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HomeMy WebLinkAboutR24-100 Expandin the ADU Program - Eagle County Housing and Development Authority - Bold Housing Moves Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F Commissioner Chandler-Henry moved adoption of the following resolution: BOARD OF EAGLE COUNTY COMMISSIONERS EAGLE COUNTY, COLORADO RESOLUTION NO. 2024- 10o RESOLUTION EXPANDING THE AID FOR ADUS PROGRAM,AN ACCESSORY DWELLING UNIT ("ADU") LOAN PROGRAM,AND AUTHORIZING THE EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY TO ACT AS THE FISCAL AGENT FOR THE COUNTY, TO ADMINISTER AND ENFORCE THE AID FOR ADUS PROGRAM,AND TO EXECUTE DOCUMENTS ASSOCIATED WITH THE SAME WHEREAS, on July 27, 2021, the Eagle County Board of County Commissioners ("Board") authorized financial resources for the Eagle County Housing and Development Authority's Bold Housing Moves, a series of housing programs, including an Accessory Dwelling Unit("ADU") Loan program, called the Aid For ADUs Program("ADU Program"), designed to address the growing housing challenges among local residents in Eagle County; and WHEREAS, on May 23, 2022, the Board adopted Eagle County Resolution No. 2022-043, which authorized the Eagle County Housing and Development Authority("ECHDA") to act as the fiscal agent for the County and to administer and enforce the ADU Program; and WHEREAS,Resolution No. 2022-043 further adopted the Aid for ADUs Program Guidelines, which authorized the ECHDA to make a loan of up to one-hundred thousand dollars • ($100,000) to an Owner of property located in Eagle County in exchange for the construction or conversion of an ADU on the property, which ADU would be rented to an Eligible Household during the term of the loan at a rental rate that does not exceed 100% of area median income rental rates; and WHEREAS, the Board now desires to expand the ADU Program and authorize the ECHDA to act as the fiscal agent for the County and to administer the ADU Program in accordance with the revised Aid for ADUs Program Guidelines established by the ECHDA and attached hereto and incorporated by reference as Exhibit A. Through the expanded ADU Program, the ECHDA may make a loan of up to one-hundred and fifty thousand dollars ($150,000.00) to an Owner of property located in Eagle County in exchange for the construction or conversion of an ADU on the property, which ADU would be rented to an Eligible Household at a rental rate that does not exceed the rental rates determined by 100% AMI for Eagle County to include utilities and fees, as published by the Colorado Housing and Finance Authority, to tenants earning no more than 100% of the area median income. The term of the loan will be 15 years and the loan will be secured by a Promissory Note and Deed of Trust on the property. The loan shall be serviced by Impact Development Fund, including loan application and credit reporting. The aforementioned restrictions shall be included in a 15 year deed restriction to be recorded against Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F the property; and WHEREAS, the Board further desires to continue to delegate to the ECHDA, through its Executive Director("Director") and/or The Valley Home Store ("TVHS"), the authority to negotiate and enter into documents to include a Promissory Note and Deed of Trust, in a form administered by Impact Development Fund; to authorize the Impact Development Fund to hold and service the loans; to record a deed restriction against the property pertaining to the use and occupancy of the ADU for 15 years; and to authorize the Director to execute documents that may be required at the closing of the loan, subject to prior review and approval by the Eagle County Attorney's Office; and WHEREAS,the Aid For ADUs Program will create additional rental units to those who qualify as Eligible Households, as that term is defined in the Eagle County Affordable Housing Guidelines. NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF THE BOARD OF COUNTY COMMISSIONERS, COUNTY OF EAGLE, STATE OF COLORADO: THAT, the Board hereby delegates to the ECHDA the authority to act as the fiscal agent for the County and to administer and enforce the Aid For ADUs Program in accordance with the guidelines established by the ECHDA, including use of Impact Development Fund's program services. THAT, the Board hereby delegates to the ECHDA, through its Director and/or The Valley Home Store ("TVHS"), the authority to negotiate and enter into legal documents to include a Promissory Note and Deed of Trust administered by Impact Development Fund; to authorize the Impact Development Fund to hold and service the loans; to record deed restrictions, and to authorize the Director to execute documents that may be required at the closing of the loan, subject to prior review and approval by the Eagle County Attorney's Office. THAT this Resolution is necessary for the health, safety and welfare of the people of Eagle County, Colorado. [Signature page to follow] 2 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F MOVED,READ AND ADOPTED by the Board of County Commissioners of the County of Eagle County, State of Colorado, at its regular meeting held this 17th day of December, 2024. (-- Signed by: � � COUNTY OF EAGLE, STATE OF to, �y� COLORADO, By and Through Its c BOARD OF COUNTY COMMISSIONERS ATTEST: Signed by: Signed by: LItiti1' 61 'I5viun, Sd u r F0DR2r21 061^0. By: B,E7u2D7,8.0^73 Clerk to the Board of Matt Scherr County Commissioners County Commissioners Chair DocuSigned by: 1, Ce^AC128ceep^7e Jeanne McQueeney Commissioner p—Signed by:641 A-ukr1i —8oA681 FrEes84403... Kathy Chandler-Henry Commissioner Commissioner McQueeney _seconded adoption of the foregoing resolution. The roll having been called, the vote was as follows: Commissioner Scherr Aye Commissioner McQueeney Aye Commissioner Chandler-Henry Aye This resolution passed by 3/0 vote of the Board of County Commissioners of the County of Eagle, State of Colorado 3 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F EXHIBIT A Aid For ADUs Program Guidelines 4 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F fl HOUSING EA Aid For ADUs Program Phase II I Program Guidelines COUNTY GLE These Guidelines are subject to change based on availability of funds, conditions of property, and market conditions. ECHDA does not discriminate on the basis of race, color, sex, religion, handicap, familial status, sexual orientation, gender identity, or national origin. The Aid For ADUs Program is a loan program to support an existing property owner ("Owner")with a low cost Loan for the construction or conversion of existing space into an Accessory Dwelling Unit ("ADU") on the Owner's property, where permitted. Through the Aid For ADUs Program, the Eagle County Housing and Development Authority ("ECHDA") may provide up to one hundred fifty thousand dollars ($150,000) to the Owner in the form of a Loan, secured by a Promissory Note and Deed of Trust. In exchange, the Owner will place a 15 year Deed Restriction on the property requiring that the ADU be leased to an Eligible Household that makes no more than 100% of the area median income at a rental rate that does not exceed the rental rates determined by 100% AMI for Eagle County, to include utilities and fees, as published by the Colorado Housing and Finance Authority. Furthermore, a condition of the loan is that the Owner shall rent the ADU to an Eligible Household with income and rental rate limits. No short term rentals are permitted. Throughout Eagle County, ADUs have different names. Names may include, but are not limited to, in-law apartments, secondary suites, garage apartments, or lock-offs. The definition of an ADU for the purpose of this program is a dwelling unit subordinate to the principal use of the property which contains kitchen facilities (including a sink and stove or oven in a room or portion of a room devoted to the preparation of meal), a bathroom (including toilet, sink, and shower or bathtub), and living and sleeping area(s), separate from the principal use of the property with no dependence upon the principal use of the property for essentials. An ADU may be located within or attached to the structure containing the principal use of the property, or it may be detached from that structure. ADUs may be constructed within commercial areas or structures. The Owner is solely responsible for confirming that ADUs are permitted on the Owner's property, for obtaining any required approvals or permits from the local governing jurisdiction, and for compliance with all rules and regulations of such jurisdiction, including all building code requirements. Purpose and Intent This Program is intended to allow an Owner to construct or convert living space of Program for an ADU that shall be rented to an Eligible Household at a rental rate that does not exceed the rental rates determined by 100% AMI for Eagle County, to include utilities and fees, as published by the Colorado Housing and Finance Authority to those Eligible Households earning no more than 100% of area median income. The intent of the program is to create new housing units for the year round Renter at attainable rental rates. Eligible Households An Eligible Household is defined by the most recent Eagle County Affordable Housing Guidelines and Administrative Procedures and subject to policies contained therein. Eligible Property This program will support the construction or build-out of ADUs within, attached, or detached to existing structures containing the principal use of the property that Effective December 2024 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F fl HOUSING EAGLE Aid For ADUs Program Phase II Program Guidelines COUNTY 9 � 9 are on a permanent foundation and taxed as real property within the jurisdictional boundaries of Eagle County. The Owner is responsible for completion of all due diligence and for confirming property eligibility based on zoning and local regulations at time of application. Proof of approval from Homeowners Association(s), Design Review Board, and municipality or Eagle County, as applicable may be required. Copy of building permits or building permit applications and associated plans and cost estimates may also be required. Property must be owned by the Owner at the time of application. Owner The Owner is the owner of an Eligible Property within Eagle County. If an Eligible Property is not owned by an individual(s), proof of ownership is required. Renter The Renter is required to be an Eligible Household and use the ADU as a primary residence, as defined in the Eagle County Affordable Housing Guidelines. This program shall have an income limit to rent to those making 100% area median income or less at the time of application. Loan A Loan may be issued to the Owner for up to one hundred fifty thousand dollars ($150,000) for the construction of an ADU on the Owner's property. Determination of the Loan amount is made by the Program Administrator based on review of the cost estimates for construction of the ADU, including any . architectural and other consulting fees. Loan Program The term of the Loan shall be fifteen (15) years ("Term"). During the first year or twelve (12) months of the Term (the "initial period"), the Loan shall not carry any interest and no Loan payments shall be due. After the expiration of the initial period, the Loan shall carry a maximum simple interest rate of three percent(3%) annually for the remainder of the Term or until the Loan is paid in full, whichever occurs first. Loan payments of principal and interest may be made on an annual basis. Promissory The Loan will be evidenced by a Promissory Note ("Note"), which is otherwise Note and Deed of considered a Loan, secured by a deed of trust recorded against the property Trust ("Deed of Trust"). The Deed of Trust will be released upon full payment of the Note. The Deed of Trust shall contain a requirement that the ADU be rented to and occupied by an Eligible Household at all times during the Term of the Loan in accordance with the Rental Requirement set forth below, recorded against the property for the Term of the Loan, and that certification/recertification of the Renter occur annually. This lien shall only be in first or second position, or no more than 90% loan to value based on appraised value. Lender may accelerate and declare all Note principal and accrued interest to be immediately due and payable in full upon notification of any of the following events: (i) Loan proceeds are used for something other than ADU construction; Effective December 2024 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F fl HOUSING EAOGLEY Aid For ADUs Program Phase II I Program Guidelines COUNTY (ii) the ADU is rented to someone other than an Eligible Household; (iii)the ADU is rented on a short term basis; (iv)the Owner fails to certify or recertify a Renter; (v) the Loan is not paid when due in accordance with the Note (vi) the unit remains vacant for a period of 90 days or greater, and/or; (vii) the rental rate exceeds the rental rates determined by 100% AMI for Eagle County, to include utilities and fees, as published by the Colorado Housing and Finance Authority. Upon any such event of default, the Loan shall be immediately due and payable. Loan Repayment If a sale or refinance of the Property occurs within the Term of the Loan, the Loan may be re-subordinated with the new buyer under certain conditions. Partial payments may be accepted, and a Loan can be repaid in full at any time without penalty. The Owner must notify the Program Administrator at least thirty (30) days prior to a sale or refinance of the Property. Deed Restriction The Deed Restriction ("Restriction") will be recorded against the property, specifically identifying the ADU, for a term of 15 years. The Restriction will limit the use of the ADU to comply with the program guidelines per the recorded document. The Restriction shall contain a requirement that the ADU be rented to and occupied by an Eligible Household at all times during the Term of the Restriction in accordance with the Rental Requirement set forth below and that certification/recertification of the Renter occur annually. The Restriction shall not be released for any reason before the end of the term. Rental Requirement The Owner shall rent the ADU to an Eligible Household that meets the following: • Eligible Household must meet the definition in the Eagle County Affordable Housing Guidelines. • The rental rate shall not exceed the rental rates determined by 100%AMI for Eagle County, to include utilities and fees, as published by the Colorado Housing and Finance Authority. • Renter shall earn incomes below 100% AMI when initially qualified for the program. • Parking must be available, identified in the lease, and assigned to Renters of the ADU. • Other terms as outlined in the Eagle County Affordable Housing Guidelines. Eligible The Owner must collect application materials from a potential Renter and shall Effective December 2024 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F fl HOUSING EA Aid For ADUs Program Phase II I Program Guidelines COUNTY GLE Household provide documentation to ECHDA, who will review and provide a letter to the Approval/ Owner approving or denying the Eligible Household. The Owner shall provide the Certification ECHDA with a copy of the signed lease and shall notify the ECHDA immediately upon any termination of the lease for nonpayment or breach of lease terms. The Owner shall certify the eligibility of Renter as an Eligible Household at any new lease signing or renewal. Certification includes the Renter's proof of employment in Eagle County, taxes filed for the previous year's income, and proof of residency in Eagle County. Recertification Recertification is required annually. If the Owner fails to provide certification or recertification documents for the current year based on the compliance above, the Loan may become immediately due and payable at the ECHDA's discretion. Certification or recertification documents will include at a minimum a fully executed lease and proof of the Renter's full time employment in Eagle County. Additional documentation may be required and will be outlined in the application. Rental Rate The ADU shall be rented for no more than the rental rates determined by 100% AMI for Eagle County to include utilities and fees, as published by the Colorado Housing and Finance Authority. If the Owner is unable to rent the ADU for rental rates determined by 100% AMI in Eagle County for more than 60 days, the rent should be reduced to a reasonable market rate as determined by prevailing market conditions and as approved by the Program Administrator. Occupancy The ADU must remain rented to an Eligible Household for the term of the Loan on a year round basis. If the unit remains vacant for a period of 90 days or greater, the Owner must provide proof of inability to rent to the Program Administrator. Short Term Rental The ADU shall not be eligible for short-term rental. Short term rentals are defined Provision in the Eagle County Affordable Housing Guidelines 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 ADU available for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway, or equivalent platforms. Program Application Applications are received on a first come, first serve basis to be time and date stamped in order of completed applications. A complete application requires proof of ownership of the property, permission for ADU buildout from Eagle County or other governing jurisdiction, any applicable homeowners' association, or municipality, design plan, necessary construction permits, Owner credit reports, title commitment or Ownership and Encumbrance report, photo identification, and/or other documents deemed necessary by the Program Administrator. Applications will be approved at the discretion of the Program Administrator, subject to program guideline applicability and available funds. All aspects of the ADU Program eligibility and approval are at the sole exclusive discretion of the Effective December 2024 Docusign Envelope ID:409BA2FB-62AD-4484-944C-096A60A3DA3F fl HOUSING EAGLE Aid For ADUs Pro ram Phase II Pro ram Guidelines COUNTY g g Program Administrator and availability of funds. These Guidelines are subject to change and changes are binding upon the applicant. Applications may be denied based on the physical condition of the proposed property and/or the ADU design. The Program Administrator will review an Owner's credit, an updated Owner and Encumbrance title report, and other applicable documentation. Application Review and approval will occur within seven (7) business days of receipt by the Processing Program Administrator. Upon notification of approval, the Owner will be referred to the Loan servicer, Impact Development Fund, to apply for the Loan. Expect a minimum of 30 days for approval and processing from the Loan servicer. Application Fee An origination fee shall be charged by the Loan servicer at the time of closing. Other In the event of policy conflict between this Program and the Eagle County Affordable Housing Guidelines and the Administrative Procedures, the Aid For ADUs Program Guidelines shall control. Program Guidelines may be amended from time to time to effectuate the intent and goals of the Program, and all changes are binding upon program participants. Program ECHDA and/or the TVHS or other as assigned by Eagle County. Loan servicing Administrator provided by the Impact Development Fund. More information www.housingeaglecounty.com or call (970) 328-8700. EQUAL HOUSING OPPORTUNITY Effective December 2024