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HomeMy WebLinkAbout2023-08-08 VLHA Minutes Vail Local Housing Authority Minutes Tuesday, August 8, 2023 3:00 PM Vail Town Council Chambers and on Zoom PRESENT ABSENT Steve Lindstrom Craig Denton James Wilkins Via Zoom Dan Godec Kristin Williams STAFF George Ruther, Housing Director Martha Anderson, Housing Coordinator Missy Johnson, Housing Coordinator 1. Call to Order 1. 1 Call to Order Meeting called to order at 3:02 p.m. with all members of the authority present. 1.2 Zoom Meeting 1 (Pre-Executive Session) 1.3 Zoom Meeting 2 (Post-Executive Session) 2. Citizen Participation 2.1 Citizen Participation no comments 3. Approval of Minutes 3.1 VLHA July 25, 2023 Minutes Presenter(s): Missy Johnson, Housing Coordinator Approve as Amended Note to change 2010 to 2001. on page 3 of the minutes MOTION: Williams SECOND: Denton PASSED: (5 - 0) 4. Main Agenda 4.1 Discussion of the Altus Vail Deed Restriction Presenter(s): Altus Vail Group, George Ruther, Housing Director George introduced the Altus Group to open discussion with the Housing Authority to work together regarding a solution as a recommending body. Chad Brue, the equity partner, with Brue Capital joined; He is also the owner of Frost Creek, understanding the need for employee housing. Pat Peeples, with Peeples Inc., joined as a representative as well. Brue described background about the Altus Vail project and the EHUs in particular. The main discussion ensued around which opportunities exist to collaborate as a group to come up with ideas or opportunities around Altus Vail and the EHUs. Some time was spent looking back but mostly to look forward in steps moving forward. An example was used from the past regarding a similar scenario that was win-win for another local building owner and Town of Vail. In summary of the Altus project per Brue: 30 units total, 15 for sale and 15 Employee Housing Units (EHUs). Received certificate of occupancy November 1, 2021. Brue states that all units are occupied besides two that recently vacated. The developer did not realize the deed restrictions required 6-month leases. Topics included the following terms that the developer team did not realize: 6 month leases and Each unit cannot be vacant for more than 90 days. Because they were 16 months delayed, the motivation was to get it leased and sold and do everything to get them leased and sold. From day one, they were intended to be employee housing units, not affordable units. They (Brue) were notified that they were non-compliant when Pete was served. "Doing everything they can to lease the units." Two units sold, two units for sale. They are now considering other opportunities in addition to the residential sales of all 15 as they become vacant. Johnson confirmed the communication process associated with being non-compliant as directed to Pete Carlson and the Property management company in 2022 prior to being served. Discussions ensued urdles regarding the deed restriction regarding a qualified resident; which currently excludes an LLC or entity as an owner; maximum 6-month lease. Opportunities discussed include the following suggestions and reminders: Could there be a master lease, I.e. Vail Health or Steadman and they would lease to their employees; currently (deed restriction) does not allow that. Seeking solutions for a self-employed, work from home employees Continue to work with George and his team regarding the above items in effort to be in compliance moving forward; Alternatives include the following for discussion with interest from the Authority to come to an agreement for consideration: Exchange of deed restrictions for 3:1 ratio but at this stage, it does not seem feasible at this time Cut a check to buy-out the deed restrictions 750 units being built elsewhere in Eagle County; land is not owned yet but it is in Eagle so perhaps there is something there as a solution while considering that there are different investors involved The authority expressed their conclusion, that they want to work together regarding a solution and they look to Altus to present some options for the Authority to consider. Change the deed restriction to allow for longer than six months and/or other administrative tweaks Consider master leases I.e. Vail Health or Steadman Clinic Additional track opportunities for Ru to fulfill their requirement differently It is a mutual covenant with an opportunity to amend it as mutually agreed upon Locate Town of Vail homes available for purchase and place deed restrictions Homes west of Dowd Junction are a possibility Mixture of fee in lieu and other solutions and 3:1 ratio for deed restricted square footage Authority expressed interest avoiding a lawsuit regarding EHU compliance 4.2 Eagle County Bold Housing Moves Presenter(s): Kim Williams, Executive Director of Eagle County Housing and Development Authority Members of the Eagle County Housing Development Authority presented to the Authority regarding their Bold Housing Moves status and ongoing initiatives. Kim Bell Williams, executive Director of the Eagle County Housing Development Authority was joined by Patti Liermann, Housing Authority and the Valley Home Store and Matt Andrews with the Housing Authority and Outreach. The presentation focused on the variety of programs, strategic priorities and high level of reporting. The team reviewed a variety of the programs including: Serving the full spectrum of units, new program ideas for existing units, future housing projects, importance of diversity, and equity and inclusion. New Housing units such as Colorado Mountain College, Habitat for Humanity, Eagle County Schools, Haymeadow, Spring Creek Apartments, West Eagle and Fox Hollow were reviewed in terms of total units, investment and unit types. The team touch on the Homeless Services initiative as a reminder that this, too, exists in Eagle County and goals and funding was reviewed. Rental assistance and down-payment assistance continue to be well funded and utilized with budgeted money remaining for the rest of 2023 so the offerings continue. Good deeds offers a few options: 1) 5% of purchase for resident occupied and 15% purchase for price capped. Future restrictions are in place in perpetuity and they are close to the goal with eight more homes to deed restriction in 2023 in order to meet the goal. Locals first program has slowed, based on interest rates of home loans but the program is a valid opportunity with budget remaining. Additional programs include Aid for ADUs (Accessory Dwelling Units) and the Rent Local Program which incentivizes homeowners to rent to local workers vs having a vacant home or short term renting. This program was just launched in June 2023. A variety of program information can be found at boldhousingmoves.com 4.3 Capital Improvement Policy Proposal Presenter(s): Missy Johnson, Housing Coordinator The housing staff provided a memo to the Authority to summarizing the several discussions leading up to now, related to the Capital Improvement policies in relation to Maximum resale values. Johnson reiterated the goals of price capped deed restricted housing: 1. The primary goal is to maintain affordably priced homes. 2. Incentivize property maintenance and upkeep and disincentivize failure to maintain essential systems of a home such as electrical, HVAC, plumbing, appliances and life safety systems. 3. Better inform potential homeowners on the total cost of home ownership and recognize the difference between home repairs and home improvements. Johnson also acknowledged the previous discussions from Authority input that Currently, policy achieves maintaining affordably priced homes but policy does not provide incentives or disincentives for homeowners to maintain minimum levels of property upkeep. The Authority acknowledged that there is currently little financial motivation to maintain the home with upkeep, based on the current policy and that there is room for increased education to current owners and to prioritize setting expectations for new buyers. 1. Require a pre-and post-inspection of certain home systems as part of the sales process to determine the condition of the home and establish the maximum resale price prior to sale. Should the home not meet the minimum functional expectations, the maximum resale value would be re-evaluated and lowered, in dollar value, if it requires additional maintenance or replacement to the following systems: a. Electrical (service panel, GFCI outlets, circuit breakers, non-permitted electrical work) b. Plumbing (shut off valves, water heater) HVAC (heating system) c. Appliances (refrigerator, cook-top and oven) Smoke alarm/Carbon monoxide detectors 2. Implement a uniform depreciation schedule and apply an approved value list of industry standard costs, such as what is listed in the Chamonix Housing Guidelines. 3. Define the difference between home repair and home improvements and further clarify capital improvements. and water conse including without limitation solar panels, the amount of the cost to be included in the maximum resale price shall be reduced by the amount of any rebates, and Chamonix Housing Guidelines and add the following: a. Upgrade home insulation beyond adopted energy conservation code minimum standards and professionally air seal the home for efficiency Upgrade to a smart thermostat b. Switch to a heat pump water heater c. Upgrade to pre-approved energy-efficient windows beyond adopted energy conservation code minimum standards. d. Install pre-approved solar energy production systems e. Define the difference between home repair and home improvements and further clarify capital improvements. For example, the following from EXHIBIT f. r conservation Permitted Capital Improvements, including without limitation solar panels, the amount of the cost to be included in the maximum resale price shall be reduced by the amount of any rebates, and shall then be depreciated by g. sted in the Chamonix Housing Guidelines and add the following: Upgrade home insulation beyond adopted energy conservation code h. minimum standards and professionally air seal the home for efficiency i. Upgrade to a smart thermostat j. Switch to a heat pump water heater k. Upgrade to pre-approved energy-efficient windows beyond adopted energy conservation code minimum standards. l. Install pre-approved solar energy production systems The Authority continues with current policy that states that sweat equity may not go towards maximum resale value. Conversation ensued around the special assessments and the consideration of following a depreciation schedule. Right now, we allow special assessments to be included in the maximum resale value but apply a depreciation value against it over time. The Authority reviewed and discussed if the above covers top concerns, including clarification around topics that were brought forward by some Vail Commons owners at previous Authority meetings. At this point, the Authority agrees on the above mentions and the Housing Staff will prepare red -lined documentation to prepare for a future recommendation to Council. The housing staff will bring back policy documentation to show changes associated. 4.4 Amended Community Lottery Procedures This item was moved to the next VLHA meeting. 4.5 Resolution No. 11, Series of 2023, a Resolution Approving the Purchase of a Deed Restriction Interest in Property (Type III Deed Restriction) in the Town of Vail Legally Described as Heather of Vail Condo Unit: A-2, Eagle County, Colorado with a Physical Address of 5197 Black Gore Drive Unit A2, Vail, Colorado; and Setting Forth Details in Regard Thereto. Presenter(s): Martha Anderson, Housing Coordinator MOTION: Godec SECOND: Williams PASSED: (5 - 0) 4.6 Opting In to Proposition 123 Presenter(s): Martha Anderson, Housing Coordinator Motion to Opt-In and review a letter of support at the Aug. 22 Vail Local Housing Authority Meeting MOTION: Godec SECOND: Williams PASSED: (5 - 0) Motion to exit the regular scheduled meeting and move to executive session at 4:50 p.m. MOTION: Williams SECOND: Denton PASSED: (5 - 0) 5. Executive Session 5.1 Executive Session per C.R.S. §24-6-402(4)(a)(e) - to discuss the purchase, acquisition, lease, transfer or sale of real, personal or other property interests and to determine positions relative to matters that may be subject to negotiations; developing strategy for negotiations; and instructing negotiators regarding: International Building at 164 RailRoad Ave., Minturn, CO. Presenter(s): George Ruther, Housing Director Time: 15 Min. 6. Any Action as a Result of Executive Session 6.1 Any Action as a Result of Executive Session The authority re-entered regular session at 5:15 p.m. With a motion to move to direct staff per direction in executive session MOTION: Williams SECOND: Godec PASSED: (5 - 0) 7. Matters from the Chairman and Authority Members 7.1 Matters from the Chairman and Authority Members Presenter(s): Steve Lindstrom, VLHA Chairman Williams mentioned the invite to attend a Housing Summit in Big Sky on September 11-14. The panel will include a great discussion about breaking down the barriers with hopes that Authority members can attend. The Authority has budget for professional development if there is interest from Authority members. Ruther updated the group about the West Middle Creek parcel (development) RFPs have been received and will be reviewed on Friday. The list will be paired down with next steps for groups to do on-site presentations. The goal is to present to the Town Council on September 5th with recommendation. Anderson updated the group about the upcoming Housing Colorado Conference in October in Keystone as an additional opportunity for Authority to participate and funds are available to attend. 8. Adjournment 8.1 Adjournment 5:00 PM (Estimate) Meeting adjourned at 5:20 p.m. MOTION: Williams SECOND: Denton PASSED: (5 - 0) 9. Future Agenda Items 9.1 Vail Housing 2027 Land Banking Investment Banker Discussion Review Retirement and Remote Worker Policies Review Chamonix Vail Deed Restriction Review Suggested Policy Edits re: Capital Improvements 10. Next Meeting Date 10.1 Next Meeting Date August 22, 2023