HomeMy WebLinkAbout2017-01-10 VLHA Meeting Minutes
Minutes Vail Local Housing Authority (VLHA) January 10, 2017 at 3:00 PM Attending the meeting were members: Molly Murphy Scott Ashburn
Steve Lindstrom James Wilkins Mary McDougal Town staff attending the meeting: George Ruther Shelley Bellm Kathleen Halloran
Additional Attendees: Matt Jones – Vail Resorts Kim Williams – Valley Home Store A quorum of VLHA Members being present, the meeting was called to order at 3:05 PM.
I. Vail Local Housing Authority (the Board) discussed upcoming Homebuyer
Class.
Mary McDougall reviewed attached outline for the Chamonix Homebuyer class:
• Proposed classes set for 2/11, 2/25, 3/11 & 3/16
• Board would like to add additional classes later in process – not advertise all
up front so we can get as many people to initial scheduled classes – incentive
to get to class early?
• Mary to provide George with additional dates. TOV will secure location for
additional dates.
• Kim suggested Monday or Tuesday for additional classes as those are days
that most restaurant workers can attend
• Topics of discussion will include those listed in outline and emphasize:
o Budgeting
o Cost of home ownership
o Pre-qualification – timing
• Questions for clarification:
o Land – will the land be deeded to owners or will it be on a land lease?
o Deeded
o Deed restriction language – when will this be available for review by
potential buyers
General terms will be available to potential buyers at classes
Town of Vail Page 2
o Contracts – when will sample contract be available for review
General terms will be available at buyers’ classes. Final terms
not yet available.
Will be using the Colorado Real Estate Purchase Agreement
No modifications to contracts will be allowed
o VLHA fund a down payment assistance program for Chamonix?
No money available for this type of program. Council stated no
additional subsidy will be available for this project.
Encourage large employers to create a down payment
assistance program
o Budget for expense of classes – food, copies, etc. (estimate of $250
per class at Valley Home Store)
Money will be funded through VLHA
Discussion about allowing potential lenders to sponsor events &
reduce cost to VLHA
ComDev will come up with budget for classes
o Provide a list of lenders that offer DR loans? First Bank, Central
Rockies, Guaranteed Rate
No list provided. Lenders may attend classes for exposure
o Example of appreciation model to be used in deed restriction?
Still need specifics of this program & requires approval of
council.
Summit option - %’s / get what I paid for it
Cap does not guarantee appreciation
AMI
Salary Surveys
Affordability ties to income, not market
o Will these homes be exempt from transfer tax?
Yes
o Who will handle the real estate transactions – Valley Home Store?
Realtors representing buyers? Developer?
No realtors – no commission or referral fees will be paid
Initial sales through Town
o Resales – will TOV and/or Valley Home Store manage these? Similar
to Vail Commons?
Resales through town only – similar to Vail Commons
o Promoting Classes – Chamonix website (updates); ads in paper (TOV?
Suzanne Silverthorn?); enrollment process (sign up in advance)
Website will be up middle of next week (1/11)
Ads will be run
Sign-up can be created to limit class size to 40
• Discussion ensued with particular attention to the sales at Chamonix:
o Will we know price points prior to classes
Town of Vail Page 3
• Should have more information as meetings with the
builder and Champion continue.
• Prices cannot be set until after February 1
o When is lottery deadline – Applications early April/May drawing
o Applicants applying for down payment assistance (Eagle County) will
receive credit for class requirement by attending this class
o Steve inquired whether these will be Condominiums or Townhouses?
Townhouses
o Can potential buyers own land? Yes – until it is developed
o How will we verify no home ownership?
Kim responded that we will need to require tax returns to verify
no home ownership outside Eagle County.
Will be difficult to verify Trusts & LLC’s
o Pre-Qualification letter MUST address the deed restriction to be
accepted
o When will reservations be converted to a contract?
o Earnest money must be substantial to ensure participation - % of
purchase price.
o Who’s on the loan – who’s on the deed? – Lender specific (non-
occupant co-borrower)
o Review of HOA dues & what’s included
o Lottery process:
One hat – one opportunity per qualifying applicant
Pick your unit type you qualify for
II. Discussion of VLHA Budget for 2017
• 2016 VLHA budget was $50,000.
o Approximately ½ of this was spent on consultants
• Kathleen will provide a budget worksheet & resolution for adoption of the
2017 budget
• Sources of revenue for VLHA:
o Middle Creek Management
o Cash on Hand
o Interest
III. Discussion of mechanics of Deed Restriction Acquisition
A. Process
Kathleen provided options for deed restriction purchase, document attached.
After discussion of the two options, it was decided to keep the funds in the
Capital Projects Fund and TOV bank accounts. This would eliminate the
automatic audit provisions at $10,000 and remove the need to set up new
accounts.
Town of Vail Page 4
A formalized process still needs to be created (example below):
• Application for deed restriction acquisition
• Pre-screen applicants (filter)
• Amount of acquisition agreed upon
• Executive session to discuss
• Resolution created to purchase restriction
• Finance transfer money at closing w/ title company
Discussion items included:
• Is this taxable income (capital gains)
• Will there be a 1099 produced?
• Use of a purchase & sale agreement
• Important that the deed is recorded prior to 1st deed of trust
B. Marketing – FAQs/Info. Sheet
How will we educate potential users of this program? What name are we going to use for this program? Deed Restriction Acquisition Program Marketing campaign to launch
Application materials & documents
A fund will be established through the VLHA budget for a marketing program. The same company assisting the Chamonix marketing will likely be utilized for this program, in addition to internal resources.
George will come up with a plan for this marketing program. C. Lender Meetings – When?
Suggested to figure out the process of the program 1st then bring the lenders
together to review and provide input.
Anticipate lender meeting when deed restrictions are ready – next month. Meeting with lenders anticipated for March 14 – lunch will be provided
Meeting adjourned.
Respectfully Submitted as approved this 24th day of January.
Lynne Campbell Housing Coordinator