HomeMy WebLinkAboutR05-090 amending local resident housing guidelines
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07/22/200501:57P
Teak J Simonton Eagle, CO 370 R 0.00 o 0.00
commissioner~ moved adoption
of the folio ing Resolution:
BOARD OF COUNTY COMMISSIONERS
COUNTY OF EAGLE, STATE OF COLORADO
RESOLUTION NO. 2005-
RESOLUTION AMENDING LOCAL RESIDENT HOUSING GUIDELINES
WHEREAS, the Eagle County Board of County Commissioners (hereinafter
referred to as the flBoard") directed the staff ofthe department of Housing and the department of
Community Development to modify the mitigation rates in the "Eagle County Local Resident
Housing Guidelines" adopted April 19, 2004; and
WHEREAS, Eagle County desires to increase the supply of housing that is
affordable to those who live and/or work in the area; and
WHEREAS, Eagle County recognizes that affordable housing is a valuable
community resource that needs to remain available for not only current residents and employees,
but also those who may move to the area in the future; and
WHEREAS, the Housing Guidelines attached hereto as Exhibit "A" are intended
to be a set of suggested criteria that should be considered for all new residential and commercial
development; and
WHEREAS, the purpose ofthe Housing Guidelines is to establish a framework
for discussion and negotiation of applicable affordable housing criteria.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO:
THAT, the Housing Guidelines are hereby amended by the Board of County
Commissioners so that the mitigation rates in the Guidelines may be used as a set of suggested
criteria that may be considered for all new residential and commercial development.
THAT, The Board may amend or modify this Resolution or the Guidelines or
provision contained herein if the Board determines and declares that amending or modifying this
Resolution or the Guidelines is necessary for the public health, safety and welfare of the citizens
of the County of Eagle, State of Colorado.
THAT, the Board of County Commissioners finds, determines and declares that
this Resolution is necessary for the public health, safety and welfare of the citizens ofthe County
of Eagle, State of Colorado.
MOVED, READ AND ADOPTED by the Board of County Commissioners of
the County of Eagle, State of Colorado, at its regular meeting held this _ day of April, 2004
COUNTY OF EAGLE, STATE OF COLORADO
By and Through its BOARD OF COUNTY
CO&J):R:
By.
/:~~r
/;
~
~ Tom C. Stone, Commissioner
Commissioner. seconded adoption of the foregoing Resolution. The roll
having been called, the vote was as follows:
Commissioner Menconi ~
Commissioner Runyon ~
Commissioner Stone aX- ~ "'r';;;L
This Resolution passed by ~vote of the Board of County Commissioners of the
County of Eagle, State of Colorado. ~/~ ""'>-
Exhibit A
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EAGLE COUNTY
Local Resident Housing
Guidelines
Thursday, June 30, 2005
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Table of Contents
Chapter I: Background and Purpose ............................ ... .......................................................3
Chapter II: Definitions............................................................ .......... ........................................3
Chapter ill: Development of Local Resident Housing Units .................................................5
Section 3-100, Development of Local Resident Housing Units............................................5
Section 3-110, Inclusionary Housing .... ........ .......................................................................5
Section 3-120, Employee/Housing Linkage......................................... .................................6
Section 3-130, Site Selection of Local Resident Housing Units ...........................................6
Section 3-140, Payment in Lieu ........... ..................... ............................................................7
Section 3-150, CoIIateraIization of Local Resident Housing Units.......................................7
Section 3-160, Maximum Purchase Price for the Initial Sales .............................................7
Section 3-170, Unit Quality and Minimum Square Footage .................................................8
Section 3-180, Local Resident Housing Plan ........................................................................9
Section 3-190, Deed Restrictions........................... ........... ................................................. ...9
Section 3-200, Alternative Means of Compliance........ ......................................................... I 0
Chapter IV: Eligibility and Occupancy ...................................................................................11
Section 4-100, Eligibility and Income Limits ....................................................................... II
Section 4-110, Occupancy............. .................................................... ................................... .12
Section 4-120, Leave of Absence ..................................................................................... .....12
Chapter V: SalelPurchase Price Procedures ...........................................................................13
Section 5-100, Maximum Resale Price .................................................................................13
Section 5-110, Resale of a Local Resident Housing Unit .....................................................13
Section 5-120, Sales Fees ............... .................................... ...... .................... ...................... ...14
Section 5-130, Deed Restrictions Acknowledgment .............................................................14
Section 5-140, Selection Criteria........................................ ...... ....... ................................... ...14
Section 5-150, Lottery Process......................... .................. ..................... ....... ...................... .15
Chapter VI: Grievance Procedures .................... ....... ........... ........... .............. ......................... .15
Chapter VII: Enforcement...................................................... ................................................ ..15
Chapter VIII: Provisions for Amendments to these Guidelines............................................ 15
. APPENDICES
A. Calculation of Maximum Purchase Price ........................................................................17
B. Calculation of Resale Price........... .......................... ...... .......... ........................................ .19
C. Calculation of Payment in Lieu .......................................................................................21
D. Employment Generation Rates and Housing Unit Formula ............................................23
E. Income Limits and HUn AMI Figures ............................................................................26
F. Potential Incentives ............................................................... ....... ....................................27
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Chapter I - Background and Purpose
The Local Resident Housing Guideline's goal is directed at helping establish a supply of housing
that is affordable to those who live and/or work in Eagle County. This goal is to be accomplished
by requiring new residential and nonresidential development to provide local resident housing
based on established rates and/or determined number of jobs to be generated as a result of the
development.
The purpose of these Guidelines is to set forth (1) the Inclusionary Housing standards, (2) the
Employee/Housing Linkage standards, (3) occupancy guidelines for Local Resident Housing
Units, (4) sale and resale procedures for Local Resident Housing Units, and (5) sale and resale
price limitations on Local Resident Housing Units.
Chapter II. Definitions
SECTION 2-100 PURPOSE
The purpose of this Section is to define words, terms and phrases contained within these Housing
guidelines as used in the Housing Plan.
SECTION 2-110 DEFINITIONS
The terms, phrases, words and clauses in the Local Resident Housing Guidelines will 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 Master Plan.
Area Median Income: The local estimates of median family income compiled and released
annually by the Department of Housing and Urban Development. As used in these Guidelines,
Area Median Income shall mean the most current figures available at the time from the
Department of Housing and Urban Development.
Bedroom: A room to be used for sleeping purposes that may contain closets may have access to
a bathroom and which meets applicable County Uniform Building Code requirements.
Capital Improvements: Unless otherwise defined in the Deed Restriction covering the
affordable housing unit, any fixture erected as a permanent improvement to real property
excluding repair, replacement and maintenance costs.
Cosigner: A joint signatory of a promissory note.
Dependent: A minor child by blood or adoption (21 years of age or younger) or other relative of
the owner of a Local Resident Housing Unit, which child or relative is taken and listed as a
dependent for federal income tax purposes by such owner or his or her present or former spouse.
Dependents must also be related by blood or adoption and be residing with the individual at least
six months and one day (183 days) out of every 12-month period.
Development Plan: The entire plan to construct or place one or more dwelling units on a
particular parcel or contiguous parcels ofland within the County including, without limitation, a
planned unit development, site review or subdivision approval.
Disabled Person: A person who meets the definition of "individual with a disability" contained
in 29 U.S.C. Section 706(8), andlor as defined in the Americans with Disabilities Act of 1990.
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Gross Income: The tilCOme derived from a business, trust, emtnvyment, or other means and
from income-producing property, before deductions for expenses, depreciation, taxes, and similar
allowances.
Household: All individuals who will occupy the unit regardless ofIegal status.
Household Income: Combined gross income of all individuals who will occupy the unit
regardless ofIegal status. Adjustments to the gross for business expenses can be made for
persons who are self-employed.
Joint Tenancy: Ownership of realty by two (2) or more persons, each of whom has an undivided
interest with the right of survivorship.
Local Resident Housing Unit: Units for "Qualified Employees" meeting sales price, size,
quality, and other criteria set forth in these Guidelines.
Low Income Housing: Those Local Resident Housing Units provided for households who earn
the equivalent of between 60% and 80% of the Area Median Income (AMI) for Eagle County, as
determined annually by the Department of Housing and Urban Development (RUD) and that are
initially offered at a purchase price that provides for monthly housing payments and homeowner
association/condominium dues in an amount that does not exceed 30% of gross household
income based on a 30-year mortgage with 5% down payment. Once initially sold, the unit's
affordability shall be maintained in perpetuity by an appreciation cap as set forth herein.
Lottery: A drawing to select a winner from equal applicants of equal priority.
Maximum Resale Price: Unless otherwise defined in the Deed Restriction covering the unit, the
owners purchase price multiplied by the allowable appreciation plus the value of capital
improvement costs including labor, if professionally provided, and for which verification ofthe
expenditure is provided as more particularly set out in Appendix 'B'-Calculation of Resale Price.
Moderate Income Housing: Those Local Resident Housing Units provided for households who
earn the equivalent of between 80% and 100% ofthe Area Median Income (AMI) for Eagle
County, as determined annually by the Department of Housing and Urban Development and that
are initially offered at a purchase price that provides for monthly housing payments and
homeowner association/condominium dues in an amount that does not exceed 30% of gross
household income based on a 30-year mortgage with 5% down payment. Once initially sold, the
unit's affordability shall be maintained in perpetuity by an appreciation cap as set forth herein.
Net Livable Square Footage: Calculation based on interior area that is measured from the
interior walls, including all interior partition, habitable basements, interior storage areas, closets
and laundry area. Such calculations shall not include uninhabitable basements, mechanical areas,
exterior storage, stairwells, garages (either attached or detached), patios, decks and porches.
Perpetuity: State or quality ofIasting forever or indefinitely.
Present Value: For the purposes of these Guidelines and any Deed Restrictions containing such
terms, the present value will be the cost or price of any capital improvements as established at the
time of such improvement and will be neither appreciated nor depreciated from such time.
Primary Residence: The sole and exclusive place of residence. The owner will be deemed to
have ceased to use the unit as her sole and exclusive place of residence by accepting permanent
employment outside of Eagle County, or residing in the unit fewer than nine (9) months out of
any 12 months.
Purchaser: A person who is buying or has purchased a deed restricted unit which is subject to
these Guidelines, and any qualifying potential purchaser or past owners of any such deed
restricted unit, but only with respect to any issue arising under these Guidelines.
Qualified Employee: A person( s) meeting the income, employment and net worth limitations as
defined in these Guidelines.
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Tenancy in Common: 1 01 ownership of realty by two or more persons, each of who has an
undivided interest, without right of survivorship. Upon the death of one of the owners, the
ownership share of the decedent is inherited by the party or parties designated in the decedent's
will.
Tenancy in the Entirety: A special joint tenancy between a lawfully married husband and wife,
which places all title to property (real or personal) into the marital unit, with both spouses having
an equal, undivided interest in the whole property.
Very Low Income Housing: Those Local Resident Housing Units provided for households who
earn the equivalent of between 30% and 60% of the Area Median Income (AMI) for Eagle
County as determined annually by the Department of Housing and Urban Development (HUD)
and that are initially offered at a purchase price that provides for monthly housing payment and
homeowner association/condominium dues at an amount that does not exceed 30% of gross
household income based on a 30-year mortgage with 5% down payment. Once initially sold, the
unit's affordability shall be maintained in perpetuity by an appreciation cap as set forth herein.
Chapter III - Development of
Local Resident Housing Units
SECTION 3-100. Creation:
Local Resident Housing Units should be created either through (1) Inclusionary Housing or (2)
EmployeelHousing Linkage guidelines. Residential development plans will be subject to both
Inclusionary Housing and Employee/Housing Linkage guidelines, unless otherwise exempted.
Commercial and other nonresidential development plans will be subject to the EmployeelHousing
Linkage guidelines only. Inclusionary Housing targets the development of Moderate Income
Housing affordable to households with incomes between 80% and 100% of AMI. Employee
/Housing Linkage targets Low Income Housing affordable to households with incomes between
60% and 80% of AMI.
Local Resident Housing Developments which provide 100% of their units for "Qualified
Employees" meeting sales price, size, quality and other criteria set forth are exempt from these
Housing Guidelines
SECTION 3-110. Inclusionary Housing:
All new residential developments of four (4) or more units within the unincorporated area of
Eagle County, not meeting an exemption as set forth herein, should include up to tefl
percent (W-20%) of the total units developed as Local Resident Housing for qualified moderate,
low and very low income households 1 When required to develop one Local Resident
Housing Unit, the developer will be required to build a two-bedroom unit. When required to
develop more than one unit, the developer should include a distribution of one, two and three
bedroom units, priced in such a way that the average purchase price does not exceed that required
of a two-bedroom unit at 80% of AMI.
Any Local Resident Housing Units established pursuant to this section must be offered at an
initial purchase price not exceeding the amount determined pursuant to Chapter ill, Section 3-160
herein. Such Local Resident Housing Units must contain resale restrictions binding future
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buyers/sellers to the ap~i"'';J.ation caps, primary residence, listing and saleS procedures, and other
applicable conditions set forth in these guidelines in effect at the time of property transfer.
Any Local Resident Housing Units established pursuant to this section must be provided prior to,
or concurrently and proportionally with, the production of market rate housing unless expressly
agreed to otherwise by Eagle County in the Local Resident Housing Plan.
These Guidelines should be met for all residential development. ill order to receive preliminary
plan and/or final plat approval for a PUD or subdivision, special use permit approval, or building
permit approval, an applicant must submit and receive approval from Eagle County of a Local
Resident Housing Plan meeting all of the criteria set forth in Chapter III, Section 3-180 herein
and setting forth how the residential development will satisfy these Guidelines.
The standards of this section should apply equally to situations when the developer will create
only lots. The developer may contract with another builder to construct these units as illustrated
in Chapter III, Section 3-200 - Alternative Means of Compliance.
SECTION 3-120. Employee/Housing Linkage:
All new development within the unincorporated area of Eagle County, not meeting an exemption,
should provide up to percent of the total housing unit need generated by the
particular development's employees for qualified low income and very low income households
The employment generation rates shall be determined pursuant to Appendix 'D' -
Employment Generation Rates and Housing Unit Formula, as may be amended from time to time.
When required to develop one Local Resident Housing unit, the developer should build a two-
bedroom unit. When required to develop more than one unit, the developer should include a
distribution of one, two and three bedroom units, priced in such a way that the average purchase
price will not exceed that required of a two-bedroom unit at 60% of AMI.
Any Local Resident Housing Units established pursuant to this section must be offered at an
initial purchase price not exceeding the amount determined pursuant to Chapter III, Section 3-160
herein. Such Local Resident Housing units must contain resale restrictions binding future
buyers/sellers to the appreciation caps, primary residence, listing and sales procedures, and other
applicable requirements in effect at the time of property transfer.
Any Local Resident Housing Units established pursuant to this section must be provided prior to,
or concurrently and proportionally with, the production of market rate housing unless expressly
agreed to otherwise by Eagle County in the Local Resident Housing Plan.
These Guidelines should be met for all development. ill order to receive preliminary plan and/or
final plat approval for a PUD or subdivision, special use permit approval, or building permit
approval, an applicant must submit and receive approval from Eagle County of a Local Resident
Housing Plan meeting all of the criteria set forth in Chapter III, Section 3-180 herein and setting
forth how the residential development will satisfy these Guidelines.
The standards of this section apply equally to situations when the developer will create only lots.
The developer may contract with another builder to construct these units as illustrated in Chapter
III, Section 3-200 - Transfer of Local Resident Housing Credits.
SECTION 3-130. Site Selection of Local Resident Housing Units:
All Local Resident Housing units will be provided on-site or off-site
at the discretion of the developer. The location of all Local Resident
Housing Units must be set forth in an approved Local Resident Housing Plan. Local Resident
Housing Units should meet the following criteria:
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3. Public ..a.structure is available to the Local Residehct.l.Ousing site.
4. Local Resident Housing Site and proposed housing conforms to the County
Master Plan and Sub-Area Community Plans.
5. Local Resident Housing Site has suitable drainage and soils.
6. Local Resident Housing Site is not adjacent to nuisances.
7. Local Resident Housing Site is within same or nearest Community Center, as
defined in the Eagle County Master Plan.
8. Local Resident Housing Site shall be located within an appropriate zone district.
SECTION 3-140. Payment in Lieu:
A developer may choose at their discretion to satisfy all or part of a Local Resident Housing Unit
requirement by a Payment in Lieu fee at a 30% mitigation rate to the Eagle County Housing Fund
or other reputable Local Resident Housing Developer, such as Habitat for Humanity. Payment in
lieu fees will be accepted for developments where the calculation to determine the number of
units to be produced result in a partial unit. The developer should make such designation for
payment in lieu as part of the Local Resident Housing Plan.
All fees shall be paid to the Eagle County Housing Fund or other Local Resident Housing
Developer as indicated in Section 3-200, prior to issuing any certificate of occupancy for either
the free market or Local Resident Housing component of the development. Eagle County or
other Local Resident Housing Developer shall issue a receipt to the developer as verification of
payment that will be used to release the Certificate of Occupancy. These fees shall be placed into
a separate fund that shall be used by Eagle County or other Local Resident Housing Developer
for housing programs throughout the County.
The payment in lieu represents the difference between prevailing market prices and the Maximum
Purchase Price for the targeted income group as set forth in Appendix 'A' - Calculation of
Maximum Purchase Price. For details concerning calculation of the Payment in Lieu fee, see
Appendix 'c' - Calculation of Payment in Lieu that may be amended from time to time by Eagle
County.
SECTION 3-150. Collateralization of Local Resident Housing Units:
Those developers required to construct one or more Local Resident Housing Units, except as
hereinafter exempted, shall be required to provide the County, at the time of issuance of a
building permit for the Unit or any market rate units, whichever occurs first, collateral as security
for the faithful performance of all provisions of these Guidelines. Said collateral shall be a cash
deposit, irrevocable letter of credit issued by a financial institution located in Colorado, or surety
bond, which shall be in a form approved by the County Attorney. Local Resident Housing Units
already collateralized by a Subdivision Improvements Agreement or other similar agreement with
the County shall be exempt from the collateral requirements of Section 3-150. The amount of the
collateral should be equal to the amount required if the developer chose to satisfy the Local
Resident Housing Unit requirement by a Payment in Lieu fee.
SECTION 3-160. Maximum Purchase Price for the Initial Sales of Local
Resident Housing Units:
The initial maximum purchase price of Local Resident Housing Units should be no greater than
what will result in housing payments and homeowner association/condominium dues equaling
thirty percent (30%) ofthe gross household income for the targeted income group. For Low
Income Housing, the gross household income to be met shall be sixty percent (60%) of the Area
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Median Income. For ~\ ",taate Income Housing, the gross householh dl",ome to be met shall be
eighty percent (80%) of the Area Median Income.
In calculating the Local Resident Housing Units initial maximum purchase price, it shall be
assumed that the housing payments will be based on a 30-year mortgage with a five percent (5%)
down payment. For details concerning calculation of the Maximum Purchase Price and other
assumptions necessary to calculate said price, see Appendix 'A' - Calculation of Maximum
Purchase Price. The assumptions and figures may be updated from time to time by Eagle County
as Area Median Income figures are released from the Department of Housing and Urban
Development.
The Maximum Purchase Price must be set forth in the developer's Local Resident Housing Plan
and will be reviewed and approved by Eagle County. Up to the time of issuance of a Building
Permit, Eagle County may review the Maximum Purchase Price limits with the developer for
consolidation with updated Area Median Income figures. Any such modification of the
Maximum Purchase Price will be done through an amendment to the Local Resident Housing
Plan and will not require formal amendment to the PUD, Subdivision Improvements Agreement,
Final Plat, or other developmental approval. Prior to the sale of any Local Resident Housing
Unit, a deed restriction in a form reviewed and approved by Eagle County will be recorded which
will limit the sale price to the Maximum Purchase Price.
SECTION 3-170. Unit Quality and Minimum Square Footage:
Local Resident Housing Units shall meet all local building codes and shall be constructed to
attain a standard that will enhance durability over time. Local Resident Housing Units must be
compatible and of similar quality to market rate buildings. Local Resident Housing Units shall
contain the same features (i.e. dishwashers, disposals, air conditioning, energy efficient windows,
etc.) provided in market rate units of the same development. Local Resident Housing Units shall
be built to the Cold Climate Standards set forth by the National Affordable Housing Network
(NAHN). Eagle County will review and approve construction plans for the Local Resident
Housing Units and inspect them upon completion.
All Local Resident Housing Units will adhere to the definition of "Dwelling Unit" in Chapter II
of the Eagle County Land Use Regulations.
In order to assure livability of the Local Resident Housing Units, all such units should meet the
following minimum net livable square footage standards. Proposals for Local Resident Housing
Units must meet or exceed these minimum square footage amounts.
Minimum Square Footage
Local Resident
Housing Unit
Unit Type Minimum Square
Footage
One Bedroom 850
Two Bedroom 950
Three Bedroom 1,050
An additional 100 square feet will be required for each additional bedroom above three. It is
encouraged that the Local Resident Housing Units for each development should be a mix of size
(one-bedroom, two-bedroom, etc); however, an average of a two bedroom unit is required.
Square footage calculations must be set forth in the Local Resident Housing Plan and will be
verified by Eagle County prior to the issuance of any building permits for either the free market
or Local Resident Housing component of a project.
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SECTION 3-180. t.1ic ..,fit' Resident Housing Plan:
In order to receive preliminary plan and/or final plat approval for a PUD or subdivision, special
use permit approval, or building permit approval, an applicant should submit a Local Resident
Housing Plan to Eagle County for consideration with the rest of the application. Approvalofthe
specific planning or building file will be dependent in part on the approval of the Local Resident
Housing Plan and any conditions of approval that may be made a part thereof.
At a minimum, the Local Resident Housing Plan must indicate the following:
1. Total number of proposed residential units, by bedroom configuration and square
footage of each unit;
2. Proposed unit type, size (square footage of finished, heated living space), number
of bedrooms, targeted income category and initial sales price for each Local
Resident Housing Unit;
3. Number of employees generated from the development utilizing standards set
forth in these Guidelines;
4. Average size of finished square footage, excluding garages and unfinished
basements of the proposed Local Resident Housing Units and average size of
finished sqUare footage of market rate housing units, excluding unfinished
basements and garages;
5. Average lot size of proposed Local Resident Housing Units and average lot size
of market rate housing units;
6. Location of proposed Local Resident Housing Units, by unit type and size;
7. Proposed production schedule of Local Resident Housing Units and market units;
8. Concept for marketing to households that may be eligible for the Local Resident
Housing Units;
9. Proposed maximum sales prices for all Local Resident Housing Units calculated
pursuant to Appendix 'A' - Calculation of Maximum Purchase Price. as may be
amended from time to time;
to. Selection of means of compliance utilizing standards set forth in these
Guidelines.
An approved Local Resident Housing Plan will become part of the Resolution, Planned Unit
Development Agreement, Special Use Permit, or Building Permit executed by Eagle County for
any approved project. Any amendment to the Local Resident Housing Plan will require the
approval of Eagle County. Such amendment must be in writing duly authorized and executed by
Eagle County, but does not require formal amendment to the remainder of the Planned Unit
Development Agreement, Special Use Permit, or Building Permit.
Any documents creating a condominium or homeowners association will state that the Local
Resident Housing Units will only be assessed monthly dues and other shared assessments based
on the proportionate ratio of the size of the Local Resident Housing Unit and/or lot compared to
market rate units in the same development.
SECTION 3-190. Deed Restrictions:
Local Resident Housing Units may be required to have deed restrictions recorded prior to the sale
of the unit. The deed restriction will reference these Guidelines and set forth specifically that
ownership, occupancy, maximum purchase price, resale price, and resale procedures will be
controlled by the applicable requirements in effect at the time of property transfer. Additionally,
the deed restriction should set forth the following requirements:
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1. Owner\\. ........ not default in payment or other obligatib.d.j...me or to be performed
under a promissory note secured by a fIrst deed of trust encumbering the Property
or a Unit. Owner must notify the County, in writing of any notifIcation received
from a lender, or its assigns, of past due payments or default in payment or other
obligations due or to be performed under a promissory note secured by a fIrst
deed of trust, as described herein, within fIve calendar days of owner's
notifIcation from lender, or its assigns, of said default or past due payments.
2. The Owner, in the event that he/she no longer meets all Guidelines, is required to
offer the unit for sale in accordance with the sale procedures set forth herein.
The deed restriction shall constitute covenants running with the unit, as a burden thereon, for the
benefIt of, and shall be specifIcally enforceable by Eagle County, Colorado and its Board of
County Commissioners, and their respective successors and assigns, as applicable, by any
appropriate legal action including but not limited to specifIc performance, injunction, reversion,
or eviction of non -complying owners and/or occupants. All deed restrictions will require a letter
of approval as to form and content from Eagle County prior to the sale of any unit. The deed
restriction will require all subsequent purchasers of a unit to execute, in a form satisfactory to
Eagle County, concurrent with the closing of the sale, a document acknowledging the purchaser's
agreement to be bound by the deed restriction and these Guidelines.
SECTION 3-200. Alternative Means of Compliance:
In an effort to provide the flexibility necessary for the development industry, a developer may
comply with the requirement for Local Resident Housing Units in one of several ways:
A. A developer may build the units on site at a 20% mitigation rate as detailed in Chapter ill
above.
B. A developer may build the units off-site at a 25% mitigation rate within Eagle County.
The off-site housing must meet all criteria in Section 3-130 and be approved by Eagle
County .
C. A developer may provide Eagle County with Payment in Lieu of units as detailed in
Chapter ill, Section 3-140 above at a thirty percent (30%) mitigation rate.
D. A developer may offer to deed subdivided land of suffIcient size, value, zoning, and
infrastructure to accommodate a minimum of 150% of the Local Resident Housing Units
required by the market rate development. Dedicated land must meet all criteria in
Section 3-130 and be approved by Eagle County.
E. A developer may contract with a third party to complete on-site or off-site housing;
however, the original developer will be responsible for assuring that these units are in
compliance with the Local Resident Housing Guidelines.
F. A developer may choose to "bank" housing credits for anticipated future requirements.
The Local Resident Housing Units used as "banked" housing credits must be preexisting;
however, they must be used to fulfIll a requirement within three years of the time the
"banked" Local Resident Housing Units received a CertifIcate of Occupancy. All Local
Resident Housing Units used as "banked" credit must be in compliance with the Local
Resident Housing Guidelines including the Site Selection Criteria in Section 3-130.
Finally, the developer must verify that the banked units are not also satisfying other
requirements of this or any other jurisdiction.
The Local Resident Housing Plan must contain details of the chosen means of compliance.
If a developer appears to have provided a combination of compliance measures that go beyond
the minimum requirements for Local Resident Housing, Eagle County may choose, at their sole
discretion, to offer incentives as listed in Appendix 'F'.
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CHAPia;.;:K IV - Eligibility and Occupancy
SECTION 4-100. Eligibility and Income Limits:
Local Resident Housing Units shall be owned and occupied only by individuals meeting the
following eligibility requirements. Such requirements must be met prior to an individual
submitting a bid to purchase the same. Once a unit has been purchased, it must continue to be
occupied in a manner that is consistent with these restrictions.
1. The applicant shall use the unit as hislher primary residence and maintain it as
his/her primary residence during the applicant's ownership.
2. The applicant shall be a "Qualified Employee" per the following criteria and
must remain a Qualified Employee for as long as he or she owns the unit.
a. He/She has earned a living primarily in Eagle County (or within 3 miles of the
county boundary) by having worked an average of at least thirty (30) hours per
week for at least eight (8) months in the previous twelve (12) months at a
business physically located in Eagle County;
b. He/She has been hired for ajob in Eagle County (or within 3 miles of the county
boundary) on a permanent basis (meaning that there is an expectation that the
employment will continue for a period of at least six (6) months) to work at least
thirty (30) hours per week, which employment will be hislher primary source of
income and will maintain his/her residence in Eagle County upon commencing
the job;
c. He/She is over the age of sixty (60) and has earned a living primarily in Eagle
County by having worked an average of at least 30 hours per week for the
previous five years or for five (5) years immediately prior to his or her retirement
(working a minimum of 8 months of each year employed);
d. He/She is a disabled person who has been a full time employee in Eagle County
(or within 3 miles of the county boundary) a minimum of two years immediately
prior to their disability;
e. He/She is the spouse or dependant of a Qualified Employee as defined above,
and who is currently living in Eagle County; or
f. He/She is a single parent with one or more dependents, with at least one being
under the age of five and/or enrolled full-time in a school in Eagle County (or
within 3 miles of the county boundary). A pregnancy may be counted toward
this requirement as long as a note from a medical doctor is provided.
3. Neither the applicant nor any member of the household's (including, but not
limited to, spouses and children under 18 years of age) may own residential real
estate in Eagle County at the time of application, except where that real estate is
deed restricted as a Local Resident Housing Unit and will be sold prior to
purchase of the new Local Resident Housing Unit, a mobile home on a lot owned
by a separate entity that will be sold prior to purchase of the new Local Resident
Housing Unit, or another unit that will be sold prior to the purchase of the new
Local Resident Housing Unit. A current residence may not be deeded to a
corporation or other entity. During ownership, an owner and occupant shall not
own any interest alone or in conjunction with others, in any developed residential
property or dwelling unit located in Eagle County. It is understood and agreed
between the parties hereto that, in the case of an Owner whose business is the
construction and sale of residential properties or the purchase and resale of such
11
Properll ~,41e properties which constitute inventory... ;,.tch and Owner's
business shall not constitute other "developed residential property."
4. The applicant shall obtain a letter of prequalification from a mortgage lender.
5. For all Local Resident Housing three or more bedroom units, the applicant must
have a household size of three or more persons. For the purposes of determining
household size, applicants may include all persons related to the applicant by
blood, marriage, or adoption. If the applicant plans to include dependents, they
must be continuously listed on federal income tax forms and reside in the
household at least six months and one day out of every 12 month period of time
(or as otherwise indicated on joint custody agreements). A pregnancy may be
counted toward the family size requirement as long as a note from a medical
doctor is provided.
6. The applicant's household income does not exceed those limits as set forth in
Appendix 'E' - Income Limits and HUD AMI Figures, as amended from time to
time.
7. Eagle County will determine whether a person meets the definition of Qualified
Employee, which will be based on the percent of income earned within Eagle
County, place of voter registration, place of automobile registration, driver's
license address, income tax records, and any other evidence deemed necessary by
Eagle County in making a qualification decision. Evidence of Qualified
. Employee status will be supplied by at least (1) an affidavit of the person (2)
verification by employer and (3) other documents that Eagle County deems
necessary to make a determination.
It is the responsibility ofthe individual or household to demonstrate eligibility by obtaining a
Letter of Certification from Eagle County. The letter shall be valid for one year from the date of
issuance. For initial sales, it is the responsibility of the applicant to locate and enter into a
contract to purchase a Local Resident Housing Unit.
No later than February 1 of each year, the owner of the Unit shall submit to the County two
copies of a sworn affidavit on a form to be obtained from Eagle County, verifying that the owner
continues to meet the Guidelines in effect at the time.
SECTION 4-110. Occupancy:
The purchaser of a Local Resident Housing Unit shall occupy the unit as his or her primary
residence. The owner will be deemed to have ceased to use the unit as his or her primary
residence by accepting permanent employment outside of the Eagle County area, or residing in
the unit for fewer than nine (9) months out of any twelve (12) months.
SECTION 4-120. Leave of Absence:
A leave of absence may be granted for one year (in the sole discretion of County), subject to clear
and convincing evidence that shows a reason for leaving and a commitment to return to the Eagle
County area. Said evidence shall be in written form presented to the County for review and
recommendations thirty (30) days prior to leaving. The leave of absence shall be for one year and
may, in the discretion of the County, be extended for one year, but in no event shall it exceed two
years. In the case of a leave of absence, the owner shall only rent to an individual who meets the
eligibility requirements herein. The tenant must obtain a Letter of Certification. A copy of the
lease agreement executed between the owner and tenant will be provided to Eagle County.
12
CHAPTER ". - Sale/Purchase Price f'rocedures
SECTION 5-100. Maximum Resale Price:
An owner of a Local Resident Housing Unit may sell a unit provided that the prospective
purchaser meets the requirements set forth herein. The resale price may not exceed the Maximum
Sales Price that will be comprised of the following:
1. The owner's purchase price plus the percentage increase for each year
(compounded annually) of the average wage for Eagle County as determined by
the Colorado Department of Labor and Employment using the most current
available data.
a. In the event that an owner owns the unit for only a portion of any year, the
percentage increase shall be prorated quarterly and the owner shall be given
credit through the quarter in which the sale occurs.
b. If the percentage in the average wage for Eagle County as determined by the
Colorado Department of Labor and Employment is greater that six percent (6%)
in a given year, the percentage increase which an owner may claim for purposes
of determining the Maximum Resale price shall be six percent (6%) for that year.
c. If the percentage in the average wage for Eagle County as determined by the
Colorado Department of Labor and Employment is less than three percent (3%)
in a given year, the percentage increase which an owner may claim for purposes
of determining the Maximum Resale price shall be three percent (3%) for that
year.
2. The present value of Permitted Capital Improvements including labor, if
professionally provided, and for which verification has been provided. Local
Resident Housing Units shall be allowed Permitted Capital Improvements equal
to ten percent (10010) of the initial purchase price over each ten (10) year period.
Further details on qualifying improvements as Permitted Capital Improvements
are set forth in Appendix 'B' - Calculation of Resale Price, as may be amended
from time to time.
Such Maximum Resale Price should be set forth in a deed restriction running with the land in
perpetuity and all prospective future purchasers must sign a document aclmowledging the
purchaser's agreement to be bound by the recorded deed restriction. This document must be
executed concurrently with the closing of the sale and will be recorded.
SECTION 5-110. Resale of a Local Resident Housing Unit:
All Local Residential Housing Units should be listed for resale with Eagle County.
1. In the event that an owner desires or is required to sell a Local Resident Housing
Unit, the owner shall execute a standard Listing Contract on forms approved by
the Colorado Real Estate Commission with the county providing for a 180-day
listing period, or such other time period as required by the County.
2. An owner of a Local Resident Housing Unit desiring to sell should consult with
Eagle County staff and review the deed restrictions covering the unit to
determine the Maximum Resale Price permitted and other applicable provisions
concerning a sale. County staff or a designee shall administer the sale in
accordance with the requirements in effect at the time of listing. There will be a
minimum listing period of three months before a unit's price can be readjusted.
All sales will be subject to the sales fee set forth in Chapter V, Section 5-120.
13
3. Eagle ,"..j staffwill be acting on behalf of the during any sales
transaction. It should be clearly understood by and between all parties to any
sales transaction that the staff members are not acting as licensed brokers for any
transaction, but as representatives of the County and its interests.
Notwithstanding, Eagle County staff will attempt to help both parties
consummate a fair and equitable sale in accordance with these Guidelines.
4. All purchasers and sellers are advised to 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,
will be at purchaser or seller's own expense and shall not be included in the
calculation of the Maximum Resale Price. The fees as identified in Chapter Y,
Section 4-130( 1), paid to the County are to be paid regardless of any actions or
services that the purchaser or seller may undertake or acquire.
SECTION 5-120. Sales Fees:
1. Sales Fees: All sellers listing a Local Resident Housing Unit with Eagle County
shall pay a fee to the County for the sales fee in an amount equal two percent
(2%) ofthe sales price at closing. The County shall instruct the title company to
pay said fees to the County out of the funds held for the seller at the closing. In
the event that the seller fails to perform under the listing contract, rejects all
offers at maximum price in cash or cash-equivalent terms, or should withdraw
the listing after advertising has commenced, the seller shall be obligated to pay
one-half percent (1/2%) ofthe listing price directly to the county. In the event
that the seller withdraws for failure of any bids to be received at maximum price
or with acceptable terms, the seller shall be responsible for all advertising and
administrative costs incurred by the County.
2. Closing Costs: Owner shall not permit any prospective buyer to assume any or
all ofthe Owner's customary closing costs, including the fees set forth in this
Section 4, nor accept any other consideration which would cause an increase in
the purchase price above the bid price so as to induce the Owner to sell to such
prospective buyer.
SECTION 5-130. Deed Restrictions Acknowledgement:
All prospective purchasers of the Local Resident Housing Units should execute, in a form
satisfactory to the county and for recording with the Eagle County Clerk concurrent with the
closing of the sale, a document acknowledging the purchaser's agreement to be bound by (1) the
recorded Deed Restriction covering the sale unit and (2) these adopted Guidelines.
SECTION 5-140. Selection Criteria:
The following applies to all sales and resales of Local Resident Housing Units:
1. Once basic eligibility has been met, the Qualified Employee(s) submitting the
highest bid price (not to exceed the maximum bid price) during a bid period will
have the fIrst right to negotiate purchase of the unit. If two or more qualified bids
are submitted at the highest bid price, they will receive preference and be
prioritized for selection as the top bidder based on the highest score using the
criteria listed below.
a. The Qualified Employee shall receive one point for each year of employment in
Eagle County. Partial years shall be awarded points on a pro-rata basis.
b. The Qualified Employee shall receive one point for each year of residence in
Eagle County. Partial years shall be awarded points on a pro-rata basis.
14
2. The .1g criteria will be utilized for the selectio.. "" .t:eria:
a. The physical place of residence and employment is what counts, not the mailing
address.
b. If two individuals are applying jointly, the years of employment and/or residency
will not be combined. The single individual with the longest record of
employment and/or residency will use his or her record for the purposes of
detennining the longevity.
c. All claims will be verified by Eagle County staff. Claims of residence or
employment that do not check out or are unverifiable will not be counted in
determining your longevity.
d. If there is a sole applicant in the top tier of the selection criteria, the unit will be
awarded to the top tier applicant.
SECTION 5-150. Lottery Process:
a. If there are applicants with equal priority in the selection procedure, a lottery
shall be held at the Eagle County Administration building during regular business
hours and will be witnessed by the County Clerk.
b. A drawing to establish the reserve list shall be held at the Eagle County building
during regular business hours and will be witnessed by the County Clerk or
hislher designee.
c. The application and any accompanying documentation will become the property
of Eagle County and will not be returned to the applicant.
CHAPTER VI - Grievance Procedures
A grievance is any dispute that a unit owner, purchaser or developer may have with Eagle County
with respect to action or failure to act in accordance with the rights, duties, welfare or status of
these persons or entities. Procedures for filing such a grievance will follow the provisions of the
Eagle County Land Use Regulations as found in Chapter I, Section 1.16 Apveals.
CHAPTER VII - Enforcement
The Eagle County Local Resident Housing Guidelines are a component of the Eagle County
Master Plan. Enforcement of the Eagle County Local Resident Housing Guidelines will be
pursuant to Chapter I, Section 1.14 Enforcement and Chapter II, Chapter VII Enforcement, as
amended, ofthe Eagle County Land Use Regulations.
15
CHAPTER VIII - Provisions for
Amendments to the Guidelines
Annual Updates: Annual Updates shall be conducted by Eagle County. Addenda may be
amended to address the following updates:
1. Area Median Income figures as released annually by the Department of Housing
and Urban Development (HUD);
2. Current Interest Rates;
3. Wage increases;
4. Current market prices used to calculate Payment in Lieu; and/or
5. Allowance of property taxes.
Any relevant calculations that these updates affect shall be revised accordingly. This will include
such figures as the Income Limits, Maximum Purchase Price and Payment in Lieu. Such
amendments will be done through resolution of the Board of County Commissioners and will not
be required to follow the formal amendment procedures.
16
Appendix 'A'
Calculation of Maximum Purchase Price
The Maximum Purchase Price for a Local Resident Housing Unit is based on the definition of
Local Residents Housing and on the specified targeted income groups of low and moderate
incomes. Based on this definition, the following chart shows the current applicable Maximum
Purchase Prices for units subject to both Inc1usionary Housing and Emp10yee/Housing Linkage
Guidelines.
In calculating the affordable price for Low Income Housing, the lowest income in the range was
used as a target for the Maximum Purchase Price to allow all households within the income range
the opportunity to obtain fmancing for subject unit. For example, an actual income of 60% of
Area Median Income (AMI) was used to calculate the Maximum Purchase Price for a Low
Income Local Resident Housing Unit. In this way, the final product would be affordable to
households earning between 60% and 80% of AMI, not just those applicants earning the full
80%. Likewise, in computing Maximum Purchase Price for Moderate Income Local Resident
Housing Units, incomes of 80% of AMI were used. Prices were rounded off to the nearest
thousand and were based on the sizes used by HUD (1.5 peop1elbedroom).
A complete listing of the AMI figures can be found in Appendix 'E'- Income Limits and HOD
AMI Figures.
2005 Income Ran es and Maximum Purchase Prices
Low Income Moderate Income
CI) e..CD CI)
CI) N CI) 0
-- Cl)S ::l.S S'"
CI) cat/)
N E'C .0 So ::l.Q.
en ca.o "'0
'x '0 CD.s =c: SAD
-.
- oJ:: 2-- >cca
'c .. CI) ca,c
;:) a.. ~- c.......:::-. 2e
o.::J 0..--
~o c:>>2 q..~.:e ::l
::t: SO( ~.i~ Q.
1
Bedroom 1.5 $1 ~3,9$8
2
Bedroom 3 $1$6,$()5
3
Bedroom 4.5
4
Bedroom 6 $216,250
Source: HUD and Colorado Housing and Finance Authority Income Statistics.
February 11, 2005
Assumption: Maximum Purchase Price is based on the Base Income for the Target Income Group. This is to ensure that all
households in the Target Income Group can afford to purchase the unit.
Assumptions and Calculations Used to Determine Purchase Prices
Down Payment: 5%
Length of mortgage: 30 years
Current interest rate: 6%
Allowance for property taxes:
((.0915 x purchase price) x .056)/12
(assessed valuation x average mill levy for Eagle County)
17
Allowance for hazard .. .4JIce:
.0035 x loan amount/12
Allowance for private mortgage insurance:
.0078 x loan amount/12
Allowance for homeowner's association/condominium dues:
Variable, must be added in to calculations once the amount is known, therefore, not included in
current price calculations. Hazard insurance, if included in dues would then be dropped from
calculations.
18
Appendix 'B'
Calculation of Resale Price
No owner of a Local Resident Housing Unit shall sell the Property for an amount greater than the
Maximum Resale Price for the Property, which shall be calculated as follows:
l. Start with the "base price". This includes the original purchase price paid for the
property plus any selling costs incurred, as evidenced by a title company
settlement sheet. Any costs of financing are specifically excluded.
2. Calculate a 3% to 6% increase for each full year according to the average wage
for Eagle County as determined by the Colorado Department of Labor and
Employment.
3. For years that do not consist of 12 full months, prorate the amount to the next
highest quarter (for example, if you were selling the home in May, you would
prorate to the next highest quarter, basing the % increase on 6 months instead of
12 or a 1.5% increase instead ofa 3% increase).
4. Add in eligible improvements during the year of said improvements.
Permitted Capital Improvements
A maximum of ten percent (10%) of the initial purchase price over each 10-year period of
Permitted Capital Improvements
Value will be given for the following property improvements:
l. The addition of a habitable room or storage space;
2. The finishing of uninhabitable space if it is converted into a habitable room;
3. The conversion of a carport into a completely enclosed garage;
4. The conversion of surface parking into a carport or garage (if allowed under the
development/subdivision agreement);
5. Kitchen and bathroom renovations, including appliances and fixtures;
6. Future landscaping and/or air conditioning.
No other categories or types of expenditures may qualify as eligible capital improvements unless
approved by Eagle County or its designee. Upon completion of the work, copies of receipts must
be submitted to the Housing Department. The maximum amount of improvement credit is ten
percent (10%) ofthe initial purchase price over each 10-year period.
Work that requires and is performed without the issuance of a building permit shall not be
considered a Permitted Capital Improvement. 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 to any
appreciation in the value of these improvements.
The value of the improvements will be added to the property in the year in which the
improvements were completed as evidenced by proper receipts. This will be added to the
estimated value of the home, for the year in which the improvements were completed. The
year(s) in which eligible improvements are made will adjust the base value of the home from
which a future home price will be established.
Nothing in the deed restriction prohibits other improvements to the Local Resident Housing Unit;
however, credit will only be provided for approved Permitted Capital Improvements.
19
hnprovements, which .'" the consumption of energy; Replacemeh.. o~ the roof; Replacement
of the furnace; Modifications or improvements to accommodate a person with a disability as
defmed in the Americans with Disabilities Act of 1990; and/or other improvements necessary for
the maintenance of the dwelling will not be limited under the provisions of Permitted Capital
hnprovements.
Example of Resale Calculations
Home is purchased on January 1, 1995 for $100,000. Seller wishes to
sell in December 1999.
Gl
s:.
-
S C
l\'I 0
:;;:l
u.!!! ..
- U III
lJ 2! ~
Q. 1995 104.810
.. Q.
-<( 1996 110.543
Q.
S 1997 119.977
tJ) 1998 123.995
1999
. Reduce to 6% because the actua percentage increase was in excess oflhe 6 % cap
included in the deed restriction.
....
C
=l!1Il Gl
'l:I......e
l\'I .- _ 1..Gl
"C Q. C ->
"Cl\'IGl .. i..:J\<e
<((.)E III Gli.Q.
"CGl ~ c...u.E III
.. Gl >
N:::O 1995 2,000
Q.'- '-
GlEQ. 1996
-'-E 1997
tJ)Gl-
0.. 1998 2.00()
1999 1,000
5,000
"C
:!.:e
.- c
E Gl
'- E
:. Gl
>
= 0
l\'I '-
"CQ. 2% Sales
"C E Costs $
<(=
l\'I
.. -
M-
Q.~ Return to
S(.)
tJ) Seller $132,151
20
Appendix 'C'
Calculation of Payment in Lieu
The difference between prevailing market prices and what targeted low or moderate income
households can afford to pay for housing is the gap that must be taken into consideration when
determining the amount of payment to be paid in lieu of producing units under certain
circumstances. This gap varies by the income level of the targeted household and whether
homeownership or rental housing is to be provided.
To generate one number for each targeted income category that represents the gap between
affordable and market costs, a series of calculations must be made, as follows:
1. The income range of targeted households is first established. Targeted
households fall into two categories; Low Income, as targeted by
Employee/Housing Linkage, and Moderate Income as targeted by the
Inclusionary Housing standards. These categories serve three household sizes;
1.5 people (1 bedroom), 3 people (2 bedrooms), 4.5 people (3 bedrooms). The
income of a 3 person household is then used, since the Local Resident Housing
Units are required to average 2 bedrooms in size. The Maximum Purchase Price
set forth in Appendix 'A' is that which is established for a 3 person household.
The income range shall be updated annually to reflect changes in the published
AMI figures. As a result, the amount of the gap and resulting Payment in Lieu
will fluctuate yearly.
2. The Maximum Purchase Price is calculated (see Appendix' A' -Calculation of
Maximum Purchase Price).
3. The median per square foot sales prices of dwelling units sold in the past full
year shall be used as the basis for housing costs. The figure of$232 per square
foot was the median cost of units sold from January through December of 2004.
The cost of units sold rather than the cost of construction shall be used.
4. An administrative fee (cost to develop) of 15% is added to cover the cost of
turning Payment in Lieu payments into future development.
5. The affordability gap is the difference between the cost (median per square foot
price of recently purchased dwellings multiplied by the average size of units
required for each income category) and the affordable purchase price.
Calculation of Payment in Lieu based on Median Income Limits
It should be noted that the calculations presented above do not take into account homeowner's
association (HOA) fees. If it is likely that the majority of units to be produced or otherwise
provided with the fees collected will have HOA dues, the calculation should be amended to create
a Maximum Purchase Price that includes the HOA dues. This will result in a larger affordability
gap and payment in lieu. For developments that result in a fraction of a housing unit being
required, the payment is determined by applying that fraction to the per-unit in lieu amount.
21
2005 Payment In Lieu Calculations
Low Moderate
Income Income
Unit Unit
Base Income Point $43,200 $52,200
! :-, Q- 2 Bedroom Unit with Household Size of 3
::2_ c C
:II .c _ CD
::J-InE 60% AMI for Low and 80% AMI for Moderate
_C::l:-,
::> 0 0 ns
= :& :J: Q. Affordable Monthly Housing Payment $1,080 $1,305
(
30% of Monthl Gross Income
Property Taxes $61 $84
CD
:a Assessed valuation x average mi/llevy
ns
'E Hazard Insurance $55
~ .0035 x loan amount/12
<CD
CD.g Private Mortgage Insurance $122
.c-
-Q.
CD CD .0078 x loan amount/12
C In
-ns Mortgage Payment $1,083
E.c
- Co)
CD - 6% APR
-::I
CDQ.
Q 30 Year Fixed
N Maximum Mortgage Amount $186,965
Q.
CD
- 5% Down Payment
en
Affordable Purchase Price $196,805
- Minimum Square Footage of Unit 950
CD
.lI: Based on Local Resident Housing
-
ns Requirements
:&=
CD C Median Price Per Square Foot $232
J:.::;)
--
CDCD
CQ.
.S -
- In
CD 0 Based on 2002 sales recorded by the
-CJ
CD CD Assessor: minus those sales less than
Q-
ns $30/SF, greater than $1,900/SF, Less than
c";a: 40% of the Assessed Value, or greater than
Q.
CD 300% of the Assessed Value.
-
en
Market Rate Cost Per Unit $220,381 $220,381
CD ::I Affordability Gap $63,938 $23,576
c.!
.- ...I
Ec Difference Between Affordable Purchase
CD-
--
CDC Price and Market Rate Cost Per Unit
QCD
E Administrative Fee $9,591 $3,536
.. :-,
"'ltns
Q.Q. 15%
SCD
enJ:. Pa ment In Lieu $73,529 $27,112
-
22
Appendix '0'
Employment Generation Rates and Housing Unit Formula
Non-Residential Employment Generation Rate and Housing Unit Formula
The "Nexus/Proportionality Analysis for EmploymentIHousing Linkage Programs", prepared for
Eagle County in 2001 by the RRC Associates Team (hereinafter referred to as the "RRC White
Paper"), established certain employment generation rates for general categories of nonresidential
uses.
The RRC White Paper also identified and quantified certain factors necessary to convert the
number of employees generated to the number of housing units required to house the employees.
These factors included the following:
Multiple job holdings - The 1999 Eagle County Housing Needs Assessment that employees in
Eagle County hold an average of 1.2 jobs. In determining the number of housing units required to
accommodate new employees, the number of new employees must be reduced by this factor
representing multiple job holdings.
Multiple worker households - Employees often live together in family and unrelated roommate
households. According to the Eagle County Housing Needs Update, 2001 Update, 1.92 persons
per household are employed, on average. In determining the number of housing units required to
accommodate new employees, the number of new employees must also be reduced by this factor
representing multiple worker households.
Non-Residential Employee Generation Rate
(A) (B) (C) (D)
Total Employees Employees local Resident Housing
Generated Generated Housing Unit Requirements
Reduced for Multiple Needs 10% Mitigation of
Job Holdings Employees Reduced Local Resident
for Households with Housing Unit Needs
Multiple Workers
(Per 1,000 S.F., Unit, [(A)/1.2 Jobs Per [(B)/1.92 Employees [(e) X.1 Mitigation
Land Use Cateaories or Room) Employee] Per Household] Rate]
Bar/Restaurant 1 8.0 6.7 3.5 0.4
Lodaina/Hotel2 0.6 0.5 0.3 0.03
Commercial/Retail1 3.0 2.5 1.3 0.1
Pronertv Manaaemene 0.3 0.3 0.1 0.Q1
Office 1 4.1 3.4 1.8 0.2
Overall1 2.9 2.4 1.25 0.1
Source: RRC White Paper
1 All Calculations are Based on Per 1,000 S.F. Basis
2 All Calculations for Lodging/Hotel are Based on Per "Room" Basis
3 All Calculations for Property Management are Based on Per "Unit" Basis
23
Residential Emplo)c d.ilt Generation Rate and Housin'9t.n,it Formula
The "Nexus/Proportionality Analysis for Employee/Housing Linkage Programs" also established
certain generation rates for permanent residential employees, in terms of full time equivalent
(FTE) employees, based on the size of the residential unit.
The RRC White Paper also identified and quantified certain factors necessary to convert the
number of employees generated to the number of housing units required to house the employees.
These factors included the following:
Multiple lob holdings - Because employment generation rates are presented in terms of full-time
equivalents (FTE), they do not need to be adjusted for multiple job holding.
Multiple worker households - According to the Eagle County Housing Needs Update, 2001
Update, 1.92 persons per household are employed, on average. In determining the number of
housing units required to accommodate new employees, the number of new employees must also
be reduced by this factor representing multiple worker households.
Residential Employee Generation Rate
Size of (A) (B) Housing
Residential Employees local Resident Requirements
Units Generated Housing Unit 10% Mitigation of
Needs FTE Local Resident
Reduced for Housing Unit Needs
Households with
Multiple Workers
[(A)/1.92 Employees [(B) X.1 Mitigation
(Square Feet) (FTE) Per HousehOld] Rate]
Less Than 500 0.09 0.05 0.005
500-999 0.10 0.05 0.005
1000-1499 0.10 0.05 0.005
1500-1999 0.12 0.06 0.006
2000-2499 0.13 0.07 0.007
2500-2999 0.14 0.07 0.007
3000-3499 0.15 0.08 0.008
3500-3999 0.17 0.09 0.009
4000-4499 0.18 0.09 0.009
4500-4999 0.20 0.10 0.010
5000-5499 0.22 0.11 0.011
5500-5999 0.24 0.13 0.013
6000-6499 0.26 0.14 0.014
6500-6999 0.29 0.15 0.Q15
7000-7499 0.32 0.17 0.017
7500-7999 0.35 0.18 0.018
8000-8499 0.38 0.20 0.020
8500-8999 0.42 0.22 0.022
9000-9499 0.46 0.24 0.024
9500-9999 0.50 0.26 0.026
10000-10499 0.55 0.29 0.029
10500-1 0999 0.61 0.32 0.032
11000-11499 0.66 0.34 0.034
11500-12000 0.73 0.38 0.038
Any applicant, reviewing body or affected outside party that can demonstrate the subject
application will actually create a greater or fewer number of employees than indicated in the
24
Nexus Study and in this may submit an fudependent Empla) w..llt Generation Study at
the expense of the requesting party. If the applicant elects to conduct such a study, there may be
an application fee for administrative costs associated with the review and decision on study. The
data sources used should be widely accepted as relevant, valid, consistent, and clear. The
fudependent Employee Generation Study must be submitted with the Local Resident Housing
Plan at time of application and will be reviewed accordingly.
Employment generation numbers may be subject to review during any subsequent applications
related to the property such as a new planning, building, or access permit. fu the case of phased
projects, reassessments at each phase based on previous phases may be required.
25
Appendix 'E'
Income Limits and HUD AMI Figures
Area Median Income: These figures are compiled and released annually by the Department of
Housing and Urban Development. These figures are utilized in these Guidelines to assist in
determining appropriate income limits for buyers and maximum purchase prices for developers.
2005 Income Limits
2 person 3 person 4 person 5 person 6 person
1 erson HH HH HH HH HH HH
120% 67,200 76,800 86,400 96,000 103,560 111,240
100% 56,000 64,000 72,000 80,000 86,300 92,700
80% 40,600 46,400 52,200 58,000 62,650 67,300
60% 33,600 38,400 43,200 48,000 51,780 55,620
50% 28,000 32,000 36,000 40,000 43,150 46,350
30% 16,800 19,200 21,600 24,000 25,900 27,850
Individuals interested in purchasing a Local Resident Housing Unit must submit an application to
the Eagle County Housing Department or its designee. Once approved, they will receive a
"Qualified Employee" certificate, which will include the qualifying income category. This
certificate is good toward a purchase for up to 1 year. Approved applicants will also be added to
a master list to be maintained by the Housing Department.
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Appendix 'F'
Potential Incentives
If a developer appears to have provided a combination of compliance measures that go beyond
the minimum guidelines for Local Resident Housing, Eagle County, at their sole discretion, may
offer the following incentives:
A. Density Bonus: Eagle County may offer a density bonus over the otherwise maximum
number of units allowed by the property's zoning and development standards. A
rezoning to PUD would have to occur for a density bonus to be granted.
B. Site Design Flexibility: Provided that the standard of housing or the pmpose/intent of the
regulation are not compromised, Eagle County may consider flexible application of
design standards such as minimum lot size, floor area ratio (FAR), lot coverage, set
backs, parking and landscaping. A rezoning to PUD would have to occur for the
standards to be varied.
C. Priority Permitting: Eagle County may prioritize the project throughout various
procedures such as zone change, subdivision, variance, building permit, etc.
D. Public Funding Assistance: Eagle County may assist with the application process for
developers who decide to pursue funding assistance from state or federal agencies. Eagle
County may also choose to use funds to match state, federal or private grants.
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