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HomeMy WebLinkAbout2016-1213 VLHA Meeting MinutesVail Local Housing Authority 12/13/2016 Minutes Vail Local Housing Authority (VLHA) December 13, 2016 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 Lynne Campbell A quorum of VLHA Members being present, the meeting was called to order at 3:10 PM. I. Vail Local Housing Authority (the Board) discussed Town Council’s Deed Restriction concerns addressed at the December 6, 2016 Council meeting. Bullet points on page two of the December 6, 2016 memo were reviewed. A business entity or corporation shall not be eligible for ownership of a dwelling unit. George Ruther clarified the intent, if created the entity at the end will not own unit, entity gets fast pass during lotteries. Organization needs to decide. The Board wants a more transparent system with large businesses understanding what they are being charged in the process. Lindstrom questioned why and entity would want the responsibility. Murphy stated VVMC didn’t want to be in the real estate business and Wilkins wondered what happens if the employee is no longer employed with the entity. Board agreed the unit can not be held in trust, permanent individual ownership only. Ruther recommended sticking with the restriction as is, board agreed. A maximum resale price shall be established based upon the Annual Area Median Income for Eagle County or similar wage adjusted index. Wilkins stated it tracts income. We want to get away from CPI. It’s not tracking CPI. Per Ruther the notion behind pricing was to keep buyer from being prisoner to the system with the goal of program to broaden system to break trap. Vail Local Housing Authority 12/13/2016 Dwelling units shall be subject to a Right of First Refusal granted to the Town of Vail. The Board reviewed how the right of first refusal will operate. Lindstrom noted the first right of refusal didn’t seem to be nay sayer with Council. The guidelines states right of first refusal after foreclosure if not used EHU goes away however, the Arosa deed restriction will survive foreclosure. Arosa owners cannot refinance. McDougal stated the Town has option to cure – different from what the Employee Housing Unit (EHU) Guidelines state and suggested Chamonix restrictions should match existing guidelines. Banks rely on TOV EHU guidelines. Credibility could be questioned if guidelines don’t match. There should be a right of first refusal. Questions regarding which restriction guideline would be used if legal issues arise (foreclosure). Restrictions say after foreclosure it would be better to give Town right of refusal before legal action. Per Ruther if legal action occurs, the Town should step in prior to any action giving time to rearrange pieces to correct any issues. Reset as needed. Lindstrom asked if the Town could send notification of 1st right of refusal. Ruther said the Town would attempt to notify. Per Wilkins a savvy investor could step in to buy which would save time per McDougall. In conclusion Ruther will have right of first refusal conversation Matt Mire, Town Attorney. An owner of a dwelling unit shall not own other residential real estate within Eagle County, Colorado at the time of closing. An owner may, however, own residential real estate in Eagle County, Colorado provided said real estate is deed restricted for housing, subject to Town of Vail approval, at the time of closing. Counsel woman Jenn Bruno had an issue with this. It appears Bruno sees housing for low income buyers versus affordability. Vail Local Housing Authority 12/13/2016 General consensus is as long as buyer doesn’t own property in Eagle County, is willing to deed restrict their existing home, meets the deed restrictions and qualifies the buyer can purchase at Chamonix. Ruther noted the recommendation objective is availability in Eagle County not the outside real estate market and trying to solve Eagle County housing problem. If buyer has a Life style change they shouldn’t be penalized. It goes back to the objective. If need is to address Eagle County housing why do we care if they own something outside the county? Lindstrom suggested the Board members speak up at the December 29, 2016 council meeting. Mary has prior engagement and won’t be able to attend. The first, second, fourth, fifth, sixth, and seventh bullets are fine, Board had no issues. II. Lottery Buyer Selection Intent behind a non weighted lottery is to prevent social engineering. To qualify for the lottery buyers will exhibit qualified income or loan and demonstrate quality deed replacement and acknowledge terms of purchase and sale. The lottery will take all units and randomly pull names for units. A participant can put name in as few or many of hats as they want as long as they qualify financially. One unit equals one chance, brings lottery back to level playing field for next drawing. Drawing for each unit the names will be added to the list for a unit. If the applicant accepts the drawn unit their name will be removed for any other units. A list of drawn buyers will be add to a list in the order of selection. Once buyer has said yes to a unit and they have put their name other unit drawings it will be removed from all other drawings. In case the winner of the unit pulls out of the contract the next drawn name will have option of accepting the unit.. Additional lottery options were proposed. • Pick all names and order. Then the list picks unit in order of 1-400 applicants • Start with most expensive/largest unit and work down the list • Drawing all names then buyer decides 1st and 2nd choice Vail Local Housing Authority 12/13/2016 • Draw 6 names for each of the 32 units • Have two different draws for 2 & 3 bedrooms Ruther mentioned the goal is to keep as simple as possible. Have selection preference on unit. Tell us unit you want to buy if you get it you buy it. If you want 3 bedroom the units occur in multiple locations. Having a pure lottery goes back to objective. Town wants a pool as large as possible. The lottery process has stagnated, want to avoid status quo of a weighted. Ruther questioned if complying with deed restriction what’s the purpose of weighted lottery? Board members stated the lottery is about the work force community, bringing young families back to Vail and different demographics. If lottery remains weighted many don’t have a chance to buy. The board agreed to the lottery buyer selection. The Town will hold a pretend lottery to get feel for how it will work and work out kinks. Board members questioned how the Town will know if a buyer truly qualifies. Can part of the prequalification require a down payment or can the Town ask from where the down payment is coming? Wilkins and McDougall responded no. Even after a prequalification letter is written things can change for the potential buyer. Ruther stated the gap from lottery to closing will be short. Basically the buyer needs to come prepared knowing what they can afford. All agreed. Discussion of how much property taxes and HOA fees will be. Wilkins estimate taxes to be between $1200-$1400 annually. Michael O’Connor with Triumph is using $25-300/month as the HOA estimate. The next Council is Tuesday, December 20th. Ruther believes there will be one more meeting before direction given and VLHA will move forward. Vail Local Housing Authority 12/13/2016 Lindstrom wants Board to be present at December 20th council meeting to comment on the Roost (Marriott Inn Residences). Ruther believes Council woman Langmaid to speak about caring capacity and speak to height and utilities. Group is concerned about density increase, changes political order. Get people to attend Council meeting and help Council understand. Next the Board discussed next steps regarding deed restricted acquisition of a Matterhorn Inn Condominium unit. Since a fire at the complex and lack of insurance coverage Mr. Fuentes is seeking assistance from VLHA. He appears to be the only owner underwater. The Board discussed options and if the Town should purchased the unit for deed restricted housing. VLHA is not willing to participate at a complex level. Murphy departed at 4:45pm Next meeting finance director Kathleen Halloran to discuss 2017 budget. Board agreed to keep 2017 VLHA meetings on the 2nd and 4th Tuesdays of each month, 3-5PM. Lynne Campbell to share schedule upon completion. Housing Strategic Plan completed and hard copy out to VLHA Board. Meeting adjourned. Respectfully Submitted, Lynne Campbell Housing Coordinator INTRODUCED, READ, ADOPTED AND APPROVED this 24th day of January, 2017.