HomeMy WebLinkAbout2018-04-20 VLHA Meeting Results
Vail Local Housing Authority
Results
Friday, April 20, 2018
Regular Meeting
2:00 PM –4:00 PM
Town Council Chambers
75 South Frontage RoadWest, Vail, Colorado 81657
MEMBERS PRESENTMEMBERS ABSENT
Steve Lindstrom
Molly Morales
James Wilkins
MaryMcDougall
Francisco Meza
Staff
George Ruther
Lynne Campbell
Linstrom called the meeting to order at 2:06PM as all members were present.
The Board r eviewedand approved the April10, 2018 meeting resultsas presented.
MOTION: McDOUGALLSECOND:WILKINSVOTE:5-0
The AnnualResale Lottery Criteria was up next for discussion. Wilkins and Ruther gavethe
Board areview of Town Council’s comments from the meetingApril 17, 2018.Wilkinsinformed
Council the VLHAbelieves the lottery needs to be revamped to a true lottery. Council wanted
VLHA to look at weighting the lottery. Council wants to recognize applicants from time here to
type of employment. Mason and Langmaid definitely want longevity and employment type to
berecognized.Mason mentioned having tiers 0-5 years etc. Wilkins thinks there should be a
st
cap on the weighting. Council wants something to look at and sign off on by May 1.
Ruther passed around public input he received. Council did provide direction for lottery criteria.
Theylooked at existing policies in place. Much of process relating to primary residence,
employment within Eagle County for a minimumof 30 hours per week and 75% income earned
in Eagle County keep as is. Council wanted input on ownership of Eagle Countyreal estate at
time of application.The Council understands VLHA’s concern that ownershiplimits people
from participating. They want input how to go about changing this provision.The conversation
was around if you own free market and agree to deed restriction and the Town agrees to deed
restriction on existing property then you can participatein the lottery.Council’s concern was
should tax payers allow applicants to participatetwicewhen applicants currently own property?
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There is potential the applicant may earn income from the existing home. Council wasdivided
on this subject.Council questioned ifthis could be a double dip scenario where people are
taking advantage of system.
Wilkins said neither Ruther nor he addressed Council’s decision to allow property ownership
for the Chamonix Vail lottery. Both stated thought better to bring up at a later meeting.
Lindstrom sought clarification of Council’s concerns:
Can applicantown other property in Eagle County when applying?
Can applicantcontinue to own after buying adeed restriction from the resalelottery and
own more than one deed restricted unit?
Wilkins said that is what he heard from Council and that they seemed to be OK with divesting
of the property upon winning a deed restricted home. Question was raised about what if the
owner deed restricts the existing home. Hementioned councilman Moffet said 9 times out of
nd
10 free market units are being sold to 2homeowners.
At the April 17, 2018 council meeting Councilman Moffet questioned what is the intent of
program,to create more availability units for workforce locals or does everyone has a shot at
owning?Unlikely someone in this scenario will build their portfolio with individual deed
restricted homes.
McDougallasked if the concern isbuyers would buy additional deed restrictions.Yes, replied
Ruther.
Ruther said there was agreement to divestingof existing property if an existing homeowner
wins a deed restricted home. Question is can they deed restrict existing property and own the
deed restriction property.
Morales concerned about the Town providing funds like Vail InDEED to place a deed
restriction on their existing property. Wilkins also had this concern.
Ruther said council members asked what the objective is. Keep homes for locals?
An owner can have only one primary residence. Council member Coggin wondered if this is
really what someone would do and doesn’t it achieve the objective of keeping housing for the
locals?
Wilkins asked if the Town wantsto change the existing deed restriction (Vail Commons, etc.)
moving forward. Ruther said no it’s already in the deed restriction they have to sell to move
into another deed restriction.Ruther, owner/buyer can only own one primary residence.
Ruther clarified take an unrestricted property, restrict it the take primary residence in Vail
Commons.
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Wilkins, Can own at lotto, dispose of at time of taking ownershipof new deed restricted
property? Is it a moot point?Vail Commons doesn’t allow you to own both properties.
At ownership of an existing deed restricted unit do we want to allow continued ownership?
Currently we would have to modify existing Vail commons and like deed restriction as you can’t
own other properties.
Linstrom said allow property ownership at time of lottery for new projects.
If process changed it doesn’t benefit any existing TOV deed restricted property.
VLHA agrees can someone can own anEagle Countyfree market unit and can enter lottery
only to dispose of theexisting property prior to taking possession. Deed restriction on property
will determine if you can own other property.
Ruther: Vail Commons deed says can not own both properties. Change in deed restriction
would happen at the time the new owner takes possession. Could we amend the Vail
Commons restriction when a free market owner enters lottery and get a deed restriction on the
free market with the buyer making Vail Commons the primary?
Wilkins said yes but much more conversation with Council would need to take place.
Ruther summarized:recommendation is an applicant can own Eagle County real estate at time
of application. Message deed restriction would take care of the rest at closing. There are two
different lotteries Chamonix Vail lotteries can own at lottery and must dispose of prior to taking
ownership.
The Board agreed to recommend to Council a lottery applicant can own Eagle County
residential real estate at time of lottery application.
The Board and staff reviewed lotteryweighted options.
Ruther discussed that Council wanted weighted system to give additional opportunities to
different group, class of people. What is it based on?
Areclass / group based on residency longevity or locationof employment, occupation
type?
What do you want to give weight to?Residence, employment, occupation?
Mindfulprotected classesaren’t violated.
More points equal more tickets in the hat.
Don’t limit parameters to professions.
Use Eagle Countyvs not Eagle County.
Look whatwasdone at Chamonix.
Both partners could enter if qualify.
Simple is better.
Cap number of entries.
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Chamonix Vail lottery criteria were:
Prequalification letter
Homebuyereducationclassattendance
Signedagreement will meet/comply with deed restriction
Upon taking possession must comply with deed restriction
Equals 1 ticket
Qualified spouse got a ticket
Did the Board want to consider the following for weighting?Any of the items listed below would
be an additional lottery ticket.
Longevity in any EC area does it get you another ticket -NO
New to process –NO
Family size-NO
Employment Location-YES
Residence location –NO
Occupation -NO
Previously applied -NO
Ruther recapped the weighted categories. The Board prefers to recommendatrue lottery1
ticket entry.
Additional tickets could be for:
location of residency –due to political nature, may need to consider
location of employment–might need to consider due to political nature
lottery participation others-NO
TheBoarddid not support additional tickets for residencylongevity.
All members agree no weighted lottery and to run like ChamonixVail Lottery.
Common thread what complaints is longevity and points.Argumentsfrom constituents is the
lottery is not fair not being evaluated for longevity as well as those who don’t like the points for
those who want to be in Vail and have beendown valley for years.
Ruther reviewed item #7 on recommendationstoCouncil to allow equal chance for home
ownership. Council voted down. They want weightforsomething.
The Board and staff reviewed several scenarios. The Boardagreed to make a
recommendation to Council for the following.
Meet entry Work in Work in livein Vail Live EC/Vail Total
qualificationsVail at time Vail +10yrscombinedTicket
of app+10yrs(6mos min)Entries
111115
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Ruther mentioned next Tuesday is the first Housing Subcommitteeto be held in the
Community Development small conference room. The committee will consist of two Council
members, two VLHAmembers. VLHA members appointed are Lindstrom and Morales with
Wilkins as alternate. Moffet and Bruno are the Council appointees. Alternate is to be
determined.
Purposeof the subcommitteeis to have conversations between both boards outside of public
hearing process to developcommunication going andreport back to respective Boards. Ruther
will put agenda together. No decision making in these meetings. Decision making goes back to
the boards.
Ruther addressed the Vail InDEED Deed Restriction Subordination.
Not to decide today
th
Conversation with subcommittee or joint meeting on June 5
Vail InDEED subordination ofthe deed restriction orlending on property
st
Today it’s a black or white position. Either the Town is in 1position or not
Understand implications of black or white
Some gray today in Vail InDeed
Ex: debt to equity 40-60%. The lenderisunwilling to subordinate our deed to the loan.
o May want to review exposure
o Add debt to deed purchase and would still be in favorable position
o VLHA thinks worth bringing forward to the Council forconversation
Ex: argument made the Town in not in first position on most of the currentdeed
restrictionstoday. Commentwasit’s OKbecausethe Town didn’t write a check.
Ruther said while Town didn’t write the checkthe Town did receive valueregardless if
the Town wrote the check.
Deed Restrictions have value.
Staff today is telling Vail InDEED applicants who have mortgages they must provide
lender acknowledgment prior to submitting.
Lindstrom departed the meeting at 3:45PM. Ruther departed the meeting at3:50PM.
There was no executive session discussion.
Wilkins made a motion to adjournthe meeting at 3:50PM.
MOTION: WilkinsSecond: MezaVote 4-0-1 (Lindstrom departed
priorvote)
Next Meeting –May 8, 2018
Future Agenda Items:
Housing Policy Update Discussion
Update Economic Value of Housing Discussion
VLHA Business Plan
East Vail Parcel Update
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Open Lands Plan Discussion
West Vail Master Plan Discussion
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