Loading...
HomeMy WebLinkAbout2019-12-10 VLHA Meeting Agenda Vail Local Housing Authority Meeting Results November 26, 2019 3:00 PM Town Council Chambers 75 S. Frontage Road -Vail, Colorado, 81657 PRESENT:ABSENT: Steve Lindstrom Molly Morales Francisco Meza Mary McDougall James Wilkins 1.Call to Order3:06 PM A quorum being present Lindstrom called the meeting to order at 3:06PM. All Authority members are present as well as Ruther and Campbell from staff. 2.Citizen Participation 2.1. Citizen Participation No comments, no one present from the public. 3.Approval of Minutes 3.1. VLHA November 12, 2019 Meeting Results MOTION: WilkinsSECOND:McDougallVOTE: 5-0Approved 4.Main Agenda 4.1. Eagle County Loan Funding Request Presenter:Tori Franks and Nicholle Jackson, The Valley Home Store Patti Liermann and Nicholle Jackson from Eagle County Housing and Development Authority(ECHDA) presenteda program overview and contribution request of $50K minimum from the Vail Local Housing Authority(VLHA). Down payment assistance program summary Equity share program Recorded as second liens, 15-yearterm Borrow contributes ½ of amount down payment borrowed Maintain home as primary residence Most payupon sale or refinance Most work with deed restricted and free market property Eagle County Loan fund buyer’s income must be under 160% of area median income Maximum purchase price of $600K Live and work in Eagle County to qualify Since 1999,9.4 % of loan fund volume has beenused to purchase homes in Vail, 42 families. Program total to date has issued over 382loantotaling $5.5M loan volume 2018issued 50 loans total amount $657K volume, record year o 5 purchases in Vail for average purchase price $455K o 2 of the 5 homes were deed-restricted o End of 2017 beginning 2018 the County adjusted the guidelines to accommodate the Chamonix Vail development to $600K purchase price and removed the income limit o 2 Chamonix buyers utilized the program 2019 44 loans,expect 48 by year end, $600K inloan volume o Today’s current portfolio has 156loans for $2Mloan volume o 2Vailhomes with average loan amount $25K and average purchase price of $267K 1 deed-restricted-Vail Commons,1 open market-Buffehr Creek o 4.1% of 2019 purchasesin Vail Eagle County’s last contribution received was in 2008 in the amount of $740K from Eagle County and Lake Creek Village Apartments. Remainder of funds comes from donations and repaid principal interest. The program average return on investment about 16%. The 2019-2020 funding request comes from record year from 2018and low fund balance.ECHDA sent reminder to borrowersofthe24-monthrepayment, no interestif payback within 2 years.ECHDA received $110K.ECHDA offeredan incentive to reduce interest by 50%for all borrowers paying back by October 1, 2019receiving $70K. ECHDA lowered loan amount for $15K to $10Kbeginning of 2019, in June ECHDAwas able to increase the loan amount back to $15K.In 2023 they expect 18 loans paid off in amount of $459Kin principal, doesn’t include interest. Due to revolving nature of program they don’t expect annual request for funds. Eagle County is requesting $500K in donationsin 2019 and 2020. Eagle County Commissioners donated $250K and challenged the ECHDArequest other jurisdictions to match the Commissioner’s donation. VLHA ask questions seeking to further understand the program and reason for request. The VLHAwill review a donation amount while discussing their 2020 budget. 4.2. VLHA 2020 Budget Discussion VLHA, staff and Carlie Smith from finance reviewed the 2019 current expenditures and 2020 proposed budget. McDougall asked what VLHA has contributed in the past to ECHDA.Per Lindstrom said it had been $5K. 2020 projects/professional fees. Ruther reviewed anticipated projects.Projected expenditures in 2020 budget $40K. Housing data base-$25K SIS& Magellanpossibility for additional expenditures-$10K held Anticipated partnership with Council Resurvey community Need 100% consensus for success, 12 (TOV/VLHA) o Shared funding with VLHA/TOV money ECHDAdown payment assistancefunding request-$5K Per Smith a public notice is required prior to adopting the 2020 budget. VLHA will th vote at next meeting on December 10. 4.3. Employee Housing Capital Improvements Recommendation Presenter: Lynne Campbell, Housing Coordinator Tabled MOTION: MoralesSECOND: MezaVOTE: 5-0Tabled 5.Matters from the Chairman and Authority Members 5.1.Matters from the Chairman and Authority Members Morales discussedapotential Avon for sale housing developmentproject and discussion around deed restrictions and types. The developer is looking for money, Town of Avon has asked for 100% deed restriction. If asked would the Town of Vail participate in those deed restrictions. Morales recommended a rental occupancyrestriction with no price cap.Moralesfelt there was more flexibility,likeVailIndeed. Ruther suggested price appreciation cap. Morales, said Avon doesn’t have staff to manage deed restrictions. This project is going to Avon Town Council onDecember 10. Project is composed of 45 unitsin 2 phases. Ruther is following up with Eric Heil,Town of Avon manager. Ruther asked for thoughts how this project/restrictions may move forward. Morales said how the home appraisalscould be the challenge. Wilkins explainedhow appraisers review and appraise deed restricted properties. th Lindstrom mentioned the housing subcommittee meeting will be December 5 th and a VLHA semiannual update will be present at the December 17 afternoon meeting. th VLHA December 24meeting is cancelled and if needed a meeting will be th held on December 17in the Community Development large conference room. VLHA would like to meet new Town Manager. 6.Executive Session 6.1.Executive Session per C.R.S. §24-6-402(4)(a)(e) -to discuss the60 Min. Purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators, regarding: one submitted Vail InDEED applications and program details. Presenter: Lynne Campbell, Housing Coordinator McDougall motioned to leave the regular meeting and enterexecutive session per C.R.S. §24-6-402(4)(a)(e). MOTION: McDougallSECOND: MezaVOTE: 5-0Approved Wilkins motioned to reenter the regular meeting. MOTION: WilkinsSECOND: Morales VOTE: 5-0Approved 7.Any Action as a Result of Executive Session Morales motioned to have staff move forward. MOTION: MoralesSECOND: WilkinsVOTE: 5-0Approved 8.Adjournment 8.1.Adjournment 5:00 PM (estimated) MOTION: WilkinsSECOND: MoralesVOTE: 5-0Approved 9.Future Agenda Items 9.1. EHU Capital Improvements Labor Cost Housing Data Housing Sites Discussion Civic Area Plan Land Banking (sale of GRFA) Public Health Housing Incentive, Eagle County Health 10.Next Meeting Date 10.1.Next Meeting Date December 10, 2019 Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All Housing Authority meetings are open to the public. Times and order of agenda are approximate, subject to change, and cannot be relied upon to determine at what time the Vail Local Housing Authority will discuss an item. Please call (970) 479-2150 for additional information. Please call 711 for sign language interpretation 48 hours prior to meeting time. Housing Department RESOLUTION NO. 36 Series of 2019 RESOLUTION APPROVINGTHE PURCHASE OF A DEED RESTRICTION INTEREST IN PROPERTY (TYPE III DEED RESTRICTION) IN THE TOWN OF VAIL LEGALLY DESCRIBED AS CONDOMINIUM UNIT B-20, THE VALLEY CONDOMINIUMS,EAGLE COUNTY, COLORADO WITHA PHYSICAL ADDRESS OF 1612 BUFFEHR CREEK ROAD, UNIT B-20, VAIL COLORADO; AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Vail Local Housing Authority (the “Authority”), in the Town of Vail, County of Eagleand State of Colorado is dulyorganized and existing under the laws of the State of Colorado; and WHEREAS, the members of the Authority have been duly appointed and qualified; and WHEREAS, the Authority considers it in the interest of the public health, safety and welfare to purchase a Type III Deed Restriction (the “Deed Restriction”) on the property legally described asCondominium Unit B-20,The Valley Condominiums, Eagle County, Colorado with a Physical Address of 1612 Buffehr Creek Road, Unit B-20, Vail Colorado; (the “Property”); and NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1.The purchase ofthe Deed Restrictionon the Property is hereby approved by the Authorityat themaximum purchase price of $94,810. 2.The Chairman of the Vail Local Housing Authorityis hereby authorized to execute, on behalf of the Town, an agreement to purchase the Deed Restriction and to take whatever steps are necessary to complete the purchase of the Deed Restrictionon the Property. 3.This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Vail Local th dayofDecember, 2019. Housing Authorityof the Town of Vail held this10 Steve Lindstrom, Chairman of the Vail Local HousingAuthority ATTEST: Lynne Campbell, Secretary of the Vail Local Housing Authority ResolutionNo. 36,Series of 2019 RESOLUTION NO. 37 Series of 2019 RESOLUTION APPROVINGTHE PURCHASE OF A DEED RESTRICTION INTEREST IN PROPERTY (TYPE III DEED RESTRICTION) IN THE TOWN OF VAIL LEGALLY DESCRIBED AS CONDOMINIUM UNIT B-105, THEHOMESTAKE AT VAIL, EAGLE COUNTY, COLORADO WITHA PHYSICAL ADDRESS OF 1081 VAIL VIEW DRIVE, B-105, VAIL COLORADO; AND SETTING FORTH DETAILSIN REGARD THERETO. WHEREAS, the Vail Local Housing Authority (the “Authority”), in the Town of Vail, County of Eagleand State of Colorado is dulyorganized and existing under the laws of the State of Colorado; and WHEREAS, the members of the Authority have been duly appointed and qualified; and WHEREAS, the Authority considers it in the interest of the public health, safety and welfare to purchase a Type III Deed Restriction (the “Deed Restriction”) on the property legally described asCondominium Unit B-105,The Homestake at Vail, Eagle County, Colorado with a Physical Address of1081 Vail View Drive, Unit B-105, Vail Colorado; (the “Property”); and NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO THAT: 1.The purchase ofthe Deed Restrictionon the Property is hereby approved by the Authorityat themaximum purchase price of $58,812. 2.The Chairman of the Vail Local Housing Authorityis hereby authorized to execute, on behalf of the Town, an agreement to purchase the Deed Restriction and to take whatever steps are necessary to complete the purchase of the Deed Restrictionon the Property. 3.This resolution shall take effect immediately upon its passage. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Vail Local th Housing Authorityof the Town of Vail held this10dayofDecember, 2019. Steve Lindstrom, Chairman of the Vail Local HousingAuthority ATTEST: Lynne Campbell, Secretary of the Vail Local Housing Authority ResolutionNo. 37,Series of 2019 MEMORANDUM To:Vail Town Council From:Vail Local Housing Authority Date:December 17, 2019 Re:2019 Year to DateUpdate on Housing I.Purpose The purpose of this agenda item is to present a Year to Date Update on Housing from the Vail Local Housing Authority to the Vail Town Council. This update furthers the many goals, initiatives and priorities of the Vail Town Council Action Plan 2018 -2020 and advances the performance measures prescribed in the Vail Housing 2027 Strategic Plan. II.Topics to be presented: 2019 YTD Housing Accomplishments 2019 Strategic Initiatives and Actions Year to Date Vail InDEED Program Numbers, & Statistics Updated Progress Towards the Housing Goal III.2019 Housing Accomplishments Completed Actions Identified in the Vail Housing 2027 Strategic Plan: Deed Restriction Acquisition Evaluate dedicated deed-restriction acquisition revenue sources to ensure adequate funding exists –ongoing (in 2020Housing Department budget) Organized andimplemented the newly created Vail InDEED program Facilitated the acquisition of a total of twentynew deed-restrictions in the secondhalf of 2019and growing Land Use Tools Create a Housing Overlay District that allows for increased density –ongoing Evaluate the effectiveness of the EHU Exchange Program and make adjustments as needed –ongoing Amend the development impact fee in lieu calculation to represent cost of construction and current real market values –scheduled for first quarter of 2020 Performance Measurements Update existing deed-restricted property data base –ongoing Prepare twice annual reports summarizing progress towards the adopted goal - ongoing Maintain complete and accurate newly acquired deed-restriction data -ongoing Completed Actions Identified in the Vail Town Council 2018 -2020 Action Plan: Lead the finalcreation and sale of Chamonix Vail Parcel D resulting in more than $975,000 of net proceeds and value to the Town of Vail -Completed Actively pursuing regional collaboration and partnerships toward increasing the supply of housing within Vail and the region in keeping with the 2018 Housing Policy Statements(Tract Y, CDoT Parcel, Eagle-Vail Parcel,)-ongoing Convened the Vail Housing Subcommittee –ongoing IV.2019 Initiatives and Actions The following actions and initiatives were taken from the Vail Town Council Action Plan 2018 –2020 and the Vail Housing 2027 Strategic Plan: Vail InDEED program implementations and acquisitions -$2.5M funded Evaluate dedicated deed-restriction acquisition revenue sources to ensure adequate funding exists –$40K funded by VLHA Update existing deed-restricted property data base –$10K funded Update and amend the fee in lieu calculation to represent cost of construction –$10K funded Create a Housing Overlay District that allows for increased density –in- house Evaluate the effectiveness of the EHU Exchange Program and make adjustments as needed –in-house Evaluate potential housing development sites within the Town of Vail and down valley –in-houseand $20K funded Town of VailPage 2 Update the 2012 Economic Value of Employee Housing with the Town of Vail Report -Completed Breaking Down Barriers for Private-Sector Investmentin Resident- Occupied Housing Report –in-house and in partnership with ECHTF- ongoing Implementation and advancement of the 2018 Housing Policy Statements –ongoing The Vail Local Housing Authority, in partnership with the Vail Town Council,realized a number of additional achievements outside the scope of the Vail Housing 2027 Strategic Plan. Those achievements include the following: Hosted the inaugural 2019 U.S. Mountain Communities Summit whereby the more than 100 housing industry participants convened in Vail to discuss next steps towards housing solutions in mountain resort communities. Received the Modular Building Institute Award of Distinction for 2019 for the innovation, excellence and cost effective housing development at Chamonix Vail Received the 2019 Housing Colorado Eagle Award for demonstrated leadership in addressing the unique housing challenges facing communities across Colorado Consistently applied the adopted 2018 Town of Vail Housing Policy Statements in the course of everyday business V.Vail InDEED by the Numbers The following figures summarize the results of the Town of Vail’s 2019 investment in the Vail InDEED Programthrough December 15, 2019. Total Number of Applications Received: 74 Total Number of Transactions Closed: 29 (40%) Total Number of Homes Deed-Restricted: 29 Total Number of Homes by # of Bedrooms: 9–one’s 9–two’s 10–three’s 1–four’s 29 Homes Total Square Feet of GRFA: 31,290square feet Average Cost per Deed-Restriction: $86,518 Town of VailPage 3 Average Cost per Square Foot: $80.20 Lowest/Highest Cost per Square Foot: $61/$117 Total Dollar Amount Invested to Date in 2019: ($0 housing fund/ $2,509,700ToV appropriation) Total Dollar Amount Funded for Investment in 2019: $4,220,259 (\[$2,500,000 + $195,000 + $1,525,259\]= $4,220,259) ($1,710,559remainingbalance/rolloveras of 12/15/2019) Seven pending offers = $445,772 Estimated Total Number of Vail Residents Provided Housing in 2019: 74.50residents Program Numbers Since Vail InDEED Inception Total Number of Transactions Closed: 48 Total Number of Homes Deed-Restricted: 134 Total GRFA Deed-Restricted: 111,001square feet Total Deed-Restriction Investment:$9,018,935 Average Cost per Square Foot: $81.25per square foot Average Cost per Deed-Restriction: $67,305 Total Number of Vail Residents Provided Housing: 270.75Vail residents (288 Vail residents at Timber Ridge) VI.Progress Toward the Goal The Vail Housing 2027 Strategic Plan adopted a goal of acquiring 1,000 new deed- restrictions by the year 2027. At the time of adoption,698deed-restrictions were recorded on properties within the Town of Vail. As of December 15, 2019, the Town of Vail, in collaboration with the Vail Local Housing Authority, has increased the total number of recorded deed-restrictions to893.As a result of entitlements granted during that time period, an additional 111deed-restriction obligations are pending. These figures do not include obligations required of the Phase II of the Vail Health redevelopment or potential obligations resulting from the rezoning of the East Vail Parcel to the Housing Zone District. Town of VailPage 4 VII.Looking Ahead to 2020 2019 proved to be a very productive for housing in Vail with significant progress made towards achieving the Town’s housing goal. The stage is set for another productive year for housing in Vailin 2020 as well. In addition to the many ongoing efforts currently underway, as discussed in greater detail above, a number of key strategic initiatives are scheduled for completion in 2020. Key strategic initiatives include: Review employee generation rates and mitigation obligations (%) for both inclusionary zoning and commercial linkage requirements Update and amend the fee in lieu calculation to represent cost of construction Participate in a town-widedata collection effort to better analyze housing trends and track the effectiveness of housing policies, programs, and initiatives Explore possible incentives to encourage residential property owners to participate in long-term rentals Complete anupdate to the annual deed-restriction compliance and enforcement policies and implement recommended improvements Engage in a public information and community engage effort to broaden the awareness of housing in Vail and the role of the Vail Local Housing Authority Review the adopted Employee Housing Guidelines for opportunities to address Capital Improvements and Reinvestments Complete an update to the Vail Housing 2027 Strategic Plan to identify future sites for housing in Vail Town of VailPage 5 To:Vail Local Housing Authority From:Lynne Campbell, Housing Coordinator Date:December 10, 2019 Subject:Update to Employee Housing Guidelines -Capital Improvements/Labor Cost Reimbursements I.PURPOSE This memorandum providesan update for a request bythe Vail Commons Homeowner Association to consider an amendmenttothe allowablecapital improvements reimbursements as well as the inclusion of owner’s labor costs. II.BACKGROUND At theVail Local Housing Authority’s October 22, 2019meeting, a representative from the Vail Commons Homeowners Association asked the Authority to consider a requestto amendthe allowable capital improvements reimbursements and special assessments. Each owner has been recently assessed are-roof assessment of $14,000. The Association/Owners questionedif the re-roof assessment is included inthe 10% capital improvements allowed for every 10-yearperiod.The Association/Owners also expressed concerns about additional damage caused by the leaking roof stating those repairs should not count towards the 10% allowable capital improvements. nd A copy of the October 22meeting results has been attached for reference. III.OPPORTUNITY The Town Attorney has determined that the Authority has authorizationto reviewand recommend changes to the existing allowable capital improvements noted in the Vail Commons Master Deed Restrictionand Resolution No. 21, Series of 2007 A Resolution Amending Exhibit B “Permitted Capital Improvement”. The Authority may determineif internal homedamage repairs caused bycommon elementflaws is included in the 10% capital improvement allowance per every 10-year period. Points to consider: What documentation is used to determine if internal damage was caused by external common elements? Does the Town receive copies of homeowner’s insurance payments for those damages? When does a homeowner report issuesto the Town? Is the time frame similar today, upon notification of sale? What qualifies asan internal home repairversus upgrade or improvement?Should there be a list of reimbursable versus non-reimbursable costs? Are internal repairs based on a case by case basis andpresented to the Authority? How does the Town determine the amount not included in capital improvements and how does staff prevent misuse of policy? Example: Roof leaks into home caused by roof damage due to prior construction flaws or HOA repair delay o damage to subfloors due to water, o window sills, trim rot due to roof water damage o windows part of allowable capital improvements o subfloor part of original construction and not included in reimbursable expenses o did owner/HOA file with insurance o did insurance reimburse for damage o how much did insurance reimburse o is the insurance reimbursement deducted from total repair cost and only the uncovered cost included in capital improvements Improvements included todaywith 5-year depreciation: Resolution 21, Series 2007 a.New Carpet and Carpet Pad b.New Hardwood, Wood Laminate, or Tile Floors and Base c.New Energy Star Rated Appliances includes: clothes washer and dryer, refrigerator, range, oven dishwasher, and built-in microwave) d.New Baseboard, Window Casing, and/or Interior Doors when the entire unit is finished in an identical material and quality e. New Counter Top in kitchens and bathrooms or bath tub surrounds EXHIBIT B (original Master Deed Restriction) Permitted Capital Improvements Town of VailPage 2 1.The term "Permitted Capital Improvement" as used in the Agreement shall only include the following: a.Improvements or fixtures erected, installed or attached as permanent, functional,non-decorative improvements to real property, excluding repair, replacement and/or maintenance improvements: b. Improvements for energy and water conservation: c. Improvements for health and safety protection devices: d. Improvements to add and/or finish permanent/fixed storage space: and/or e.Improvements tofinish unfinished space. 2.Permitted Capital Improvements as used in this Agreement shall NOT include the following: a.Upgrades/replacements of appliances, plumbing and mechanical fixtures, Carpetsand other similar items included as part of the original construction of the unit: a.The cost of adding decks and balconies. and any extension thereto: b.Jacuzzis, saunas, steamshowers and other similar items: c.Improvements required to repair, replace and maintain existing fixtures, appliances,plumbing and mechanical fixtures, painting, carpeting and other similar items:and/or: d.Upgrades or addition of decorative items, including lights, window coverings andother similar items. 3.All Permitted Capital Improvement items and costs shall be approved by the Town staff prior to being added to the Maximum Resale Price as defined herein. Employee Housing Guidelines July 4, 2018 II. MAXIMUM RESALE PRICE An owner may desire to sell a deed-restricted for-sale employee housing unit (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 purchase price on the original date of purchase plus B.An increment equal to three (3) percent or one and one half percent (1.5%) per annum, depending upon the property, (see Master Deed Restriction) of the original Town of VailPage 3 purchase price from the original 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 fifteen (15) percent of the original purchase price. For every ten (10) years from the original date of purchase and deed restriction, another ten (10) percent of the original 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 maximum resale price as well as calculation methods are provided in the deed-restriction. IV.NEXT STEPS What changes to the capital improvementsreimbursement, if any, does the Vail Local Housing Authority wish to recommendation to the Vail Town Council? Attachments: Vail Commons Master Deed Restriction-Exhibit B Resolution No. 21, Series of 2007 Employee Housing Guidelines,July 4, 2018 Town of VailPage 4 Vail Local Housing Authority Meeting Results October 22, 2019 3:00 PM Town Council Chambers 75 S. Frontage Road -Vail, Colorado, 81657 1.Call to Order A quorum being present:Lindstrom, Meza, Morales, Wilkins,Lindstrom called the meeting to orderat 3:03PM.Present from staff is Campbell andRuther via phone. McDougall is absent. 2.Citizen Participation 2.1.Citizen Participation No one from the public is present. 3.Approval of Minutes 3.1.VLHA October 8, 2019 Meeting Results Moralesmade a motion to approve the meeting results as presented. MOTION: MoralesSECOND:LindstromVOTE:2-0 Wilkins and Meza abstained 4.Main Agenda 4.1.Resolution No. 28, Series of 2019, a Resolution Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed Restriction) in the Town of Vail Legally Described as Vail Village Filing 13, Block 2, Lot 17, Unit 1, Eagle County, Colorado with a Physical Address of 2490 Bald Mountain Road, Unit 1, Vail Colorado; and Setting Forth Details in Regard Thereto. Presenter: Lynne Campbell, Housing Coordinator MOTION: WilkinsSECOND: MoralesVOTE: 4-0 Approved 4.2.Resolution No. 29, Series of 2019, a Resolution Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed Restriction) in the Town of Vail Legally Described as Vail Village Filing 13, Block 2, Lot 17, Unit 2, Eagle County, Colorado with a Physical Address of 2490 Bald Mountain Road, Unit 2, Vail Colorado; and Setting Forth Details in Regard Thereto. Presenter: Lynne Campbell, Housing Coordinator MOTION: WilkinsSECOND:MezaVOTE:4-0 Approved 4.3.Resolution No. 30, Series of 2019, a Resolution Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed Restriction) in the Town of Vail Legally Described as Grouse Glenat Vail Unit 1B, Eagle County, Colorado with a Physical Address of 1480 Buffehr Creek Road, Unit 1B, Vail Colorado; and Setting Forth Details in Regard Thereto. Presenter: Lynne Campbell, Housing Coordinator MOTION: WilkinsSECOND: MezaVOTE: 4-0 Approved 4.4.Vail Commons Condominiums Capital Improvements Revision Discussion Presenter: Vail Commons Homeowner Association Amanda Zinn,Vail Commons homeowner2092 Zermatt Lane Unit D, is representing the homeowner association Board. TheBoardand owners are requesting a review of allowable capital improvements and special assessments. A recent re-roof assessment of $14,000 each owner has been assessed. The Board/ownersare questioning if the roof assessment countstoward the 10% capital improvements each10 years. Zinn requested the Town review what is included in the 10%. She expressed concerns about additional damage caused by the roof shouldn’t be included in the 10%. Roof flood events have been caused by roof ice dams. Rutherasked for additional information regarding repair insurance recovery. Can Vail Commons get understanding how these repairs are or have been covered by insurance? What is the percentage of repair work that was covered by owner’s and HOA insurance company? Ruther asked Zinn if the owners are looking for reimbursement for replacements due to roof leaks/damageor just what was not covered by insurance. Wilkins said there maybe history at the Commons. The argument of including assessments in cost basiswas because the homes are sold at below marketprice. He believes repairs needed due to building flaws or damage should be reviewed not to be included in capital improvements. He thinks board should consider a review of changes. Morales asked ifan assessment required for a repair count as a capital improvement? Ruther noted the Housing department is requesting the Authorityto make recommendation to Town Councilfor revision to capital improvement, what counts or doesn’t count. Staff was directed to discuss capital improvements with the Town attorney.Determine lines of responsibility and how assessments count toward allowable capital improvements. 4.5Lindstrom added for discussion, Deed Restriction Compliance and Enforcement Policies –Recommendation The board reviewed a draft council memoregarding deed restriction compliance and policy discussion.This document includes the Authority’s and from director staff meeting recommendations. Desired outcomes are listed at the end of the memo.He clarified noncompliance submittal date or noncompliance due to nonsubmittal. He would like to th take to council onNovember 5. Per Ruther the Authority reviews memo and Council would direct staff modify and adopt the policy. Staff would come back regarding specific language and penalties to administer. Morales asked what happens to reoccurring noncompliance. Mire said this is perfect example of administrativecivic penalty.Mire had some recommendations he would suggest, something likeshort-term regulations. Staff wants to know if the Authority believes in assessing civil penalties versus going back to courtfor reoccurring noncompliance. The Authority recommendsstaff take the compliance and policy discussion to Council on November 5, 2019. 5.Matters from the Chairman and Authority Members 5.1.Matters from the Chairman and Authority Members The Board members provided take-aways from the Housing Now Conference. Input was positive and everyone agreed Vail InDEED has statewide traction. Community Land Trust session was informative. Study using 4 counties as examples, Eagle County was one. We could review that report data. Lindstrom believes this could be a tool to be used, based on shared appreciation. He believes Vail InDEED is much more streamline than the Community Land Trust model. The Town could keep in mind when building something multijurisdictional. Morales said guest speaker had a good point, are we here to house people or cars. Morales mentioned the county is reviewing mobile home parks.New state legislation recently passed. County has invited members of the state for a discussion on Friday, October 25, 2019 from 2-5PM at the County building.Meza and Morales will try to attend.Lindstrom asked them to summarize the meeting at the next VLHA meeting. 6.Executive Session 6.1.Executive Session per C.R.S. §24-6-402(4)(a)(e) -to discuss the purchase, acquisition, lease, transfer, or sale of property interests and to determine positions, develop a strategy and instruct negotiators,regarding: four (4) submitted Vail InDEED applications and program details. Presenter: Lynne Campbell, Housing Coordinator Meza motioned to exit regular meeting to enter executive session MOTION: WilkinsSECOND:WilkinsVOTE:4-0Approved Meza departed meeting at 4:10PM. There is still a quorum, Lindstrom, Morales and Wilkins. Wilkinsmotioned to exit executive session and reenter the regular meeting. MOTION: WilkinsSECOND:MoralesVOTE:3-0 Approved 7.Any Action as a Result of Executive Session Wilkinsmade a motion for staff to move forward with the Vail InDEED applications as discussed in executive session. MOTION: WilkinsSECOND:MoralesVOTE:3-0 Approved 8.Adjournment 8.1.Adjournment 5:00 PM (estimated) MOTION: WilkinsSECOND: MoralesVOTE: 3-0Approved 9.Future Agenda Items 9.1. EHU Capital Improvements, Labor Cost Housing Data Housing Sites Discussion Civic Area Plan Land Banking (sale of GRFA) Public Health Housing Incentive, Eagle County Health Incentives for Long Term Rentals Deed Restriction Annual Compliance and Enforcement Policy Recommendation 10.Next Meeting Date 10.1.Next Meeting Date November 12, 2019 10.2November 26, 2019 Meeting is Cancelled Meeting agendas and materials can be accessed prior to meeting day on the Town of Vail website www.vailgov.com. All housing authority meetings are open to the public. Times and order of agenda are approximate, subject to change, and cannot be relied upon to determine at what time the Vail Local Housing Authority will discuss an item. Please call (970) 479-2150 for additional information. Please call 711 for sign language interpretation 48 hours prior to meeting time. Housing Department THE TOWN OF VAIL EMPLOYEE HOUSING GUIDELINES July 4, 2018 I.PURPOSE The purpose of the Employee Housing Guidelines (Guidelines) is to set forth the occupancy requirements, resale procedures, and maximum resale price for the Town of Vail deed-restricted for-sale employee housing. Additional information pertaining to Employee HousingUnit deed restrictions can be found in the applicable Master Deed Restriction Agreement (Master Deed Restriction) for the occupancy and resale of certain developments such as Vail Commons,North Trail Townhomes, Chamonix Vail Community, Arosa Duplex andRed Sandstone Creek Townhomes. Prior to closing on anemployee housing unit, the purchaser(s)must sign an individual deed restriction which references the Guidelines and the Master Deed Restriction which shallbe recorded at the closing, and which shall run with the property in perpetuity. II.MAXIMUM RESALE PRICE An owner may desire to sell a deed-restricted for-sale employee housing unit (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 purchase price on the original date of purchase plus B.An increment equal to three (3) percentor one and one half percent (1.5%) per annum, depending upon the property,(see Master Deed Restriction)of the original purchase price from the original 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 fifteen (15) percent of the original purchase price. For every ten (10) years from the original date of purchase and deed restriction, another ten (10)percent of the original 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. Town of Vail Employee Housing Guidelines July 3, 2018Page 1of 10 Additional details regarding maximum resale priceas well as calculation methods are provided in the deed-restriction. III.RESALE PROCEDURES The Employee Housing Unit shallbe listed for resale with the Town of Vail.The resale procedures will be administered through the Town’s Housing Department with oversight from the Vail Local Housing Authority. A.Listing the Unit with the Town of Vail: Listing Duties 1.An owner of an Employee Housing Unit desiring to sell should consult with the Housing Departmentand review the Guidelines, the terms of the recordeddeed restriction and the Master Deed Restriction governing the Employee Housing Unit to determine the maximum resale price and other applicable provisions concerning a resale. Unless otherwise provided in the Master Deed Restriction, the unit must be listed for resale with the Town and the Townstaff or its designee will administer the resale in accordance with the Guidelines and Master Restriction in effect at the time of listing. There shall be a minimum listing period of three (3) months before the maximum resale price of an Employee Housing Unitcan be recalculated. Any termination in the listing may require the payment of administrative and advertising costs. The one-half (½)percent of the resale price required to be deposited with Town of Vail 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 andall sellers will be treated fairly and impartially. Questions will be answered and helpprovided to any potential purchasers or seller equally in accordance with the current Guidelinesand Master Deed Restriction. Listings, sales contracts, extensions to contracts and closing documents will be prepared and all actions necessary to consummate the resale shall be undertaken. 3.In pursuit of the above, the town 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 tothe transaction, but as representatives of the Town and its interests. They shall nevertheless attempt to help both parties consummate a fair and equitable resale in accordance with the then current Guidelinesand Master Deed Restriction. 4.All purchasers and sellers are advised to consult legal counsel Town of Vail Employee Housing Guidelines July 3, 2018Page 2of 10 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 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 Resale: Once an Employee Housing Unit is listed for resale with the Town, the Town, at a minimum,will arrange to advertise the unit for sale in two(2) consecutive Friday editions of the Vail Dailyand on the Town’s Housing Department webpage. C.Resale Housing Lottery Procedures: The Town of Vail Housing Department will conduct a resale lottery drawing. The resale lottery drawing will be conducted within sixteen (16)business days of the Employee Housing Unit being advertised for sale. During this time period, the Town shall publically announce the time, date and location of the lottery drawing and the maximum resale price of the unit. In addition, the Town will host a minimum of two (2) open houses to allow opportunity for potentially interested parties to view the unit available for resale. Resale Lottery Application Forms are due seven (7)business days prior to the date of the resale lottery drawing. Upon receipt of the Resale Lottery Application Forms, the town staff will verify basic eligibility of each applicant and publish a final list of Qualified Applicants two (2)business days prior to the resale lottery drawingdate.A Qualified Applicant shall be defined as a person that meets the minimum lottery participation criteria. Minimum lottery participation criteria and basic eligibility includes: Completed and signed a Resale Lottery Application Form Apre-qualification letter from a mortgage lender demonstrating financial ability to purchase the Employee Housing Unit, if selected Verification of successful completion ofa Town of Vail approved homebuyer education class or signed acknowledgement of intent to do so within six months of the resale lottery drawing date. Each Qualified Applicant shall receive a minimum of one lottery ticket for entry into the resale lottery drawing. Additional lottery tickets shall be awarded,up to a maximum of five (5) total, based upon the following criteria: Meet minimum lottery participation criteria = 1 lottery ticket Vail resident =1 lottery ticket Town of Vail Employee Housing Guidelines July 3, 2018Page 3of 10 Vail resident for equal toor greater than 5 years = 1 lottery ticket Employed in Vail = 1 lottery ticket Employed in Vail for equal to or greater than 5 years =1 lottery ticket Maximum Total: 5 lottery tickets If the winner of the lottery does not proceed to contract within three (3) 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. Any misrepresentation by an applicant in submittal material shall disqualify the applicant from purchasing an Employee Housing Unit. D.Sales and Other Fees: 1.Unless otherwise set forth in the Master Deed Restriction governing the unit, at the closing of the sale, the seller will pay the Town a sales fee equal to two (2) percent of the contracted resale 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 resale price in cash or cash-equivalent terms, or should withdraw the listing after advertising has commenced, that portion of the fee shallnot be refunded. In the event that the seller withdraws for failure of any offers to be received at maximum resale 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 governingthe 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 Town of Vail Employee Housing Guidelines July 3, 2018Page 4of 10 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 reviewedannually as part of the review of the Guidelines. E.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 MasterDeed Restriction governingthe sale unit, and (2) the then-current Guidelines. IV.RESALE LOTTERY CRITERIA A.There basic eligibility requirements which must be met prior to an individual submitting a resale lottery application formto purchase an Employee HousingUnitare as follows: 1.The applicant must acknowledge their intentto use the unit as his/her primary residence and maintain it as his/her primary residence in the future,subject to the terms of the deed restriction. 2.The applicant must be currently employed at a legitimate business located within Eagle County, must be employed an average of thirty (30)hours each week on an annual basis, and must maintain this minimum level of employment for as long as he/she owns the unit. 3.The applicant must demonstrate that at least seventy-five (75) percent of his/her income and earnings are earned by working at anEagle County businessand provideemployment verification. 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 improved residential real estate in Eagle County at the time of closing, except where that real estate is deed-restricted as a Town of Vail employee housing unit. Town of Vail Employee Housing Guidelines July 3, 2018Page 5of 10 A current residence may not be deeded to a corporation or other entity in order to qualify the applicant for a Town of Vail employee housing unit. 5.The applicant must be prequalified with a mortgage lender. B.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 year. 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.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 youreligibility. 8.An application processto establish areserve list will be maintained open to the public on a continuous basis. 9.The application and any accompanying documentation shall become the property of the Town of Vail and will not be returned to the applicant. Town of Vail Employee Housing Guidelines July 3, 2018Page 6of 10 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 terms of the recorded deed restriction, Employee Housing Guidelines and Master Deed Restriction. The purchased Employee Housing Unit must be owner occupied by: An employee, working in Eagle County,who works an average of thirty (30) hours per week on an annual basis. A retired individual, sixty years or older, who has worked a minimum of five (5) years in Eagle County for an average of thirty (30) 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 Vail Local Housing Authority. Said evidence shall be in written form presented to the Vail Local Housing Authorityfor review and recommendations thirty (30) days prior to leaving. The Leave of Absence shall be for one year and may, at the discretion of the Vail Local Housing Authority, 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 tenants/residents who comply with occupancy requirements. Rental periods shall be not less than thirty (30) days. After verification and qualification of tenant(s), a copy of the executed lease shall be furnished to the Town.Decisions of the Vail Local Housing Authority may be appealed for further review to the Vail Town Council. B.If the Employee Housing Unit is listed for sale and the owner must relocateto 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 Department requesting permission to rent the unit until sold. A lease of not less than six (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 Department, which will then be forwarded to the Vail Local Housing Authorityfor their consideration. D.Co-signers may be allowed but shall not occupy the unit unless the co- signer meets the occupancy requirements of this section. Town of Vail Employee Housing Guidelines July 3, 2018Page 7of 10 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 Town of Vail Housing Department, to the Vail Local Housing Authority and the Town of Vail HousingDepartment verifying that the employee housing unit continues to be owner occupied in accordance withthe Guidelines,recorded deed restriction and Master Deed Restrictionthat 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 employeehousing unit shall be found to be innoncompliance. Penalties the Town may assess against the owner include eliminating resale gain and/or penalties found in the Town of Vail MunicipalCode Title 1, Chapter 4. VII.SUBMITTAL REQUIREMENTS In conjunction with completing aresale lotteryapplication form to purchase an employee housing unit, the applicant shall providethe following documentation as proof of residency andemployment: 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, copy of signed lease or notarized landlord verification). D.Valid Driver's License (address, issue date) E.Prequalification for a loan from a mortgage lender. 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 mustbe approved by the Town. H.Signed authorization from the applicant allowing the Town of Vail to discuss details with applicant's employer. Town of Vail Employee Housing Guidelines July 04,2018 Page 8of10 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 ofVail (the “Town”) shall have the option to purchase the Property which shall be exercised in the following manner: 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 addressedas follows: Housing Department Town of Vail 75 S. Frontage Road West Vail, CO 81657 Town Attorney Town of Vail 75 S. Frontage Road West Vail, CO. 81657 b.Option to Purchase. The Town shall have thirty (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 Town of Vail Employee Housing Guidelines July 04,2018 Page 9of10 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 ofEagle County a full and complete release of thedescribe covenantsaffecting the Property which appear in said records in Bookat Page. Such release shall be placed of record within fourteen (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. 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 andsigned by both parties and recorded with the Clerk and Recorder of Eagle County, Colorado. VIII.For additional information, contact the Town of VailHousingDepartment. Town of Vail Employee Housing Guidelines July 04,2018 Page 10of10