HomeMy WebLinkAbout2024-01-19 VLHA Agenda
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75 South Frontage Road WestHousing Department
Vail, Colorado 81657 970.479.2150
vailgov.com
MEMORANDUM
To:Vail Town Council
From:Steve Lindstrom, Chair, Vail Local Housing Authority
George Ruther, Housing Director
Date:January 2, 2024
Delivering HousingSolutionsin Vail
Re:2024Semi-Annual Report -
I.PURPOSE
The purpose of this agenda item is to present the housing results delivered duringthe second half of
2023and to provide an overview of the housing solutions to be pursued by the Vail Local Housing
Authority and the Town’s Housing Department in the first half of 2024.
II.SUMMARY
Despite facing increasing headwinds from rising interest rates, the hangover of unprecedented growth
in real estate valuesin 2022-23, and escalation of construction labor and materials cost, the Vail
community is making substantial progress towards achieving itsadopted housing goal and willpursue
numerousstrategic actions going into 2024. The Vail Local Housing Authorityand Town of Vail Housing
Department remainhighly optimistic leading into 2024.
Since their adoption and creation in 2017 and 2018, respectively, the Vail Housing 2027 Strategic Plan
and the Town of Vail Housing Department, the Vail community has realized a 54% increase in the total
of deed restricted homes for year-round and seasonalresidents living and working in the community
with an added 564 homes in the immediate pipeline and scheduled for delivery before the end of year
2027. Vail is well on its way to not only achieve its adopted goal of acquiring 1,000 new deed
restrictions by the 2027, but the community is likely to surpassthe once believedaudacious housing
goal.
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III.PRESENTATION TOPICS
The following outline highlights the topics to be presented:
A. Re-engage
VailHOMEPartnersinitiative
Schedule a special worksession meeting with the Vail Town Council and the Vail Local Housing
Authority to engage on policy direction and strategies for delivering on housing.
Visioning –what is going to be different in 5 to 7 years? What results will the community see?
Schedule housing policy discussionswith our down valley partners tostrengthen relationships,
identify partnership opportunities, and understand differences in housing policies and
approaches.
Re-instate monthly VailHOMEPartners Housing Subcommittee meetings
B. Vail InDEED –2023 Year in Review
The Vail InDEED program was impacted by the rise in interest rates and the decline in inventory
with a decrease in the total number of deed restrictions acquired.
Total number of deed restrictions purchased -175
Total Housing Investments to date -$13,604,118
Total number of deed restrictions acquired in 2023 -4
Cost per deed restriction -$77,737.81
Cost per square foot -$86
Cost per bedroom -$45,015
Estimated total number of Vail residents provided homes since inception –384.5
The Vail InDEED fund remains adequately appropriated at approximately $2.5M
C. Funding Creates Deed-Restrictions
Role of Vail Local Housing Authority
State/Federal grant and loan opportunities
o Governor Polis, Senator Roberts, Representative Lukens
o Over-subscribed and under-funded
o Proposition 123–Opted In–The Town of Vail is obligated to deliver at least 27 new
homes by end of year 2026 to remain eligible for future grant funding
o 2024 potentialhousing legislation participation:
Short term rental
Rent control
Multi-family zoning
Construction defect laws
Engage grant writing expertise
Tax exemptbonds
o Revenue bonds
o Public activity bonds
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VLHA as bond issuer
o Lessening the financial burden on ToVbonding capacity
Pursue public/private Partnerships in the exchange of existing deed-restrictions.
o Use other people’s money
o Flowers Residence/Rodriguez Residence
o Leverage underperforming deed restrictions to advance the Town’s housing goal
D. Projects
EagleCounty Inventory of Land Availability for Housing Report
Eagle-Vail State Land Board Parcel Feasibility and RFQ
Town of Vail Internal Employee Housing Program
o Vail Heights #10
o Vail Heights #7
o Hamlet Chalets
o Vail East Lodging
o Homestake at Vail
o Buffehr Creek Condominiums
o Pitkin Creek Condominiums
o North Trail Townhome renovation
Update commercial linkage and adoptresidential linkage.
o April 1 –June 30
o Expand opportunities for private sector participation.
E. Developments
East Vail CDOT Parcel
o Disposition approved by Colorado Transportation Commission
o Appraisals completed
o Final Subdivision
o Preliminary program/usesconceptual designunderway
o Purchase contract drafted
o Resolving survey discrepancies
o 10 to 15 for-sale homes
West Middle Creek Village Apartments
o Private sector partner selected
o Pre-development Agreement approved
Geotechnicalinvestigation pending weather
Civil engineering
Utility layout and design
CDOT ROW acquisition underway
Topographic survey and Alta survey complete
o Land use plan amendment, zoning, and amended final subdivision
o Joint PEC/DRB worksession –January 8
o Design Review Board –January 17
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o Development review process completed by May, 2024
o$3.9M seed money investmentin entitlements
Timber Ridge Village Apartments Redevelopment
o Public/Private partnership with Triumph Development
o Entitlements complete
o CDOT ROW acquisition under consideration
o GMPpricing and budget development
o Reservation agreement, contracts and HOA documents
o$38M seed money investment
o Construction startscheduled forMay, 2024
Eagle-Vail State Land Board Parcel
o SB23-001
o Master site planning and opportunity analysis
o Collaborating withdown valley partners
o Town of Avon annexation and zoning applications
o RFQ selection process –January, 2024
F. Initiatives
Zoning and Development Review Process Reform -Housing Policy #5
o Toppriority of the VLHA
o No cost/riskto the taxpayer withsubstantial benefits to achieving the housing goal
o Housing Zone District and Retaining Wall Height amendments completed
o Additional Steps:
Development review process amended administrative procedures
EHU and deed restriction code updates
Design review guidelines and standards amendments
Fee structure revision
Capital improvements formaximum resale value policy updates
Point access block design and new multi-family building architecture
o Explore opportunities to create multi-family buildings
Town of Vail Deed Restricted Housing Demographics Survey
o Objective –Quantify and qualify residents to better understand existing trends and
future needs.
Eagle River Valley Regional Housing Action Plan
o Regional partnership to identify regional housing strategies and actions
o Completed November 2024
Developstrategies for Real Property Acquisition
o Adopted seven strategies for consideration when pursuing real property acquisitions
o Contributed to the ownership interest at Buffer Creek Condominiums
o Leverage West Vail opportunities
Housing Lottery opportunities
o Adopted amended lottery ticket eligibility criteriato increase inclusivity and fairness
o Results in greater fairness, consistency, and credibility
Habitat for Humanity Partnership at Timber Ridge II Village Apartments
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o 10 three-bedroom homes at up to 80% forlocal families for a $2M investment
G. 10 Adopted Housing Policy Statements
Resolution No. 30, Series of 2018 (attached)
“….it is the Vail Town Council’s intent to articulate the approaches the Town will take to
realize its vision, achieve its housing goal, and address the most critical
issue…housing…facing the Vail community.”
H. High-Level Strategic Actions for 2024
1.Schedule a joint worksession in the first quarter of 2024 to re-engage VailHOMEPartners
2.Follow through on state mandated housing legislation and initiativesSecond quarter
3.Complete the development review and zoning reform initiatives, including administrative
procedures amendments,by second quarter of 2024.
4.Housing Action Plan fourth quarter of 2024
5.Embrace and support the transferof leadership and transition withinthe Town of Vail Housing
Department
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75 South Frontage Road West Housing Department
Vail, Colorado 81657 970.479.2150
vailgov.com
MEMORANDUM
To: Vail Town Council
From: George Ruther, Housing Director
Steve Lindstrom, Chair, Vail Local Housing Authority
Date: August 2, 2022
Subject: Vail Home Partners Delivering Housing Solutions Strategic Planning Joint
Worksession
I. Purpose
The purpose of this memorandum is to provide questions to spawn discussion during a
strategic planning worksession of Vail Home Partners, a collaboration of the Vail Town
Council and the Vail Local Housing Authority. A key component of the presentation will
be a strategic look forward into 2022/23 and beyond for delivering on housing solutions
in the Vail community.
II. Topics for Discussion
The Vail Local Housing Authority and the Vail Town Council, collaborating as Vail Home
Partners, have realized substantial success in delivering housing results in the Vail
community. Much of the success is attributed to thoughtful and strategic planning on
behalf of the partners. Since adoption of the 2027 Vail Housing Strategic Plan and
increase in the total number of deed-restricted homes available for year-round and
seasonal residents. Today, more than 1,025 deed restricted homes are built or under
construction in Vail.
Looking forward into 2022 and beyond, four themes are likely to drive housing
successes into the coming years. Those themes include a focus on the following:
1) Sustainability and Resiliency 3) Tools and Resources, &
2) Opportunity and Solutions, 4) Funding
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1). Sustainability and Resiliency
The availability and attainability of housing impacts many aspects of
sustainability and resiliency of the Vail community, including environment,
economy, and the community. As noted by the Vail Town Council, housing is
infrastructure in Vail. As infrastructure, the availability of homes becomes the
common thread that ties each of these aspects of sustainability and resiliency
together.
In addressing sustainability and resiliency of community character, the
environment, and the economy, density of development, when done right,
becomes a valuable ally. Density done right creates community, ensures critical
mass, improves public transit operations, reduces the cost of delivery of services,
optimizes already scarce land resources, lessens vehicle miles travelled, creates
economies of scale for development, maintains community character and scale,
etc.
2). Opportunities and Solutions
The Vail community and region is filled with new opportunities to advance the
all of the above
approaches to delivering homes, which includes developments, programs, and
initiatives, the following opportunities and solutions exist to increase the supply of
deed-restricted homes in the coming years:
DeveIopments
In town:
East Vail CDOT parcel (10 to 15 homes)
Public Works facility (130 to 150 homes)
West Middle Creek (TBD)
Civic Area (TBD)
Cascade tennis court site (TBD)
Timber Ridge Village Apartments (200 homes min.)
West Vail neighborhoods (TBD)
West Vail Commercial (TBD)
Out of town:
Eagle-Vail State Land Board parcel (Phase 1 +200 to 250 homes)
Swift Gulch site (40 to 45 homes)
Traer Creek parcel (TBD)
Tract Y, Metcalf Road (+/- 54 homes)
Programs
Vail InDEED Deed Restriction Purchase Program
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Vail InDEED Homebuyer Cash Offer Assistance Program
Vail InDEED Buydown Program
Town of Vail Internal Housing Program
Long-term Rental Property Owner Incentives
EHU Exchange amendments
Initiatives
Amend commercial linkage, inclusionary zoning, and residential linkage
Utilization of deed-restricted assets as collateral for issuance of debt
Vail Housing 2027 Plan update
Vail Home Partners Housing Subcommittee
Remote working policy deed restriction qualifications
No Net Loss of Rental Homes
3). Tools and Resources
2018 Town of Vail Housing Policy Statements
Knowledgeable and experienced staff with years of institutional knowledge
Well-established relationships with local, regional, and private-sector
partners
Proven and demonstrated track record of delivering on housing successes
Vail Local Housing Authority
4). Funding
In 2018, the Vail Town Council, in collaboration with the Vail Local Housing
Authority, adopted 10 Housing Statements. Each of these statements is intended
to articulate the measures the Vail Town Council will towards achieving the
adopted housing goal. Of significance, Housing Policy Statements #4 and #10
state, We will use our financial strength and
acumento acquire deed-, and The Vail Town
Council will fund housing opportunities
Sources of funding for housing opportunities and solutions include the following:
0.5% dedicated sales tax
Bonding/Issuance of debt
Fund balance reserves
Private equity participation
Housing mitigation fees
Federal/state grants
III. Questions for Vail Town Council/Vail Local Housing Authority Discussion
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The Vail Town Council is preparing to adopt an updated action plan for the years 2022
through 2026. The adoption of an updated plan is anticipated to occur in the coming
weeks. The action plan is likely to include specific recommendations for actions and
priorities for implementation to achieve community objectives, including housing.
According to the 2022 Vail Community Survey of Vail residents and business owners,
increasing the supply and availability of homes for year-round and seasonal residents
was identified as the #1 most critical issue facing the Vail community.
To better articulate a vision and further inform the 2022 Action Plan, the Vail Local
Housing Authority recommends the Vail Town Council considers providing responses to
the following questions:
1. How should the estimated $3.5M to $4M funds collected annually from the 0.5%
housing fund sales tax increase be invested to increase the supply of deed-restricted
homes? $3.5M to $4M can service the debt on $20M to $30M, subject to terms.
2. How would the Vail Town Council invest $8M - $10M towards housing solutions if the
funds were immediately available? What new opportunities would this investment in
housing create?
3. What role, if any, does -term strategic plan for
housing? Historically, the availability of land has been a limiting factor in the
Land banking could be in town or down valley.
4. What
role does partnering in housing solutions down valley play and how is it best to address
theunintended consequences? What does a down valley partnership look like?
5. How best can the Vail Local Housing Authority participate in the redevelopment
of the Timber Ridge Village Apartments? The leadership role of the VLHA in
development of Middle Creek at Vail Apartments may be a worthwhile model to repeat.
Whatever it is, the role should extend beyond accepting a fraction of an ownership
interest in the development entity for the sole purpose of gaining property tax
exemptions.
6. How can the Vail Local Housing Authority better assist the Vail Town Council in
achieving its adopted housing goal? Are there additional actions the Authority
should be taking or possibly pursuing differently?
7. ng its adopted
housing goal? New development? Public partnerships? Private sector
incentives? Deed restriction purchase? In-town or down valley? All of the above?
8. From a visioning perspective, what if housing became integral to
sauce to success? If housing is in fact infrastructure in the eyes of town leaders,
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how do we leverage the availability and attainability of housing to give Vail a
competitive edge amongst its peers and serve to provide the core for ongoing
sustainability and stewardship efforts? The importance of delivering significant housing
solutions appears foundational in the drafting of the Steward Vail Plan.
9. From a housing perspective, what is going to be different 5 to 7 years from now?
What progress has the Town made towards achieving the housing goal? How
have the conditions changed
10. What role, if any, does zoning reform and development review process amendments
goal? As a growing trend, more communities are looking to the zoning reform and
change in process to help secure much needed housing in their respective
communities.
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