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HomeMy WebLinkAbout2023-07-11 VLHA Minutes Vail Local Housing Authority Minutes Tuesday, July 11, 2023 3:00 PM Virtual on Zoom PRESENT ABSENT Steve Lindstrom Dan Godec Craig Denton Kristin Williams James Wilkins via zoom STAFF George Ruther, Housing Director Martha Anderson, Housing Coordinator Missy Johnson, Housing Coordinator 1. Call to Order 1. 1 Call to Order Time: 5 Min. The meeting began at 3:08 p.m. with a quorum present. 1.2 Zoom Meeting 2. Citizen Participation 2.1 Citizen Participation Erika Desseauve joined without comment. 3. Approval of Minutes 3.1 VLHA June 27, 2023 Minutes Presenter(s): Missy Johnson, Housing Coordinator MOTION: Wilkins SECOND: Denton PASSED: (3- 0) 4. Main Agenda 4.1 VLHA Investment Policy Administration Presenter(s): Carlie Smith, Finance Director Smith reviewed a memo regarding the VLHA account including her recommendation to adopt the Town of Vail investment policy. Objectives include safety, liquidity and yield in order of priority. The standards of care, Town roles and authorized investment structure was reviewed. The Vail Local Marketing District is an example of an entity that follows this investment recommendation. Management of the investment is held by the Town of Vail Town Manger with appointed designees. Right now Smith is acting as the Authority's fiscal agent at the Authority's direction. The Town Manager would be inserted in the process as Smith is under the Town Manager's umbrella as the fiscal agent. Smith is open to discussion. Lindstrom suggests he wants to include Authority member, Godec, and take this under advisement with the Authority at this time.The authority will determine if this is approved as is or if there are suggestions to explore. Smith's team, will be included in future updates and next steps. 4.2 Capital Improvement Policy Proposal Presenter(s): George Ruther, Housing Director, Martha Anderson and Missy Johnson, Housing Coordinators Housing Staff presented the Capital Improvement Policy proposal and memo as a response to the previous Authority meeting. The varying deed restrictions in Town of Vail are recognized as the conversation continues. There are differing policies with different projects are from the varying circumstances. The memo highlights some of the unique nuances, initial data from some of the impacts and hope to conclude with a recommendation to the Town Council with changes/amendments that the Council may want to consider at a future date. The policy objectives, as agreed upon by the Authority at the previous meeting, were highlighted: 1. Maintain affordability 2. Incentivize property maintenance and upkeep 3. Educate on the distinction between repairs and improvements, explain cost of home ownership Anderson reviewed a list of identified current policy challenges and continued to present suggestions or examples of possible policy changes for the Authority to consider. The authority is not discussing a desire to create matching deed restriction policies, or equal appreciation caps. The Authority is focused on potential edits to capital improvement policies, not opening up the discussion to the bigger picture of the the appreciation caps, generally. Anderson reviewed additional policy impacts through a comparison chart showing the variety of effects of policy, appreciation cap and appreciation cap taking inflation into account. The gap continues to get wider from the free market rates. Given the current programming, the gap continues to widen. The primary purpose of the graph is to show that the deed restrictions are maintaining and ensuring affordability, even with the current policies regarding allowable improvements and repairs. We may need to consider, with this widening gap, the unintended consequence is that people may be willing to pay the maximum resale price regardless of the condition of the home for sale. A variety of suggestions to policy changes for the Authority to consider were presented by Anderson and the Town Staff looked to the Authority for feedback. Discussion ensued around the key factors to consider when exploring next steps around policy edits and suggestions to the Town Council and the below highlights key feedback: o A roof replacement is a capital expenditure while a replacement of appliances. The o Authority agrees that standardized list of capital depreciation schedules must be followed; and if an item is fully depreciated and they replace it, possibly that would be considered. Action suggested to explore existing lists of depreciation schedules. o Lindstrom commented about condo associations without reserves vs. those o associations that do carry reserves, based on monthly savings. He leans towards a roof replacement as a replacement vs an improvement o Denton commented if there is an upgrade it shall be an improvement. If there is a roof replacement, he feels it should be handled the same way. He sees allowable improvements as necessary but believes it needs to be further defined. o Desseauve spoke upon behalf of Vail Commons owners. The $14,000 assessment was the same across each owner, as a special assessment. She feels that the depreciation of units is a cause of concern and items must be replaced. She is curious if items that depreciate over 20 years, who is liable to replace it. The authority sees that as a owner expense and as a deduction should the home be up for sale with a non-functioning window. The example of like for like vs an improvement to the type of windows with a better option. o Lindstrom confirms he agrees a like for like replacement or a repair is not something that can be considered as a capital improvement. There is a disincentive if there are inoperable systems. o If the Authority chooses to consider improvements to go towards the maximum resale value, the group should consider the cost of the upgrade vs. the cost of the upgrade and the differential value of the upgrade above and beyond the cost of the like for like replacement. o The Authority points out that a max resale value could be lowered if there is not a full set of operable windows, given the suggestions being discussed. o The Authority will continue to consider the policies and conversations will continue. 5. Matters from the Chairman and Authority Members 5.1 Matters from the Chairman and Authority Members Presenter(s): Steve Lindstrom, VLHA Chairman o Martha will email the group about an annual lunch o A brief update was provided regarding the status of Altus Vail Residences o RFP went out for West Middle Creek and there is still time for firms to submit. The Housing Authority has assisted in the review process of RFPs in the past, for instance, Lions Ridge. o Timber Ridge is moving along and Triumph is gathering the next round of initial responses and it will be on the agenda at the next PEC meeting at 1 p.m. on July 25, 2023 o Reminder that local developers will be attending the next VLHA meeting and a great meeting to be in person o CDOT Parcel conversations ensue with the State Land Board regarding the development and timelines for the development for the three parcels o Vail Board of Realtors is open to upcoming Vail Local Housing Authority presentations to the VBR. Lindstrom suggested showing them the Town of Vail Housing online presence and tools. 6. Adjournment 6.1 Adjournment 5:00 PM Motion to adjourn at 4:17 p.m; MOTION: Denton SECOND: Wilkins PASSED: (3- 0) 7.Future Agenda Items Vail Housing 2027 Land Banking Investment Banker Discussion Review Retirement and Remote Worker Policies Review Chamonix Vail Deed Restriction 8. Next Meeting Date 8.1 Next Meeting Date July 25, 2023