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HomeMy WebLinkAboutR22-044 Housing - Long Term Rental Incentive Program DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA Commissioner Chandler-Henry moved adoption of the following resolution: BOARD OF EAGLE COUNTY COMMISSIONERS EAGLE COUNTY,COLORADO RESOLUTION NO. 2022-044 RESOLUTION AUTHORIZING THE RENT LOCAL PROGRAM, A LONG TERM RENTAL INCENTIVE PROGRAM,AND AUTHORIZING THE EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY TO ACT AS THE FISCAL AGENT FOR THE COUNTY, TO ADMINISTER THE RENT LOCAL PROGRAM AND TO EXECUTE DOCUMENTS ASSOCIATED WITH THE SAME WHEREAS, on July 27, 2021,the Eagle County Board of County Commissioners ("Board") authorized the Eagle County Housing and Development Authority's Bold Housing Moves, a series of innovative housing programs, including the Rent Local Program ("Rent Local Program"), a long term rental incentive program, designed to address the growing housing challenges among local residents in Eagle County; and WHEREAS,the Board desires to delegate to the Eagle County Housing and Development Authority ("ECHDA")the authority to act as the fiscal agent for the County and to administer the and enforce the Rent Local Program in accordance with the Rental Local Program Guidelines established by the ECHDA and attached hereto as Exhibit A. Through this program, ECHDA will enter into an agreement with eligible landlords currently renting in the short term rental market to convert units,vacant homes and empty bedrooms into long term rentals (leases of twelve (12) consecutive months or more),to be leased to Eligible Households (as that term is defined in the Eagle County Affordable Housing Guidelines)at a rental rate not to exceed 100%of area median income, including utilities and fees. A copy of the form Rent Local Stipend Agreement is attached hereto as Exhibit B. In exchange, ECHDA will offer landlords a cash stipend as outlined in the Rent Local Program Guidelines; and WHEREAS,the County further desires to delegate to the ECHDA,through its Executive Director(the "Director")and/or The Valley Home Store ("TVHS"),the authority to negotiate and enter into the Rent Local Stipend Agreement on the County's behalf, in the form attached hereto as Exhibit B; and WHEREAS,the Rent Local Program will assist in supplementing the long term rental market for Eligible Households, as that term is defined in the Eagle County Affordable Housing Guidelines and the Rental Local Program Guidelines. NOW,THEREFORE, BE IT RESOLVED BY THE COMMISSIONERS OF THE BOARD OF COUNTY COMMISSIONERS, COUNTY OF EAGLE, STATE OF COLORADO: E DocuSign Envelope ID:E2F42500 6063-4C95 9948 A67921 36FFA 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 Rent Local Program. THAT,the Board hereby delegates to the ECHDA, through its Director and/or TVHS,the authority to negotiate and enter into a Rent Local Stipend Agreement on the County's behalf. The Board further delegates authority to the Director to execute documents that may be required to effectuate the Rent Local Program, 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:E2F42500-6063-4C95-9948-A67921 E36FFA 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 23rd day of May , 2022. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its h��..°E e��tfco�sa BOARD OF COUNTY COMMISSIONERS ATTEST: DocuSigned by: CQ DocuSigned by: FOR A0°. CICt litAAa eti°li-viwt, — B ` "�49"".uo f9D2F2 889e4 .. y CMAC128f8M47A.. Clerk to tie B40oard of Jeanne McQueeney County Commissioners County Commissioners Chair r_DocuSigned by: 11 88A881 FFE884403. Kathy Chandler-Henry Commissioner DocuSignne�dby�: J 1t �n�uI I 81E,BzD7 i8E04,3. Matt Scherr Commissioner Commissioner Chandler-Henry seconded adoption of the foregoing resolution. The roll having been called,the vote was as follows: Commissioner McQueeney Aye Commissioner Chandler-Henry Aye Commissioner Scherr 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:E2F42500-6063-4C95-9948-A67921E36FFA EXHIBIT A Rent Local Program Guidelines 4 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA fl HOUSING 111:1 EAGLE COUNTY Rent Local Program I Program Guidelines 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 Rent Local Program, a long term rental incentive program, will support local residents who are at a disadvantage in the real estate marketplace because there is little inventory available, impacted directly by the short term rental market inventory that has increased drastically over the last decade, creating a lower supply of rentals in the long term, year round market. Through the Rent Local Program, the Eagle County Housing and Development Authority ("ECHDA") may provide a cash incentive to Eligible Landlords to convert their short term rental unit, vacant home or empty bedroom into the long term rental market through a rental subsidy while keeping rental rates to tenants capped at 100% of area median income. The intent of the program is to restore more year round rental inventory at attainable rental rates in units that are available today in Eagle County. The Rent For Locals Program is compatible with this Program. Purpose of Program This Program is intended to incentivize an Eligible Landlord to convert a short term rental or vacant Eligible Property in order to rent to an Eligible Household for twelve consecutive months or more at no more than 100% of area median income rental rates. Eligible Landlords Eligible Landlords, are owners of real property in Eagle County that are currently renting in the short term rental market, and are willing to convert to long term leases to Eligible Households. Eligible Property Single family homes, condominiums, townhomes, duplexes, modular homes or manufactured homes on a permanent foundation taxed as real property within the jurisdictional boundaries of Eagle County that are not currently encumbered by a deed restriction, right of first refusal, occupancy requirement, Land Use Regulatory Agreement, or similar program. Eligible Properties must provide safe and habitable living conditions. The Eligible Property must have been a short term rental in the last twelve (12) months to qualify. Eligible Households An Eligible Household is defined by the most recent Eagle County Affordable Housing Guidelines and Administrative Procedures and subject to policies contained within. Tenant Tenant is required to be an Eligible Household and use the property as a primary residence, as defined in the Eagle County Affordable Housing Guidelines. Rental Rate The Eligible Property shall be rented for no more than 100% of Eagle County area median income ("AMI") including utilities and fees, as published by the Colorado Effective 5/24/2022 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921E36FFA fl HOUSING 4111t1 EAGLE COUNTY Rent Local Program I Program Guidelines Housing and Finance Authority. If the Eligible Landlord is unable to rent the Eligible Property for rental rates determined by 100% of Eagle County AREA MEDIAN INCOME, including all utility costs and fees, the rent should be reduced to a reasonable market rate. 2021 Colorado Income and Rental Limits Lease Terms Eligible Landlords must be willing to rent the Eligible Property or a bedroom in a Landlord-occupied property, for a minimun of twelve (12) consecutive months, at a monthly rental rate capped at 100%AMI. All tenants must qualify as Eligible Households. Landlord Eligible Landlords must provide a copy of executed lease and proof of Eligible Requirements Household status for renter to the Program Administrator with Application. Stipend Agreement Eligible Landlords must enter into a Rent Local Stipend Agreement with the ECHDA to ensure program compliance. The Landlord must also provide ECHDA with a copy of a Disclosure Notice confirming the Landlord has notified tenant(s) that it is participating in the Rent Local Program. Stipend Amount Eligible Landlords stipend is paid on a monthly basis per bedroom rented in order to supplement the lease rental rate. No bedrooms may be vacant to qualify for the full cash stipend. ECHDA will utilize the Stipend amounts agreed upon and approved by the ECHDA Board, as set forth below: Unit Size 1-Year Lease Incentive 2-Year Lease Incentive Studio $1,800($150 per month) S4.200(S175 per month) 1BR $3,600($300 per month) $8,400($350 per month) 2BR $5,400($450 per month) $12000($500 per month) 3BR $7,200($600 per month) $15.600($650 per month) 4BR $9,000($750 per month) S19.200($800 per month) With a twelve-month lease, ECHDA will pay Landlord the stipend in two equal installments to include a half payment at the start of the lease, and the second half at the end of the lease. With a two year lease, ECHDA will pay Landlord the incentive in three equal installments to include one payment at the start of the lease, a second payment in the middle of the lease and the final payment at the end of the lease.The cash stipend payment will end immediately upon termination of the lease agreement by either the Landlord or the tenant. Eligible Landlords shall repay any and all funds advanced by the ECHDA in the event Landlord fails to comply with Program Guidelines and/or for breach of the Rent Local Stipend Agreement. Landlord Options An Eligible Landlord may participate in this program by renting out either an entire Eligible Property or by renting individual vacant bedroom(s)within the Effective 5/24/2022 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA /t,\ HOUSING MitoN EAGLE COUNTY Rent Local Program I Program Guidelines Landlord-occupied home to an Eligible Household. If a bedroom is rented out in a Landlord-occupied property, the Landlord will be eligible for 50% of the listed amount. Program Compatibility This Program is compatible with the Rent For Locals Program. Recertification Eligible Households must recertify their eligibility annually in accordance with the Eagle County Housing Guidelines and Administrative Procedures. Inspection All Eligible Properties must provide safe and habitable living conditions, confirmed through a property inspection by the Program Administrator at the time of Application. Program Application Eligible Landlords shall contact ECHDA to begin the application process. The Program Administrator will review the terms of the application to include proof of ownership of Eligible Household, proof of short term rental in the last twelve (12) months, and photo identification. Application Processing Review and approval within five (5) business days of receipt by the Program Administrator. Applications are subject to property inspection prior to approval. Applicability All aspects of the Rent Local Program eligibility and approval are at the sole exclusive discretion of the Program Administrator and availability of funds. These 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. Applications may be denied based on the physical condition of the proposed property or a determination that the Eligible Property is not in the best interest of the County or ECHDA. Program is subject to market conditions. Other In the event of policy conflict between this Program and the Eagle County Affordable Housing Guidelines and the Administrative Procedures, the Rent Local Program Guidelines shall control. Program Administrator The ECHDA and/or the TVHS or other as assigned by Eagle County. More information www.housingeaglecounty.com or call (970) 328-8772 EQUAL HOUSING OPPORTUNITY Effective 5/24/2022 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA EXHIBIT B Form Rent Local Stipend Agreement 5 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA fl HOUSING ONO EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement RENT LOCAL STIPEND AGREEMENT BETWEEN THE EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY AND ELIGIBLE LANDLORD THIS RENT LOCAL STIPEND AGREEMENT (the "Agreement") is made and entered into this day of , 20 (the "Effective Date"), by and between the Eagle County Housing and Development Authority ("ECHDA"), a body corporate and politic and ("Landlord") (each a"Party" and collectively the "Parties"). WHEREAS, there is a demonstrated need for affordable housing for residents of Eagle County, and the ECHDA, which serves as the fiscal agent of the County pursuant to the Rent Local Program, has the authority pursuant to to offer a monetary incentive to qualifying landlords for conversion of an Eligible Property (as that term is defined in the Rent Local Program Guidelines) from the short term rental market to a long term lease with an Eligible Household (as that term is defined in the Eagle County Affordable Housing Guidelines) at a maximum monthly rental rate not to exceed 100% of the Area Median Income ("AMI") as established by the Colorado Housing and Finance Authority, including utilities and fees; and WHEREAS, Landlord has agreed to rent the real property known as (the "Leased Premises") pursuant to a month lease agreement executed on the day of , 20 , at a maximum monthly rental rate not to exceed 100% AMI (the "Lease Agreement"), including utilities and fees. A copy of the Lease Agreement is attached hereto as Exhibit A; and WHEREAS, ECHDA desires to provide Landlord with a cash incentive to supplement the Lease Agreement monthly rental rate pursuant to the terms of this Agreement in order to support the long term rental market for Eligible Households in Eagle County. NOW, therefore, in consideration of the foregoing, ECHDA and Landlord agree as follows: 1. Term. This Agreement commences on the date first written above and shall terminate on , unless sooner terminated or extended as set forth herein. 2. Payment and Compliance with the Lease Agreement. Landlord has entered into a Lease Agreement with an Eligible Household(s) for a period of consecutive months, at a maximum monthly rental rate not to exceed 100%AMI including utilities and fees, as set forth on Exhibit A. Landlord agrees to fulfill the terms of the Lease Agreement, subject to termination for tenant default. Landlord agrees to inform ECHDA immediately upon any violations of the Lease Agreement, pending eviction notices, or complaints commencing legal action against tenant, as well as any termination of the Lease by Landlord or tenant. 3. Payment of Stipend. ECHDA agrees to pay Landlord a stipend based upon the number of bedrooms in the Leased Premises which are rented to qualifying Eligible Households in 1 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921E36FFA /0"� HOUSING k EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement accordance with the Rent Local Program Guidelines and this Agreement. For the Leased Premises, Landlord is renting out bedrooms, with tenants occupying the Leased Premises for a term of months. In accordance with the Rent Local Program Guidelines, Landlord will receive a stipend totaling $ (the "Payment") paid directly to Landlord. The Payment will be made upon ECHDA's determination, in its sole discretion, that Landlord is eligible for the Payment under the Rent Local Program Guidelines and upon the submission of a signed Lease Agreement. The Payment shall end immediately upon termination of the Lease Agreement by either Landlord or the Tenant(s). 4. Event of Default. If, at any time during the Term or after termination or expiration of this Agreement, the ECHDA reasonably determines that any payment made by ECHDA to Landlord was improper because the Landlord failed to comply with this Agreement or the Program Guidelines or because the Lease Agreement was terminated by either Landlord or tenant(s), then upon written notice of such determination and request for reimbursement from ECHDA, Landlord shall forthwith return such payment(s) to ECHDA. Upon termination or expiration of this Agreement, unexpended funds advanced by County, if any, shall forthwith be returned to County. 5. Disclosure. Landlord agrees to provide the tenant under the Lease Agreement with a Disclosure Notice to Tenant, in the form attached hereto as Exhibit B, informing the tenant of the Landlord's participation in the Rent Local Program. 6. Use of Leased Premises. Tenant shall use and occupy the Leased Premises as its principal place of residence. For purposes of this Agreement, "principal place of residence" shall mean the home or place in which one's habitation is fixed and to which one, whenever he or she is absent, has a present intention of returning after a departure or absence therefrom, regardless of the duration of absence. With a minimum of 48 hours notice to the Landlord and tenant, ECHDA has the right to enter and inspect the Leased Premises for verification that the Leased Premises is safe and habitable. An Inspection Guide for the Leased Premises, informing the Landlord of items to be inspected, is attached hereto as Exhibit C. Landlord shall not be held responsible for unkempt areas due to act or omission of the tenant. Tenant shall not, except with prior written approval of ECHDA, and subject to the Lease Agreement, sublease the Leased Premises for any period of time. 7. Limitation of Liability of ECHDA. This Agreement shall not be construed to constitute a representation or guarantee by ECHDA to make rent payments under the Lease Agreement, to maintain the Leased Premises, or to make maintenance, utility, or security deposit payments owed by tenant to the Landlord. ECHDA does not assume any obligation for tenant's rent or for payment of any claim by the Landlord against the tenant. Moreover, this Agreement shall not be construed to constitute an assumption of liability by ECHDA for any terms of the Lease Agreement. 8. Reservation of Remedies. There is hereby reserved to the parties hereto any and all remedies provided by law for breach of this Agreement or any of its terms. In the event the parties resort to litigation with respect to any or all provisions of this Agreement, the prevailing party 2 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921E36FFA fl HOUSING �� EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement shall be entitled to recover its expenses including reasonable attorney fees. 9. Notice. Any notice required by this Agreement shall be deemed properly delivered when (i) personally delivered, or (ii) when mailed in the United States mail, first class postage prepaid, or (iii) when delivered by FedEx or other comparable courier service, charges prepaid, to the parties at their respective addresses listed below, or (iv) when sent via facsimile so long as the sending party can provide facsimile machine or other confirmation showing the date, time and receiving facsimile number for the transmission, or (v) when transmitted via e-mail with confirmation of receipt. Either party may change its address for purposes of this paragraph by giving five (5) days prior written notice of such change to the other party. ECHDA: Attention: Executive Director 500 Broadway Post Office Box 850 Eagle, CO 81631 Telephone: 970-328-8773 Facsimile: 970-328-8782 Email: info@valleyhomestore.org With a copy to: Eagle County Attorney 500 Broadway Post Office Box 850 Eagle, Co 81631 Telephone: 970-38-8685 Facsimile: 970-328-8699 Email: atty@eaglecounty.us LANDLORD: Name: Address: Phone: Fax: Email: 10. Venue, Jurisdiction and Applicable Law. Any and all claims, disputes, or controversies related to this Agreement, or breach thereof, shall be litigated in the District Court for Eagle County, Colorado, which shall be the sole and exclusive forum for such litigation. This 3 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA All\ HOUSING 11111, EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement Agreement shall be construed, interpreted under and governed by the laws of the State of Colorado. 11. Severability. Whenever possible, each provision of this Agreement and any other related document shall be interpreted in such a manner as to be valid under applicable law; but if any provision of any of the foregoing shall be invalid or prohibited under said applicable law, such provisions shall be ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of such documents. 12. Execution by Counterparts; Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The parties approve the use of electronic signatures for execution of this Agreement. Only the following two forms of electronic signatures shall be permitted to bind the parties to this Agreement: (i) Electronic or facsimile delivery of a fully executed copy of the signature page; (ii) the image of the signature of an authorized signer inserted into PDF format documents. All documents must be properly notarized, if applicable. All use of electronic signatures shall be governed by the Uniform Electronic Transactions Act, C.R.S. 24-71.3-101 to 121. 13. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements or understanding between the parties with.respect thereto. 14. Section Headings. Paragraph or section headings within this Agreement are inserted solely for convenience or reference, and are not intended to, and shall not govern, limit or aid in the construction of any terms or provisions contained herein. 15. Waiver. No claim of waiver, consent or acquiescence with respect to any provision of this Agreement shall be valid against any party hereto except on the basis of a written instrument executed by the parties to this Agreement. However, the party for whose benefit a condition is inserted herein shall have the unilateral right to waive such condition. 16. Modifications. The parties to this Agreement agree that any modifications of this Agreement shall be effective only when made by writings signed by both parties. 17. Fair Housing Requirements. ECHDA shall not, in the administration of the Rent Local Program, discriminate against any person on the grounds of age, race, color, creed, religion, sex, handicap, national origin, or familial status. 4 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA fl HOUSING 40111> Program Rent Local Pro EAGLE 9 COUNTY Rent Local Stipend Agreement EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY,by and through the Executive Director Executive Director LANDLORD By: Printed Name: Dated: Phone: 5 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA /iI"I\ HOUSING � EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement EXHIBIT A Copy of Lease Agreement 6 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921 E36FFA fl HOUSING iftlopoilk EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement EXHIBIT B Disclosure Notice to Tenant This Disclosure Notice is to inform (Tenant), that I, (Landlord) have entered into Agreement with ECHDA to participate in the Rent Local Program. This Agreement states that the Landlord will receive an incentive payment from the ECHDA for removal of the Leased Premises from the short term rental market and the use of the Leased Premises as a long term rental unit, which is to be leased to an Eligible Household for a minimum of twelve (12) consecutive months at a maximum monthly rental rate set at 100%AMI. LANDLORD By: Printed Name: Dated: Phone: TENANT By: Printed Name: Dated: Phone: 7 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921E36FFA fl HOUSING "Ik EAGLE Rent Local Program COUNTY Rent Local Stipend Agreement EXHIBIT C Rent Local Program Inspection Guide The Rent Local Program shall require an onsite inspection of the Eligible Property. With a minimum of 48 hours notice to the Landlord and tenant, ECHDA has the right to enter and inspect the Leased Premises for verification that the Leased Premises is safe and habitable. In general, rental units a) must be fit for human habitation and b) cannot be materially dangerous or hazardous to the Tenant's life, health, or safety. To be considered habitable under current Colorado state statute, a rental unit must: • Have functioning appliances • Have unbroken windows and door • Be weather-proof, with ceilings and walls that don't leak • Have plumbing and gas facilities in good working order • Be connected to a sewage system • Have running water and adequate hot water • Have a functional heating system • Have electrical lighting, maintained in good working order • Be exterminated in the event of rat or bug infestations in the unit or common spaces • Be free of anything more serious than minor mold, or damp conditions that could create mold • Have common areas that are garbage-free and reasonably clean • Have garbage and recycling bins outside • Have floors, stairs, and rails in good repair • Have working locks on both doors and windows 8 DocuSign Envelope ID:E2F42500-6063-4C95-9948-A67921E36FFA fl HOUSING (IVEAGLE Rent Local Program COUNTY Rent Local Stipend Agreement • Comply with all building, housing, and health codes (if a violation of the code would endanger a Tenant's life, health, or safety) 9