recent sale. b. Town Staff will review Eagle County Assessor recent sale information for similar properties. c. Schedule an Appraisal in the case of a property purchase d. Determined through owner and Board negotiation Q. Can I use a realtor to assist with adding the deed restriction? A. Yes. Any costs associated by using a realtor will be at your expense. Q. Is there a finder fee? A. Yes No? set amount or % of? Q. Are there local banks which are familiar with Vail Deed restricted properties? Town of Vail Page 2 A. Yes. Here are known banks that are familiar with Town of Vail Deed Restrictions. Academy Bank Alpine Bank EverBank FirstBank Guaranteed Rate Mortgage Macro Financial Group Paragon Mortgage Services US Bank Wells Fargo You are not restricted to any of these however be sure the lender of your choosing understands the Town of Vail Deed Restriction. Q. Is there a resale Price Appreciation Cap with my deed? A. No. This deed restriction type does not require a price appreciation cap. When Q. When will my application be reviewed? A. Applications received will be reviewed at the soonest Vail Local Housing Authority meeting. Meetings are held on the 2nd and 4th Tuesdays of each month or one of the Tuesdays Need decision. Town Staff will contact you to confirm you are on an agenda. Where Q. Where can I find information on the deed restrictions? A. http://www.vailgov.com/housing What is the Vail INDEED address so to link from TOV website as well. Why Q. Why should I consider deed restricting my property? A. The Town’s goal is to maintain and sustain community for residents and especially for employee residential housing. When you deed restrict your property you are helping to achieve this goal for the community. How Q. How do you qualify? A. First you submit an application with the property information and amount you are requesting. The Board will review your application, contact you for additional information if needed and work to negotiate the best deal for you and the Town. Q. How do you apply? A. Fill out the online application insert hyperlink here. The Vail Local Housing Authority (the Board) will review all submitted applications on Tuesday of every month unless there are more applications than can be reviewed in an hour. Q. How much money can I receive? Town of Vail Page 3 A. The Board has been given authority to award up to $200,000 for each transaction; however it does not mean you will be awarded the maximum. The Board will review, propose and negotiate a deal you can choose to accept. Q. How many properties can you deed restrict? A. There is no limit on the number or properties you can deed restrict. Q. How much money can I receive to place a deed restriction on my property? A. The amount awarded will depend on your circumstances, what your request is and how your property meets the review criteria. Q. How is my property evaluated by the Board? A. There are 10 points the Board reviews to make a determination. See Resolution 34, Series 2016 insert hyperlink here for details. The following criteria and findings shall be used by the Board when determining whether to acquire a deed restriction: • 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. • 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. 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) • A transaction cap of $200, 000 per dwelling unit to be deed restricted Q. How long do I have to wait to receive the funds from the Town if my property is accepted? A. Upon Board approval and receipt of a recorded deed restriction a request for funds will be made to the Town’s finance department. It generally takes finance 2-3 weeks to process a check. No funds will be released until proof of the recorded Deed Restriction is received. Town of Vail Page 4