Loading...
HomeMy WebLinkAbout2017-06-27 VLHA Meeting AgendaPage 1 Vail Local Housing Authority Agenda Tuesday, June 27, 2017 3:00 PM – 5:00 PM Community Development Large Conference Room 75 South Frontage Road West, Vail, Colorado 81657 MEMBERS PRESENT MEMBERS ABSENT Staff: 1. Approval of Meeting Results June 13, 2017 5 Min. 2. Hernandez Type II EHU Exchange, Review and Recommendation 20 Min. 3. Vail INDEED Marketing Update and Review Nicols Interactive’s Proposal 20 Min. 4. VRBO & AirBnB Impacts on Housing Market, Direction for Future Discussions 20 Min. 5. Open Lands Update, Francisco Meza 5 Min. 6. Revision of 1999 Employee Housing Guidelines 50 Min. Adjournment @ 5:00PM Next Meeting – July11, 2017 Future Items: • VRBO & Airbnb impacts on Housing Market • Open Lands Update • Revision 1999 Employee Housing Guidelines Page 1 Vail Local Housing Authority Meeting Results Tuesday, June 13, 2017 3:00 PM – 5:00 PM Community Development Large Conference Room 75 South Frontage Road West, Vail, Colorado 81657 MEMBERS PRESENT MEMBERS ABSENT Steve Lindstrom Mary McDougall Francisco Meza Molly Murphy James Wilkins Staff: Lynne Campbell Steve Lindstrom began meeting at 3:00PM as a quorum was present. 1. Approval of Meeting Results May 23, 2017 The Board reviewed and approved the meeting results from May 23, 2017. Motion: Murphy Second: Meza Vote: 3-0-2 (McDougall, Wilkins abstained) 2. Vail INDEED Marketing – Presenter Jerry Nicols, Nicols Interactive The Board desires to create an interactive way to promote the Town’s new housing deed restriction purchase program marketed under Vail INDEED. Jerry Nicols was invited to provide feedback how his company will achieve the Board’s goals. Jerry described how his company could assist the Board creating a website while allowing future growth. Similar to how ChamonixVail.com was built the site could contain FAQ’s, resources for interested parties as well as a way for the Town to track information. He will provide George Ruther and the Board a proposal for services no later than Wednesday June 21, 2017. 3. Chamonix Vail Solar Panel Installation Recommendation and Capital Improvements – Presenter Kristen Bertuglia Kristen, Town of Vail Environmental Manager was invited to help answers questions regarding solar panel capital improvement cost for Chamonix Vail resales. Discussed revolved around how the systems work, benefits of systems, rebates currently offered and normal depreciation costs today. Page 2 The Board recommends solar panels are an allowable capital improvement but not an inflatable improvement and to set the depreciation rate to 4% per year from date of installation. 4. Review and Approve VLHA Resolution No. 3, Series 2017, A RESOLUTION MAKING FINDINGS AND REGARDING LION’S RIDGE APARTMENT HOMES EMPLOYEE HOUSING PROJECT The Board discussed and approved Resolution 3, Series 2017. Motion: Wilkins Second: Murphy Vote: 4-0-1 (McDougall) 5. Review and Approve VLHA Bi Annual Report for Town Council The Board reviewed the past year of accomplishments, results and joint participation with other organizations. A report will be provided to council. 6. Vail INDEED Application Review – Ruemmler status 15 Min. George Ruther who was absent at this meeting needs to provide status. Meeting was adjourned at 5:10PM. Motion: Wilkins Second: Murphy Vote: 4-0-1 (McDougall) Next Meeting – June 27, 2017 Future Items: • VRBO & Airbnb impacts on housing market • Open Lands update • Vail INDEED Marketing update • Revision of 1999 Employee Housing Guidelines Respectfully submitted, Lynne Campbell, Housing Coordinator June 8, 2017 Mr. Jose Hernandez Attn: Mariana Hernandez Campestre 227 Queretaro QRO 76150 Mexico Via email: Mariana Hernandez, mariana@demetal.com.mx Re: Employee Housing Unit Resolution Meeting Vail Valley Filing 1, Block 3, Lot 21W aka 1358 A Vail Valley Drive, Vail, Colorado Dear Mr. Hernandez and Ms. Hernandez, It was a pleasure to meet you and your son today as we discussed resolution for the Employee Housing Unit (EHU) violation. Per our conversation today we agreed to 60 days to complete resolution. Options in order of preference are: 1. Purchase and deed restrict a separate housing unit in exchange for a release of the EHU restriction located at 1328 A Vail Valley Drive in accordance with the Town of Vail Employee Housing Unit Deed Restriction Exchange Program Section 12-13-5. 2. Remodel existing home and include a 300 square foot EHU with kitchenette and parking or 3. Return unit and employee garage bay to original construction as per approved construction drawings B95-0054. a. Install kitchenette (refrigerator, microwave oven and sink) b. Remove direct access to home and add back wall c. Rent to a qualified employee: must meet 30 hours average per week annually, work in Vail and or Eagle County and live in the unit full time d. Comply with returning the annual compliance letter indicating tenant full name, contact phone number and address, employer name, number of hours worked e. Return garage bathroom to original construction per 1999 plans Town of Vail Page 2 f. Return all garage bays to parking, as indicated on the original building plans with one bay designated for the employee housing unit parking We look forward to bring you into compliance. Feel free to contact me with any questions at 970-479-2150 or lcampbell@vailgov.com. Sincerely, Lynne Campbell Housing Coordinator dc: File George Ruther, Community Development Director Matt Mire, Town Attorney To: Vail Local Housing Authority From: Community Development Department Date: June 27, 2017 Subject: A request for a recommendation to the Vail Town Council for the release of a deed restriction from an existing employee housing unit located at Lot 21W, Block 3, Vail Valley Filing in exchange for the placement of an employee housing deed restriction on another dwelling unit located at Sandstone 70 Unit B Building 13 pursuant to Section 12-13-5 Employee Housing Unit Deed Restriction Exchange Program, Vail Town Code, and setting forth details in regard thereto. Applicant: Jose Maria Hernandez Montes Housing Coordinator: Lynne Campbell I. DESCRIPTION OF REQUEST The owner of Lot 21W, Block 3, Vail Valley Filing /1358 A Vail Valley Drive that has a non compliant 300 square foot Employee Housing Unit and requests to exchange this EHU for placement of an Employee Housing Unit Deed Restriction on another dwelling unit located at Sandstone 70 Unit B Building 13 / 923 Red Sandstone Drive Unit B13. II. REVIEW CRITERIA Before acting on an employee housing deed restriction exchange application, the Vail Local Housing Authority and Vail Town Council shall consider the following criteria with respect to the application: 1. The proximity and accessibility of the proposed EHU(s) to the commercial job core and public transportation; and This proposed EHU is located at 923 Red Sandstone Road, which is in Sandstone and has good proximity to Town of Vail bus stops and to the commercial job core. The Sandstone location also adds the distribution of EHUs throughout Vail. Therefore, Staff believes the proposed EHU conforms to this criterion. 2. The size of the proposed EHU(s) in relation to the minimum employee housing unit sizes established for commercial linkage mitigation in Section 12-23-3 of this title; and The proposed EHU is a 2 bedroom, one bathroom unit of 864 square feet. This is exceeds the two bedroom minimum size of 788 square feet. As the unit is meeting the Town of Vail Page 2 square fee requirements and not employee requirements staff believes this is n acceptable deviation. Therefore, Staff believes this proposed EHU complies with the applicable requirements. 3. The effect of any homeowners’ association dues or maintenance fees imposed upon the proposed EHU(s) on the affordability of the proposed unit for an employee; and The monthly homeowners’ association fees are $294. Sandstone 70 has a strong association and the fees are commensurate with the size of the unit and the amenities provided. Therefore, Staff believes the proposed EHU conforms to this criterion. 4. The correlation between any homeowners’ association fees imposed upon the proposed EHU(s) and the services and amenities provided by the homeowners' association; and The fees are commensurate with the services and amenities provided by the homeowners’ association. Therefore, Staff believes the Proposed EHU conforms to this criterion. 5. The extent to which the exchange is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the Town; and The Proposed EHU has proximity to the West Vail service areas, public transportation and the Commercial Job Core. Therefore, the exchange is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail comprehensive plan and is compatible with the development objectives of the town. 6. The extent to which the exchange presents a harmonious, convenient workable relationship among land uses consistent with municipal development objectives; and The Proposed EHU is currently vacant. The exchange will maintain the existing harmonious, convenient, workable relationship among land uses consistent with municipal objectives. 7. The extent to which the exchange provides for the growth of an orderly viable community and serves the best interests of the community as a whole. Staff believes the proposed exchange complies with the applicable requirements of the Town’s zoning regulations, and is therefore consistent with this criterion. III. STAFF RECOMMENDATION The Community Development Department recommends the Vail Local Housing Authority forwards a recommendation of approval to the Vail Town Council for the Town of Vail Page 3 proposed EHU deed restriction exchange based upon a review of the criteria and findings as outlined in this memorandum and the evidence and testimony presented. Should the Vail Local Housing Authority choose to forward a recommendation of approval for this employee housing unit deed restriction exchange, the Community Development Department recommends the Authority pass the following motion: “The Vail Town Council authorizes the Town Manager to execute a deed restriction release and approves the request for an exchange of an employee housing unit, pursuant to Section 12-13-5, Employee Housing Unit Exchange Program, Vail Town Code, to allow for the release of an employee housing unit located at Lot 21W, Block 3, Vail Valley Filing /1358 A Vail Valley Drive, in exchange for the placement of an employee housing deed restriction on another dwelling unit located at Sandstone 70 Unit B Building 13/923 Red Sandstone Drive Unit B13, 864 square feet and setting forth details in regard thereto.” Should the Vail Local Housing Authority choose to forward a recommendation of approval for this employee housing unit deed restriction exchange, the Community Development Department recommends the Authority make the following findings: “Based upon the review of the criteria outlined in Section II of the June 27, 2017 staff memorandum and the evidence and testimony presented, the Vail Local Housing Authority finds: 1. The application meets the general requirements of subsection D of Section12-13- 5, Vail Town Code; 2. The application is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town; 3. The application furthers the general and specific purposes of the zoning regulations, Section 12-1-2, Vail Town Code, and the employee housing regulations of Section 12- 13-1, Vail Town Code; and, 4. The application promotes the health, safety, morals, and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality." IV. ATTACHMENT Eagle County Assessor Property Card Sandstone 70 B13 Property Record Card Eagle County Account: R006402 Parcel: 2103-014-01-042 Tax Area: SC103 -VAIL (TOWN) -Situs Address: SANDSTONE 13B LLC 2722 CORTINA LANE VAIL, CO 81657-4230 SC 103 000923 RED SANDSTONE RD #B 13 Acres: 0.038 VAIL AREA, 0 _V_a_lu_e_S_u_m_m_a_r~y ______________ Legal Description DESC: BLDG 13 Subdivision: SANDSTONE 70 Unit: B Value By: Market Override BK-0563 PG-0677 WD 09-27-91 Condo {I) $360,660 NIA Land (I) $0 NIA Extra Feature {I) $3,330 NI A Total $363,990 $363,990 Public Remarks Entry Date Model Remark Condo Occurrence 1 Sale Data Doc.# Sale Date Deed Type Validity Verified Sale Price Ratio Adj. Price Ratio Time Adj. Ratio 201220681 10/J 112012 WD B: 000677 P: 09/1511995 WD 000292 Condo Occurrence 1 QV QV y y Abstract Code 1230-CONDOS-IMPROVEMENTS Use Code I 000 -RESIDENTIAL Building Type 123000-CONDOMJNIDM Exterior Wall 8-WD SID LOW Roof Cover 6-ASP SHGL Interior Wall 5-DRYWALL A#: R006402 P#: 210301401042 As of: 06/14/2017 $265,000 $140,500 Percentage 137.35 259.07 Neighborhood Arch Style Percentage Roof Structure Percentage $265,000 $140,500 100 137.35 259.07 Price $303,160 $140,500 4147 -SANDSTONE 70 26-CONDO 100.0 2-SHED 100.0 120.07 259.07 Page 1 of 3 Property Record Card Eagle County Condo Occurrence 1 Floor Heating Fuel Air Conditioning Bedrooms Construction Quality Fixtures Units Super Neighborhood Use Code SubArea FOP BAS Total Land Occurrence 1 Abstract Code Use Code Land Code Size SubArea Land S Total 8 -RESILIENT 14-CARPET !NV 3-GAS 0-NONE 2 4-AVERAGE 4 Percentage Heating Type Actual Year Built Bathrooms Effective Year Built Rooms Units 4260 -WEST VAIL I INERMTN CONDO Stories 1000 -RESIDENTIAL Value $360,660 23' iii BAS 768.0 18' 1130 -CONDO-LAND 1000 -RESIDENTIAL ~ ACTUAL 96.0 768.0 864.00 Rate 417.43 ~ 5' 8' ~ 8' I J 308288 -SANDSTONE 70 COND 0.038 ACTUAL 1676 1,676.00 EFFECTIVE FOP 96.0 Percentage Neighborhood 28.8 768.0 796.80 Rate 452.64 Super Neighborhood Zoning EFFECTIVE A#: R006402 P#: 210301401042 As of: 06/14/2017 20.0 80.0 13 -BASEBOARD 1967 1990 4 l -STORIES J 100.0 HEATED 768.0 768.00 Rate 469.61 FOOTPRINT 96.0 768.0 864.00 Rate 417.43 4147 -SANDSTONE 70 4260 -WEST VAIL I INTERMTN CONDO 6-CONDO HEATED FOOTPRINT Page 2 of 3 Land Occurrence 1 Value $0 Extra Feature Occurrence 1 110 -FIREPL. A. 100.0 Property Record Card Eagle County Rate Abstract Code Use Code Rate XFOB Code Percentage Neighborhood 4147 -SANDSTONE 70 SubArea XFOB Units Total Abstract Summary Value $3,330 ACTUAL 1 1.00 Rate 3,330.00 EFFECTIVE Rate Rate 1230 -CONDOS-IMPROVEMENTS 1000 -RESIDENTIAL Rate HEATED FOOTPRINT Rate Rate Code Classification Actual Value Taxable Actual Taxable Value Override Override 1130 CONDO-LAND $0 $0 NA NA 1230 CONDOS-IMPROVEMENTS $363,990 $28,970 NA NA Total $363,990 $28,970 NA NA A#: R006402 P#: 210301401042 As of: 06/14/2017 Page 3 of 3 Proposal for Website Design and Development Services Town of Vail George Runther Director of Community Development www.VailInDeed.com June 13, 2017 ! Introduc9on Nichols InteracFve is pleased to present the following proposal to provide Website Design and Development Services. AHer meeFng with the housing authority, this website will sever as a conduit between those interested in a purchase assistance program in exchange for Deed RestricFon with a goal of creaFng more local home- ownership within the Town of Vail boundaries. Though further discover and discussions will need to occur, I am providing this proposal based on similar needs of Vail Chamonix in an aLempt to keep this project moving forward. Primary project goals are: 1. Develop a site that will launch within 30 days (if not sooner). 2. Site will be RWD - responsive across all devices but also improves search engine rankings with the goal of high organic rankings. 3. Site will be similar in structure to http://www.VailChamonix.com and hLp://www.lacrestadelmar.com, but will be designed to compliment the trading of Chamonix-Vail. 4. Website will be created on the Drupal CMS plaXorm Overview of Nichols Interac9ve Nichols InteracFve is based in Edwards, Colorado. We have extensive experience creaFng websites that sell the guest experience with integrated digital markeFng programs. Nichols InteracFve enables you to drive compeFFve advantage, reduce operaFng costs and enhance the guest experience by extending business on the web. Nichols InteracFve is based in Edwards, Colorado. With 9 staff members, we specialize in Drupal and WordPress Content Management Systems and Search MarkeFng. All Rights Reserved 2017. ConfidenFal. 2 ! Budget and Itemized Requirements Task Descrip9on Hours Rate Total Discovery and Project Management Strategic Planning, InformaFon Architecture, NavigaFon Structure, Design and Usability CriFque, Project Planning and Project management 2 $140 $280 Website Design & Theme Development RWD Website Theme Development: Home Page and Second Level Page templates similar in structure to hLp://www.VailChamonix, but will be designed to compliment the branding of VailIndeed. 30 $140 $4,200 Content Logo, Photos and Content to be provided by the Town of Vail $0 Programming TBD 0 140 $0 Website Setup Drupal CMS installaFon and configuraFon, module installaFon and configuraFon on clients VPS Server 2 140 $280 Total 34 140 $4,760 HosFng OpFonal Website hosFng is $600 per year. All Rights Reserved 2017. ConfidenFal. 3 ! Wire Frames & Informa9on Architecture: SAMPLE Contact: Jerry Nichols, President 970-926-2626 jerry@nicholsinteracFve.com All Rights Reserved 2017. ConfidenFal. 4 The Community If you’ve always wanted to own a home in Vail but thought it wasn’t possible, think again. View HomesAbout Chamonix Location Contact Us lifestyle shot? Homes Historical. Majestic. Remarkable. La Cresta, or “The Ridge” in Spanish, is unlike any other community in Los Cabos. Located more than 360’ or 110 meters above the sea, La Cresta is one of the last parcels overlooking the pristine Palmilla coastline. With only 11 homesites available in the exclusive enclave that has been strategically integrated into the natural characteristics of the environment, those who call La Cresta home will experience the pinnacle of Los Cabos living surrounded by unparallelled mountain and sea views. Steeped in history, La Cresta is the culmination of a historical legacy of two legendary Cabo visionaries: The Rodriguez Family and Ron Hatfield, who since the 1940’s, have transformed the Palmilla and Sea of Cortez coastline into one of the world’s most luxurious and exclusive resort communities. FAQ's About Chamonix Vail FPO LOGO Mouse-over lots - bubble displays: Unit Name # BD, #BASquare Feet view details >>> Town of Vail Employee Housing Guidelines 10/19/99 Page 1 of 11 THE TOWN OF VAIL EMPLOYEE HOUSING GUIDELINES 10-19-99 Town of Vail Employee Housing Guidelines 10/19/99 Page 2 of 11 I. PURPOSE The purpose of the Employee Housing Guidelines (Guidelines) is to set forth the occupancy requirements, re-sale procedures, and resale price limitations for the Town of Vail deed restricted for-sale employee housing. Additional information pertaining to Employee Housing Unit deed restrictions can be found in the applicable Master Deed Restriction Agreement (Master Deed Restriction) for the occupancy and resale of certain projects such as Vail Commons. Prior to closing on a employee housing unit, the owner must sign an individual deed restriction which references the Guidelines and the Master Deed Restriction which will be recorded at the closing, and which will run with the property in perpetuity. II. MAXIMUM RESALE PRICE An owner may desire to sell a deed-restricted Employee Housing Unit provided that the resale price and prospective purchaser meet the standards of the Guidelines and the Master Deed Restriction. Resale price may not exceed: A. The original price plus B. An increment equal to 3% per annum of the original purchase price from the date of purchase (prorated at the rate of 0.25% for each whole month of any part of any year) plus C. The value of capital improvements (including professional architect’s fees) made to the Employee Housing Unit not exceeding 10% of the original purchase price. For every ten years from the date of original purchase and deed restriction, another ten percent of the purchase price may be added to the value of the property for capital improvements plus D. The value of any special assessments made by a homeowner's association or by a local government that has been paid by the owner. Additional details regarding resale value as well as calculation methods are provided in the deed restriction. III. RESALE PROCEDURES The deed-restricted unit must be listed for sale with the Town of Vail. A. Listing the Unit with the Town of Vail: Staff Duties 1. An owner of an affordable housing unit desiring to sell should consult with Town staff (Housing Division) and review the individual deed restriction and the Master Deed Restriction covering the unit to determine the maximum sales price permitted and other applicable provisions concerning a sale. Unless otherwise provided in the Master Deed Restriction, the unit must be listed for sale with the Town and the Town Town of Vail Employee Housing Guidelines 10/19/99 Page 3 of 11 staff or its designee will administer the sale in accordance with the Guidelines in effect at the time of listing. There shall be a minimum listing period of three months before a unit’s price can be readjusted. Any termination in the listing may require the payment of administrative and advertising costs. The ½ percent of the sales price required to be deposited with Town staff at time of listing will be forfeited. Costs exceeding the amount of the deposit shall be paid by the owner. 2. The Guidelines are intended to ensure that ALL purchasers and ALL sellers will be treated fairly and impartially. Questions will be answered and help provided to any potential purchasers or sellers equally in accordance with the current Guidelines. Listings, sales contracts, extensions to contracts and closing documents will be prepared and all actions necessary to consummate the sale shall be undertaken. 3. In pursuit of the above, the staff will be acting on behalf of the Town. It should be clearly understood by and between all parties to a sales transaction that the staff members are not acting as licensed brokers to the transaction, but as representatives of the Town and its interests. They shall nevertheless attempt to help both parties consummate a fair and equitable sale in accordance with the then current Guidelines. 4. All purchasers and sellers are advised to consult legal counsel regarding examination of title and all contracts, agreements and title documents. The retention of such counsel, licensed real estate brokers, or such related services, shall be at purchaser’s or seller’s own expense. The fees paid to the Town are to be paid regardless of any actions or services that the purchaser or seller may undertake or acquire. B. Advertising the Sale: Bid Periods 1. After a unit is listed for sale with the Town, the Town will arrange to advertise the unit for sale in two consecutive Friday editions of the Vail Daily and the Vail Trail. When a unit is first listed, there is an initial two-week bid period during which the unit will be advertised with two open house dates when the unit may be viewed by interested parties. The initial two-week bid period ends on the Friday after the second week of advertising. If no bids are received during the initial bid period, there will follow consecutive one-week bid periods, ending on Friday, until the unit is sold. 2. If more than one bid is received during any bid period, the bids shall be prioritized according to the criteria of the then current Guidelines. If more than one bid is in top priority, a lottery will be held and the winner will be Town of Vail Employee Housing Guidelines 10/19/99 Page 4 of 11 notified. If the winner of the lottery does not proceed to contract within five business days after notification, the next in line will be notified and so on, until the unit is under contract for purchase. Back-up contracts in the priority order set forth in the lottery will be accepted. Prospective purchasers must be pre-qualified by a lender prior to submitting a bid for affordable housing. Names of authorized lenders are available from the Town. Town staff will be available to assist interested parties with the purchase procedures and to answer any questions about the process. C. Sales and Other Fees: 1. Unless otherwise set forth in the Master Deed Restriction covering the unit, at the closing of the sale, the seller will pay the Town a sales fee equal to two (2) percent of the sales price. The Town may instruct the title company to pay said fees to the Town out of the funds held for the seller at the closing. Unless otherwise specified in the Master Deed Restriction, a one-half percent (1/2%) fee is paid by the Seller at the time of listing, which is applied to the total sales fee payable at closing. In the event that the seller fails to perform under the listing contract, rejects all offers at maximum price in cash or cash-equivalent terms, or should withdraw the listing after advertising has commenced, that portion of the fee will not be refunded. In the event that the seller withdraws for failure of any bids to be received at maximum price or with acceptable terms, the advertising and administrative costs incurred by the Town shall be deducted from the fee, with the balance credited to the owner’s sales fee when the property is sold. 2. Conventional-type financing provisions (i.e. FNMA) are those which provide, among other things, for the removal of the Master Deed Restriction on the unit upon foreclosure of the mortgage if the Town does not exercise its option to purchase the unit within a specified time following foreclosure. Unless otherwise set forth in the Deed Restriction covering the unit, upon the initial sale, resale or refinancing of units where conventional-type financing provisions are used (the use of which shall be at the sole discretion of the Town) there may be a fee charged by the Town. The fee shall be paid by the mortgagor; shall be based on the amount of the mortgage; shall be paid for each mortgage transaction; and shall be deposited in the Town mortgage reserve fund account. If the fee is paid on a unit and the unit is subsequently refinanced, the fee shall only apply to that amount of the refinanced mortgage greater than the initial mortgage upon which the fee was initially collected. The amount and adequacy of the fee and the mortgage reserve fund shall be reviewed Town of Vail Employee Housing Guidelines 10/19/99 Page 5 of 11 annually as part of the review of the Guidelines. D. Deed Restriction: The purchaser must execute, in a form satisfactory to the Town and for recording with the Eagle County Clerk concurrent with the closing of the sale, a document acknowledging the purchaser’s agreement to be bound by (1) the recorded Master Deed Restriction covering the sale unit and (2) the then-current Guidelines. IV. 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. 6. 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 Town of Vail Employee Housing Guidelines 10/19/99 Page 6 of 11 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: 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. Town of Vail Employee Housing Guidelines 10/19/99 Page 7 of 11 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. D. 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. V. OCCUPANCY REQUIREMENTS Once an Employee Housing Unit has been purchased, it must continue to be occupied in a manner that is consistent with the goals and policies of the Town of Vail Housing Program. The purchased Employee Housing Unit must be owner occupied by: An employee, working in Eagle County who works an average of thirty hours per week on an annual basis. Town of Vail Employee Housing Guidelines 10/19/99 Page 8 of 11 A retired individual, sixty years or older, who has worked a minimum of five years in Eagle County for an average of thirty hours per week on an annual basis. Notes: A. A leave of absence may be granted for one year, subject to clear and convincing evidence which shows a reason for leaving and a commitment to return to the Vail/Eagle County area may be approved by the Town. Said evidence shall be in written form presented to the Town for review and recommendations 30 days prior to leaving. The Leave of Absence shall be for one year and may, at the discretion of the Town, be extended for one year, but in no event shall it exceed two years. The unit must be rented during said year or years to residents who comply with occupancy requirements. Rental periods shall be not less than 30 days. After verification and qualification of tenant(s), a copy of the executed lease shall be furnished to the Town. B. If the Employee Housing Unit is listed for sale and the owner must relocate to another area, the unit may, upon approval of the Town, be rented prior to completion of the sale to persons who comply with the occupancy requirements. A letter must be sent to the Town of Vail Housing staff requesting permission to rent the unit until sold. A lease of not less than (6) months must be provided to the tenants with a sixty (60) day move out clause upon notification that the unit is sold. C. Occupants may request waivers to the provisions of this section by providing a written request to the Town of Vail Housing staff, which will then be forwarded to the Town Council for their consideration. D. Co-signers may be allowed but shall not occupy the unit unless the occupancy requirements of this section are met. VI. ANNUAL VERIFICATION REQUIRED; PENALTIES FOR VIOLATION A. No later than February 1st of each year, the owner of the restricted employee housing unit shall submit two copies of a sworn affidavit on a form to be obtained from the Community Development Department, to the Town of Vail Housing Authority and the Town of Vail Community Development Department verifying that the dwelling unit continues to be owner occupied in accordance with Section V of the Guidelines, that the occupant has worked thirty hours per week for the previous year, and where the occupant has worked. B. If the Town determines that there has been a violation of the occupancy standards, the owner of the restricted employee-housing unit shall be found to be in noncompliance. Penalties the Town may assess against the owner include eliminating resale gain and/or penalties found in the Town of Vail Municipal Town of Vail Employee Housing Guidelines 10/19/99 Page 9 of 11 Code Title 1, Chapter 4. Any misrepresentation by an applicant in submittal material shall disqualify the applicant from purchasing an Employee Housing Unit. VII. SUBMITTAL REQUIREMENTS In conjunction with completing an application to purchase an Employee Housing Unit, the applicant shall provide, upon request by the Town, the following documentation as proof of residency and employment: A. Federal Income Tax return forms. Applicant must provide the last four (4) years of Federal Income Tax Returns, an audited financial statement, or acceptable documentation to the Town. B. Verification of current employment in Vail or Eagle County (i.e., wage stubs, employer name, address and phone number or other appropriate documentation as requested by the Town). C. Landlord verification (proof of residency, physical address). D. Valid Colorado Driver's License (address, issue date). E. Prequalification for a loan from a bank or mortgage company. F. Deposits for down payment shall be verified by the holder of such funds. G. Any co-ownership interests other than joint tenancy or tenancy-in-common must be approved by the Town. H. Signed authorization from the applicant allowing the Town of Vail to discuss details with applicant's employer. I. Any documentation which the Town deems necessary to make a determination. VIII. FORECLOSURE In the event of a foreclosure or of acceptance of a deed in lieu of foreclosure by the holder (including here and hereinafter assigns of the holder) of the promissory note secured by a first deed of trust on a deed restricted dwelling unit (hereinafter “the Property”), and subject to the issuance of a public trustee’s deed to the holder following the expiration of all statutory redemption rights, the Town of Vail (the “Town”) shall have the option to purchase the Property which shall be exercised in the following manner: Town of Vail Employee Housing Guidelines 10/19/99 Page 10 of 11 a. Notice. The holder shall give such notice to the Town as is required by law in the foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Housing Division Town of Vail 75 S. Frontage Road Vail, CO 81675 b. Option to Purchase. The Town shall have 30 days after issuance of the public trustee’s deed or the acceptance of a deed in lieu of foreclosure by the holder in which to exercise this option to purchase by tendering to the holder, in cash or certified funds, an amount equal to the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the holder during the option period which are directly related to the foreclosure. c. Title. Upon receipt of the option price, the holder shall deliver to the Town a special warranty deed, conveying the property to the Town. The holder shall convey only such title as it received through the public trustee’s deed and will not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustee’s deed to the holder. The holder shall not be liable for any of the costs of conveyance to the Town or its designee. d. Release. In the event that the holder is issued a public trustee’s deed and the Town does not exercise the option to purchase, as provided herein, the Town shall cause to be recorded in the records of the Clerk and Recorder of Eagle County a full and complete release of the describe covenants affecting the Property which appear in said records in Book _________at Page _________. Such release shall be placed of record within 14 days after demand therefor by the holder following expiration of the option and a certified copy of the release shall be mailed to the holder upon its recordation. e. Perpetuities Savings Clause. Town of Vail Employee Housing Guidelines 10/19/99 Page 11 of 11 If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Option to Purchase shall be unlawful or void for violation of: (a) the rule against perpetuities or some analogous statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the current duly elected and seated Town Council of the Town of Vail, Vail, Colorado, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. f. Successors and Assigns. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties hereto. g. Modifications. The parties hereto agree that any modification to this option to purchase shall be effective only when made be writing s signed by both parties and recorded with the Clerk and Recorder of Eagle County, Colorado. IX. For additional information, contact the Housing Division of the Town of Vail Department of Community Development. 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?