HomeMy WebLinkAboutR08-065 Adopting 2008 Eagle County Local Resident Housing Guidelines
Commissioner ~--~CQI~I moved adoption
of the following Resolution:
BOARD OF COUNTY COMMISSIONERS
COUNTY OF EAGLE, STATE OF COLORADO
RESOLUTION N0.2008-~~
RESOLUTION RESCINDING THE 2005 EAGLE COUNTY LOCAL-RESIDENT
HOUSING GUIDELINES AND ADOPTING THE 2008 EAGLE COUNTY LOCAL-
RESIDENT HOUSING GUIDELINES
WHEREAS, Eagle County faces price pressures on its housing stock driven by
demand from non-resident owners; and
WHEREAS, Eagle County desires to increase the supply of housing that is
affordable to those who live or work in Eagle County; and
WHEREAS, Eagle County desires to maintain the current balance between
primary and non-resident home owners in Eagle County; and
WHEREAS, Eagle County recognizes that housing affordable to its permanent
residents 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 for employment
here; and
WHEREAS, in recognition of the above goals, in 2005 Eagle County adopted the
amended Local-Resident Housing Guidelines to further the creation of housing stock affordable
to local residents as part of new development; and
WHEREAS, Eagle County conduced a study of housing needs in Eagle County
2007, which found as follows:
• Approximately 5,300 households live in homes that are not affordable given their incomes,
making it difficult for those households to pay for other necessities, like food, utilities,
transportation, and health care.
• Housing prices are continuing to rise faster than incomes, indicating that housing is
becoming progressively less affordable for local wage earners.
• Commuting into Eagle County is on the increase: over 18 percent of employees commute in
from homes outside of Eagle County to jobs within Eagle County.
• The relationship between primary and vacation homes is changing, and local wage-earning
residents are unable to compete with buyers from outside of Eagle County. The proportion
of homes in unincorporated Eagle County occupied by County residents declined from 69
percent in 2000 to 66.5 percent as of 2006. Local residents currently occupy at least 52
percent of the total square footage of the housing stock in Eagle County, but that percentage
is declining. This has negative implications on the demand for and availability of workforce
housing.
• As of the 2000 Census, approximately 69 percent of all housing units in Eagle County were
occupied by residents and 31 percent were vacant, primarily because of seasonal and
recreational use. The Colorado Department of Local Affairs estimates that the occupancy
rate in 2006 was about 64 percent, indicating a decline of seven percent in the proportion of
units that actually serve as housing.
• Based on residential sales in 2007, the primary-to-secondary, home-occupancy ratio has
continued to decline from 2000 to 2006. In 2007, locals purchased 52 percent of all units
sold. Of these, 54 units were deed restricted. Locals purchased only 49 percent of free-
market units.
• 3,400 housing units are currently needed to address current deficiencies that the free market
has not and is not expected to address.
• Over 8,000 additional units will be needed to keep up with the demand for workforce
housing by the year 2015.
WHEREAS, the 2008 Eagle County Local-Resident Housing Guidelines
(hereinafter the "2008 Housing Guidelines") attached hereto as Exhibit "A" are intended to be a
set of criteria considered during approval of all new residential and commercial development;
and
WHEREAS, the purpose of the Housing Guidelines is to establish a framework
for discussion and negotiation of applicable housing criteria as part of the development approval
process.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO:
THAT, the 2005 Eagle County Local-Resident Housing Guidelines are hereby
rescinded and the 2008 Eagle County Local-Resident Housing Guidelines are hereby adopted.
THAT, the Board of County Commissioners (sometimes hereinafter the "Board")
may amend or modify this Resolution, 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 hereby authorizes the promulgation of administrative
procedures pursuant to the terms set forth in the 2008 Housing Guidelines.
THAT, the Board finds, determines, and declares that this Resolution is necessary
for the public health, safety and welfare of the citizens of the County of Eagle, State of Colorado.
THAT, the 2008 Housing Guidelines shall take effect upon adoption of this
resolution or as soon as applicable law allows, whichever is earlier.
MOVED, READ AND ADOPTED by the Board of County Commissioners of
the County of Eagle, State of Colorado, at its regular meeting held this 3rd day of June, 2008
ATTEST: o~~+„E c~
y~
R
Te k J. Simo on• ~~
Clerk to the Board of
County Commissioners
~'. - ~ ~~+
Commissioner ~ S~n.~-
__--
Sara J. Fisher
Co 'ss ner
Arn enconi
Commissioner
seconded adoption of the foregoing resolution. The roll
having been called, the vote was as follows:
Commissioner Runyon ~ ``
Commissioner Fisher ~" "
Commissioner Menconi '~ ``
This resolution passed by ~ ` ~
of the County of Eagle, State of Colorado.
COUNTY OF EAGLE, STATE OF
COLORADO, by and Through Its
BOARD OF COUNTY COMMISSIONERS
/l'~^ / //
By: ~ ~ ~ ~
Peter F. unyon
Chairman
~~
vote of the Board of County Commissioners
EAGLE COUNTY
LOCAL-RESIDENT HOUSING GUIDELINES
Revised and Finalized
May 16, 2008
TABLE OF CONTENTS
CIIAPTER 1-NEED, STRATEGIES, PURPOSE SUMMARY, AND DELEGATION OF AUTHORITY TO PROMULGATE
RULES AND REGULATIONS 1
SP('TION I-100 Eagle County's Need for Housmg ................ ............................................. ................................................ ........
SECTION I-IIOPurposeofthrGuidelines ............................................................................................................................... .......2
SE('TION I-200 Summary ofthc Guideline Requirements ................................................................................................... ........3
SECTION 1-300 Administrative Prot:edures .......................................................................................................................... .......4
CHAPTER II -DEFINITIONS q
CHAPTER HI - REQUIREDiF.NTS FOR AND DEVELOPMENT OF AFFORDABLH: HOUSI'VG AND RESIDENT-
OCCUPIED HOUSING 7
SECTION 3-100 Inclus~onary Housrng ................................................................................................................................... ........7
SECTION 3-101 Resident-Occupied tlousmg Ophon ....................................................................................................... ........7
SECTION 3-102 Voluntary Transfer Assessment Option ........................................................................... ........................ .......7
SE('TION 3-103 Res~dent~al Lots ........................................................................................................................................ ........7
SECI~ION 3-I 10 Commen:ial Mitigation .................................................................................................................................... .......8
SECTION 3-I I I Affordable Commercial Space ........................................................................................................ ........ .......8
SECTION 3-120 Mixed-Use Developments ............................................................................................................................ ........8
SECTION 3-130 Alternative Means of Compliance .............................................................................................................. .......8
SE("fION 3-131 Payment in-Ireu ............................. ...................................................................................................... .......9
SECTION 3-132 Land in-Lieu ................................ ..................................................................................................... .....10
SECTION 3-133 Affordable Housing Credits ................................................................................... ................................... .....10
SECTION 3-I34 Other Proposals ........................................................................................................................................ .....10
SECTION 3-140 Incentives for Meeting or Exceeding the Guidelines ........................................................................................ ..... 10
SECTION 3-I50 Eagle County Interest in Affordable Housing ............................................................................................... .....
SECTION 3-160 Inrt~al Pricing of Affordable For-Sale Housing ................................................................................................. .....
SECTION 3-161 Maxumm~ Rental Rates of Affordable Rental I lousing ............................... ....................................... .... .....
SECTION 3-162 Price Adjustments for Structured Parking ................................................................................................. ..... I 1
SECTION 3-163 Pricing ot'Resident-Occupied Flousing ...... ....................................................... ................................ .....
SECTION 3-170 Timing ofConstruchon ofLocal-Resident Housing ................................ ..... ....................................... ..... 12
SECT'lON 3-180 Locatwn of Local-Resident Housing ...................................................................................................... ..... ..... 12
SECTION 3-200 Housing Plan Required ............................................. ........................................................................... .....12
SECTION 3-300 Homeowners and Condominium Associations ........................................................................................... .... l3
SE('TION 3-310 Divided Ownershrp of Affordable Rental Housing Limited ........................................................................... ... 13
SE('TION 3-400 Umt Quality and Size ................................... .................................... ................................................... ..... 13
SECTION 3-500 Storage ...................................................................................................................................................... ..... 14
SECTION 3-600 Llnit Destgn ................................................................................................................................................ ..... 14
SECTION 3-700 Local-Resident Housing Bedroom Mix and S~ze ......................................................................................... ... 14
SEC"TION 3-800 Initial Sales and Marketing of Att'ordable-Housing and Resident-Occupied Umts ...................................... .....14
CHAPTER IV -MATERIAL TERMS OF DEED RESTRICTIONS (RESTRICTIVE COVENANTS) 14
SECTION 4-100 Deed Restrictions for Local-Resident Housmg .................................................................................................. ..... l4
SECTION 4-110 Deed Restrictions for At'Fordable For-Sale Housrng .......................................................................................... .... 14
SECTION 4-120 Resident-Occupied Housing ................................................................ ..... ....... ... ......................... .... 15
SE('TION 4-130 Affordable Rental Housing ............. .. ............................ ....... ........... .......... ... I S
SEC'"TION 4-140 Deed Restrictions for Affordable Commercial Space ...................................................................................... .... IS
CHAPTER V -OWNING AND RENTING LOCAL-RESIDENT HOUSING 16
SECTION 5-100 El~g~brl~ty ................................................................................................................................................. .... 16
SECTION 5-I 10 Employment Qualiticat~on ...................................... ............................ ........... ...................................... .. 16
SECTION 5-120 Lnnrts on Owning Other Real Estate ............................... .................................... ................................... ... 17
SECTION 5-I30 Income and Assets L~mitat~ons ............... .... .................................. .................................................. . . 17
SECTION 5-140 Rental of Local-Resident Housing by Qualified Employers for Employees ........................ .......................... .... 17
SECTION 5-150 Applying for Local-Resident Housing ..... ............ .......................... ................................................. ... 18
SECTION 5-160 Mamtarnmg Occupancy .............................................................. ................................................ ... 18
SE("PION 5-Ibl Re-Cerntication ................................... .................................................................................. . 18
SEC"fION 5-170 Leave of Absence .......................................... ..................................... ................................ .. I8
SECTION 5-180 Reselling Affordable Housing ............................................................. .................. ................... . 18
SE('TION 5-181 l_~stmg Untts for Resale ............. ................ ............ ............................. .... ............. ..19
SEC' LION 5-182 Penmtted Capital Improvements .. .............................................. ................ ............... . ... 19
SE(' PION 5-183 Sales Fees ..................................................... ....... ....... .. ........ ......... .... ........ 19
SEC' TION 5-184 C'losmg ('osts ......................................... ................. ... .. .... ....... ...... .. .... ..... . . 19
CHAPTER VI-MISCELLANEOUS PROVISIONS Zp
SECTION 6-I(10 Liberal Construction ....... ............................. .............. ..... ... .................... . ............................ 20
SECTION 6-200 Severabihty ..... .............................................................. ....... ............ ...... ....... ......... 20
SEC°! fON 6-300 Modrficauon ............ ........................................................ ..... ...... ... ................... 20
SECTION 6-400 Grievance Procedures ............................................ .................. ....... . ... ...................... 20
SECTION 6-500 Enforcement .............................................. ....................... ......... ........... ..... ......... .. .. ..... 20
SECTION 6-600 Foreclosure ......................................................................... ...... ....... . ... ...................... ....20
SECTION 6-700 Exemption for Lack of Reasonable Relationship or lmpracucabdity ........... ............. ...........................20
1
CHAPTER I -NEED, STRATEGIES, PURPOSE SUMMARY, AND DELEGATION OF
AUTHORITY TO PROMULGATE RULES AND REGULATIONS
SECTION 1-100 Eagle County's Need for Housing
Eagle County faces a substantial County-wide gap in the availability of ownership and rental
housing that is affordable for local residents. Households are burdened by high housing
payments, and employees are forced to commute long distances. Overcrowding is common. Jobs
remain unfilled, negatively impacting business operations, and the vast majority of employers
believe that the availability of workforce housing is a critical or major problem in Eagle County.
Housing problems have long been recognized in Eagle County. Eagle County commissioned
housing needs assessment studies, completed in 1990, 1999 and 2007, that demonstrated these
needs. As detailed more fully in Eagle County's 2007 Hozzsing Needs Assessment, the current
state of Eagle County's housing need is as follows:
• Approximately 5,300 Households live in homes that are not affordable given their
incomes, making it difficult for those Households to pay for other necessities, like food,
utilities, transportation, and health care;
• Housing prices are continuing to rise faster than incomes, indicating that housing is
becoming progressively less affordable for local wage earners;
• Commuting into Eagle County is on the increase-over 18 percent of employees
commute in from homes outside of Eagle County to jobs within Eagle County;
• The relationship between primary and vacation homes is changing, and local wage-
earning residents are unable to compete with buyers from outside of Eagle County. The
proportion of homes in unincorporated Eagle County occupied by County residents
declined from 69 percent in 2000 to 66.5 percent as of 2006. Local residents currently
occupy at least 52 percent of the total square footage of the housing stock in Eagle
County, but that percentage is declining. This has implications on the demand for and
availability of workforce housing.
• As of the 2000 Census, approximately 69 percent of all housing units in Eagle County
were occupied by residents and 31 percent were vacant, primarily because of seasonal
and recreational use. The Department of Local Affairs estimates that the occupancy rate
in 2006 was about 64 percent, indicating a decline of 7 percent in the proportion of units
that actually serve as housing.
• Based on residential sates in 2007, the primary-to-secondary home occupancy ratio has
continued to decline from 2000 to 2006. In 2007, locals purchased 52 percent of all units
sold. Of these, 54 units were deed restricted. Locals purchased only 49 percent of free-
market units.
• 3,400 housing units are needed to address current deficiencies that the free market has not
and is not expected to address; and
• Over 8,000 additional units will be needed to keep up with the demand for workforce
housing by the year 2015.
Homes that are not occupied, but rather function as vacation accommodations, generate demand
for workforce housing through their requirements for upkeep and maintenance. Moreover, a shift
from primary to secondary residences degrades the local character of a mountain community. As
Eagle County's housing imbalance increases, availability of housing for employees becomes even
more limited, and the fabric of the entire community is threatened.
Despite the documented demand for workforce housing, private developers have little incentive
to provide housing for Households with incomes less than 140 percent of the Area Median
Income (hereinafter "AMI") because responding to demand for high-end homes is more
profitable. With the quality of life, natural beauty, and abundance of recreation opportunities in
Eagle County, demand for housing by purchasers of vacation homes will continue to drive prices
upward and dominate the market absent a major recession or revision of federal tax policy.
The Eagle County Comprehensive Plan (the "Comprehensive Plan"), adopted December 7, 2005,
acknowledged the many negative implications of an imbalance between the amount of housing
needed to sustain Eagle County's workforce and the supply of housing that employees can afford.
Eagle County's labor shortages and forced commuting to homes outside of Eagle County
materially degrade quality of service, the economy, the natural environment, traffic, and the
character of local communities.
The Comprehensive Plan delineates two primary goals regarding housing:
Housing is available and affordable for no less than 70 percent of Eagle County's
Yt'Ol'kf01'Ce.
?. Hoersing needs are elearly identified, and housing types are appropriately buluneed to
meet all community needs, appropriately located to reduce long distance commutes, and
appropriately managed to assure long term crffordability.for Eagle County's workforce.
The Comprehensive Plan contains 16 policies for housing with 88 specific strategies
recommended to implement them. The strategies seek to divide the responsibility for
housing calling upon Eagle County's municipalities, private developers, non-profit
organizations, financial institutions, and employers to work with Eagle County
Government to achieve goals. For example, Policy N of the Comprehensive Plan
provides that development should share responsibility for fulfilling Eagle County's
workforce housing needs. Associated strategies include:
• Mandate that attainable workforce housing fie considered part of the required
infrastf•ucture for all new development applications.
• Continue to utilise Inclusionarv Housing and Employc>e Housing Linkage as
defined in the Local-Resident Housing Guidelines in the review of development
applications.
SECTION 1-110 Purpose of the Guidelines
The purpose of the revised Guidelines is to implement specific strategies of the Comprehensive
Plan calling for private development to share in the responsibility for keeping up with the demand
for workforce housing in the future as part of all new residential and commercial growth.
The Guidelines are intended to promote sustainable communities in Eagle County through the
creation of affordable, permanent-resident housing stock. They call for the provision of
workforce housing for Households earning the equivalent of 140 percent AMI or lower-
Households that have little or no opportunity to purchase free-market housing without significant
subsidy. They also provide options for providing housing priced for local residents with incomes
greater than 140 percent AMI since free-market housing opportunities for these Households are
also limited in teens of unit type and location. They complement other County programs, noted
above, to address the economic spectrum of Households in Eagle County that cannot afford
housing. The Guidelines are part of Eagle County's broader solution of making housing available
for and affordable to Eagle County's growing workforce. All development in unincorporated
Eagle County shall adhere to the Guidelines.
~ Terms that are capitalized in Chapter 1 are detned in Chapter II, below.
SECTION 1-200 Summary of the Guideline Requireme~rts
Through the Guidelines, Eagle County seeks to preserve community character and vitality,
support economic sustainability by housing its workforce, maintain the relationship between
Primary Residences and vacation homes, and keep the negative impacts associated with
commuting from worsening. The Guidelines include the following key components:
(1) Inclusionary Housing for Residential Developments. In order to slow the shift from primary
to secondary home ownership, Eagle County has set its base rate for Local Resident Housing at
35 percent of the total square footage of a project, a figure substantially below the 52 percent of
the residential square footage in Eagle County that is currently occupied by local residents. As
such, all new Residential Development, except un-subdivided 35-acre parcels, must include the
following:
(A) Affordable Housing equal to 35 percent of total Net Square Footage of the
Residential Development;
or
(B) Affordable Housing equal to 30 percent of total Net Square Footage of the
Residential Development and Resident-Occupied Housing equal to 10 percent of
total Net Square Footage of the Residential Development.
or
(C) Affordable Housing equal to 30 percent of total Net Square Footage of the
Residential Development and voluntary adoption of a 1.5 percent transfer
assessment placed on the second and all subsequent sales of all market-rate units
(excluding units resold to Eligible Households).
or
(D) Affordable Housing equal to 25 percent of total Net Square Footage of the
Residential Development and voluntary adoption of a l .5 percent transfer
assessment placed on the second and all subsequent sales of all market-rate units
(excluding units resold to Eligible Households) and Resident-Occupied Housing
equal to 10 percent of total Net Square Footage of the Residential Development.
(2) Affordable Employee Housit:g Required for Commercial Mitigation. All new Commercial
Development that, by hiring new employees, creates the need for one or more additional housing
units must mitigate the impact of such development on Eagle County housing stock by providing
Affordable Housing for up to 100 percent of the housing demand generated by Households with
incomes less than 140 percent AMI, accounting for current in-commuting rates (for an overall
mitigation rate for the housing demand created by all new jobs of 55 percent). If 20 percent of
Net Square Footage of the new Commercial Development is Affordable Commercial Space the
mitigation rate will be reduced by 10 percentage points to 45 percent.
(3) For mixed-use projects, only the higher of the (1) (Inclusionary Housing) or (2) (Affordable
Employee Housing) requirements apply at the lowest applicable AMI-affordability levels.
(4) Either Affordable Rental Housing or Affordable For-Sale Housing may be constructed to
comply with the Inclusionary Housing or the Commercial Employee Housing Mitigation
component of the Guidelines.
(5) While on-site construction of Local-Resident Housing is preferred, it may be built off site
under conditions enumerated herein.
The Guidelines apply to all applicants for Development Permits, including all governmental and
non-profit entities, in unincorporated Eagle County. The Guidelines do not apply to development
within the municipalities of Vail, Avon, Minturn, Red Cliff, Eagle, Gypsum, or Basalt.
Compliance with the Guidelines represents one of several relevant elements in a land use
application as detailed in Eagle County's Land Use Regulations and the Comprehensive Plan.
Complying with the Guidelines, however, does not assure an applicant that a Development Permit
will be approved.
SECTION 1-300 Administrative Procedures
The Program Administrator is authorized to administer and enforce the provisions of the
Guidelines and to promulgate reasonable rules and regulations for the administration and
enforcement of the Guidelines, to be contained in the Administrative Procedures, including, but
not limited to, the following and as provided for more specifically herein:
1. Updated assumptions related to interest rates, median sales prices in Eagle
County, AMI, property taxes, insurance, private mortgage insurance ("PMI") and HOA fees;
2. Application procedures and the selection process for Households interested in
purchasing or renting Local-Resident Housing; and
The process for re-certification of residency and employment requirements.
4. The process for listing Local Resident Housing for resale.
5. Updated Commercial Mitigation formulas as updated information is available
concerning the following: job generation rates, jobs held per employee, employees generated by
type of job, number of employees per Household, and average unit size.
6. Calculation of in-lieu pa}nnents pursuant to Section 3-131, i~tfra.
7. Fixing the distribution of Affordable For-Sale Housing and the preferred
distribution of Affordable Housing unit types and sizes provided pursuant to the Guidelines.
S. Fixing standards for storage in Local Resident Housing.
9. Setting required Bedroom mixes in response to changing market demand.
10. Setting minimum and maximum size limits for Local Resident Housing.
11. Fixing the method of establishing the value of Permitted Capital Improvements.
CHAPTER II -DEFINITIONS
The terms, phrases, words, and clauses in the Guidelines shall have the meaning assigned below.
Any terms, phrases, words, or clauses not defined herein will have the meanings as defined in the
Eagle County Land Use Regulations.
Accessory Dwelling Units ("ADUs"): ADUs are as defined by the Eagle County Land Use
Regulations.
Administrative Procedures: A document promulgated by the Program Administrator that sets
forth specific eligibility criteria, AMI levels, purchase prices and rents, sale and leasing
procedures, payment in-lieu amounts, employment generation rates and other information
relevant to the development and operation ofLocal-Resident Housing required by Inclusionary
Housing and Commercial Mitigation.
Affordable Commercial Space: Commercial rental or for-sale space meeting the requirements
of Section 3-11 I.
Affordable For-Sale Housing: For-sale dwelling units in which Eagle County has an interest
through its housing authority or similar agency, that meet initial sales prices, resale price-
appreciation caps, size, quality, and other criteria set forth in the Guidelines and that are subject
to deed restrictions.
Affordable Housing: Affordable For-Sale Housing and Affordable Rental Housing
4
Affordable Housing Credits: Credits that may be awarded at Eagle County's sole discretion for
projects that exceed the requirements of the Guidelines and which may be bought and sold
pursuant to the Guidelines.
Affordable Rental Housing: Affordable Housing, available for rent to and occupation by
Eligible Households, that are burdened by a deed restriction consistent with Section 4-I30 of the
Guidelines and in a form approved by the County Attorney and the Program Administrator.
Area Median Income ("AMI"): The local estimates of median family income compiled and
released annually by the Department of Housing and Urban Development. As used in the
Guidelines, AMI shall mean the most current figures available at the time from the U.S.
Department of Housing and Urban Development, adjusted for Eagle County.
Bedroom: A room to be used for sleeping purposes that meets applicable International Building
Code requirements.
Board of County Commissioners ("BoCC"): The Board of County Commissioners for Eagle
County, Colorado.
Capital Improvement: Unless otherwise defined in the deed restriction governing the
Affordable For-Sale Housing, any fixture erected as a permanent improvement to real property
excluding repair, replacement, and maintenance costs.
Commercial Development: Any development that is not a Residential Development for which a
Development Permit or building permit is required, the application for which was not complete at
the time of adoption of the Guidelines. Institutional uses such as government buildings, schools,
hospitals, and facilities operated by non-profit service agencies are considered to be Commercial
Development.
Commercial Mitigation: 'The policy of requiring the construction of Affordable Housing
designed to house employee growth generated by Commercial Development.
Dependent: A minor child by blood or adoption (21 years of age or younger) or other relative of
the owner of an Affordable For-Sale Housing unit, which child or relative is taken and listed as a
Dependent for federal income tax purposes by such owner or his present or former spouse.
Dependents must also reside with the owner at least six months and one day (183 days) out of
every 12-month period.
Development Permit: Any preliminary or final approval of an application for rezoning, planned
unit development, conditional or special use permit, subdivision, development or site plan, or
similar application for new construction.
Disabled Person: A person who meets the definition of "individual with a disability" contained
in 29 U.S.C. Section 706(8), or as defined in the Americans with Disabilities Act of 1990.
Eagle County: Eagle County, Colorado.
ECO Build Standards: The currently approved Eagle County Efficient Building Code as
codified in the Land Use Regulations. The code requires a certain number of points to be met
prior to occupancy that demonstrate energy efficiency, environmentally-friendly material use, and
improved indoor air quality.
Eligible Household: A Household that meets the criteria set forth in Chapter V of the Guidelines.
Guidelines: The Eagle County Local Resident Housing Guidelines, as amended from time to
time.
Gross Household Income: The combined adjusted gross income of all individuals who will
occupy the unit regardless of legal status or relationship to the owner or lessee.
Gross Income: The total income derived from a business, trust, etnployment, 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 of legal status or relation to the
owner or lessee.
Household Size: The number residents in the Household residing there for greater than 6 months
per year. To be included, Dependents must be listed on federal income tax forms for the past two
years. A pregnancy may be counted toward the fatnily size requirement with documentation from
a medical provider.
Housing Plan: Housing Plan meeting all of the criteria set forth in Section 3-200 of the
Guidelines that demonstrates how the applicant will satisfy the requiretents of the Guidelines.
Inclusionary Housing: The Eagle County policy requiring a percentage of units or Net Square
Footage within Residential Developments to be restricted for ownership or occupancy by Eligible
Households in order to ensure adequate housing stock for local residents and maintain the current
ratio primary to secondary home ownership.
Local-Resident Housing: Affordable Housing and Resident-Occupied Housing.
Lodge Room: A unit rented nightly or weekly and taxed for the full year as a commercial use.
Any Bedrooms in the unit above one will be considered a separate Lodge Rootn.
Maximum Purchase Price: The maximum price for which Affordable For-Sale Housing may be
initially sold, as provided for in Section 3-160, infra.
Maximum Rental Rate: The maximum average monthly rent payment for an Affordable Rental
Housing unit, as provided for in Section 3-161.
Maximum Resale Price: Unless otherwise defined in the restrictive covenant recorded against
an Affordable For-Sale Housing unit, the owner's purchase price increased by the allowable
appreciation, set forth in Section 5-180, infra, plus the value of all Permitted Capital
Improvements, as provided for in Section 5-182, infra.
Net Square Footage (Feet):' A calculation based on interior area that is measured from the
interior walls, including all interior partitions, habitable basements (including unfinished
basements that have the potential to meet habitability standards once finished), interior storage
areas, and closets and laundry area. Such calculations shall not include mechanical areas, exterior
storage, stairwells, garages (either attached or detached), patios, decks, and porches. Applicants
shall receive a 50-percent credit for storage space when providing storage space for Affordable or
Resident-Occupied Units. Storage credit may not exceed 10 percent (20 percent of the Net
Square Footage) of the total Net Square Footage of the Affordable Housing or Resident-Occupied
Housing.
Permitted Capital Improvement: Capital Improvements for which costs may be recovered
upon resale of Affordable For-Sale Housing, as provided for in Section 5-182, infra.
Primary Residence: The residence in which an owner or renter lives for at least 8 out of any 12
months or 240 days out of 365 days, whichever is longer.
Program Administrator: The administrator of Eagle County Inclusionary Housing and
Commercial Mitigation plan provided for in the Guidelines. The Program Administrator shall be
the Eagle County Housing Director unless another person is appointed by the BoCC.
Qualified Employees: Employees meeting the requirements of Section 5-1 10, infra
' This detnition differs from the square footage definition in the Eagle County Land Use
Regulations, which is based on exterior-wall measurements.
6
Qualified Employers: Employers of Qualified Employees.
Resident-Occupied Housing: Housing with a restrictive covenant recorded against it requiring
that it be owned and occupied in perpetuity by an Eagle County resident as his or her Primary
Residence.
Residential Development: Any development in Eagle County that is designated as "residential"
by the Eagle County Land Use Regulations, which would result in the creation of one or more
dwelling units or lots and for which a Development Permit is required, the application for which
was not complete at the time of adoption of the Guidelines. Subdivided land resulting in parcels
of at least 35 acres in size on which residential property is proposed consistent with applicable
zoning is excluded from the definition of Residential Development. Residential Development
includes residential units that are for sale and for rent. For purposes of triggering obligations
under the Guidelines, market-rate, for-sale and rental properties are treated identically.
Roaring Fork Valley: The land within the Roaring Fork River Valley and the valleys with
tributary streams or rivers, including the Frying Pan River, the Crystal River, Snowmass Creek,
Capital Creek, Maroon Creek, and Castle Creek. This includes, but is not limited to, the towns of
Aspen, Snowmass Village, Woody Creek, Carbondale, Redstone, Marble, and Glenwood Springs.
CHAPTER III -REQUIREMENTS FOR AND DEVELOPMENT OF
AFFORDABLE HOUSING AND RESIDENT-OCCUPIED HOUSING
SECTION 3-100 Inclusionary Housing
At least thirty-five (35) percent of the Net Square Footage of all new Residential Developments
shall be Affordable Housing.'
SECTION 3-101 Resident-Occupied Housing Option
Providing 10 percent of the Net Square Footage of new Residential Development as Resident-
Occupied Housing may be substituted for 5 percentage points of the Affordable Housing
requirement.
SECTION 3-102 Voluntary Transfer Assessment Option
The applicant may impose an ownership transfer assessment of 1.5 percent on all sales of free-
market units to non-Eligible Households fora 5 percentage point reduction in its Affordable
Housing obligation. The assessment shall remain in place in perpetuity. The proceeds from the
assessment shall be paid to anon-profit entity specified by the BoCC for the purpose of creating
Affordable Housing in Eagle County.
SECTION 3-103 Residential Lots
When the Development Permit application seeks to create only residential lots, the Inclusionary
Housing requirement of the Guidelines shall be based on the applicant's estimate at the time of
the application of the Residential Development Net Square Footage that will be constructed on
such lots. The Inclusionary Housing requirement from lot creation shall generally be imposed at
the time of subdivision, except upon showing of good cause to the BoCC. If additional Net
Square Footage is later requested and approved, an additional housing or in-lieu payment shall be
required at that time. If purchasers build smaller units than the estimate, they may sell their
unused housing allocation as Affordable Housing Credits.
' ADUs are acceptable as Affordable Rental housing with no rental or condominium restrictions, but they
must be rented to and occupied only by Eligible Households. ADUs cannot be used as guest
accommodations or left vacant.
7
SECTION 3-110 Commercial Mitigation
Applicants constructing new Commercial Development shall mitigate the impact on Eagle
County's housing stock by building Affordable Housing for at least 55 percent of the new
employees generated by the particular development. Affordable For-Sale Housing required
pursuant to Commercial Mitigation shall be priced on average at 100 percent AMI. (This is
equivalent to 100 percent Commercial Mitigation for jobs paying less than 140 percent AMI,
accounting fir current in-commuting rags.) No mitigation is required for existing jobs at the site
to be developed. Mitigation rates shall be based on the most recent Eagle County Nexus study.
For 2008, "55 percent mitigation" equates to 715 Net Square Feet of Affordable Housing per
1000 Net Square Feet of Commercial Space and 204 Net Square Feet of Affordable Housing per
Lodge Room. The Program Administrator is authorized to update these mitigation calculations as
the Eagle County Nexus Study is revised and to explain these calculations in the Administrative
Procedures.
The Affordable Housing demand generated by a Commercial Development shall be determined
utilizing an average job generation rate of 2.8 employees per 1,000 square feet of commercial
space with adjustments for multiple job holding and multiple employees per Household. The
standard commercial "unit," for purpose of calculating Commercial Mitigation requirements,
shall be 1,000 Net Square Feet.
If the applicant can document, to the BoCC's reasonable satisfaction, that the proposed
development will generate fewer jobs per square foot than the overall merged average for the life
of the Cotnmercial Development then the applicant tnay use the proven lower job-generation rate
in calculating Commercial Mitigation obligations.
SECTION 3-111 Affordable Commercial Space
Applicants for Commercial Developments where 20 percent of Net Square Footage of
Commercial Development will be leased or sold as Affordable Commercial Space are eligible for
a 10 percentage point reduction in their Commercial Mitigation requirement.
Affordable Commercial Space is retail or office space that is leased or sold at or less than 60
percent of existing market conditions, as determined by Eagle County in its sole discretion.
Affordable Cotnmercial Space may be leased directly by the applicant, but only to anon-relative.
Side payments from tenants or purchasers are prohibited. The tenant or purchaser must be
approved by l/agle County. Affordable Commercial Space may increase in rent or sales prices at
no more than 5 percent annually in perpetuity, simple interest, pursuant to a recorded deed
restriction in a form approved by Eagle County.
SECTION 3-120 Mined-Use Developments
If both Commercial Mitigation and Inclusionary Housing requirements apply because the
application contains a mix of Commercial Development and Residential Development, then the
higher Net Square Footage requirement for delivering Affordable Housing applies, at the lower
initial sales price.4
SECTION 3-130 Alternative .'leans of Compliance
In an effort to provide the flexibility necessary for the development industry, an applicant may
comply with the Affordable Housing requirement for the Inclusionary Housing and Commercial
For example, if a mixed-use project of 100,000 Net Square Feet of total Residential Development and
50,000 Net Square Feet of Commercial Development were proposed, the affordable housing obligation
would be 35,750 square feet at an average price point affordable to a family earning 100% AMI. This
represents the higher Net Square Footage requirement of Commercial Mitigation (35,750) or Inclusionary
Housing (35,000), at the 100 AMI level required by Commercial Mitigation.
Mitigation policies in the following ways, all of which are subject to approval by the BoCC, at its
sole discretion:
A. An applicant may be permitted, at the discretion of Eagle County, to build the Affordable
Housing units on-site or off-site, if such off-site location conforms to the criteria of
Section 3-180, infra.
B. Pursuant to Section 3-131, an applicant may provide Eagle County with an in-lieu
payment.
C. An applicant may dedicate land to Eagle County that meets all criteria in Section 3-132,
lYl fl"a.
D. An applicant may contract with a third party to complete on-site or off-site housing. The
original applicant shall be responsible for assuring that these units are in compliance with
the Guidelines.
E. An applicant may purchase Affordable Housing Credits, as provided for in section 3-133,
infra.
F. An applicant may propose alternative housing solutions, or other community benefit of
similar value, of the applicant's own devising, as provided for in Section 3-134, infra.
Applicants are prohibited from using units built as replacement of housing affordable to
households earning less than 140 percent AMI toward satisfaction of Inclusionary Housing or
Commercial Mitigation requirements. Any such housing destroyed in the development process
must be replaced with units of similar affordability and size, in addition to said requirements.
SECTION 3-131 Payment in-Lieu
An applicant inay apply to satisfy all or part of its Inclusionary Housing or Commercial
Mitigation requirements by making an in-lieu payment if development of Affordable or Resident-
Occupied Housing is impracticable, as determined by the BoCC. Payment in lieu of providing
housing is discouraged and will be allowed only upon a showing of impracticability of
development of the Affordable or Resident-Occupied Housing. Applicants, however, may satisfy
their obligation to construct partial units by making an in-lieu payment. (For example, if the
obligation requires construction of 10.65 units, an in-lieu payment could be made to satisfy the
.65 unit requirement rather than building an entire unit.).
The payment-in-lieu represents the difference between prevailing market prices and the
Maximum Purchase Price at 100 percent AMI, plus a 15 percent administrative fee, and shall be
based on the Gross Household Income of a family of three. This calculation shall be performed
by the Program Administrator. The purpose of the administrative fee is to offset the increased
cost to Eagle County of managing the development of Affordable Housing, the escalating cost of
land and increased time it takes Eagle County to build Affordable Housing.
All in-lieu payments shall be paid to the Eagle County Housing Fund prior to the issuance of
certificate of occupancy for either the free-market or Affordable Housing or Resident-Occupied
Housing component of the Residential or Commercial Development. The in-lieu dollar amount
shall be set at the time of payment. In-lieu payments shall be placed into a separate, interest-
bearing account and shall be used by Eagle County for housing programs throughout Eagle
County. Any interest or other income earned on moneys deposited in said interest-bearing
account shall be credited to the account.
The in-lieu amount may be lowered at the BoCC's discretion upon a showing that the in-lieu
payment as provided for herein would render the development impracticable, but only if 1) the
applicant shows that the land was purchased 12 months prior to the adoption of the Guidelines, 2)
the appreciation on the property was less than the required in-lieu payment, and 3) the in-lieu of
payment would exceed 3 percent of the estimated market value of the units to be constructed.
9
Under this method, the in-lieu payment cannot be lowered to less than 3 percent of the value of
the units to be constructed. Any reduction in the in-lieu payment must be approved by the BoCC
as part of the land-use approval process. Particular consideration may be given to developments
of less than 30,000 sq. ft. or development on less than 1 acre.
SECTION 3-131.1 Calculation of In-Lieu Payments
In-lieu payments are calculated based on the affordability gap between 100 percent AMI and the
median sales price per square foot in Eagle County (including the Eagle County municipalities).
The Program Administrator shall update these requirements annually based on the prior year's
median sales price per square foot and Eagle County's AMI for the current year.
SECTION 3-132 Land in-Lieu
An applicant may satisfy its Inclusionary Housing and Commercial Mitigation obligations
through a voluntary conveyance of land to Eagle County. The land conveyed shall he free of all
liens and encumbrances and shall be conveyed by general warranty deed, must be commensurate
in value with the total in-lieu payment, including the 15 percent administrative fee and must be
capable of supporting the amount of housing the applicant is required to build. The land must
also meet the criteria set forth in Section 3-160, infra. An applicant may use cash to make up any
gap between the value of the donated land and the in-lieu payment. Eagle County, at its sole
discretion, shall decide whether to accept land offered in lieu of an applicant's Inclusionary
Housing and Commercial Mitigation obligations. Land so conveyed to Eagle County may be
located within any of the Eagle County municipalities.
SECTION 3-133 Affordable Housing Credits
Applicants who build more than the minimum amount of Affordable Housing required by the
Guidelines may transfer Affordable Housing Credits to another applicant for their use in meeting
their Inclusionary Housing or Commercial Mitigation obligations. All sections of the Guidelines
remain in force, including timing of construction. No Affordable Housing Credits will be
allowed for housing units built prior to the adoption of the Guidelines.
SECTION 3-134 Other Proposals
The BoCC, at its sole and exclusive discretion, may consider other proposals to provide Local-
Kesident Housing, or other forms of affordable housing or other community benetits as a
condition of a Development Permit approval, consistent with applicable law. Businesses or
agencies with their own housing programs may receive credit for any pre-existing, deed-restricted
employee stock when constructing new Commercial Development at the BoCC's sole and
exclusive discretion.
SECTION 3-140 Incentives for Meeting or Exceeding the Guidelines
If an applicant has provided a combination of compliance measures that meet or exceed the
minimum requirements for Inclusionary Housing or Commercial Mitigation, Eagle County, at its
sole discretion, may offer the following incentives, to the extent allowed by Eagle County Land
Use Regulations:
A. Density bonus: As part of a planned unit development ("PUD") application, Eagle
County nay offer a density bonus over the otherwise maximum number of units allowed
by the property's zoning and development standards.
B. Site design flexibility: Provided that the standard of housing or the purpose and intent of
the Guidelines and the Eagle County Land Use Regulation are not compromised, 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.
10
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
applicants who decide to pursue funding assistance from state or federal agencies. Eagle
County inay also choose to use funds to match state, federal, or private grants.
E. Public-private partnerships: Eagle County may participate or facilitate participation with
other governmental entities regarding financing or purchasing of Affordable Housing
units directly from the applicant or other purchases that will reduce the costs of the
affordable portion of the project.
F. Road impact fee waivers: The BoCC, on the recommendation of the Road Impact Fee
Committee, may waive Eagle-County imposed road impact fees for Affordable Housing
Units (but not Resident-Occupied Units).
G. Other fee waivers: The BoCC may waive any other fee allowed by the Eagle County
Land Use Regulations for Affordable Housing Units only in its sole and exclusive
discretion.
SECTION 3-1 SO Eagle County Interest in Affordable Housi~zg
To qualify as Local Resident Housing, Eagle County must take an interest in the Affordable
Housing unit through its housing authority or similar agency.
SECTION 3-160 Initial Pricing of Affordable For-Sale Housing
Affordable For-Sale Housing in Residential Developments shall be initially priced for sale to
Eligible Households at no more, on average, than 105 percent of AMI. The units shall be priced
in a spectrum of prices consistent with market demand as such need is established by the Eagle
County Needs Assessment, as the same may be amended from time to time. The Program
Administrator is authorized to set the preferred distribution of Affordable For-Sale Housing,
taking into account housing need, the maximum affordable purchase price for each AMI sector,
and the needs assessment gap. As a general matter, Affordable Rentals are appropriate for
households with Gross Household Incomes of 60 percent AMI or lower. Affordable For-Sale
Housing is appropriate for households with Gross Household Incomes of 60-140 percent AMI.
Resident-Occupied Housing is appropriate for households with Gross Household Incomes over
140 percent AMI. Prices set as luw as 60 percent AMI are encouraged and will be considered in
requests for incentives allowed by Section 3-140, supra. In no circumstances shall Affordable
For-Sale Housing be priced greater than 140 percent AMI.
SECTION 3-161 Maximum Rental Rates of Affordable Rental Housing
Maximum Rental Rates for Affordable Housing units, except ADUs, must initially be set at rates
that are affordable for Households with incomes no greater than 80 percent AMI, unless
structured parking is provided for 80 percent or more of the units, in which case rents can be
initially set at the 90 percent AMI level. ADUs have no rental-rate restrictions.
SECTION 3-162 Price Adjustments for Structured Parking
Applicants are encouraged to minimize the use of land for parking. If at least RO percent of the
parking spaces for Affordable Housing units are within a parking structure (not surface spaces),
initial sales prices and rents may be priced at AMI levels up to 10 percentage points higher than
otherwise allowed.
SECTION 3-163 Pricing of Resident-Occupied Housing
Sale prices for Resident-Occupied Housing are not limited. A spectrum of pricing responsive to
market demand is encouraged.
11
SECT ION 3-164 Adjustments to Prices and Rents
Up to the time of issuance of certificate of occupancy, the applicant may request that the Program
Administrator adjust the Maximum Purchase Prices or Maximum Rents to conform to updated
AMI figures. Any such modification to prices or rents will be done through an amendment to the
Housing Plan and will not require formal amendment to the Development Permit.
SECTION 3-170 Timing of Construction of L~~cal Resident Housing
All required Local Resident Housing units must be provided prior to, or concurrently and
proportionally with, the production of Residential Development's market-rate housing, or
production of the Commercial Development as measured by issuance of building permits, unless
Eagle County-approved Housing Plan provides otherwise.
SECTION 3-180 Locution ofLocal-Resident Housing
Affordable Housing and Resident-Occupied Housing should generally be provided on-site, if
possible. Exceptions to this strong preference include Residential Development on sites in rural
locations inconvenient to employment centers and public transit, or Commercial Development
that involves hazardous substances and impacts not compatible with residential uses.
The applicant may also propose to locate the Affordable Housing or Resident-Occupied Housing
off-site if the off-site location better serves the needs of workforce housing; relevant criteria may
include, but is not limited to, applicable comprehensive and master plans, a "Community Center"
designation, scoring on Eagle County's Sustainable Community Design Index, site location,
geologic and other hazards, site slope, public infrastructure, suitable soils and drainage, and
proximity to public transit. The location of all Affordable Housing and Resident-Occupied
Housing must be set forth in the Housing Plan. It is intended that the proposed site be within the
same general vicinity of Eagle County as proposed the Commercial or Residential Development.
Applicants are strongly discouraged from proposing off-site Local Resident Housing in a
different community (incorporated or unincorporated) from the Development Permit site
primarily to reduce development costs.
SECTION 3-200 Housing Plan Required
In order for an application for a Development Permit to be deemed complete, an applicant shall
submit a complete Housing Plan, which has been previously approved by the Program
Administrator. Compliance with the Housing Plan shall be a condition of approval for the
Development Permit.
At a minimum, the Housing Plan shall contain the following information, as applicable:
1. Total number of proposed residential Net Square Footage in any Residential
Development;
2. Total number of Affordable Housing, Resident-Occupied Housing, and market-rate
units, including proposed units types, Net Square Footage, number of Bedrooms per
unit, targeted income category, and initial sales price;
3. Total square-footage of any Commercial Development and number of employees
generated from the development utilizing standards set forth in these Guidelines;
4. Average Net Square Footage of the proposed Affordable For-Sale Housing and
average size of finished Net Square Footage of market rate housing units;
5. Average lot size of proposed Affordable For-Sale Housing and average lot size of
market rate housing units, as applicable;
6. Location of proposed Affordable For-Sale Housing within the development, by unit
type and size;
12
7. Proposed production schedule of Affordable For-Sale Housing and market units;
8. Concept for marketing to Households that may be eligible for the Affordable
Housing;5
9. Proposed Maximum Sales Prices for all Affordable For-Sale Housing;
10. Any proposed alternative methods of compliance with these Guidelines; and
11. Any other information deemed to be relevant by the Program Administrator.
All additional information required by the Program Administrator shall be consistent with the
terms and intent of the Guidelines and shall be expressly set forth in the Administrative
Procedures
The Housing Plan shall be recorded with the applicant's property at the time the Development
Permit is granted. Any amendment of the Housing Plan prior to recording requires the approval
of the Program Administrator with right of appeal to the BoCC as provided in the Eagle County
Land Use Regulations.
SECTION 3-300 Homeowners and Condominium Associations
Any documents creating a condominium or homeowners association shall require that the
Affordable For-Sale Housing will only be assessed monthly dues and other shared assessments
based on the proportionate ratio of the value of the Affordable For-Sale Housing or lot compared
to market-rate units in the same development.
SECTION 3-310 Divided Ownership of Affordable Rental Housing Limited
No Affordable Rental Housing unit shall be converted in the future to free-market, for-sale
housing through subdivision, the cooperative form of ownership, condo-conversion, or some
similar form of ownership inconsistent with its affordable purpose, unless the owner proposes
providing substantially similar substitute Affordable Housing and such proposal is pre-approved
by the BoCC. Under no circumstances shall any portion of an Affordable Housing unit be leased
or rented for any period of time without the prior written approval of the Program Administrator
and compliance with the Guidelines. In the event ofnon-compliance with this restriction, such
rental or lease shall be wholly null and void and shall confer no right or interest whatsoever to or
upon the purported tenant or lessee.
SECTION 3-400 Unit Quality
Local Resident Housing shall meet the requirements of all land-use regulations and local building
codes. They should be architecturally compatible with surrounding uses. Exterior finishes
should not be substantially inferior to the materials used on free-market units; Resident-Occupied
Housing should appear compatible with free-market housing.
Enhancing the long-term affordability of Local Resident Housing through designs that reduce
utility costs is strongly encouraged. Units must meet minimum ECO Build Standards as provided
for in the Eagle County Land Use Regulations; payment in-lieu of meeting ECO Build standards
is not permitted. Surpassing the minimum standards through Energy Star appliances, passive and
active solar applications, geo-thermal heating systems, additional insulation and other measures
that reduce energy consumption will be reviewed when considering applications.
' Employers may purchase Affordable For-Sale or Rental Units for resale or rental to their employees
13
SECTION 3-500 Storage
Sufficient storage shall be provided to meet the needs of Local Resident Housing occupants.
Rules and regulations governing specific storage requirements for Local Resident Housing shall
be set by the Program Administrator.
SECTION 3-600 Unit Design
Local Resident Housing is intended to be a long-term asset, the quality and appearance of which
is very important. Local Resident Housing designs must address livability, maintenance, health,
safety cuitcei~is, climate, lifestyle, and needs of the types of Households the units are intended to
serve. Costly-to-operate amenities are strongly discouraged. Structured parking is encouraged.
To enhance livability, balconies, decks and small yards are also encouraged.
SECTION 3-700 Local Resident Housing Bedroom Mrx and Sipe
When required to develop one or two Affordable Housing units, the applicant shall build two-
Bedroom units at a minimum of 1,000 Net Square Feet. When required to develop more than two
units, the applicant should include a distribution of one-, two- and three-Bedroom units as
determined by the Program Administrator. Four-Bedroom units are also permitted if market
demand is shown to be adequate. The Program Administrator may set required Bedroom mixes
in response to changing market demand. Applications for Local Resident Housing, apartment
vacancy rates, Bedroom mix for planned Residential Developments and other market indicators
should be taken into consideration. While there are no specific Bedroom mix requirements for
Residential Occupied units, the applicant is expected to have analyzed market demand and
competition and to propose a mix that is responsive and appropriate.
Minimum and maximum sizes may be set by the Program Administrator within the following Net
Square Feet parameters: studios: 500-1000; one Bedrooms: 650-1300; two Bedrooms: 800-
1500; three bedrooms: 950-1700; four bedrooms: 1,100-2,000.
SECTION 3-800 Initial Sales and Marketing of Affordable Housing and Resident-Occupied
Units
The applicant shall be responsible for the initial sales and marketing of Affordable For-Sale
Housing and Resident-Occupied Units. Eagle County shall have the right to review the terms of
each sale for compliance with the Guidelines.
CHAPTER IV -MATERIAL TERMS OF DEED RESTRICTIONS (RESTRICTIVE
COVENANTS)
All Local Resident Housing shall be burdened by deed restrictions, which shall run with the land,
as provided for in the Guidelines.
SECTION 4-100 Deed Restrictions for Local Resident Housi~rg
All deed restrictions burdening Local Resident Housing units must include resale restrictions
binding future buyers and sellers to the applicable conditions set forth in the Guidelines and shall
be in a form approved by the Program Administrator and the Eagle County Attorney's Office.
All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed
Restriction, a document accepting the purchaser's agreement to be bound by both the recorded
deed restriction covering the sale unit and the Guidelines.
SECTION 4-110 Deed Restrictions for Affordable For-Sale Housing
The material terms for restrictive covenants against Affordable For-Sale Housing are as follows:
14
a. Eligible Households only (Section 5-100, 5-110);
b. May not own other residential property, with limited exceptions (Section 5-120);
c. Income and asset cap (Section 5-130): Gross Household Income less than 140
percent AMI and Household assets less than 1.5 percent sales price);
d. Limitations on rentals (Sections 5-140 and 5-170);
e. Primary Residency use only with annual re-certifications (Sections 5-160 and 5-
161);
f. Initial sales pricing restrictions (Section 3-120};
g. Resale, price-appreciation cap (Sections 5-180, 5-182);
h. Ownership interest conveyed to Eagle County (3-150); and
i. Resale by Eagle County (Sections 5-171).
SECTION 4-120 Resident-Occupied Housing
The material terms for restrictive covenants against Resident-Occupied Housing shall be as
follows:
a. Resident-Occupied Housing may be owned and occupied only by an Eagle
County resident as his or her Primary Residence pursuant to Section 5-170, infra
(Section 5-100).
No household members may own other real property, subject to exceptions (Section 5-120).
SECTION 4-130 Affordable Rental Housing
The material terms for restrictive covenants against Affordable Rental Housing, except ADUs,
shall be as follows:
a. Eligible Households only (Section 5-100);
b. Maximum rents (Section 3-161);
c. Ownership interest conveyed to housing authority (Section 3-150); and
d. Income limitations (Section 5-130).
SECTION 4-140 Deed Restrictions for Affordable Commercial Space
All Affordable Commercial Space must contain resale and rental restrictions binding future
owners to the applicable conditions set forth in the Guidelines in effect at the time of property
transfer, including the following:
a. Must be leased or sold to anon-relative (Section 3-111);
b. Rents and purchase prices must be set at 60 percent of market rate (Section 3-
111); and
c. Appreciation and rent may increase by no more than 5 percent, non-compound,
annually (Section 3-111).
15
CHAPTER V -OWNING AND RENTING LOCAL-RESIDENT HOUSING
SECTION 5-100 Eligibility
Affordable Housing units shall be owned or rented only by (1) Eligible Households that include
at least one Qualified Employee and that meet the eligibility requirements provided for in this
Chapter or (2) employers of Qualified Employees. Purchasers must provide a down payment on
the Affordable Housing unit in an amount no less than 1 percent of the purchase price.
Resident-Occupied Housing must be owned and occupied, except as specifically provided in
Section 5-170, by an Eagle County resident who makes the Resident-Occupied Dousing his or her
Primary Residence.
Eligibility requirements must be met before submitting a bid to purchase or rent aLocal-Resident
Housing unit.
In determining the priority of Eligible Households for Affordable Housing units, the Program
Administrator tnay award points based upon the following criteria in order of importance: Gross
Household Income in relation to purchase price (preferring Eligible Households with fewer
financial options); length of employment in Eagle County; proximity of work to housing; current
ownership of Affordable Housing; length of residency in Eagle County; service for governmental
and public-service entities in Eagle County; and intergovernmental agreements.
For all Affordable Housing three-Bedroom units, priority shall be given to Eligible Households
who have a Household Size of four or more persons regardless of their Household's cumulative
total points. Similarly, for all four or more Bedroom Affordable Housing units, priority will be
given to Eligible Households who have a Household Size of five or more persons regardless of
the Household's cumulative total points.
If two individuals are applying jointly, only the higher priority applicant will be considered in
determining a Eligible Household's priority. Priority for larger units shall be assigned based on
Household size. This prioritization shall be made pursuant to Administrative Procedures
promulgated by the Program Administrator.
If two or more qualified bids are submitted at the highest bid price and the bidders have equal
priority in the selection procedure, point ties shall go to the Household with the greater
Household Size. If this does not resolve the tie, the Program Administrator shall hold a lottery to
determine the winning Eligible Household.
SECTION 5-110 Employment Qualification
For as long as the Household owns or rents the Affordable Housing unit (A) all members of an
Eligible Household must cumulatively earn at least 75 percent of the Household's Gross
Household Income in Eagle County or (B) at least one occupant-owner must occupy the
Affordable Housing unit as his or her primary residence and must be a Qualified Employee
pursuant to the following criteria:
1. Has earned a living primarily in Eagle County by having worked an average of at least
thirty (30) hours per week on an annual basis at a business with an office or job site
physically located in Eagle County (multiple jobs in Eagle County may be combined to
reach 30 hours per week); or
2. Has been hired for a job in Eagle County 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; or
3. 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
16
for five (5) years immediately prior to his retirement working a minimum of 8 months
of each year employed); or
4. Is a Disabled Person who has been afull-time employee in Eagle County (subject to the
above exceptions) for a minimum of two years immediately prior to his or her
disability or has been granted an exception to the minimum of 30 hours per week in
order to continue with a federal or state benefit program through the Division for
Developmental Disabilities (state) or SSI (federal), if the person works the maximum
number of hours per week the program will allow; or
5. Is a single parent with one or more Dependents, with at least one being under the age of
five (5) or enrolled full-time in a school in Eagle County.
SECTION 5-120 Limits on Owning Other Real Estate
No member of an Eligible Household or member of a household owning aResident-Occupied
unit, including, but not limited to, spouses and children under 18 years of age, may own
residential real estate anywhere as of closing or signing the lease for the Local-Resident Housing
unit, subject to the following exceptions:
1. If the Eligible Household member is currently an owner of an Affordable For-Sale
Housing unit, and he or she seeks to sell his or her existing unit and purchase another
Affordable For-Sale Housing unit contemporaneously; or
2. If currently-owned residential property is listed for sale; or
3. If the relevant household member has leased his existing unit located outside of Eagle
County at a market rate rent (leases to immediate family members do not qualify) for a
period of at least one (1) year, and submits annual verification that the property remains
leased at a market rate.
For an Eligible Household member whose business is the construction and sale of residential
properties or the purchase and resale of such properties, the properties that constitute inventory in
such and the business shall not constitute ownership of other residential real estate.
Subject to the exceptions above, during ownership of aLocal-Resident Housing unit, no
household member shall own any interest alone or in conjunction with others, in any other
developed residential real estate in Eagle County. Residential real estate that is owned by a
member of a prospective occupant of Local-Resident Housing may not deed residential real estate
to a corporation or other person or entity except at fair market value nor may residential real
estate be deeded to a corporation or other legal entity in which the household member has any
financial interest in order to meet these requirements.
SECTION 5-130 Income and Assets Limitations
All purchasers and renters of Affordable Housing must have Gross Household Income of less
than 140 percent AMI. Eligibility for Affordable For-Sale Housing is also limited to Households
with total assets with a market value of no more than 150 percent (1.5 times) the price of the unit
to be purchased, excluding government-qualified retirement accounts.
There are no income caps or asset limitations for purchasers of Resident-Occupied units.
SECTION 5-140 Rental of Affordable Housing by Qualified Employers for Employees
Qualified Employers may purchase and lease Affordable Housing to employees who are members
of Eligible Households. Qualified Employers may not impose additional deed restrictions to
Affordable Housing without the express consent of the Program Administrator.
17
SECTION S-1 SO Applying for Loca[ Resident Housing
Households interested in purchasing or renting Local Resident Housing must submit an
application to Eagle County on a form consistent with the Guidelines and approved by the
Program Administrator.
SECTIDN 5-160 Maintaining Occupancy
The occupant of an Affordable Housing unit or the owner of aResident-Occupied Housing unit
will be deemed to have ceased to use the unit as his Primary Residence by accepting permanent
employment outside of the Eagle County area (employment in the Roaring Fork Valley is
acceptable for units located in the Roaring Fork Valley), by residing in the unit for fewer than 8
months out of any 12 months or 240 days out of 365 days whichever is longer, or by registering
to vote outside of Eagle County.
SECTION 5-161 Re-Certification of Affordable Housing and Resident-Occupied Housing
Once an Affordable Housing unit has been purchased or rented, it must continue to be owned and
occupied only by Qualified Households. No later than February 1 of each year, the owner or
renter of an Affordable For-Sale Housing or Affordable Rental Unit, respectively, shall submit to
Eagle County two copies of a sworn affidavit on a form to be obtained from Eagle County,
verifying that the owner or renter continues to meet employment, residency, and income
requirements, as applicable, while owning no other residential property with the exceptions
provided for herein.
Once aResident-Occupied Housing unit has been purchased, it must continue to be owned and
occupied only by household members meeting the requirements of Section 5-100 and 5-120,
supra. No later than February 1 of each year, the owner of aResident-Occupied Housing Unit
shall submit to the Program Administrator two copies of a sworn affidavit on a form to be
obtained from the Program Administrator, verifying that the owner continues to meet
employment or residency requirements, as applicable, while owning no other residential property
with the exceptions provided for herein.
Failure to provide information as required by the Program Administrator and any applicable deed
restrictions may result in forfeiture of appreciation, acounty-mandated sale, or any other
available remedy at law or equity.
SECTION 5-170 Leave of Absence
A leave of absence for the owner of an Affordable Housing unit or aResident-Occupied Housing
unit from such occupancy requirement may be granted at the sole discretion of the Program
Administrator, subject to clear and convincing evidence that shows the reason for leaving and a
commitment to return. Said evidence shall be in written form, presented to Eagle County for
review and decision thirty (30) days prior to leaving. The leave of absence shall be for one year
and may, at the discretion of Eagle County, be extended up to one additional year, but in no event
shall it exceed two years. In the case of an approved leave of absence, the owner shall only rent
to an individual who meets the eligibility requirements herein. Rents charged during a leave of
absence may not exceed Maximum Rental Rates for Affordable Rentals. The tenant must obtain
a Letter of Certification from the Program Administrator. The owner shall provide a copy of the
lease agreement executed between the owner and tenant to Eagle County. For Affordable
Housing units, rents may not exceed the Maximum Rental Rate for the Affordable Rental unit.
SECTION 5-180 Reselling Affordable Housing
1 Z. No owner of an Affordable Housing unit shall sell the unit for an amount greater than
the Maximum Resale Price for the unit, which shall consist of the original purchase
price paid for the Affordable Housing unit excluding any sales or financing costs,
increased by the percentage increase in average wages in Eagle County during the
IS
ownership period and by the value of Permitted Capital Improvements as described
in Section 5-182, infra, less depreciation of such Permitted Capital Improvements.
There are no resale price limitations on Resident-Occupied Housing units.
SECTION 5-181 Listing Units for Resale
All Local Resident Housing must be listed for resale with Eagle County or its designee using a
standard listing contract form approved by the Program Administrator.
SECTION 5-182 Permitted Capital Improvements
Owners of Affordable Housing are allowed a maximum of 10 percent of the initial purchase price
(the price paid for the unit by the owner making the Permitted Capital Improvement) over each
five-year period for Permitted Capital Improvements from the date of the initial purchase by such
owner. Every five years, the 10 percent allowance shall reset based on a recalculated resale value
of the unit. Unused amounts shall not accumulate from five-year period to five-year period-
unused amounts do not roll over from one period to the next. Permitted Capital Improvements
may be depreciated for wear and tear and obsolescence.
The method of establishing the value of Permitted Capital Improvements shall be established
according to rules and regulations promulgated by the Program Administrator.
SECTION 5-183 Sales Fees
Unless otherwise set forth in the deed restriction recorded against a Local Resident Occupied
unit, at the closing of the sale, the seller shall pay Eagle County a sales fee provided for as
follows:
a. If the unit has been owned for more than 5 years, a 1.5 percent fee.
b. If the unit has been owned for less than 5 years, a 1.5 percent fee if the owner
provides documentation to Eagle County's satisfaction, that he or she intends to
purchase another property as a permanent residence within Eagle County or
intends to lease a permanent residence within Eagle County for at least 12
months.
c. If the unit has been owned for less than 5 years, a 4 percent fee if the owner
cannot make the showing required above.
The seller shall instruct the title company to pay the sales fee to the transaction agent out of the
funds held for the seller at the closing.
The Seller must deposit 0.5 percent of the listing price with the escrow agent upon listing the unit.
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 the escrowed 0.5 percent of the listing price
directly to Eagle 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 Eagle County.
SECTION 5-184 Closing Costs
Sellers of Affordable Housing shall not permit any prospective buyer to assume any of the
seller's customary closing costs, including the fees set forth herein, nor accept any other
consideration that would increase the purchase price above the bid price so as to induce the seller
to sell to such prospective buyer.
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CHAPTER VI -MISCELLANEOUS PROVISIONS
SECTION 6-100 Liberal Construction
The Guidelines shall be liberally construed so as to further their purposes.
SECTION 6-200 Severability
If any provision, clause, sentence, or paragraph of the Guidelines or the application thereof to any
person or circumstances shall be held invalid, such invalidity shall not affect the other provisions
of the Guidelines that can be given effect without the invalid provision or application, and to this
end the provisions of the Guidelines are declared to be severable.
SECTION 6-300 Modification
The Guidelines may be modified by the BoCC in only a public hearing on the record. The
Administrative Procedures may be promulgated and amended by the Program Administrator in a
manner consistent with the tenns and intent of the Guidelines without BoCC approval.
SECTION 6-400 Grievance Procedures
A grievance is any dispute that a unit owner, purchaser, or applicant 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 are as follows:
1. A written grievance or appeal must be presented to the Program Administrator or
successor position. It shall specify:
a. The particular ground(s) upon which it is based;
b. The action requested; and
c. The name, address, telephone number of the complainant and similar information
about his/her representative, if any.
2. Upon presentation of a written grievance, the Program Administrator shall meet
with complainant to review the grievance and resolve the issue, if possible.
3. If the issue is not resolved, the complainant may request a hearing before the BoCC.
Rules for the hearing before the BoCC follow the provisions of the Eagle County Land Use
Regulations as found in Chapter I, Section 1.16 Appeals.
SECTION 6-500 Enforcement
The Guidelines are hereby incorporated as a component of the Eagle County Comprehensive
Plan. Enforcement of the Guidelines will be pursuant to Chapter I, Section 1.14 Enforcement and
Chapter II, Chapter VII Enforcement, as amended, of the Eagle County Land Use Regulations.
Remedies include a forced sale, eliminating appreciation, withholding monies from escrow, legal
proceedings at law and equity, and all other remedies available under applicable law and equity.
SECTION 6-600 Foreclosure
In the event of a foreclosure or of acceptance of a deed in-lieu of foreclosure by the holder of a
promissory note secured by a first deed of trust on a Unit, Eagle County shall have the option to
purchase the Unit, which shall be exercised as set forth in the Master Deed Restriction. The
Owner has an obligation to notify Eagle County once the Owner perceives a foreclosure
difficulty.
SECTION 6-700 E.remption for Lack of Reasonable Relationship or Lnpraetieability
Any person or entity affected by the Guidelines may petition the BoCC for an exemption to
reduce, modify, or waive the requirements contained in the Guidelines on the grounds that they
are not reasonably related to the impact of the proposed development, to the extent such
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reasonable relationship is required under Colorado law, or render development impracticable.
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 Appeals. Such an appeal is required before an
agency action is deemed final for purposes of appealing application of the Guidelines.
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