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HomeMy WebLinkAboutR20-079 Approving the 2020 Eagle County Affordable Housing Guidelines DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 • Commissioner Mcmoved moved adoption of the following resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 2020-079 RESOLUTION APPROVING THE 2020 EAGLE COUNTY AFFORDABLE HOUSING GUIDELINES WHEREAS,over 35%of all households in Eagle County are cost burdened and pay more than 30%of their income towards housing, making it difficult for those households to pay for other necessities, like food, utilities, transportation, and health care; and WHEREAS, Eagle County desires to increase the supply of housing that is affordable to those who live and work in Eagle County; and WHEREAS, an Eagle County Housing Needs Assessment Update was completed in 2018, which indicated that 7,970 affordable housing units will be needed to keep up with the demand for affordable housing units in Eagle County by the year 2030; and WHEREAS,the Board of County Commissioners("Board")of Eagle County, Colorado adopted the Eagle County Affordable Housing Guidelines (the"Guidelines") on May 13, 2014, by Resolution No. 2014-037; and WHEREAS,the purpose of the Guidelines is to promote sustainable communities in Eagle County through the creation of permanently affordable housing stock. The Guidelines assist in implementing specific strategies of the Eagle County Comprehensive Plan calling for private development to share in the responsibility for keeping up yvith the demand for workforce housing and are to be used for discussion and negotiation of applile affordable housing criteria as part of the development approval process; and • WHEREAS,the Board desires to amend and restate said Guidelines to reflect current policies and guidelines in order to continue to promote the creation of permanently affordable housing stock in Eagle County; and WHEERAS, the Board further desires to amend the Eagle County Affordable Housing Guidelines: Administrative Procedures (the "Administrative Procedures"), which provide the technical procedures for developing,purchasing,owning,selling,and renting Affordable Housing and are to be read in conjunction with the Guidelines. The Administrative Procedures are updated DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 periodically based on current real estate market, area median income and the most recent Housing Needs Assessment which can be found at www.eaglecounty.us/housing. NOW,THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT,the"Eagle County Affordable Housing Guidelines,October 6,2020",a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, are hereby adopted and approved; and THAT, said 2020 Eagle County Affordable Housing Guidelines replace and supersede all previous Eagle County local resident affordable housing guidelines; and THAT, the "Eagle County Affordable Housing Guidelines: Administrative Procedures, October 6, 2020", a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference, are hereby adopted and approved; and THAT,said 2020 Eagle County Affordable Housing Guidelines: Administrative Procedures replace and supersede all previous Eagle County affordable housing guideline administrative procedures; and THAT,the Board hereby finds, determines and declares that this Resolution is necessary for the health, safety and welfare of the citizens of Eagle County. MOVED,READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held this 6th day of October, 2020. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its BOARD OF COUNTY COMMISSIONERS /`af"64 co ATTEST: ,—DocuSigned by: �,DDoccuSigned by: � BY: a 1 '► \.�s. By: Z4I. 1 (I'"""'" Clerk of fi?eF1 of ORAO• Katt y`trannr-Henry County Commissioners ippcuSigned by: By: Cr"""' J ecNkQuveney Commissioner —DocuSigned by: By: 1144- Sd.ci' N4atstESztreno473.. Commissioner 2 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Commissioner Scherr seconded adoption of the foregoing resolution. The roll having been called,the vote was as follows: Commissioner Chandler-Henry Aye Commissioner McQueeney Aye Commissioner Scherr Aye This Resolution passed by 3/0 vote of the Board of County Commissioner of the County of Eagle, State of Colorado. 3 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 EXHIBIT A Eagle County Affordable Housing Guidelines October 6, 2020 4 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Eagle County Affordable Housing Guidelines October 6, 2020 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Table of Contents Chapter 1 - Need and Purpose of These Guidelines 3 1.01 Eagle County's Need for Housing 3 1.02 Purpose of the Guidelines 5 1.03 Applicability 5 1.04 Eagle County Affordable Housing Guidelines: Administrative Procedures 5 Chapter 2 - Definitions 6 Chapter 3 - Requirements for Affordable Housing 8 3.01 Mitigation for Residential Developments (Inclusionary Housing) 8 3.02 Mitigation for Commercial Developments(Commercial Mitigation) 8 3.03 Mixed Use Developments 9 3.04 Small Residential Developments 9 3.05 Residential Lots 9 Chapter 4-Acceptable Methods of Affordable Housing Mitigation 9 4.01 Price Capped For Sale Housing 10 4.02 Affordable Rental Housing 10 4.03 Resident Occupied For Sale Housing 10 4.04 Land Donation 11 4.05 Off Site Development 11 4.06 Payment in Lieu 11 4.07 Affordable Housing Credits 11 4.08 Other Public Benefits 12 4.09 Price Gap Funding for Habitat For Humanity 12 4.10 Other Public Benefits 12 Chapter 5 - Housing Plan 13 Chapter 6 - Miscellaneous Provisions 14 6.01 Deed Restrictions 14 6.02 Unit Quality and Design 14 6.03 Affordable Housing Bedroom Mix and Size 14 6.04 Initial Sales and Marketing of Affordable Housing Units 14 6.05 Timing of Affordable Housing 14 6.06 Replacement Housing 14 6.07 Incentives for Exceeding the Guidelines 15 6.08 Liberal Construction 15 6.09 Severability 16 6.10 Modification 16 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Chapter 1 - Need and Purpose of These Guidelines 1.01 Eagle County's Need for Housing Eagle County faces a gap in the availability of ownership and rental housing that is affordable for local residents. Residents are burdened by high housing payments. Employees are forced to commute long distances. Overcrowding and substandard living conditions are common. The short term rental and second home owner markets are increasingly popular, so put additional pressures on the primary resident housing inventory. According to the annual workforce survey, employers believe that the availability of workforce housing is a critical or major problem in Eagle County. The most recent survey, conducted in early 2019, shows two thirds (65%) of employers believe that finding housing is difficult for their employees. These findings have been consistent over the last 10 years. Housing problems have long been recognized in Eagle County. Eagle County commissioned housing needs assessment studies, which were completed in 1990, 1999, 2007, 2012 and 2018, which demonstrate these housing needs for primary residents. As detailed more fully in Eagle River Valley Housing Needs and Solutions 2018 report, the current state of Eagle County's housing need is as follows: • 2019 estimates show Eagle County has 34,091 housing units. Of these, 19,632 are considered primary residents ; • The 43% of units not occupied as primary residences are typically owned by second homeowners for seasonal and recreational uses; • Approximately 6,150 primary households (35%) pay more than 30% of their income for housing, 48% of renters and 29% of owners, making it difficult for those Households to pay for other necessities, like food, utilities, transportation, and health care; • Since 2007, median household income has increased 6%while home prices increase 20% and rental rates have increased 48%; • 9% of the workforce commutes from outside the valley; • In 2019, unemployment in Eagle County was 2.4%. • Eagle River Valley employees have a weekly wage $220 lower than employees in Colorado overall. The following bullets highlight the need for additional housing units based upon the Eagle River Valley Housing Needs and Solutions 2018 report: • In 2020, the total housing need is projected at 4,030 homes. The gap not served by the market(requiring a subsidy) is estimated around 2,450; • By 2030,the total housing need is projected to reach 7,970 homes. • Growth in the number of retirees staying in place generates the demand for 110 housing units annually; and • The fastest growing occupations will continue to be in the accommodations, food service, and retail sectors. These jobs typically pay wages below $31,000/year or about 50%AMI for a single person. • Many municipalities throughout the valley have their own housing programs,which work to increase the supply of housing units for employees through various 1 Primary Secondary Residential Housing Analysis June 2019 Eagle County Affordable Housing Guidelines-Page 3 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 methods. Approximately 17% of Eagle County's population resides in the Roaring Fork Valley, mainly in the Town of Basalt and the El Jebel area. The Roaring Fork Valley faces similar challenges to the Eagle River Valley in providing housing for its residents. The following bullets highlight the need for additional housing units in the Carbondale and Basalt areas, which include Eagle County communities in the Roaring Fork Valley, based upon the Greater Roaring Fork Regional Housing Study 2019 report: • In 2017, the Basalt area had a need of 956 units priced for incomes 80% AMI and below. By 2027, the need is estimated to grow to 1,614 units priced for incomes 120%AMI and below. • In 2017, the Carbondale area had a need of 591 units priced for incomes 60% AMI and below. By 2027, the need is estimated to grow to 615 units at 60% AMI, 128 units between 60-80%AMI, 52 units between 101-120%AMI and 264 units 121-140% AMI. Despite the documented demand for workforce housing units, private developers have little incentive to provide housing for Households with incomes of 100% or less of the Area Median Income because responding to demand for high end and second homes is more profitable. The exceptional quality of life, natural beauty and abundance of recreation opportunities in Eagle County, coupled with limited land resources, means that demand for and availability of housing will continue to keep prices beyond the reach of median income Households. The Eagle County Comprehensive Plant (the "Comprehensive Plan"), adopted December 7, 2005, acknowledged the many negative implications of an imbalance between the amount of housing needed to sustain Eagle County's workforce and the supply of housing that employees can afford. Eagle County's labor shortages and forced commuting to homes outside of Eagle County materially degrade quality of service, the economy, the natural environment, traffic, and the character of local communities. The Comprehensive Plan delineates two primary goals regarding housing: 1. Housing is available and affordable for no less than 70% of Eagle County's workforce. 2. Housing needs are clearly identified, and housing types are appropriately balanced to meet all community needs, appropriately located to reduce long distance commutes, and appropriately managed ,to assure long term affordability for Eagle County's workforce. The Comprehensive Plan contains 16 policies for housing with 88 specific strategies recommended to implement them. The strategies seek to divide the responsibility for housing calling upon Eagle County's municipalities, private developers, non-profit organizations, financial institutions, and employers to work with Eagle County Government to achieve the housing goals. For example, Policy N of the Comprehensive Plan provides that development should share responsibility for fulfilling Eagle County's workforce housing needs.Associated strategies include: • Mandate that attainable workforce housing be considered part of the required 2 www.eaglecounty.us/planning Eagle County Affordable Housing Guidelines-Page 4 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 infrastructure for all new development applications. • Continue to utilize inclusionary housing and commercial mitigation as defined in the housing guidelines in the review of development applications. 1.02 Purpose of the Guidelines The Eagle County Affordable Housing Guidelines (the"Guidelines") are intended to promote sustainable communities in Eagle County through the creation of permanently affordable housing stock.The Guidelines recommend the provision of for sale housing for Households earning between 100%-140% of the area median income ("AMI"), which are households that have little or no opportunity to purchase market rate housing without significant subsidy. The Guidelines encourage the building of rental units that are affordable to Households earning 100% or less of AMI.The Guidelines also offer options for providing housing priced for local residents with incomes greater than 140% AMI since market rate housing opportunities for these Households are also limited in terms of unit type and location. The Guidelines' will assist in implementing specific strategies of the Comprehensive Plan that call for private development to share in the responsibility for keeping up with future demand for workforce housing by including such housing in all new residential and commercial growth. The Guidelines are one part of Eagle County's broader solution of making housing available and affordable to Eagle County's growing workforce, retirees, and special needs populations. Through the Guidelines, Eagle County seeks to reduce the number of Cost Burdened Households (as defined below) in the county, maintain the relationship between Primary Residences (as defined below) and vacation homes, preserve community character and vitality, and keep the negative impacts associated with a commuting workforce from worsening. It is Eagle County's belief that jobs and housing should be located in close proximity whenever possible. 1.03 Applicability The Guidelines set forth the minimum recommendations for housing mitigation for Development Permits (as defined below) for all commercial projects and all residential projects containing more than 3 units which are located in unincorporated Eagle County. Governmental and nonprofit entities must also meet these Guidelines when seeking approval for Development Permits. Provision of a Housing Plan (see Chapter 5)that meets the minimum recommendations of these Guidelines does not ensure that an application for a Development Permit will be approved by the County. 1.04 Eagle County Affordable Housing Guidelines:Administrative Procedures The Eagle County Affordable Housing Guidelines: Administrative Procedures (the "Administrative Procedures") is the document that provides the technical procedures for developing, purchasing, owning, selling, and renting Affordable Housing(as defined below). The Administrative Procedures includes specific eligibility criteria, AMI levels, purchase prices and rents, sale and leasing procedures, payment in lieu calculations, employment generation rates and other information relevant to the development and operation of 3 Terms that are capitalized in Chapter 1 are defined in Chapter II, below. Eagle County Affordable Housing Guidelines- Page 5 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Affordable Housing. The Administrative Procedures are to be read in conjunction with the Eagle County Affordable Housing Guidelines, and are updated annually. • Chapter 2- Definitions The terms, phrases, words, and clauses in the Guidelines shall have the meaning assigned below. Any terms, phrases, words, or clauses not defined herein will have the meanings as defined in the Eagle County Land Use Regulations or the Eagle County Affordable Housing Guidelines:Administrative Procedures. Affordable Housing: All deed restricted housing units regardless of price. Units may include Price Capped For Sale Housing, Price Capped Rental Housing, Resident Occupied For Sale Housing, and Resident Occupied Rental. Affordable Housing Credits: Credits that exist and may be awarded in the BoCC's sole discretion for Projects that exceed the requirements standards set forth in the Guidelines and which may be bought, sold and accepted as a mitigation method pursuant to the Guidelines. Affordability Gap: The difference between the median home price in each Eagle County community (as defined by zip code) and the average buying power of a typical household in that community, as provided for in the Administrative Procedures. Area Median Income ("AMI"): The estimates of median household income compiled and released annually by the United States Department of Housing and Urban Development. Board of County Commissioners ("BoCC"): The Board of County Commissioners for Eagle County, Colorado. Commercial Development: Any development that is not a Residential Development for which a Development Permit is required. Institutional uses such as government buildings, schools, hospitals, churches and other religious institutions, and facilities operated by non-profit service agencies are considered Commercial Development for purposes of these Guidelines. Commercial Mitigation: The provision of Affordable Housing to house employee growth generated by Commercial Development. Comprehensive Plan: The plan officially adopted by Eagle County that sets forth the recommendations and policies for guiding future growth and development, while providing for the public's health, safety, and general welfare. The Comprehensive Plan also incorporates community sub area plans adopted for particular areas of the county and functional plans, such as those addressing particular issues of concern to the county(trails, open space, housing, etc.) Cost Burdened Household: A Household that is paying more than 30% of its income for housing costs. Development Permit: Any preliminary or final approval of an application for rezoning, planned unit development, amendment of an existing planned unit development, special use permit, subdivision, or similar application for new construction. Applications for a building permit where no previous condition of approval required Affordable Housing mitigation shall not be considered a Development Permit for the purpose of these Guidelines. Eagle County Housing and Development Authority ("ECHDA"): A body corporate and Eagle County Affordable Housing Guidelines-Page 6 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 politic whose primary purpose is to increase the supply of Affordable Housing in Eagle County. Eligible Household: A Household that meets the criteria set forth in the Administrative Procedures. Household: All individuals who will occupy a unit regardless of legal status or relation to the owner or lessee. Housing Plan: A written plan submitted to Eagle County describing how the applicant will satisfy the minimum recommendations of the Guidelines. Inclusionary Housing:The provision of Affordable Housing in Residential Developments to ensure adequate housing stock for local residents and to maintain or increase the current ratio of primary to secondary home ownership. Initial Sales Price: The maximum price for which a Price Capped For Sale Housing unit may be initially sold, as provided for in the Administrative Procedures. Land Use Regulations: The regulations officially adopted by Eagle County, which govern land use in unincorporated areas of Eagle County. Maximum Rental Rate: The maximum monthly rent payment for an Price Capped Rental Housing unit, as provided for in the Administrative Procedures. All ongoing fees required to be paid by the resident (including but not limited to utilities and mandatory parking fees) must be included within the Maximum Rental Rate. Off Site Development: The development of Affordable Housing units in a location outside of the Project boundaries. Other Public Benefits: Items that may, at the BoCC's sole discretion, offset a portion of a Project's recommended Affordable Housing mitigation. Payment in Lieu: A payment made to the ECHDA to satisfy a Project's recommended Affordable Housing mitigation. Price Capped For Sale Housing: Housing subject to a deed restriction requiring that the Housing meet Initial Sales Prices, resale price appreciation limits, quality, and other criteria set forth in the Guidelines and Administrative Procedures. Price Capped Rental Housing: Rental housing subject to a deed restriction requiring that the Housing meet Rental Rate Restrictions, quality, annual compliance and other criteria set forth in the Guidelines and Administrative Procedures. Primary Residence: The residence in which an owner or renter lives for at least 9 out of any 12 months. Program Administrator: The administrator of the Eagle County Affordable Housing Guidelines and Administrative Procedures. The Program Administrator shall be the Eagle County Housing Director unless the BoCC appoints another person. Project: A Commercial or Residential Development for which a Development Permit is required. Rental Rate Restrictions: The maximum rental rate for which a Price Capped Rental Housing unit may be leased, as provided for in the Administrative Procedures. Resident Occupied For Sale Housing: Housing subject to a deed restriction requiring that the Housing be owned and occupied by an Eligible Household as its Primary Residence as set forth in the Guidelines and Administrative Procedures. Resident Occupied Rental Housing: Rental housing subject to a deed restriction requiring that the Housing be occupied by an Eligible Household as its Primary Residence as set forth in the Guidelines and Administrative Procedures. Residential Development: Any development that would result in the creation of more than three residential units or lots and for which a Development Permit is required. Eagle County Affordable Housing Guidelines-Page 7 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Subdivided land resulting in parcels of at least 35 acres in size on which residential development is proposed consistent with applicable zoning is excluded from the definition of Residential Development. Small Residential Development: A Residential Development comprising 4-10 residential units. Sustainable Communities Index: A regulatory points-based finding for all new subdivisions, zone changes, and special uses that encourages compact, efficient, mixed use, pedestrian friendly design integrated with surrounding uses and which minimizes environmental impacts. Square Footage: A calculation of size including all habitable interior space, excluding garages and mechanical spaces, measured from the exterior of the wall. Chapter 3 -Recommendations for Affordable Housing Mitigation 3.01 Mitigation for Residential Developments(Inclusionary Housing) In order to address the issue of Cost Burdened Households and slow the shift from primary to secondary home ownership, Eagle County has set the minimum recommended mitigation rate for Inclusionary Housing in Residential Developments at the higher of 1) 25% of the total residential units in a Project or 2) 15% of the total residential Square Footage of a Project. The mitigation calculation should be made using the total number of units/lot proposed in the Project. This Inclusionary Housing mitigation rate is below the 57% of residential units in Eagle County that are currently occupied by local residents. Eagle County believes the lower mitigation rate is reasonable because not all local residents desire to live in Affordable Housing 3.02 Mitigation for Commercial Developments(Commercial Mitigation) To support persons employed by businesses located in new Commercial Development in locating affordable housing near their jobs, a new Commercial Development should mitigate the impact on Eagle County's housing stock by providing Affordable Housing for at least 45% of the new employees generated by the Project that will earn less than 140% of AMI. The Affordable Housing demand generated by a Commercial Development shall be determined utilizing an average job generation rate with adjustments for multiple job holding, multiple employees per Household, and the average size of all deed restricted housing units throughout Eagle County, as provided for in the Administrative Procedures. No mitigation is required for existing jobs at the site to be developed. The Affordable Housing mitigation will be calculated in total Square Footage proposed in the Project .The applicant can choose to provide the total Square Footage in any combination of size and number of units subject to section 6.03 of the Guidelines. This 45% mitigation rate is less than the percentage of cost burdened renters in Eagle County. 3.03 Mixed Use Developments Eagle County typically encourages mixed-use developments. If both Commercial Mitigation and Inclusionary Housing apply because the application for a Development Permit contains Eagle County Affordable Housing Guidelines- Page 8 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 a mix of Commercial Development and Residential Development, then the calculation (Commercial Mitigation or Inclusionary Housing) that yields the higher amount of Affordable Housing units will apply. 3.04 Small Residential Developments Small Residential Developments may be exempt from Inclusionary Housing requirements if the Square Footage of the residential units in those developments is equal to or smaller than the average size of a deed restricted housing unit in Eagle County. The Inclusionary Housing mitigation will apply to the amount of Square Footage in excess of the average size of a deed restricted housing unit in Eagle County, as provided for in the Administrative Procedures. Accessory dwelling unit Square Footage will count in a unit's total Square Footage calculation, but will not be considered an additional unit, this is consistent with policies included in the Land Use Regulations. 3.05 Residential Lots When an applicant for a Development Permit seeks only to create residential lots, the Inclusionary Housing mitigation should be based on the number of such lots, each of which will count as one unit. Chapter 4-Acceptable Methods of Affordable Housing Mitigation In an effort to provide the flexibility necessary for the development industry, an applicant for a Development Permit may choose to meet the Guidelines in the following ways, all of which are subject to approval by the BoCC in its sole discretion. 1. Price Capped For Sale Housing with a maximum Initial Sales Price set at or below 100%- 140%AMI affordability level. Initial Sales Prices must vary within the range. a. Price Capped For Sale units will be valued double (2x)when analyzing if/how Housing Plans meet recommended minimum mitigation rates. 2. Price Capped Rental Housing subject to a deed restriction requiring rents to be set at or below 80%-100% AMI affordability level. Rental rates must vary within the range. a. Price Capped Rental units will be valued double (2x) when analyzing if/how Housing Plans meet recommended minimum mitigation rates. 3. Resident Occupied For Sale Housing,without regard to AMI. a. Resident Occupied For Sale units will be valued as 1 unit (1.0x) when analyzing if/how Housing Plans meet recommended mitigation rates. 4. Resident Occupied Rental Housing, subject to a deed restriction requiring occupancy only by eligible households. a. Resident Occupied Rental units will be valued one-half(0.5x)when analyzing if/how Housing Plans meet recommended minimum mitigation rate 5. A donation of developable land to ECHDA within a reasonable vicinity of the applicant's project. Land donation will be valued singularly (1.0x) when analyzing if/how Housing Plans meet recommended mitigation rates.. 6. Off Site Development will be valued singularly(1.0x)when analyzing if/how Housing Plans meet recommended mitigation rates. a. Off site location may not have a higher Affordability Gap than the Eagle County Affordable Housing Guidelines-Page 9 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 development site. 7. Payment in Lieu may be made to ECHDA. 8. An applicant may use Affordable Housing Credits. 9. The provision of price gap funding for Habitat for Humanity Vail Valley or Habitat for Humanity Roaring Fork Valley. 10. Other Public Benefits may be provided to offset some portion of Affordable Housing. The BoCC, in its sole discretion, may approve additional methods of mitigation which the BoCC determines meet the purpose and intent of these Guidelines, including but not limited to a Project's provision of a on-going funding source to the Eagle County Housing and Development Authority. Where a formula indicates that a portion of a unit is to be provided, an applicant may choose to either round up to the next whole number or make a corresponding payment in lieu for the portion of unit required. 4.01 Price Capped For Sale Housing Price Capped For Sale Housing should have the following characteristics: • The Initial Sales Price no greater than that which is affordable to Households earning no more than 100%-140%AMI. • The units should be a spectrum of types and sizes and should be consistent with market rate units and market demand as such need is demonstrated by a recent market analysis. • Deed restrictions shall be perpetual and in favor of ECHDA and shall include all material terms as outlined in the Administrative Procedures. 4.02 Price Capped Rental Housing Price Capped Rental Housing should have the following characteristics: • Rents are set at or below rates that are affordable to Households with incomes no greater than 80%-100%AMI. • Prohibition on Short Term Rentals. • Deed restrictions shall be perpetual and in favor of ECHDA or other acceptable agency such as the Colorado Housing and Finance Authority or the US Department of Housing and Urban Development, and shall include all material terms as outlined in the Administrative Procedures. 4.03 Resident Occupied For Sale Housing Resident Occupied For Sale Housing should have the following characteristics: • Sales prices for Resident Occupied For Sale Housing are not limited. • A spectrum of unit sizes and pricing responsive to market demand is encouraged. Deed restrictions shall be perpetual and in favor of ECHDA and shall include all material terms as outlined in the Administrative Procedures. 4.04 Resident Occupied Rental Resident Occupied Rental Housing should have the following characteristics: • Rental rates for Resident Occupied Rentals are not limited • Occupants for Resident Occupied Rentals must be Eligible Households Eagle County Affordable Housing Guidelines- Page 10 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 • Prohibition on Short Term Rentals • Deed restrictions shall be perpetual and in favor of ECHDA or other acceptable agency such as the Colorado Housing and Finance Authority or the US Department of Housing and Urban Development, and shall include all material terms as outlined in the Administrative Procedures. 4.05 Land Donation An applicant may satisfy its Affordable Housing mitigation through a conveyance of land to ECHDA. The BoCC, in its sole discretion, will decide whether to accept land offered in lieu of an applicant's Affordable Housing mitigation. The land conveyed should have the following characteristics: • Land shall be free of all liens and encumbrances upon transfer to ECHDA. • The land should be capable of supporting the applicable number of Affordable Housing units. • Land should be located close to job centers, walkable, and walkable to transit and reduce environmental impacts. • Land should be buildable, have suitable soils and drainage, and should not be within an area that has potential geologic hazards associated with development. • Land should serve the needs of Affordable Housing residents for reasons including, but not limited to conformance with comprehensive and master plans, high scoring on the Sustainable Community Index, site location, and proximity to public transit. • The BoCC may consider a redevelopment opportunity under the Land Donation mitigation type. 4.06 Off Site Development Affordable Housing should generally be provided on site. Exceptions to this preference include Project sites in rural locations inconvenient to employment centers and public transit, or Commercial Development that involves hazardous substances and impacts not compatible with residential uses and affordable housing partnership opportunities. The applicant may also propose to locate Affordable Housing off-site if the off-site location has a higher Affordability Gap than the Project site. The Affordability Gap is provided in Administrative Procedures. Applicants are strongly discouraged from proposing off-site Affordable Housing primarily to reduce costs. 4.07 Payment in Lieu An applicant may satisfy all or part of its Affordable Housing mitigation by making a Payment in Lieu of providing the units. The Payment in Lieu will be calculated as follows: • The Payment in Lieu represents the difference between prevailing market prices in Eagle County and the maximum Initial Sales Price at 100% AMI, plus a 15% administrative fee. • The Program Administrator should update these requirements annually based on the prior year's median sales price per square foot, the current maximum Initial Sales Price for a family of three earning 100% AMI, and the average size of all existing deed restricted housing units throughout Eagle County. • The purpose of the administrative fee is to offset the increased cost to ECHDA of Eagle County Affordable Housing Guidelines- Page 11 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 managing the development of Affordable Housing. The Payment in Lieu amount shall be set at the time of approval of the application and shall be included in the Housing Plan. All Payment in Lieu amounts shall be paid to ECHDA prior to the issuance final plat for the Project. 4.08 Affordable Housing Credits Applicants who build more than the minimum amount of Affordable Housing required by the Guidelines may be awarded, in the BoCC's sole discretion, Affordable Housing Credits that can be used to offset future Affordable Housing obligations. • Affordable Housing Credits may be awarded in an amount equal to the amount of Affordable Housing Square Footage supplied in excess of the minimum amount of Affordable Housing required. • Affordable Housing Credits can only be redeemed in the same sub area master planning area as the previously built Affordable Housing. • Affordable Housing Credits will only be awarded, if at all, when the Affordable Housing is complete. The applicant must provide a certificate of occupancy and proof of occupancy by an Eligible Household prior to issuance of the Affordable Housing Credits by Eagle County. • Affordable Housing Credits shall have an expiration date 5 years from issuance. • Affordable Housing Credits are transferable. • Affordable Housing Credits existing at the time of the approval of these Guidelines can be redeemed in any location within unincorporated Eagle County. 4.09 Price Gap Funding for Habitat For Humanity Applicants may provide price gap funding to Habitat for Humanity. The price gap is the difference between the Maximum Initial Sales Price which is affordable to households earning 100% AMI and Habitat for Humanity's initial price capped sales price.The price gap will be calculated by Habitat for Humanity and the Housing Department will approve of the methodology and calculation of the price gap. • Applicants developing in the Eagle River Valley may only provide price gap funding to Habitat for Humanity Vail Valley. Applicants developing in the Roaring Fork Valley may only provide price gap funding to Habitat for Humanity Roaring Fork Valley. • The price gap funds should provide the funding to develop enough units to meet recommended minimum mitigation rates. • The BoCC at its sole discretion may award additional value to Habitat for Humanity units for achieving a more affordable initial sales price. • Habitat for Humanity units funded by price gap funding should be constructed as concurrently as possible with the applicant's project. 4.10 Other Public Benefits The BoCC, in its sole and exclusive discretion, may consider Other Public Benefit proposals to offset an applicant's Affordable Housing mitigation. • No more than 30% of recommended Affordable Housing mitigation may be offset by Other Public Benefits. • To be counted as Other Public Benefits, an applicant should show that its proposal is not solely for the use of the Project's residents or owners. Project amenities (parks, open space, recreation path, health/fitness centers, pools intended only for Eagle County Affordable Housing Guidelines- Page 12 ovcuoigoEnvelope ID:soonsou*caFc-44o5-oawo-2sa000a1xF** project use)will not be counted as Other Public Benefits. • Other Public Benefits should be over and above what is otherwise required to obtain approval of the Project, including but not limited to the Sustainable Community Index as may be amended from time to time. • Other Public Benefits may include but are not limited to public parks and trails that close an existing gap in connectivity, opportunities for local food production, access to streams, rivers and public lands in locations with minimal to no access, rehabilitation and preservation of rivers and public lands and opportunities for educational programs including those in underserved and underrepresented communities. Chapter 5 - Housing Plan In order for an application for a Development Permit, which triggers the Housing Guidelines, to be deemed sufficient, an applicant shall submit a clear, concise, and complete Housing Plan, which has been approved by the Program Administrator. Compliance with the Housing Plan will be a condition of approval for the Development Permit. At a minimum,the Housing Plan should contain the following information, as applicable: 1. Total estimated amount of Square Footage in any Residential Development; Z. Total estimated number of market rate units and Affordable Housing units. 3. Details regarding how the Guidelines will be met, including units types, Square Footage, number of bedrooms per unit, targeted income category, and Initial Sales Prices; 4. Total estimated Square Footage of any Commercial Development, estimated number of employees generated from the development, wage information regarding the jobs being generated; 5. Estimated Average lot size of proposed Affordable Housing and average lot size of market rate housing units, as applicable; G. Estimated Location of proposed Affordable Housing within the Project, by unit type and size; 7. Estimated Proposed production schedule of Affordable Housing and market rate units, including issuance of building permits or other acceptable triggers; 8. Concept for marketing to Households that may be eligible for the Affordable Housing; 9. Any proposed alternative methods of compliance with these Guidelines; and 10.Any other information deemed to be relevant by the Program Administrator. The Housing Plan will be recorded against the Project property in the records of the Eagle County Clerk and Recorder at the time the Development Permit is granted. Any amendment of the Housing Plan will constitute an amendment to the Development Permit and would require BoCC approval. ._ Chapter 6— Miscellaneous Provisions Eagle County Affordable Housing Guidelines- Page 13 ooc signsn,ownoID, 1Ap44 6.01 Deed Restrictions All Affordable Housing units shall be subject to deed restrictions,which shall be recorded in the records of the Eagle County Clerk and Recorder. All deed restrictions must comply with these Guidelines and the Administrative Procedures and shall be in a form approved by the Program Administrator and the Eagle County AtVrney's Office. 6.02 Unit Quality and Design Affordable Housing shall meet the requirements of all Eagle County land use regulations and local building codes. Affordable Housing units should be architecturally compatible with surrounding uses. Exterior and interior finishes should not be substantially inferior to the materials used on market rate units. Provision of adequate storage space is strongly recommended/encouraged. Enhancing the long term affordability of Affordable Housing through designs that reduce uti|itVcosts |sstrongly encouraged and conversely, arnenitiesthat are costly tooperate are strongly discouraged. Units must meet minimum ECO Build Standards or other efficient building standards as might be amended and as provided for in the Eagle County Land Use Regulations. Affordable Housing design must address livability, maintenance, health, safety concerns, climate, lifestyle, and needs of the types of Households the units are intended to serve. To enhance livability, balconies, decks, small yards, or other onsite outdoor spaces are also encouraged. Micro, shared, co-housing units and accessory dwelling units will be considered Affordable Housing Units under these Guidelines. 6.03 Affordable Housing Bedroom Mix and Size While there are no specific bedroom mix or size requirements for Affordable Housing units, the applicant is expected to analyze market demand and to propose a mix that is responsive and appropriate to that demand. The bedroom mix and size will be approved by the Program Administrator as part of the Housing Plan. A market analysis should be provided to the Program Administrator prior to starting construction on the Affordable Housing units. Affordable Housing units larger than 3.000 Square Feet will only receive credit of 3,000 Square Feet when calculating Affordable Housing mitigation. 6.04 Initial Sales and Marketing of Affordable Housing Units An applicant may be responsible for the initial sales and marketing of the Affordable Housing units in its Project or it may choose to contract with The Valley Home Store. The Program Administrator shall have the right to review the terms of each sale for compliance with the Guidelines. 6.05 Timing of Affordable Housing All required Affordable Housing units should be provided prior to, or concurrently and proportionally with, the production of a Residential Development's market rate housing, or production of Commercial Development as measured by recording of the Final Plat, unless an approved Housing Plan provides otherwise. 6'06 Replacement Housing Applicants are prohibited from using units built as replacement of housing affordable to Eagle County Affordable Housing Guidelines-Page 14 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Households earning less than 100% AMI toward satisfaction of Inclusionary Housing or Commercial Mitigation requirements. Any such Affordable Housing destroyed in the development process should be replaced with units of similar affordability and size, in addition to the applicant's obligations under these Guidelines. 6.07 Incentives for Exceeding the Guidelines If an applicant provides a combination of mitigation methods that exceed the minimum recommendations for Inclusionary Housing or Commercial Mitigation, the BoCC, in its sole discretion, may offer the following incentives: • Public-private partnerships: Eagle County and/or the ECHDA may participate or facilitate participation with other governmental entities regarding financing, granting, tax exemption and/or purchasing of Affordable Housing units or other participation as agreed to by the parties. • Public funding assistance: Eagle County and/or the ECHDA may assist with the application process for applicants who decide to pursue funding assistance from local, state or federal agencies. Eagle County and/or the ECHDA may also choose to use funds to match state, federal, or private grants. • Priority permitting: Eagle County Community Development Department is utilizing the "Exceeding Housing Guidelines LUR Process Incentive." This policy formalizes how Eagle County may prioritize review of the Project throughout various procedures such as subdivision, PUD Sketch Plan, PUD Preliminary Plan, Special Use Permit, or building permit. To qualify for priority permitting, the applicant must submit a complete land use application and must have made reasonable efforts to anticipate and address any known concerns with any and all referral agencies that have an interest in the Project. Applicants may take advantage of this incentive if their application for a development permit contains a housing plan that exceeds the recommended mitigation rates set forth in Chapter 4 by providing priced-capped deed restricted units equal to or greater than a 50% mitigation rate. Additional value for price capped units will still be calculated. • Density bonus: As part of any application for a Development Permit for a development, Eagle County may offer a density bonus. • Site design flexibility: Provided that the standard of housing or the purpose and intent of the Guidelines and the Eagle County Land Use Regulation are not compromised, and provided the design of the Project achieves other Eagle County strategic sustainability policy goals, Eagle County may consider flexible application of design standards including, but not limited to minimum lot size, building height, floor area ratio (FAR), lot coverage, set backs, parking, and landscaping. • Road impact fee waivers: the BoCC may waive Eagle County imposed road impact fees for Affordable Housing units. • Other fee waivers: the BoCC, in its sole and absolute discretion, may waive any other fee required by the Eagle County Land Use Regulations for Affordable Housing units. 6.08 Liberal Construction These Guidelines shall be liberally construed so as to further their intent and purpose. Eagle County Affordable Housing Guidelines- Page 15 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 6.09 Severability If any provision, clause, sentence, or paragraph of the Guidelines or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the other provisions of the Guidelines that can be given effect without the invalid provision or application, and to this end the provisions of the Guidelines are declared to be severable. 6.10 Modification These Guidelines may only be modified by the BoCC in a public hearing on the record. The Administrative Procedures may be amended by the Program Administrator in a manner consistent with the terms and intent of the Guidelines without BoCC approval. Eagle County Affordable Housing Guidelines- Page 16 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 EXHIBIT B Eagle County Affordable Housing Guidelines: Administrative Procedures October 6, 2020 5 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Eagle County Affordable Housing Guidelines: Administrative Procedures October 6, 2020 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Table of Contents Chapter 1 - Description of Administrative Procedures 4 Chapter 2- Definitions 4 Chapter 3 - Information for Developers of Affordable Housing 5 3.0 Price Capped For Sale Housing 5 3.0.1 Initial Pricing of Price Capped For Sale Housing 5 3.0.2 Deed Restrictions for Price Capped For Sale Housing 5 3.1 Resident Occupied For Sale Housing 5 3.1.1 Initial Pricing of Resident Occupied For Sale Housing 5 3.1.2 Deed Restrictions for Resident Occupied For Sale Housing 6 3.2 Deed Restricted Rental Housing 6 3.2.1 Maximum Rental Rates for Price Capped Rental Housing 6 3.2.2 Deed Restrictions for Price Capped Rental Housing 6 3.2.3 Deed Restrictions for Resident Occupied Rental Housing 6 3.2.4 Divided Ownership of Affordable Rental Housing Limited 7 3.3 Miscellaneous Provisions 7 3.3.1 Homeowners and Condominium Associations 7 3.3.2 Commercial Mitigation 7 3.3.3 Calculation of Payment In Lieu 7 Chapter 4- Information for Buyers, Owners, &Sellers of Affordable Housing 7 4.0 Buying Affordable Housing 7 4.0.1 Eligible Households 7 4.0.2 Application Process &Selection Criteria for Price Capped For Sale Housing units 9 4.0.3 Application Process for Resident Occupied For Sale Housing units 10 4.0.4 Trust Ownership 11 4.0.5 Rental of Affordable Housing by Qualified Employers for Employees 11 4.1 Owning Affordable Housing 11 4.1.1 Maintaining Occupancy 12 4.1.2 Recertification 12 4.1.3 Leave of Absence 12 4.1.4 Short Term Leases 12 4.1.5 Foreclosure 13 4.2 Sales of Affordable Housing Units 13 4.2.1 Listing Units 13 4.2.2 Inspection Prior to Sale 13 4.2.3 Sales Fees 14 4.2.4 Closing Costs 14 4.2.5 Maximum Resale Price 14 4.2.6 Increases to Base Price and Permitted Capital Improvements 14 4.2.7 Other Title Transfers 16 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Chapter 5 - Information for Renters or Manager of Affordable Housing Rental 17 5.0 Application Process 17 5.1 Records Inspection 17 Chapter 6- Grievance Procedures 17 Chapter 7-Tables 18 Table 7.1 - Maximum Initial Sales Price Calculations 18 Table 7.2 - Maximum Monthly Rental Rates 18 Table 7.3 - Commercial Job Generation 19 Table 7.4-Conversion of jobs Generated to Affordable Housing Demand 19 Table 7.5 -Calculation of Payment In Lieu 19 Table 7.6-Area Median Incomes 20 Table 7.7- Historical Wage Appreciation Data 20 Table 7.8- Size of Deed Restricted Units in Eagle County 21 Table 7.9 - Example of Small Development Project 21 Table 7.10-Affordability Gap 22 Table 7.11 - Historical Freddie Mac 30-Year Mortgage Rates 22 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Chapter 1 - Description of Administrative Procedures The Eagle County Affordable Housing Guidelines: Administrative Procedures (the "Administrative Procedures") provide the technical procedures for developing, purchasing, owning, selling, and renting Affordable Housing and are to be read in conjunction with the Eagle County Affordable Housing Guidelines. The Administrative Procedures are updated periodically based on current real estate market, area median income and the most recent Housing Needs Assessment which can be found at www.eaglecounty.us/housing. The Administrative Procedures is separated into chapters, which set forth the requirements for developers of Commercial Development or Residential Development containing Affordable Housing (Chapter 3), requirements of buyers, owners, and sellers of Affordable Housing units (Chapter 4), and requirements of owners, renters, or managers of Affordable Rental Housing units (Chapter 5). Chapter 2 contains definitions, Chapter 6 Grievance procedures and Chapter 7 contains all of the relevant tables,which may be updated on an annual basis. Chapter 2— Definitions The terms, phrases, words, and clauses in the Administrative Procedures shall have the meaning assigned below. Any terms, phrases, words, or clauses not defined herein will have the meanings as defined in the Eagle County Affordable Housing Guidelines(the"Guidelines") or the Eagle County Land Use Regulations. Acknowledgement of Deed Restriction: A document accepting a purchaser's agreement to be bound by both the recorded deed restriction covering the Affordable Housing unit and the Guidelines. Base Price: The initial price of a Price Capped For Sale unit set by the developer upon sale, which may appreciate over time. Gross Household Income: Total amount of income a Household earns in one year from all sources before taxes. Maximum Resale Price: The maximum amount an owner can sell the Affordable Housing unit for per the deed restriction requirements. Non-Eligible Household: A Household that does not qualify as an Eligible Household per section 4.0.1 of the Administrative Procedures. Permitted Capital Improvements: Certain improvements made to an Affordable Housing unit that may be included in a seller's Maximum Resale Price. Qualified Employer: An individual or entity that regularly conducts business in Eagle County. Individuals or entities that regularly conduct business in Garfield and Pitkin Counties may be considered Qualified Employers for purposes of qualifying employees who apply to purchase or rent Affordable Housing in Eagle County in the Roaring Fork Valley. Short Term Rental: A short term rental is defined as a non-owner providing compensation to lodge in another owner's property for periods less than thirty (30) days. Owners shall not advertise any part of their Affordable Housing unit available for short term lease on an open, public forum such as Airbnb,VRBO, Homeaway or equivalent. Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 4 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Chapter 3 — Information for Developers of Affordable Housing 3.0 Price Capped For Sale Housing Section 3.0 will cover all requirements specific to Price Capped For Sale Housing. 3.0.1 Initial Pricing of Price Capped For Sale Housing The Initial Sales Price for Price Capped For Sale Housing units shall be initially set no higher than at a price affordable to Households earning 100%-140% of AMI. The units should be priced in a spectrum of prices consistent with unit size, location, and market demand. Affordable units should come to market proportionately with free market units. Chapter 7 (Table 7.1) contains a table showing the current year's maximum Initial Sales Prices. 3.0.2 Deed Restrictions for Price Capped For Sale Housing All deed restrictions burdening Price Capped For Sale Housing units must include resale restrictions binding future buyers and sellers to the applicable conditions set forth in the Guidelines and these Administrative Procedures and shall be in a form approved by the Program Administrator and the Eagle County Attorney's Office. All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed Restriction. The material terms for deed restrictions against Price Capped For Sale Housing units are as follows: 1. Eligible Households only with annual recertification 2. Primary Residency use only with annual recertification 3. May not own other real property, subject to exceptions 4. Limitations on rentals 5. Initial Sales Price restrictions 6. Maximum Resale Price restrictions. Appreciation should be based upon the average wage for Eagle County as determined by the Colorado Department of Labor and Employment using the most current available data, but in no case shall the allowed increase be more than 3% on an annual basis. There should be no floor on the amount of the increase. Table 7.7 shows current and historic wage appreciation data. 7. Ownership interest conveyed to ECHDA 8. Ability to force sale if owner is not complying with deed restriction 9. Option to buy post foreclosure 10. Resale by Program Administrator 3.1 Resident Occupied For Sale Housing Section 3.1 will cover all requirements specific to Resident Occupied For Sale Housing. 3.1.1 Initial Pricing of Resident Occupied For Sale Housing Sale prices for Resident Occupied For Sale Housing units are not limited.A spectrum of pricing and unit sizes responsive to market demand is encouraged. Affordable units should come to market proportionately with free market units. Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 5 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 3.1.2 Deed Restrictions for Resident Occupied For Sale Housing All deed restrictions burdening Resident Occupied For Sale Housing units must include resale restrictions binding future buyers and sellers to the applicable conditions set forth in the Guidelines and these Administrative Procedures and shall be in a form approved by the Program Administrator and the Eagle County Attorney's Office. All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed Restriction. The material terms for deed restrictions against Resident Occupied For Sale Housing shall be as follows: 1. Eligible Households only with annual recertification 2. Primary Residency use only with annual recertification 3. May not own other real property, subject to exceptions 4. Prohibition on Short Term Rentals 3.2 Deed Restricted Rental Housing Section 3.2 will cover all requirements specific to deed restricted rental housing 3.2.1 Maximum Rental Rates for Price Capped Rental Housing Maximum Rental Rates for Affordable Rental Housing units must be set at rates that are affordable for Households with incomes no greater than 80%-100%AMI. Chapter 7 (Table 7.2) contains a table showing the current year's Maximum Rental Rates. 3.2.2 Deed Restrictions for Price Capped Rental Housing The material terms for deed restrictions against Affordable Rental Housing, shall be as follows: 1. Eligible Households only, unless otherwise prohibited 2. Maximum rents 3. Prohibition on Short Term Rentals 4. Annual verification by owner to ECHDA 5. The term of the deed restriction should be perpetual, and the restriction agreement must be between the owner of the rental property and either ECHDA or other acceptable entity, such as the Colorado Housing and Finance Authority or the United States Department of Housing and Urban Development. 3.2.3. Deed Restrictions for Resident Occupied Rental Housing The material terms for deed restrictions against Resident Occupied Rental Housing, shall be as follows 1. Eligible Households only 2. Prohibition on Short Term Rentals 3. Annual verification by owner to ECHDA 4. The term of the deed restriction should be perpetual, and the restriction agreement must be between the owner of the rental property and either ECHDA or other acceptable entity, such as the Colorado Housing and Finance Authority or the United States Department of Housing and Urban Development. • Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 6 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 3.2.4 Divided Ownership of Affordable Rental Housing Limited No Affordable Rental Housing unit shall be converted in the future to for sale housing through subdivision, the cooperative form of ownership, condo conversion, or some similar form of ownership inconsistent with its rental purpose, unless the owner of such Affordable Rental Housing unit proposes providing substantially similar substitute Affordable Rental Housing and such proposal is approved in writing in advance by the BoCC. 3.3 Miscellaneous Provisions Section 3.3 covers miscellaneous requirements related to the development of Affordable Housing. 3.3.1 Homeowners and Condominium Associations Any documents creating a condominium or homeowners association should require that the Affordable Housing units will only be assessed monthly dues and other shared assessments based upon a reasonable formula. 3.3.2 Commercial Mitigation Chapter 7 (Table 7.3) shows the average jobs generated per 1,000 square feet of commercial space. If an applicant can document, to the Program Administrator's sole satisfaction, that the proposed Project will generate fewer jobs per square foot than the general category of the Commercial Development being built for the life of the Commercial Development, the applicant may use the proven lower job generation rate in calculating Affordable Housing obligations. Chapter 7 (Table 7.4) contains a table showing the conversion of jobs generated to Affordable Housing demand. 3.3.3 Calculation of Payment In Lieu The Payment In Lieu represents the difference between prevailing market prices and the maximum Initial Sales Price at 100% AMI for a family of 3, plus a 15% administration fee. Chapter 7 (Table 7.5) contains a calculation of the Payment In Lieu based upon current market conditions. Chapter 4 — Information for Buyers, Owners, and Sellers of Affordable Housing 4.0 Buying Affordable Housing Section 4.0 addresses requirements for Households interested in purchasing Affordable Housing. 4.0.1 Eligible Households Eligible Households are Households meeting the following criteria: 1. Employment Qualification: At least one member of the Household must meet one or more of the following criteria: a. Has earned a living primarily in Eagle County by having worked an average of at least thirty (30) hours per week on an annual basis at a Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 7 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 business with an office or job site physically located in Eagle County (multiple jobs in Eagle County may be combined to reach 30 hours per week); or b. Cumulatively earned at least 75% of the Household's Gross Household Income in Eagle County; or c. Has been hired for a job in Eagle County on a permanent basis to work at least thirty(30) hours per week; or d. Is over the age of sixty (60) and had earned a living primarily in Eagle County prior to his or her retirement; or e. Is a Disabled Person who had been a full-time employee in Eagle County immediately prior to his or her disability or has been granted an exception to the minimum of 30 hours per week in order to continue with a federal or state disability benefit program, if the person works the maximum number of hours per week the program will allow; or f. Employment in Garfield and Pitkin Counties will be considered acceptable for Households applying to purchase Affordable Housing in Eagle County in the Roaring Fork Valley; or g. Households that make their home in Eagle County but work for employers that are located outside of Eagle County (i.e. telecommuters) may be considered eligible if all other eligibility requirements are met and the Household can prove Eagle County residency for a continuous period before application submission, subject to the Program Administrator's sole discretion. 2. Limits on Owning Other Real Estate: No member of an Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own real estate anywhere as of the date of purchase of the Affordable Housing unit, subject to the following exceptions: a. If the Eligible Household member is currently an owner of real estate, and he or she actively seeks to sell the existing unit and purchase an Affordable Housing unit contemporaneously. b. A member of an Eligible Household that owns other real estate may request a hardship exemption from this requirement, which may be granted at the sole discretion of the Program Administrator. c. A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the sole discretion of the Program Administrator. d. Exemptions for ownership of residential real estate in Eagle County will not be granted. e. Trust Ownership During ownership of an Affordable Housing unit, no Household member shall own any interest alone or in conjunction with others, in any other real estate. Real estate that is owned by a prospective Eligible Household of Affordable Housing may not deed that real estate to a corporation or other person or entity except at fair market value nor may real estate be deeded to a corporation or other legal entity in which the Household member has any financial interest in order to meet these requirements. Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 8 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 4.0.2 Application Process and Selection Criteria for Price Capped For Sale Housing units Households interested in purchasing Price Capped For Sale Housing units must submit an application to the Program Administrator to certify eligibility prior to submitting an offer to purchase a unit. Approved applicants who are interested in purchasing Price Capped For Sale Housing units will also be added to a master buyer list to be maintained by the Program Administrator. The application and any accompanying documentation will become the property of Program Administrator and will not be returned to the applicant. The Program Administrator will accept new applications throughout the year on a rolling basis. An applicant may update its application at any time. The application steps are as follows: 1. Obtain an application from the Program Administrator. 2. Provide evidence of employment by a Qualified Employer. 3. Provide evidence of residency in Eagle County. 4. Affirm on the application that your Household intends to live in the unit as your Primary Residence and that no members of your Household own other real estate. If necessary, an applicant may request an exemption regarding owning other real estate according to Section 4.0.1(b). 5. Provide a letter of prequalification from a mortgage lender for a mortgage with a fixed interest rate of at least 5 years duration or a statement of proof of funds and submit a copy to the Program Administrator. Reverse amortization mortgages are prohibited. 6. Supply a valid copy of a homebuyer education class certification. 7. Provide proof of funds for a down payment equal to at least 1% of the purchase price. Once basic eligibility has been met, the applicant submitting the highest and best offer (not to exceed the Maximum Resale Price) will have the first right to negotiate for the purchase of the unit. If two or more equal offers are received, those offers will be prioritized for selection based on the highest score using the criteria listed below. The Program Administrator will notify the applicant if additional proof of any of the following items is necessary. The following selection criteria applies to all resales of Price Capped For Sale Housing units: 1. 2 points for each calendar year of full time employment in Eagle County. Partial years shall be awarded points on a pro-rata basis. a. Provide evidence of employment by a Qualified Employer as follows: 1) the two most recent pay stubs and the W2(s) from your employer(s), and your most recent tax returns, or 2) employment contract or other documents that the Program Administrator deems necessary to make a determination, or 3) affidavit from employer verifying employment plus other documents that the Program Administrator deems necessary to make a determination. 2. 1 point for each calendar year of residency in Eagle County up to a maximum of 20 points. Partial years shall be awarded points on a pro-rata basis. Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 9 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 a. The applicant should provide evidence of Eagle County residency status as follows: 1) copy of lease or deed or property tax statement, or 2) utility statements from service provider, or 3) other documentation that the Program Administrator deems necessary to make a determination, such as voter registration information, place of automobile registration, driver's license address and income tax returns. 3. 5 points per Household for current owners of Affordable Housing units. 4. 5 points per Household member with special needs as defined by ADA. 5. 25 points for Households earning 140% of AMI or less. a. Total Household AMI shall be calculated from two of the most recent pay stubs or tax returns of all income earners. 6. 10 points for applicants with a household size of 3 or more members when applying for a unit with 3 or more bedrooms. 7. Points as mandated by all applicable intergovernmental and similar agreements. The following rules apply to the selection process described above: 1. The physical place of residency and employment is relevant; the applicant's mailing address is not. 2. If two individuals are applying jointly,their points will not be combined. 3. If two individuals are applying, joint income will be considered for Households earning less than 140%AMI. 4. All claims may be verified by the Program Administrator. Claims of residency or employment that cannot be verified will not be counted in determining length of employment or residency. 5. Eligible Households may have no more than two occupants per bedroom at any time. For example, a household of 5 people does not qualify for a two bedroom unit. 6. If there is a tie based upon the selection criteria above, the Program Administrator shall hold a lottery to determine the winning applicant. The drawing shall be held by the Program Administrator during regular business hours and witnessed by the applicants with equal point priority, if desired. 4.0.3 Application Process for Resident Occupied For Sale Housing units Households interested in purchasing Resident Occupied For Sale Housing units must submit an application to the Program Administrator to certify eligibility prior to submitting an offer to purchase a unit. The application and any accompanying documentation will become the property of Program Administrator and will not be returned to the applicant. The Program Administrator will accept new applications throughout the year on a rolling basis. The applicant may update an application at any time. The application steps are as follows: 1. Obtain an application from the Program Administrator. 2. Provide evidence of employment by a Qualified Employer as follows: 1) the two most recent pay stubs and the W2(s) from your employer(s), and your most recent tax returns, or 2) employment contract or other documents that the Program Administrator deems necessary to make a determination, or 3) Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 10 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 affidavit from employer verifying employment plus other documents that the Program Administrator deems necessary to make a determination. 3. Affirm on the application that your Household intends to live in the unit as your Primary Residence and that no members of your Household own other real estate. If necessary, an applicant may request an exemption regarding owning other real estate according to Section 4.0.1(b). There are no selection criteria for resales of Resident Occupied For Sale Housing units. 4.0.4 Trust Ownership An Eligible Household may seek a variance to allow the title of an Affordable Housing unit to be held in trust for the benefit of a natural person who also meets the definition of an Eligible Household member. Such ownership in trust may only occur in the circumstances provided herein and at the sole discretion of the Program Administrator. In order to request a variance from the strict application of these Guidelines, the applicant shall submit a letter requesting a special review to the Program Administrator as follows: 1. Affordable Housing units may be held in trust only for the benefit of a natural person who due to a physical or mental impairment lacks the capacity to contract or is prevented by such impairment from acquiring title to a unit in his or her own name. The letter shall include documentation of such impairment and the basis for ownership in trust. It should be noted that the applicant should submit any additional information reasonably requested by the Program Administrator to allow the Program Administrator to process this special request. 2. The beneficiary of the trust may not own other real property. 3. The beneficiary of the trust must be of the age of majority to qualify under this section. 4. The criteria set forth in the Administrative Procedures may be met so long as the trust pre-qualifies for a loan. Further the trust must prove an adequate means of ensuring that expenses associated with ownership, including, but not limited to association dues and expenses are met. 5. Upon receipt of a request for a special review and any requested information and documentation, the Program Administrator may grant the request with or without conditions, in a timely manner. 4.0.5 Rental of Affordable Housing by Qualified Employers for Employees Qualified Employers may purchase Affordable Housing and lease to employees who are members of Eligible Households. Qualified Employers may not impose additional deed restrictions to Affordable Housing without the written consent of the Program Administrator. 4.1 Owning Affordable Housing Section 4.1 addresses requirements for Households that own Affordable Housing units. Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 11 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 4.1.1 Maintaining Occupancy The owner of an Affordable Housing unit shall continue to use the unit as its exclusive and permanent place of residence. The owner of an Affordable Housing unit will be deemed to have ceased to use the unit as its Primary Residence by accepting permanent employment outside of Eagle County(employment in Pitkin or Garfield Counties are acceptable for units located in the Roaring Fork Valley), by residing in the unit for fewer than 9 months out of any 12 months, or by registering to vote outside of Eagle County. 4.1.2 Recertification Once an Affordable Housing unit has been purchased, it must continue to be owned and occupied only by an Eligible Household. On an annual date set by the Program Administrator, the owner of an Affordable Housing unit, shall submit the following information to the Program Administrator: 1. A verification that the owner continues to meet employment and residency requirements, as applicable; and 2. A statement that the owner owns no other real property with the exceptions provided for herein. The Program Administrator will provide a paper or electronic form. Failure to provide information as required by the Program Administrator and any applicable deed restriction may result in forfeiture of appreciation, a sale mandated by the Program Administrator, or any other available remedy at law or equity. 4.1.3 Leave of Absence A leave of absence for an owner of an Affordable Housing unit may be granted at the sole discretion of the Program Administrator, subject to clear and convincing evidence that shows the reason for leaving and a commitment to return. Said evidence shall be in written form and presented to the Program Administrator for review and decision prior to the owner leaving. The leave of absence shall be for one year and may, at the discretion of the Program Administrator, be extended up to one additional year, but in no event shall it exceed two years. In the case of an approved leave of absence, the owner shall only rent to an Eligible Household. Rents charged during a leave of absence may not exceed the lesser of 1) Maximum Rental Rates for Affordable Rental Housing at 100% AMI or 2) the owner's monthly housing expenses. The tenant must submit a complete application and receive approval from the Program Administrator. The owner shall provide a copy of the executed lease agreement between the owner and tenant to the Program Administrator. If an Affordable Housing unit is listed for sale and the owner has relocated outside of Eagle County, the unit may, upon approval of the Program Administrator, be rented to an Eligible Household prior to completion of the sale. 4.1.4 Short Term Leases Short term leases are not permitted in Affordable Housing (Price Capped For Sale, Price Capped Rental, Resident Occupied For Sale and Resident Occupied Rental units.) A short term rental is defined as a non-owner providing compensation to lodge in another owner's property for periods of less than thirty (30) days. Owners Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 12 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 shall not advertise any part of their Affordable Housing unit available for short term lease on any open, public forum such as Airbnb,VRBO, Homeaway or equivalent. 4.1.5 Foreclosure In the event of a foreclosure or of acceptance of a deed in lieu of foreclosure by the holder of a promissory note secured by a first deed of trust on an Affordable • Housing unit, ECHDA, Eagle County, or its assigns shall have the option to purchase the unit, which option shall be exercised as set forth in the deed restriction. The owner has an obligation to notify the Program Administrator in writing once the owner perceives a foreclosure difficulty. 4.2 Sales of Affordable Housing Units Section 4.2 addresses requirements for Households that are selling Affordable Housing units. 4.2.1 Listing Units All Affordable Housing units must be listed for sale with the Program Administrator or its designee or as specified by its deed restriction. The owner/seller of Affordable Housing must follow these steps: 1. Execute a standard Listing Contract on forms approved by the Program Administrator. 2. Consult with the Program Administrator to review the deed restrictions recorded against the unit to determine the Maximum Resale Price and other applicable provisions concerning a sale. 3. The Program Administrator shall administer the sale in accordance with the requirements in effect at the time of listing. 4. The owner may consult legal counsel regarding examination of title and all contracts, agreements and title documents. The retention of such counsel, licensed real estate brokers, or such related services(excluding all sales fees), will be at the owner's own expense and shall not be included in the calculation of the Maximum Resale Price. 4.2.2 Inspection Prior to Sale The Owner shall commission a listing inspection by a listing inspector certified by the Program Administrator before executing a listing contract to determine the condition of the unit. 1. The owner shall pay for the cost of the inspection at the time of inspection. 2. The inspector shall furnish a written report to the owner and the Program Administrator. 3. This information shall be furnished to the purchaser as a part of the seller's property disclosure once a purchase contract has been executed. 4. The inspection will be valid for no more than 60 days. The owner shall replace or repair any items that are identified as unsatisfactory in the report at market value or reduce the listing price accordingly. Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 13 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 4.2.3 Sales Fees Unless otherwise set forth in the deed restriction recorded against an Affordable Housing unit, at the closing of the sale, the owner/seller shall pay the Program Administrator or its designee a sales fee of 2% (two percent) of the sale price. 1. The owner/seller must deposit 1/2% (one half percent) of the list price with the Program Administrator upon listing the unit for sale, known as the listing deposit. 2. In the event that the owner/seller fails to perform under the listing contract, rejects all offers, or withdraws the listing after advertising has commenced, the owner/seller shall not be refunded the listing deposit. 3. The listing deposit shall be considered a budgeted amount for advertising and administrative costs that will be incurred by the Program Administrator. If the Program Administrator incurs any additional costs, the owner/seller will be notified in advance by the Program Administrator and shall be responsible for those additional costs. 4.2.4 Closing Costs Sellers of Affordable Housing shall not permit any prospective buyer to assume any of the seller's customary closing costs, including the fees set forth herein, nor accept any other consideration that would increase the purchase price above the Maximum Resale Price so as to induce the seller to sell to such prospective buyer. 4.2.5 Maximum Resale Price No owner of a Price Capped For Sale Housing unit shall sell the unit for an amount greater than the Maximum Resale Price for the unit. Maximum Resale Price will be calculated as follows: Base Price + Appreciation of Base Price + Permitted Capital Improvements - Depreciation of Capital Improvements + Sales Fee = Maximum Resale Price. There are no resale price limitations on Resident Occupied For Sale Housing units. 4.2.6 Increases to Base Price and Permitted Capital Improvements Certain improvements to a unit may be included in a unit's Maximum Resale Price. The following list outlines the costs that may be included in an owner's Base Price and a depreciation schedule for Permitted Capital Improvement items. Base Price items are not counted against the Permitted Capital Improvement allowance. Base Price items: • Purchase price, including garage, lot premium or other developer inclusions The following items may be included in base price with the written approval of the Program Administrator prior to the commencement of the work: • Structural addition or addition of livable space including bathrooms, bedrooms, exterior door, interior doors, baseboard, window casing, insulation and plumbing(excluding fixtures) • Modifications or improvements to accommodate a person with a disability as defined in the Americans with Disabilities Act of 1 990 • Roof replacement Permitted Capital Improvements depreciated on 5 year schedule: Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 14 DocuSign Envelope ID: 1Ar4* • Replaced appliances • Washer and dryer(including stackable) • Carpet upgrades including pad • Permanent fitted window blinds • Garage door openers • Gutters and downspouts • Security system • Electric fireplace • Exterior paint • Ceiling fans • Storm doors • Laminate flooring • Building permit fees • Improvements for health and safety protection Permitted Capital Improvements depreciated on 20 year schedule: • Flooring and countertop upgrades including hardwood, stone, slate, granite, marble, tile, etc. • Trees and permanent landscaping including sod, concrete pads, concrete pavers, etc. • Light fixtures(electrical fixtures &wiring) • Plumbing fixtures including sinks and toilets • Cabinets including vanities • Closet organization systems • Outdoor decks • Irrigation system • Fencing • Gas fireplace • Windows • Solar Panels • Asphalt roof shingles (single family&duplex only) Items which are NOT Permitted Capital Improvements: • All work performed without the issuance of a building permit. • Jacuzzis, saunas, steam showers, hot tubs, etc. • Maintenance of existing fixtures, app|iances, plumbing, mechanical systems, painting, cleaning, etc. and improvements to existing fixtures. • Decorative items including window coverings,lamps and lighting not affixed to walls or ceilings, bath towel bars and hooks, etc. • Interior paint • Cost of tools • Equipment Rental • Removable items not attached to the unit. Unless otherwise identified in the recorded deed restr|ction, the actual costs of Permitted Capital Improvements made to a unit shall not exceed 10% of the Initial Sales Price for a five-year term, regardless of changes in ownership. For every subsequent five-year period, an additional 10% of the value of the unit at the beginning of that five-year period may be added into the value as Permitted Capital Improvements. The five-year period for Permitted Capital Improvements shall not Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 15 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 reset merely upon resale. No costs incurred in one five year term may be rolled into a different five year term. For an owner to request that Base Price Improvements and/or Permitted Capital Improvements be added to the Maximum Resale Price, he or she must comply with the following: 1. Upon completion of the work, Program Administrator requests the following: a. Legible copies of receipts and invoices b. Proof of payment by a third party c. Owners must retain original receipts and invoices 2. In calculating the costs allowed as Permitted Capital Improvements, only the owner's actual out of pocket costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to owner's labor, or that of their employees or business, or to any appreciation in the value of these improvements. 3. If an owner pays cash for improvements, the owner must provide third party documentation of payment. An owner must have an invoice for improvements, but if no such documentation of proof of cash payment can be produced, the Program Administrator can inspect the improvement completed in the unit. Up to 75% of documented invoice value may be included after an inspection, subject to depreciation, at the Program Administrator's sole discretion. 4. Work that requires and is performed without the issuance of all required building permits or property owners' association approval will not be included as a Base Price or Permitted Capital Improvement. 5. The value of the Permitted Capital Improvements will be added to the appreciated value of the unit at the time of sale. No appreciation is allowed on Permitted Capital Improvements. 6. Other improvements to the Affordable Housing unit are allowed, but adjustments to the Maximum Resale Price will only be given for Base Price and Permitted Capital Improvements. If a Base Price improvement and/or Permitted Capital Improvements or an improvement included in the Base Price of the unit is removed or is no longer operational, the actual cost of the improvement shall be deducted from the Base Price or Permitted Capital Improvement schedule. No other categories or types of expenditures may qualify as Permitted Capital Improvements unless pre-approved in writing by the Program Administrator. 4.2.7 Other Title Transfers In the event that title to an Affordable Housing unit transfers, through descent or other method, to a person or entity that is not an Eligible Household, the Non-Eligible Household must notify the Program Administrator of its intent as outlined below within 90 days of taking title to the unit. 1. The Non-Eligible Household may list the unit for sale, following the procedures outlined herein. 2. The Non-Eligible Household shall have one year to become an Eligible Household. In the event the Non-Eligible Household is unable to become an Eligible Household in one year then the unit shall be listed for sale as provided herein. Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 16 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 3. Non-Eligible Households shall not: 1) occupy the Affordable Housing unit; 2) rent all or any part of the Affordable Housing unit, except in strict compliance with these Guidelines; 3) engage in any other business activity on or in the Affordable Housing unit; 4) sell or otherwise transfer the Affordable Housing unit except in accordance with these Guidelines or corresponding deed restriction. 4. The Program Administrator may require the Non-Eligible Household to rent or sell the Affordable Housing unit in accordance with the provisions of these Administrative Procedures. Chapter 5 — Information for Renters or Managers of Price Capped and Resident Occupied Rental units 5.0 Application Process Only Eligible Households may rent Price Capped and Resident Occupied Rental units, unless prohibited by other funding sources. Households must meet all other requirements of the deed restriction. The owner/manager must document how eligibility and income was confirmed and must keep a record of any documents supporting the eligibility determination. 5.1 Annual Verification The owner of the Price Capped and/or Resident Occupied Rental units must verify annually that the property, deed restricted units and tenants are in compliance with the deed restriction requirements. The Owner shall submit a written statement to the ECHDA including the following information and certifying that such information is true and correct to the best of the Owner's knowledge and belief. 1. A list of tenants who occupy the deed restricted units in the prior calendar year and the evidence submitted by such tenants to establish that their Households were Eligible Households 2. A copy of the lease form currently used for the deed restricted units 3. Copies (which may be electronic) of all application informations submitted by the Eligible Households occupying the deed restricted units Owner or its Property Manager shall make Owner's records with respect to the use and occupancy of the deed restricted units available to ECHDA or its authorized agent for inspection upon request for audit to confirm compliance with the recorded deed restriction. Chapter 6- Grievance Procedures A grievance is any dispute that a unit owner or potential purchaser may have with Eagle County or the Program Administrator with respect to action or failure to act in accordance with the rights, duties, welfare, or status of these persons or entities under these Guidelines. Procedures for filing such a grievance are as follows: 1. A written grievance must be presented to the Program Administrator. It shall specify: a. The particular grounds) upon which the grievance is based; b. The action requested; and Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 17 DocuSign Envelope ID: EAoC531AF44 c. The name, address, telephone number, email address of the complainant and similar information about his/her representative, if any. 2. Upon presentation of a written grievance, the Program Administrator shall meet with the complainant to review the grievance and resolve the issue, if possible. 3. If the issue is not resolved, the complainant may request a hearing before the B0CC. Rules for the hearing before the B0CC follow the provisions of the Eagle County Land Use Regulations. Chapter 7-Tables Table 7.1 - Maximum Initial Sales Price Calculations Table 7.1 -Maximum Initial Sales Price Calculations updated 9/32/2020 Studio 1 Bdrm 2 Bdrm 3 Bdrm 4 Bdrm Household Size 1 1.5 3 4.5 6 180%AMI $ 89.930 $ 70'020 $ 88.910 $103,896 $115'884 Max Monthly Housing Payment 30% $ 1,748 $1,998.00 $ 2,248 $ 2,597 $ 2,897 Property Tax, Insurance, HOA 20qh $ 350 $ 400 $ 450 $ 519 $ 579 Max Mortgage Payment $ 1.399 $ 1,598 $ 1,798 $ 2,078 $ 2,318 Maximum Mortgage Amount* $Z21'000 $ 252,000 $284'000 $328,000 $365,000 Less: Closing Costs** 1.5% $ 3,315 $ 3,780 $ 4.260 $ 4'920 $ 5,475 Plus: Downpayment 10% $ 24,924 $ 28'420 $ 32'020 $ 36,991 $ 41,164 Maximum Sales Price $249,239 $ 284,200 $32U'Z8y $369'811 $411.b]9 *Assumes a mortgage amortized over 30 years with an interest rate of 6,53%which was determined by using the FHLMC(Freddie Mac)mortgage rate average over 30 years. ** Includes all closing casts such as Origination Fees, Recording Fee, Document Fees,Appraisal,Title Fees. Table 7,2- Maximum Monthly Rental Rates Table 7.2-Maximum Monthly Rental Rates HUD Release Date updated 6/4/2020 Unit Size Studio 1 Bdrm 2 Bdrm 3 Bdrm 4 Bdrm 140% $ 2'448 $ 2,822 $ 3,147 $ 3'636 $ 4'056 1204@ $ 2,098 $ 2,248 $ .2,697 $ 3,117 $ 3,477 1009t $ 1,748 $ 1,873 $ 2,248 $ 2,597 $ 2,897 80% $ 1,399 $ 1,499 $ 1,798 $ 2,338 $ 2,318 E 75% $ 1,311 $ 1,405 $ 1,686 $ 1,948 $ 2.173 o 70% $ 1,224 $ 1 �11 $ 1 �9� $ 1,818 $ 2,028 ' ' 60% $ 1,049 $ 1,124 $ 1,349 $ 1'558 $ 1,738 50% $ 874 $ 937 $ 1,124 $ 1,299 $ 1,449 All ongoing fees required to be paid by a resident(including but not limited to utilities and mandatory parking fees)must be included within the Maximum Rental Rate. Rents based on 13 persons per bedroom. Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 18 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Table 7.3- Commercial Job Generation Table 7.3-Commercial Job Generation jobs per • Type of Business 1,000 sf Overall 2.8 Bar/Restaurant 8.7 Construction 5.4 Education 1.3 Office(Finance/Banking, Legal,Medical, Prof. Services) 3.7 Government 1.8 Real Estate/Property Management(office) 6.1 Retail Sales 3.0 Service(personal and commercial service) 1.9 Recreation/Attraction/Amusements 5.5 Utilities 1.4 Source: Eagle County Nexus/Proportionality Analysis for Commercial Development/Workforce Housing Linkage January 2008 Table 7.4-Conversion of Jobs Generated to Affordable Housing Demand Table 7.4-Conversion of Jobs Generated to Affordable Housing Demand Jobs generated per 1,000 sf of commercial space* 2.80 jobs Jobs translated to employees(#jobs per employee) 1.2 2.33 employees Employees translated to households(#employees per household) 1.8 1.30 households Application of mitigation rate 45% 0.58 housing units Housing units translated to square footage 1,221 712 square feet *This number shall be adjusted for type of commercial space being constructed.An applicant can use the numbers from Table 6.3 or from its own analysis, subject to BoCC approval. Table 7.5-Calculation of Payment In Lieu Table 7.5-Calculation of Payment In Lieu Fee Area Median Income for family of 3 $ 89,910 Maximum Initial Sales Price $320,289 Average Deed Restricted Unit Size 1,221 Affordable Price per Square Foot $ 262.32 Market Price per Square Foot $ 411.25 Administrative Fee 15% Payment in Lieu per Square Foot $ 171.27 Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 19 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Table 7.6-Area Median Incomes Table 7.6-Area Median Incomes HUD Release Date April 1,2020 Household Size 1 person 2 person 3 person 4 person 5 person 6 person 160% $ 111,888 $ 127,872 $ 143,856 $ 159,840 $ 172,627 $ 185,414 140% $ 97,902 $ 111,888 $ 125,874 $ 139,860 $ 151,049 $ 162,238 E 120% $ 83,916 $ 95,904 $ 107,892 $ 119,880 $ 129,470 $ 139,061 v 100% $ 69,930 $ 79,920 $ 89,910 $ 99,900 $ 107,892 $ 115,884 E 80% $ 55,944 $ 63,936 $ 71,928 $ 79,920 $ 86,314 $ 92,707 60% $ 41,958 $ 47,952 $ 53,946 $ 59,940 $ 64,735 $ 69,530 50% $ 34,965 $ 39,960 $ 44,955 $ 49,950 $ 53,946 $ 57,942 Table 7.7- Historical Wage Appreciation Data Table 7.7- Historical Wage Appreciation Data updated 9/30/2020 US Department of Labor Average Weekly Wages for Eagle County Annual Year Q1 Q2 Q3 Q4 Annual Increase 2002 $578 $624 $603 $ 668 $ 617 2003 $609 $636 $638 $ 685 $ 641 3.89% 2004 $599 $670 $659 $ 724 $ 662 3.28% 2005 $645 $674 $709 $ 777 $ 701 5.89% 2006 $730 $704 $776 $ 791 $ 750 6.99% 2007 $741 $747 $759 $ 824 $ 768 2.40% 2008 $774 $752 $781 $ 837 $ 786 2.34% 2009 $725 $735 $770 $ 806 $ 757 -3.69% 2010 $692 $730 $768 $ 814 $ 749 -1.06% 2011 $703 $742 $771 $ 793 $ 751 0.27% 2012 $726 $754 $743 $ 794 $ 754 0.40% 2013 $740 $768 $775 $ 834 $ 778 3.18% 2014 $757 $791 $793 $ 871 $ 802 3.08% 2015 $789 $819 $812 $ 899 $ 829 3.37% 2016 $787 $827 $852 $ 890 $ 838 1.09% 2017 $852 $833 $858 $ 918 $ 865 3.22% 2018 $856 $839 $888 $ 945 $ 882 1.97% 2019 $902 $890 $933 $1,015 $ 935 6.01% 2020 $959 * Preliminary, subject to change Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 20 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Table 7.8-Size of Deed Restricted Units in Eagle County Table 7.8 Size of Deed Restricted Units Average Deed Restriction #Units SF Total SF Miller Ranch 282 1,310 369,459 Brett Ranch 156 1,163 181,362 Red Draw 4 900 3,600 Riverwalk 59 892 52,620 Bluffs 4 1,716 6,864 Avon 62 727 45,104 Vail* 100 1,255 125,497 Eagle 23 1,549 35,628 Eagle Ranch 51 1,398 71,317 ERWSD-various locations 57 1,302 74,216 Stratton Flats 21 1,652 34,692 Total/Average 819 1,221 1,000,359 *Price capped only Table 7.9- Example of Small Development Project Table 7.9 Example of Small Development Project SF in Excess Unit Size Average Size of of Avg DR Unit (SF)* DR Unit Unit 1 3,918 n/a - 2 3,918 n/a - 3 3,918 n/a - 4 3,918 1,221 2,697 5 - - - 6 - - - 7 - - - 8 - - - 9 - - 10 - - - 15,672 2,697 Mitigation Rate based on Square Footage 15% Total Square Feet of Affordable Housing required 405 * Units must be listed in ascending order from smallest unit to largest unit. Eagle County Affordable Housing Guidelines;Administrative Procedures- Page 21 DocuSign Envelope ID:E939E9B3-05FC-4485-8340-2EA0C531AF44 Table 7.10-Affordability Gap Table 7.10 Affordability Gap Average Median Home Weekly AverageAffordability Town/NeighborhoodHousehold Sales Price * Wage(byGap Buying Power** zip code) Beaver Creek, Bachelor Gulch $1,395,000 $812 $ 384,090 $ 1,010,910 Cordillera, Lake Creek $1,703,750 $1,011 $ 477,400 $ 1,226,350 Vail $1,170,790 $1,009 $ 477,400 $ 693,390 Arrowhead $1,435,000 51,011 $ 477,400 $ 957,600 Wolcott $852,500 $1,146 $ 541,415 $ 311,085 CO-1.0)*(16 $725,O&) $90 4i6;11Q, Edwards $786,000 $1,011 $ 477,400 $ 308,600 Basalt(in Eagle County) $728,000 $915 $ 432,915 $ 295,085 El Jebel(in Eagle County) $700,000 $918 $ 434,000 $ 266,000 Minturn, Red Cliff $715,000 $901 $ 426,405 $ 288,595 Eagle $573,750 $955 $ 451,360 $ 122,390 EagleVail $685,000 $812 $ 384,090 $ 300,910 Avon $563,000 $812 $ 384,090 $ 178,910 Rural(in Eagle County) $568,762 $845 $ 399,280 $ 169,482 Gypsum $423,750 $910 $ 429,660 $ (5,910) * Based on 2019 residential improved transactions ** Based on 2 workers per household using 2019 QCEW wage data, mortgage rate of 4.541: Table 7.11 - Historical Freddie Mac 30-Year Mortgage Rates Table 7.11 Historic Mortgage Rates-Freddie Mac updated 614/2020 Year Rate Points Year Rate Points 1 1990 10.13% 2.10% 17 2006 6.41% 0.55% 2 1991 9,25% 2.00% 18 2007 6.34% 0.40% 3 1992 8.39% 1.70% 19 2008 6.03% 0.60% 4 1993 7.31% 1.60% 20 2009 5.04% 0.70% 5 1994 8.38% 1.80% 21 2010 4.69% 0.70% 6 1995 7.93% 1.80% 22 2011 4.45% 0.70% 7 1996 7.81% 1.70% 23 2012 3.66% 0.70% 8 1997 7.60% 1.70% 24 2013 3.98% 0.70% 9 1998 6.94% 1.10% 25 2014 4.17% 0.60% 10 1990 7.44% 1.00% 26 2015 3.85% 0.60% 11 2000 8.05% 1.00% 27 2016 3.65% 0.50% 12 2001 6.97% 0.90% 28 2017 3.99% 0.50% 13 2002 6.54% 0.60% 29 2018 4.54% 0.50% 14 2003 5.83% 0.60% 30 2019 3.94% 0.50% 15 2004 5.84% 0.70% Average Rate 6.17% 0.97% 16 2005 5.87% 0.60% Points 0.36% * All-In Rate 6.53% * 1 point typically buys between .25k and .5096 interest rate reduction Eagle County Affordable Housing Guidelines;Administrative Procedures-Page 22