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Minutes 04/22/08 PUBLIC HEARING April 22, 2008 Present: Peter Runyon Sara Fisher Am Menconi Bruce Baumgartner Bryan Treu Robert Morris Teak Simonton Kathy Scriver Chairman Commissioner Commissioner County Manager County Attorney Deputy County Attorney Clerk to the Board Deputy Clerk to the Board This being a scheduled Public Hearing, the following items were presented to the Board of County Commissioners for their consideration: Executive Session There was none. Special Recognition - Battle Mountain High School Hockey Team Commissioner Menconi stated that the board was very proud and honored to congratulate the Battle Mountain High School Hockey Team for a successful year. He read the team members names into the record: Brad Beaudin, Eric Davis, Charlie Tedstrom, Zac Brust, Sam Sterling, Kodi Wyatt, Ryan Maddux, Jordy Coffey, Connor Tedstrom, Jacob Lammert, Barrett Chow, Cody Kleisinger, Jack Sunderland, Jonny Steven, GeoffFunk, Mitchell Lammert, Taylor Beairsto, McKenzie Stevens, Kalen Burnett, Curtis Hart, Gustav Philipson, Max Ward, Spencer Fox. Tony Karr, Assistant Coach Brian Deem, Assistant Coach Gary Devina, Head Coach, thanked the board for the recognition. He stated that the team had a good year and the whole county rallied around the team. It had been a rewarding year for everyone. Commissioner Fisher stated that next years success is on their shoulders. She thanked them for their presence and wished them luck in the years to come. Chairman Runyon added his thanks. Consent Agenda Chairman Runyon stated the first item before the Board was the Consent Agenda as follows: A. Approval of bill paying for the week of April 21, 2008 (subject to review by the Finance Director) Finance Department Representative B. Approval of the minutes of the Eagle County Board of Commissioners meeting for April 1, 2008 Teak Simonton, Clerk & Recorder C. Change Order No. One to AIA Document G701 to increase Guaranteed Maximum Price for airport roofing project County Attorney / Facilities Management Representative 1 04/22/08 D. Agreement between Eagle County, Colorado and Reilly-Johnson Architectural services in connection with the additions to and/or remodeling of the Eagle County Justice Center and District Attorney/Probation Building County Attorney 1 Facilities Management Representative E. Resolution 2008-041 Designating the Clerk & Recorder's Office, including Motor Vehicle, closed to the public the day ofthe primary election, August 12, 2008, and the day of the general election, November 4, 2008 County Attorney's Office Representative F. Agreement with Old Castle Southwest Group, Inc. DBA B& B Excavating for 2008 gravel purchase project Road & Bridge Representative G. Sales and professional services agreement between 3T Systems and Eagle County Innovation & Technology Representative H. Edwards Annex Sublease Agreement between Eagle County and Eagle County School District Rita Woods, Health & Human Services I. Task Order between Eagle County and Marl Plaza Munet for assessment of tobacco usage with the Spanish-speaking community Jill Hunsaker, Health & Human Services J. Agreement between Eagle County and Red Ribbon Project for HIV/AIDS awareness training Rebecca Larson, Health & Human Services K. Agreement between Eagle County and Trinity Preschool for infant - toddler quality and affordability Jennie Wahrer, Health & Human Services L. Agreement between Eagle County and Teresa Werner for infant - toddler quality and affordability Jennie Wahrer, Health & Human Services M. Agreement between Eagle County and Nurturing with Nature for infant - toddler quality and affordability Jennie Wahrer, Health & Human Services N. Resolution 2008-042 Concerning Appointments to the Roaring Fork Valley Regional Planning Commission Attorney's Office 1 Community Development Representative O. Resolution 2008-043 Concerning Appointments to the Eagle County Zoning Board of Adjustment Attorney's Office 1 Community Development Representative P. Resolution 2008-044 Concerning Appointments to the Eagle County Building Board of Appeals Attorney's Office 1 Community Development Representative Q. Agreement with Lafarge for purchase of gravel project Road & Bridge Department Representative Commissioner Fisher asked Brad Higgins about item F. Mr. Higgins stated that Item F was for the purchase of gravel used for re-graveling projects done every year. Commissioner Fisher stated that she had question about Item G. 2 04/22/08 Mr. Baumgartner suggested that Item G be pulled for future consideration since there was no representation from the IT Department. Commissioner Menconi moved to approve the Consent Agenda, Items A-Q, holding off on item G. Commissioner Fisher seconded the motion for discussion. The vote was declared unanimous. Commissioner Fisher asked Teak Simonton, County Clerk and Recorder to talk about Item E, the Clerk's office closures on the day of the primary election, August 12, 2008, and the day of the general election, November 4. Ms. Simonton spoke about the office closures on Election Day. She stated that due to the nature and complexity of elections, she is required to have a maj ority of her staff assist in each polling place, which requires, with the board's permission, a closure of the motor vehicle and recording office on those days. Citizen Input There was none Commissioner Menconi moved to adjourn as the Board of County Commissioners and re-convene as the Eagle County Liquor Licensing Authority. Commissioner Fisher seconded the motion. The vote was declared unanimous. Eagle County Liquor License Authority Kathy Scriver, Clerk and Recorder's Office Consent Agenda Renewals A. Beaver Creek Food Services, Inc. d/bla Silver Sage Restaurant This is a renewal of a Hotel and Restaurant License with 8 Optional Premises in Wolcott. There have been no complaints or disturbances in the past year. All the necessary fees have been paid. An Alcohol Management Plan is on file in the Clerk's Office and proof of server training has been provided. Other Consent B. Summit Food & Beverage, LLC dlbla The Summit This is a Manager's Registration for The Summit Clubhouse in Edwards (Cordillera). Summit Food & Beverage, LLC wishes to register Chrystal Jay as its new Manager. The application is complete and the necessary fees have been paid. Ms. Jay is of good moral character, based upon Sheriff and CBI reports. C. Gemsa Corporation d/b/a Cordillera Golf Club This is a Manager's Registration for Cordillera Golf Club in Edwards (Cordillera). Gemsa Corporation wishes to register Rachel Conneely as its new Manager. The application is complete and the necessary fees have been paid. Ms. Conneely is of good moral character, based upon Sheriff and CBI reports. Commissioner Menconi moved that the Board approve the Liquor Consent Agenda for April 22, 2008, consisting ofItems A-C. Commissioner Fisher seconded the motion. The vote was declared unanimous. Commissioner Menconi moved to adjourn as the Eagle County Liquor Licensing Authority and re-convene as the Board of County Commissioners. Commissioner Fisher seconded the motion. The vote was declared unanimous. 3 04/22/08 Work Session - BrightStart annual report presentation Jennie Wahrer, Health & Human Services Recorded Public Hearing - Housing Guidelines Alex Potente, Housing Director Mr. Potente presented a PowerPoint slide show presentation. He stated that the new guidelines require more at higher price points. There are currently housing guidelines in effect using the same types of analyses, but the new guidelines require more housing at higher price point developments. This new level would only apply to new permits. He feels this has been a relatively thorough and exhaustive process. This is the sixth presentation to the board as well as several presentations to both planning commissions. The needs are based on the 2007 and 2008 Nexus studies. Adjustments have been made based on feedback and one on one developer 1 community leader discussions. There are some advantages for all constituents; developers will have clear rules, flexibility and incentives. The guidelines are not that complex. Other offers of community benefit may also be acceptable in lieu of affordable housing. It is difficult to provide consistent density incentives. There are provisions to waive certain impact fees such as road impact fees. Building permit fees are necessary to cover operating costs for building inspectors to insure buildings are built to code. He provided a summary of housing demand. From the 2007 assessment there are 12,500 units required by 2015. There are currently only 30 units in the entire valley that satisfy lOO% of AMI. This is based on MLS listings. The guidelines will allow for more affordable housing, concurrency and discourage forum shopping. Eagle County is unique due to jobs being completely out of sync with the housing that is available. The stock needs to be built now not after everything else is built. This only represents unincorporated Eagle County which will force development into the towns. This will discourage people from not annexing into the towns. Proposed changes from the last hearing include that the AMI for inclusionary will be raised from lOO to l05% of AMI and there will be clarified delegation language. This will more clearly delineate the delegation authority to the program administrator. Currently the program administrator is the Director of Housing and Development. Should a housing authority be formed this designation could be changed. Chairman Runyon wondered about an appeals process. Mr. Potente indicated that this process would be available. He shared some recent comments. One article sited a reason study which concluded that the way to solve housing problems is to increase supply. The problems with this type of analysis in our community are that our market has not solved workforce housing over the last 20 years. This is an issue due to the limited supply of land. The Furman study finds that inclusionary requirements have no effect on market rate pricing. Developers will charge what the market will pay. The guidelines will allow developers to build some units at break even prices, not at a discount. The article also spoke about fee waivers and incentives. Incentives can only go so far; they pay for things we need like roads, schools and building inspectors. Other incentives include density, speed and certainty. Guidelines do encourage density. The public process can only be pushed so quickly. There is only so much uncertainty that can be removed from the process of a development proposal. The commercial mitigation numbers are very conservative and the administrative procedures contain data that memorialize the terms of the guidelines. He stated that Kathy Chandler-Henry put together a useful excel spreadsheet to calculate requirements if you are a developer. It calculates options and produces results. He compared water, tap and building fees from Arapahoe, Douglas, Jeffco and Eagle and our fees are very much in line with these other counties. As to whether the 2005 Moratorium had an impact on housing prices the County Assessor's analysis indicated that it did not. He spoke about letters he has received. · Ron Wolfe the Mayor of Avon indicated support for these guidelines. He applauded Eagle County for taking action aggressively and comprehensively. He offered his personal enthusiasm and support for adoption. · Stan Anderson of the Vail Valley Medical Center was also in support of the guidelines. VVMC is concerned about the dramatic rise in housing costs and its impact on businesses ability to attract and retain qualified staff. 4 04/22/08 . Michael Kurz, president and CEO ofthe Vail Valley Partnership with over 800 members, indicated favor as well. Mr. Potente presented comments from the people who spoke at the last meeting. Bobby Warner wished the guidelines were more aggressive however; he is in favor of a less regimented and more flexible regime. Gerry Flynn conceded that he was a critic in the past, but has since expressed general support. Chip Webb of Vail/Summit Orthopedics supports it, Jay Leavitt, Roarlng Fork Planning Commission member is now also supportive, and Steve Lindstrom of the Vail Housing Authority commented that he wanted the guidelines to have more teeth. Bill Heicher stated that the guidelines should be adopted as soon as possible. George Gregory testified that he was critical ofthe guidelines and concerned about the level of bureaucracy and invasion into the free market. Hawkeye Flaherty, Mayor of Minturn spoke in favor to the guidelines and encouraged the commissioners to have political will. Chairman Runyon opened public comment. Donna Spinelli spoke to the board. She is a realtor and she is aware that all of her buyers want to buy market rate properties. She does not believe it is the business of the government to provide housing. She spoke about the West End and the fact that it had not sold out. She also wondered why a local company was not building Stratton Flats which doesn't help the local job market. She believes it is an irresponsible policy and asked that the commissioners not adopt the plan. Bill Gray from the Town of Eagle spoke to the board. He spoke about other inclusionary zoning programs, which increase the supply and diversity of housing. He believes the guidelines being developed by Eagle County represent a good clear direction on how new homes will be constructed, they will benefit the county's shortage of affordable housing, and will increase the ability to retain and attract employees for local employers. The guidelines are a result of l8 months of negotiation between the public and private sector. The Town of Eagle supports adoption of these guidelines and imagines there may be some future problems which will require evolution over time. In 2008 the Town of Eagle will be working to update their inclusionary program. They will be looking at these guidelines to help in terms of being a model for their process. Chairman Runyon closed public comment. Commissioner Fisher stated that the only time better than the present would have been in the past and the lack of work force housing is a direct result of the free market not working to meet the demands. The lack of housing and associated work force was evident up and down the valley this winter season. Business owners feel that the lack of housing is a direct result of fewer employees being available. This affects only those developments that are requesting an up zoning in their developments. With this request comes responsibility to contribute to the solution. This is one opportunity to put into place the concept that new development should pay for itself. When she campaigned for this position her primary platform was to work on affordable housing for the county. The guidelines have teeth and are a work in progress. Commissioner Menconi stated that the county was trying to create a break even proposition. Mr. Potente stated that the philosophy is that the county would not be asking the developer to come out of pocket to build work force housing. They are asking developers to build more and give the community a larger part of it. This is not something that they knew they could do when they bought the land - it only applies when developers are asking to increase zoning. Deed restricted units sell much more quickly than market rate units do. The West End is selling at 80% for deed restricted units and much slower for the market rate units. There is no housing stock below 140% AMI, which is $11O,000 for a family of three - which is not insignificant. These people are teachers, framers, firemen who cannot currently buy a home. Chairman Runyon thanked Mr. Potente for his patience and flexibility with the guidelines. He also thanked Kathy Chandler - Henry for building the calculation spreadsheet. The free market which is so effective and good has not solved this problem. It has made his products better and his prices more competitive. There are outside forces at work here which are pegging the market to one side. There is an extremely limited supply of land in our county. Making sure that Eagle County has affordable housing is every bit as important as building good roads and providing water and sewer. His house will not be affordable should he sell it to anyone making the same amount that he makes now. He totally supports this. If developers cannot produce a house at l05% AMI it doesn't make 5 04/22/08 sense. There is a glut on building in this county right now. A recent article which interviewed four different people showed that there were two from Utah and two from Denver. Weare building beyond what our local builders can do on a local basis. Commissioner Fisher moved that the Board of County Commissioners approve the amendment of the existing Eagle County Housing Guidelines by rescinding such Guidelines and substituting therefore the new Guidelines as presented by the Housing Department, and direct the Housing Director and County Attorney to prepare a resolution of such approval in accordance with Chapter 8 of the existing guidelines permitting amendment thereof without formal amendment procedures. Commissioner Menconi seconded the motion. The vote was declared unanimous. Public Hearing - Housing Authority Alex Potente, Housing Director Mr. Potente presented the request. He stated that statutorily Eagle County is required to create a housing authority through a certain set of procedures and findings. Today's session will establish the need for this authority. There has been a petition of at least 25 residents of Eagle County whose residences had been verified by the Clerk and Recorder and will become part of the record. Statutory notices were provided via the Eagle County Enterprise. It is the Housing Department's opinion there is a shortage of decent and safe housing alternatives to families oflow income. It is believed that approximately 5300 households in Eagle County do not have homes that area affordable to them currently. According the 2007 needs assessment, housing prices continue to rise faster than incomes. Commuting into Eagle County is on the increase with over l8% of employees commuting into Eagle County from homes outside of Eagle County. The relationship between primary and vacation homes is changing in favor of vacation homes. Local wage earners are unable to compete with buyers from outside of Eagle County. Chairman Runyon added that currently there is 52% local ownership, but he argues that an evergrowing percentage are in fact retirees and not work force employees. If the retirement sector was removed the number of active worker housing units would be significantly lower. Mr. Potente indicated that we need at least 4000 or so units so that workers are not paying more than what is considered affordable. For these reasons the housing department believes that the creation of a housing authority is warranted under statute. A Housing Authority would be able to help with structural issues. ill order for more of these types of projects (Miller Ranch) to be completed he believes creating such a body is warranted and required under state law. Mr. Morris spoke about the legal implications of such an authority. He stated this would be the creation of a new and separate entity with its own board and processes, but a creature of the actions of the board of county commissioners who would appoint the members as well. The Housing Authority would not have taxing authority unless future action is taken to provide this ability. Given the scope of the work that will be done over the next several years this creation is recommended by the County Attorney. He suggested that he would like to see the 2007 needs assessment and 2007 Nexus study in the record as part of this file. Chairman Runyon wondered ifthis authority would be part of unincorporated Eagle County or could other entities join. Mr. Potente stated that there are two laws that allow this creation. This particular request is based on the statute that is not a multi jurisdictional authority. Should this type of participatory authority be desired in the future this authority could be rolled up into the more broad authority. At this point the other municipalities have not been enthusiastic about forming a multi jurisdictional authority. Only the multi jurisdictional authority can have taxing authority - the currently proposed authority will not and cannot. The purpose is to have very clear legal authority to engage in properties like Stratton Flats. Chairman Runyon opened public comment. Debbie Buckley, resident of Avon spoke to the board. She questioned the definition oflow income. She felt that the HUD guidelines of 80% should be used when determining low income. She also wondered how the housing authority would interact with other county infrastructure needs. When she read the petition she was 6 04/22/08 surprised that the members of the housing action team didn't sign the petition. She also wondered why the multi jurisdictional statute was not chosen and should this conversion be attempted in the future what the public process would be. She believes that creating another layer of government is not advisable. She asked that this be put to the voters in November. Commissioner Menconi stated that her comments about another layer of government and that she was not in favor of this type of authority in building more affordable housing. Ms. Buckley stated that she believes in giving the power to the people. She thinks that everyone in the county should weigh in on this. Commissioner Menconi wondered what her greatest concern was. Ms. Buckley expressed concern about potential new taxes and the potential condemnation powers. Commissioner Menconi spoke about the condemnation process and the fact that the state law allows this to encourage provision of needed housing and services. He stated that under his term as county commissioner no property has ever been condemned, however several municipalities have done so. The cost involved would be prohibitive to provide affordable housing. Going to the voters to ask for a tax increase is ill advised. This authority would be limited to unincorporated Eagle County. Ms. Buckley wonders why the commissioners would not put this to a vote of the people. Commissioner Menconi stated that Ms. Buckley believes that everything possible should be used to accomplish community needs. Ms. Buckley asked if the board would consider putting it to a vote. Donna Spinelli spoke to the board. She doesn't remember who wrote the statement of absolute power corrupts absolutely. She doesn't believe that three people and the 25 who signed the petition is not enough to create this controversial housing authority. She would like to see it go to a vote. The board did not address the issue of local builders at Stratton Flats not being used. Mark Gordon spoke to the board. He is a member of the Blue Ribbon Housing committee. He is very happy to see that the board is considering going with the more simple form of this housing authority. He believes creating this authority will give this independent entity the ability to negotiate and create housing as opposed to the current configuration. He applauds the county's move towards affordable housing. Don Cohen spoke to the board as a member of the Economic Council of Eagle County. He was one of the circulators of the petition. Most of the names on the petition were people related to the school district and the Vail Valley Partnership. The team is multi jurisdictional representing Vail, Minturn, Red Cliff, Avon, Eagle, Gypsum and Vail Resorts. From the housing action committee there is a steadfast understanding that taxation is off the table. He believes it is very important to understand that this would not create a whole new bureaucracy, but that is not his understanding. This authority represents a necessary structural entity. The benefit is that the authority could enter into productive housing solutions. Mohammed Ali Hassan spoke to the board. He agrees with Debbie Buckley and wants the question to be put on the November ballot. He believes the voters are knowledgeable. Chairman Runyon closed public comment. Chairman Runyon asked Mr. Potente to address the comments presented. Mr. Potente indicated that there is no statutory definition of low-income housing. Low income should be defined as the group of people under l40% of AMI. This is an older statute, but the newer statute requires a partner and one is not currently available. Eagle County can't build housing in partnership without a housing authority. Waiting until November will stall the process. With regard to how the housing authority will interact with traffic or wildlife mitigation or to speak to issues of bureaucracy is beyond the point. There are no new employees and no additional money required. The authority is needed to be able to contract, borrow and lend in order to build housing stock. Chairman Runyon asked about partnerships. He wondered if a partnership with Vail Resorts, the Medical Center, and the Town of Vail was desired to build 200 units somewhere, would this be possible. Mr. Potente stated that it is more difficult to protect the county and taxpayers interest without a housing authority entity. It is more difficult to construct a sound deal for the county without the authority. Chairman Runyon wondered about Miller Ranch.eMr. Potente responded that it was a little different because Eagle County owned the underlying property. 7 04/22/08 Commissioner Menconi stated that there have been several different examples under different administrations. There is Lake Creek, Mountain Glen and other properties. This is merely a contractual arrangement in order to build and buy units. Mr. Potente stated that this is analogous to the IRS rules used to build Lake Creek and Mountain Glen. It is difficult to build for sale product without a housing authority. There are more protections available to the county with this program. Folks aren't ready for a multi jurisdictional organization to address this problem. Commissioner Menconi stated that the housing action team and Blue Ribbon team debated the tool of the housing authority. It is his interpretation that the community was not comfortable in moving towards a multi jurisdictional committee and take power away from the individual towns. Commissioner Fisher stated that this is a business tool in order to allow the county to be able to buy and build work force housing. There are a number of tools available to accomplish the goal. The towns are not yet ready to share in this prospect. The housing guidelines are another tool. The housing authority will allow business to be done in a more fiscally responsible way. She disagrees with the request to put this on the ballot because the authority will not have any taxing power nor will it increase the operating expenses of the county. This mechanism is allowed by statute and taking it to a vote of the people is unnecessary. She supports today's requirements of establishing a need. Commissioner Menconi reiterated that this is pretty simple stuff. Anyone in favor of providing affordable housing being available would have to be in favor of this. Time will be the test. In the last couple of years the board has focused on affordable housing by forming a Blue Ribbon Housing panel, purchased land, partnered with developers. The Blue Ribbon Housing panel is an extremely collaborative panel. He thanked those who have worked on this. Chairman Runyon stated that this is a mandate of every survey conducted which indicates that affordable housing be addressed. The Colorado Constitution allows the formation of this authority without a vote of the people. Commissioner Menconi moved that in accordance with CRS 29-4-503 the Board of County Commissioners authorize the creation of a Housing Authority that shall act as a statutory housing authority, a body corporate and politic, and the appointment of the members of the Board of County Commissioners to constitute ex officio the initial board of the Eagle County Housing Authority, and direct the Director of Housing Department and the County Attorney to prepare a resolution making finding as presented by the Housing Department in public hearlng and taking such further action as may be necessary to implement this action Commissioner Fisher seconded the motion. The vote was declared unanimous. Work Session - Colorado Department of Transportation Annual Update Weldon Allen, CDOT Regional Director Recorded Planning Files PDF-00I00 Salt Creek/Frost Creek PUD Final Plat Lisa de Graaf, Community Development NOTE: ACTION Tabled from 2/12/08, & 3/11/08, to be tabled to 5/6/08 The purpose of this final plat is to establish land use on Salt Creek parcel. LOCATION: Situated on either side of Brush Creek Road, approximately 3.5 miles southeast from the Town of Eagle. 8 04/22/08 DISCUSSION: Ms. De Graaf stated that the County Attorney's Office and Community Development were working on the conservation easement and final conditions. Due to the fact these items have not been finalized the applicant has requested a tabling of the file in order to amend the final plat appropriately. Commissioner Menconi moved to table File No. PDF-00100 Salt Creek/Frost Creek PUD Final Plat until May 6, 2008. Commissioner Fisher seconded the motion. The vote was declared unanimous. 1041-00071 Town of Ea21e Water Treatment Plant Enlar2ement Bob Narracci, Community Development ACTION: The purpose of this l04l Permit is to enlarge the Eagle Water Treatment Plant (WTP) capacity. The enlargement is necessary to meet the existing and projected demand within the Town's service area. The enlargement is not being done to promote additional demand. FILE NO./PROCESS: 104l-0007l; 104l Permit PROJECT NAME: Town of Eagle Water Treatment Plant Enlargement 104l Permit Amendment LOCATION: 009025 Brush Creek Road (Existing Water Treatment Facility) OWNER: Town of Eagle APPLICANT: Town of Eagle REPRESENTATIVE: William P. Powell STAFF CONTACT: Bob Narracci and Ray Merry REQUEST: 104l Permit to allow the enlargement of the Eagle Water Treatment Plant capacity. STAFF RECOMMENDATION: Approval with conditions 1. SUMMARY This 104l permit application by the Town of Eagle (the 'applicant') proposes an enlargement of the Eagle Water Treatment Plant (WTP) capacity. Specifically, the request is to add one additional filter train within the existing WTP facility which will increase the treatment capacity from 3.7 MGD to 4.3 MGD. The treatment plant expansion will occur within the existing WTP building. Some outside storage of materials will occur for short periods oftime on the existing gravel parking lot. No earthmoving will occur. No additions to the building will occur. The enlargement is proposed to meet the existing and projected demand within the Town's water service area. The enlargement is not being done to promote additional demand. The Town of Eagle WTP facility is located on a 2.5 acre parcel located 8 miles upstream from the town. 2. BACKGROUND & CHRONOLOGY When the WTP was originally constructed in the early 1980's three filter trains were installed. The building was sized to allow for three additional trains to be installed as demand warranted. The county issued a l04l Permit to install two additional filter trains in 1999. The fourth filter train was installed in 1999 and the fifth in 2004. This permit application is to allow for the installation of the sixth and final filter train at the WTP. The enlargement has been necessitated by the accelerated growth rate in the water service area and is to meet current peak day demands. Additionally the enlargement will allow for continued build-out of approved subdivisions. The town has instituted considerable water conservation measures; however, the growth factor necessitates enlarging the treated water capacity. Enlarging the plant is an economic investment to meet the service area's growing demand. 9 04/22/08 All associated water facilities are sized to accommodate the enlargement. The facilities include: . The WTP building . The raw water diversion structure and pipeline . Pretreatment works . Discharge ponds . Treated water distribution lines along Brush Creek CHRONOLOGY: The original Water Treatment Plant was constructed in the early 1980's in anticipation of growth within the Town of Eagle and to better serve the existing residents at the time. There are two previous 1041 permits relevant to the current request: . 1999- l.58 MGD Treated Water Plant Enlargement . 2004- Water Pretreatment Facilities 3. REFERRALS This 104l Permit Application was referred to the following departments and agencies with a request for comment: · Eagle County Engineering Department · Eagle County Attorney's Office · Eagle County Department of Environmental Health · Colorado State Health Department - Water Quality Division · Colorado Division of Water Resources · Colorado Water Conservation Board · US Army Corps of Engineers · Fire District: Greater Eagle FPD · Northwest Colorado Council of Governments · Eagle County Planning Commission As of this writing, the following agencies have responded to this 1041 application with comments: Eagle County Engineering Department: Please refer to the attached response dated April I , 2008. The county engineer who reviewed the project had no additional comments to make. Eagle County Planning Commission: At the Eagle County Planning Commission hearing on April 2, 2008 the Planning Commission was supportive of the project. The comments that the Planning Commission had were to ensure that the additional capacity was not being made to accommodate additional growth to the service area that has not already been approved or anticipated by the town. As stated above and in the body of this report, the expansion will accommodate anticipated growth only and will not serve additional new development within the Town of Eagle. 4. FINDINGS & RECOMMENDATIONS A. Pursuant to Eagle County Land Use Regulations, Section 6.04.01, Permit Avvlication Approval Criteria for Matters of State Interest. and as more specifically described in the application materials, the following analysis is provided. The Avvroval Criteria is numbered and indicated in bold. A summary response is provided with the recommendation indicated in the findings box. (1) Documentation that prior to site disturbance for the Project, the applicant will have obtained all necessary property rights, permits and approvals. The Board may, at its discretion, defer making a 10 04/22/08 final decision on the application until outstanding property rights, permits and approvals are obtained. There will be no site disturbance as part of this application. All work will be completed within the existing building with temporary storage of material and equipment on the existing parking lot during the construction phase. The applicant has made water court application to adjudicate additional water rights to the diversion point serving the water plant, Case No. 99CW 194 (copy included in the application packet). No changes to points of diversion are proposed with this application. The applicant anticipates fmal water court approval by July of2008. Although there is a pending court case regarding the Town of Eagle's water rights, the final court decision has no bearing on the total capacity of the WTP. Application for Construction Approval for the project was made on January 8, 2008 to the Colorado Department of Health and Environment. [+1-] FINDING: (1) Ri1!hts. Permits and Approvals. The applicant WILL HAVE obtained all necessary property rights, permits and approvals prior to site disturbance. (2) The Project will not impair property rights held by others. The project will not impair property rights held by others; neighboring private properties will not be negatively affected by this 1041. [+] FINDING: (2) Propertv ri1!hts of others. The project WILL NOT impair property rights held by others. (3) The Project is consistent with relevant provisions of applicable land use and water quality plans. The project is consistent with relevant provisions of applicable land use plans, including the Eagle County Comprehensive Plan, the Eagle Area Community Plan, and the Brush Creek Water Management Plan. The Town of Eagle WTP is located on a 2.5 acre parcel 8 miles upstream from the town. It is strategically located to accommodate growth consistent with and anticipated by the Eagle Area Community Plan. Water quality monitoring will be performed on Brush Creek in the vicinity ofthe water plant as a part of the Prost Creek PUD requirements. The Eagle WTP is adjacent to the PUD. Baseline data for Brush Creek stream flow has previously been gathered and future regular monitoring will be obtained with the Frost Creek PUD stations. The Kummer Development Company has an ongoing requirement to provide updated water quality testing, and the information will be made available to the public. The project is designed to meet all requirements of the Eagle County Land Use Regulations. [+] FINDING: (3) Consistencv with plans. The Project IS consistent with relevant provisions of applicable land use and water quality plans. (4) The applicant has the necessary expertise and financial capability to develop and operate the Project consistent with all the requirements and conditions. The applicant has previously constructed three capacity additions similar to the project being applied for. The applicant has also constructed the 2006 Pretreatment Facility project. All of the town's water system 11 04/22/08 construction projects have created successful improvements which increase the quality and quantity oftreated water service for the customers of the service system. The project is budgeted for in the town's 2008 appropriations with funding from water fund cash balances. The Town of Eagle three-year Water Fund Budget is provided as part ofthe submittal. [+] FINDING: (4) Expertise and financial caoabilitv. The applicant DOES HAVE the necessary expertise and financial capability to develop and operate the Project consistent with all requirements an i conditions. (5) The Project is technically and financially feasible. The applicant has provided a Design Report which demonstrates the technical feasibility of the project and quantifies the cost. The project will be funded by the Town of Eagle Waster Fund cash reserves. There will be no increase in water rates or tap fees in conjunction with this specific project. [+] FINDING: (5) Feasibilitv, The Project IS technically and financially feasible. (6) The Project is not subject to significant risk from natural hazards. Natural hazard analysis has been addressed in previous applications and included findings of no significant risk. [+] FINDING: (6) Risk from hazards, The project IS NOT subject to significant risk from natural hazards. (7) The Project will not have a significant adverse effect on land use patterns. The project is located to serve domestic water needs of approved projects in the area. It will also serve projects in previously annexed areas of town that may be approved in the future which comply with growth contemplated by the Eagle Area Community Plan. [+] FINDING: (7) Land use oatterns, Land use patterns in the WILL NOT have a significant adverse effect on land use patterns as a result of this 104l Permit application. (8) The Project will not have a significant adverse effect on the capability of local governments affected by the Project to provide services, or exceed the capacity of service delivery systems. The project is consistent with the needs described in the Town Water Master Plan. The project will compliment the water delivery system and have no adverse effects. All elements of the applicant's water system have been constructed to accommodate the WTP enlargement, including raw water diversion structures, size of the water treatment building, pretreatment works sizing and treated water distribution pipe sizing. [+] FINDING: (8) Service Caoacitv. The Project WILL NOT have a significant adverse effect on the capability oflocal governments affected by the Project to provide services, or exceed the capacity of service delive s stems it exceed the ca acit of service delive s stems. l2 04/22/08 (9) The Project will not create an undue financial burden on existing or future residents of the County. The estimated cost of the WTP enlargement is $915,000, paid for by the applicant's water fund cash balances. The project will not cause any change in water tap fees, monthly water bills for customers on the system, no new mill levies or 'Special Assessments' are proposed/required as part of, or will result from this project. [+] FINDING: (9) Financial Burden. the Project WILL NOT create an undue financial burden on existing or future residents of the County. (10) The Project will not significantly degrade any current or foreseeable future sector of the local economy. The project will not significantly degrade any current or foreseeable future sector of the local economy. Approval of this 1041 will not result in the loss of any agriculturally productive lands. [+] FINDING: (10) Protection oflocal economy. The project WILL NOT significantly degrade any current or foreseeable future sector of the local economy. (11) The Project will not have a significant adverse effect on the quality or quantity of recreational opportunities and experience. No land development activity is proposed other than the construction of water pretreatment facilities. [+] FINDING: (11) Protection of recreational opportunities. The Project WILL NOT have a si ificant adverse effect on the ualit of ublic recreational 0 ortunities and ex erience. (12) The planning, design and operation of the Project shall reflect principals of resource conservation, energy efficiency and recycling or reuse. The enlargement will take place within the existing WTP building with no additions or enlargements of structures needed. Energy requirements to heat the building will not change, and all other components of the treatment and distribution system have previously been constructed to accommodate the enlargement. The applicant promotes water conservation in the following manners: installing water using fixtures consistent with prevailing ICBO codes, an annual water loss detection and repair program, odd/even irrigation alternative (voluntary although the applicant is considering making this practice mandatory); limiting irrigated areas of large lots having potable irrigation, non-potable irrigation in many town parks, one elementary school and several subdivisions; metering of all water uses; having a progressive water rate structure, encouraging raw water irrigation systems for new subdivisions where feasible and implementation of the Brush Creek Management Plan. [+] FINDING: (12) Resource Conservation. The planning, design and operation of the Project DOES reflect principals of resource conservation, energy efficiency and recycling or reuse. (13) The Project will not significantly degrade air quality. Air emissions include exhaust from vehicles carrying personnel to and from the site during operations and during construction. No outside earthwork disturbances will occur with this project. [+] FINDING: (13) Air qualitv. The Project WILL NOT significantly degrade air quality. (14) The Project will not significantly degrade existing visual quality. 13 04/22/08 As mentioned the enlargement occurs entirely inside the building. [+] FINDING: (14) Visual quality. As mitigated, the Project WILL NOT significantly degrade visual quality. (15) The Project will not significantly degrade surface water quality. The project has no earth moving component. All construction will occur inside the building with some storage of materials occurring on the existing parking lot. Backwash waters of the WTP are directed to sediment ponds adjacent to the plant. The discharges are subject to state discharge permit requirements. Water quality monitoring will be performed in the area as a part of the Frost Creek PUD requirements. The Eagle WTP is adjacent to the PUD. Baseline data for Brush Creek stream flow has previously been gathered and future regular water quality monitoring will be obtained by Frost Creek. The applicant has entered into a Water Service Agreement for the Frost Creek PUD with the Kummer Development Corporation. The agreement defines average wet years, dry years and critical dry years in terms of flow on Brush Creek. When Brush Creek flows diminish below defined levels, all irrigation ditches owned by KDC (at the time of the agreement 2/27/02) are required to lower flows below prescribed levels. The intent of the agreement is to assure adequate flows in Brush Creek to assure minimum steam flows, water quality and a beneficial aquatic habitat. There are no outside impacts to adjacent owners. [+] FINDING: (15) Surface water (/ualitv. The Project WILL NOT significantly degrade surface wate quality. (16) The Project will not significantly degrade groundwater quality. Discharge waters are subject to a discharge permit issued by the state Department of Health and Environment and will not significantly degrade ground water quality. [+] FINDING: (16) Ground water (/ualitv. The Project WILL NOT significantly degrade ground wate quality. (17) The Project will not significantly degrade wetlands and riparian areas. The project will have little or no effect on any of the wetland or riparian areas. Minimum stream flows will help protect wetlands and riparian areas through existing and future water court decision and through the Brush Creek Management Plan. [+] FINDING: (17) Wetlands and rioarian areas. The Project WILL NOT significantly degrade wetlands and riparian areas. (18) The Project will not significantly degrade terrestrial or aquatic animal life or its habitats. The project will not significantly affect terrestrial or aquatic animal life or its habitats. The backwash waters of the WTP are directed to discharge ponds. 14 04/22/08 No erosion or sedimentation will occur to Brush Creek because there is no outside construction activities connected with the project. The applicant has applied to water court to move certain upstream water rights to the applicant's diversion and change their use from agricultural to municipal water use. Current water court decrees require the town to honor the CWCB minimum stream flow decree of l2 CFS on Brush Creek. It is anticipated that any new decree will require the same minimum stream flow protections. Water quality monitoring is in place on Brush Creek in the vicinity of the WTP. The Frost Creek subdivision has conducted initial water quality testing to provide a benchmark for pre-subdivision activity in three locations. The KDC has an ongoing requirement to provide updated water quality testing, and the information will be made available to the public. The Division of Wildlife had no comments or concerns for this proposal. [+] FINDING: (18) Terrestrial or aquatic animal life. The Project WILL NOT significantly degrade terrestrial or aquatic animal life or its habitats. (19) The Project will not significantly deteriorate terrestrial plant life or plant habitat. The project will have negligible impact on the terrestrial plant life or plant habitat. [+] FINDING: (19) Terrestrial vlant life. The Project WILL NOT significantly deteriorate terrestrial plant life or plant habitat. (20) The Project will not significantly deteriorate soils and geologic conditions. The project will have no effect on soils and geologic conditions. ill addition, no severe geological conditions which would make the development infeasible were identified as part of any previous 1041 applications. [+] FINDING: (20) Soils and l!eOIOIlic conditions. The Project WILL NOT significantly deteriorate soils and geologic conditions. (21) The Project will not cause a nuisance. Construction activities will occur for approximately four months. Almost all construction activity will occur inside. Construction traffic to and from the site will be short-term and will not have significant nuisance impacts. [+] FINDING: (21) Nuisance. The project WILL NOT cause a nuisance outside what is typical of general construction. (22) The Project will not significantly degrade areas of paleontological, historic, or archaeological importance. There are no significant historic properties affected in the project area nor are there concerns regarding the protection of cultural resources. Further, this project will not significantly degrade areas of paleontological, historic or archaeological importance. IS 04/22/08 [+] FINDING: (22) Paleontolol!ical, historic or archaeolol!ical areas, The Project WILL NOT significantly degrade areas of paleontological, historic or archaeological importance. (23) The Project will not result in unreasonable risk of releases of hazardous materials. The project will not result in unreasonable risk of releases of hazardous materials. The applicant uses the following chemicals at the plant: gaseous chorine, liquid alum, liquid polymers and fluoride. The applicant has provided the system's hazardous materials mitigation and emergency response plans. [+] FINDING: (23) Hazardous materials, The Project WILL NOT result in unreasonable risk of the release of hazardous materials. (24) The benefits accruing to the County and its citizens from the Project outweigh the losses of any natural, agricultural, recreational, grazing, commercial or industrial resources within the County, or the losses of opportunities to develop such resources. There are no losses of any natural, agricultural, recreational, grazing, commercial or industrial resources with the County, nor is there a loss of opportunity to develop such resources. [+] FINDING: (24) Benefits outweif!h losses, The benefits accruing to the County and its citizens WILL outweigh the losses of any natural, agricultural, recreational, grazing, commercial or industrial resources within the County or the losses of opportunities to develop such resources. B. Pursuant to Eagle County Land Use Regulations Section 6.04.02, Additional Criteria Avplicable to Municival and Industrial Water Proiects. and as more specifically described in the application materials, the following additional analysis is provided. (1) The Project shall emphasize the most efficient use of water, including the recycling, reuse and conservation of water. The Town of Eagle works to promote efficient water use and conservation throughout its water system through the following measures: a) Water meters are required on all water using facilities including residential units, commercial uses and institutional uses. This is part of the Town of Eagle's water conservation program. b) Requirement that all water using fixtures be installed consistent with prevailing ICBO codes. c) The Town of Eagle implements a progressive water rate structure that encourages efficient use of water. The Town of Eagle recently added a higher tier to its monthly rate structure for the top 20% of residential users. d) The Town of Eagle encourages smaller lots in subdivision design and limiting the amount of irrigated area on larger lots. e) The Town of Eagle has an on-going aggressive leak detection and repair program for its water distribution system. The Town of Eagle Water System Master Plan, 1996, recommended leak detection and repair for the distribution system, noting that approximately 224 acre-feet per year was lost due to leaks. This was approximately 30% of the treated water in 1996. ill response, the Town of Eagle implemented the leak detection and repair program. Water lost to leaks in 2002 was just 6% of the total amount of treated water. Water lost to leaks in 2003 was approximately 4% of the total amount of treated water. f) The Town of Eagle implemented alternative odd/even watering restrictions during summers from 2000 to present and is considering the implementation of mandatory odd/even watering l6 04/22/08 restrictions. g) Raw water irrigation systems were encouraged and constructed for parks in Eagle Ranch and the new Brush Creek Elementary School, Chambers Park, North Bank Park and the 20 acre Pool and Ice Park. Several subdivisions have lawn areas irrigated by non-potable sources including the Frost Creek PUD, Brush Creek Meadows Parcels C and D, the Eagle Valley Commercial Park Subdivision and the North Bank annexation area. h) Raw water irrigation is encouraged for any new development proposals and wherever feasible. i) Eagle Ranch constructed a pump-back system for golf course irrigation. This protects stream flows in Brush Creek. (2) The Project will not result in excess capacity in existing water or wastewater treatment services or create duplicate services. The project will not result in excess capacity in existing water or wastewater treatment services or create duplicate service. The enlargement is the 6th and final filter train at the WTP, and all other components ofthe water system have been sized to accommodate the enlargement. The Town of Eagle water system is the only centralized system in the vicinity of the project and therefore does not compete against any other systems. [+] FINDING: (2) Excess capacitv / duplicate services, The Project SHALL NOT result in excess capacity in existing water or wastewater treatment services or create duplicate services. (3) The Project shall be necessary to meet community development and population demands in the areas to be served by the Project. The project is necessary to meet community development and population demands. The project is necessary to reach full build-out of approved subdivisions, especially the Eagle Ranch PUD and the Frost Creek PUD. Additional demand is also expected from infill in the downtown area and the Chambers Ave. commercial area. [+] FINDING: (3) Necessity. The Project SHALL BE necessary to meet community development and population demands in the areas to be served by the project. (4) Urban development, population densities and site layout and design of storm water and sanitation systems shall be accomplished in a manner that will prevent the pollution of aquifer recharge areas. The Project scope includes the addition of a filter train within the eXlstmg building and will be accomplished in a manner that will prevent the pollution of aquifer recharge areas. [+] FINDING: (4) Protection of Aquifer RecharJ!e Areas. Urban development, population densities and site layout and design of storm water and sanitation systems SHALL BE accomplished in a mann that will revent the ollution of a uifer rechar e areas. 17 04/22/08 C. Pursuant to Eagle County Land Use Regulations Section 6.04.03, Additional Criteria Applicable to Maior New Domestic Water and Wastewater Treatment Svstems and Maior Extensions of Existing Domestic Water and Wastewater Treatment Svstems. and as more specifically described in the application materials, the following additional analysis is provided. (1) The Project shall be reasonably necessary to meet projected community development and population demands in the areas to be served by the Project, or to comply with regulatory or technological requirements. The Project is necessary to meet community development approvals and projected population demands in this 1041 service area. The WTP enlargement is necessary to meet the growing needs of the Town of Eagle. In recent years the demands on the water system have grown rapidly, mostly due to new residential development. The existing peak day demands are reaching existing plant capacity. Additional demands will be placed on the system with build-out of the Eagle Ranch PUD, the Frost Creek PUD and infill projects in various parts of town. Since the expansion is primarily required to meet summer peak demand, the Town of Eagle should be encouraged to institute mandatory watering restrictions on odd/even days. Staff has suggested the mandato restrictions as a condition of a roval for this 104l a lication. [+] FINDING: (1) Necessitv or rel!ulatorv I technolol!ical comoliance, The Project SHALL be reasonably necessary to meet projected community development and population demands in the areas to be served by the Project or to comply with regulatory or technological requirements. (2) To the extent feasible, wastewater and water treatment facilities shall be consolidated with existing facilities within the area. The enlargement is an integral part of the applicant's existing WTP and the overall water distribution system for the town. The enlargement has been fully contemplated in all water planning of the town including the Water Master Plan. No new facilities are proposed with this development. [+] FINDING: (2) Consolidation of facilities. To the extent feasible, wastewater and water treatment facilities SHALL be consolidated with existing facilities within the area. (3) New domestic water and sewage treatment systems shall be constructed in areas which will result in the proper utilization of existing treatment plants and the orderly development of domestic water and sewage treatment systems of adjacent communities. The Town of Eagle moved its water plant to the existing location in 1985. The purpose of the move was to accommodate most growth in the Brush Creek Valley and parts of the Eagle River Valley, consistent with the Water Service Planning Area. The WTP enlargement continues the pattern of consolidation of water treatment facilities and orderly development of utility systems. [+] FINDING: (3) Prooer utilization of existinl! treatment olants, New domestic water and sewage treatment systems SHALL be constructed in areas which will result in the proper utilization of existing treatment plants and the orderly development of domestic water and sewage treatment ,. ,. IT (4) The Project shall be permitted in those areas in which the anticipated growth and development that may occur as a result of such extension can be accommodated within the financial and environmental capacity of the area to sustain such growth and development. The enlargement is expected to allow for further build-out of annexed areas within the TOE and extra- territorial areas in which the town has water service agreements. The enlargement is intended to serve l8 04/22/08 areas of development consistent with planning documents including the Eagle Area Community Plan and the Water Service Planning Area. There will be no public debt or new mill levy associated with the project and no significant environmental issues have been identified. [+] FINDING: (4) Financial and environmental caDacitv. The Project SHALL be permitted in those areas in which the anticipated growth and development that may occur as a result of such extension can be accommodated within the financial and environmental capacity of the area to sustain such growth an . . D. Special Use Permit Waiver: ill accordance with Chapter II, Article 3, Section 3.310.1.2, Waiver Provision. of the Eagle County Land Use Regulations, the Special Review Use Permit application for water and sewer projects may be waived in whole or in part by the Board of County Commissioners upon a written petition by the applicant showing that: 3.310.I.2.a. A permit application pursuant to Chapter 6, Sections one through five of the Eagle County Guidelines and Regulations for Matters of State Interest has been submitted to the Eagle County Permit Authority relative to this land use which would be the subject of a special use permit application. 3.310.I.2.b. Compliance with the Special Use Review Permit requirements would be unreasonably burdensome for the applicant. The applicant has requested a waiver of the Special Use Review Permit requirements as such application would serve no further legitimate planning, zoning or other land use objective. DISCUSSION: Mr. Narracci presented the file. He stated that the proposal would enlarge the Eagle Water Treatment Plant capacity. The enlargement is necessary to meet the existing and projected demand within the Town's water service area and not being done to promote additional demand. The enlargement entails the addition of one filter train within the existing water treatment plant building. There would be no outside construction activities. The enlargement has been necessitated by the accelerated growth rate in the Town's water service area and is to meet current peak day demands. Thirty-one of the Thirty-two criteria for the 1041 permit were found to be positive. Staff recommended approval with two conditions as presented in the staff report. Chairman Runyon opened and closed public comment as there was none. Mr. Powell and Dusty Walls were present. Mr. Powell stated that their application is complete and meets the criteria for approval. He asked for a favorable decision. Commissioner Menconi asked Mr. Powell ifhe approved of the two conditions. Mr. Powell stated that the conditions looked satisfactory. Commissioner Menconi asked Mr. Narracci if all findings were positive. Mr. Narracci stated that all findings would be upon the town receiving final water court approval in July. Commissioner Menconi stated for the record that based on the information before him all findings are positive. Commissioner Fisher wondered where new development would come into the mix. Mr. Powell stated that it's difficult to determine absorption rate because the demand characteristics change through time. This expansion will satisfy peak day requirements. Next year they may consider at second facility if the demand warrants one. Commissioner Fisher asked if there was a proposed location for the second facility. 19 04/22/08 Mr. Powell stated that the town owns a 5-acre parcel where the existing wastewater facility is located. The second facility would be adjacent to the expanded wastewater facility. Commissioner Fisher wondered if there was an anticipated time line in place when the water treatment plant became active. Mr. Powell stated that the plant was built in the mid 80s. There has been a lot of accelerated growth since the early 80s. The state requires a 20-year review. Chairman Runyon asked Mr. Narracci about the requirement for special use review permit. Mr. Narracci stated that 1041 section of the regulations allows the board to waive the special use requirement because it would not provide any additional information. Mr. Merry stated that the opportunity resides within the special use permit for water projects of this nature. Commissioner Menconi asked about the location of the project. Mr. Powell stated that the project is 8 miles up Brush Creek. Commissioner Menconi requested that as development and trails occur in the area that landscaping be considered. Commissioner Menconi moved that the Eagle County Permit Authority approve File No. 104l-007l, waiving the requirement for Special Use Review Permit and incorporating the following conditions: 1. That except as otherwise modified by the Permit, all material representations of the Applicant in this permit application, correspondence, and public meetings shall be adhered to and considered conditions of approval, unless otherwise amended by other conditions. 2. The Town of Eagle shall institute mandatory watering restrictions on odd/even days. Commissioner Fisher seconded the motion. The vote was declared unanimous. Work Session - Eagle-Vail Vision / Urban Land Institute Discussion Rick Pylman, Eagle-Vail Representative Canceled Attest: 20 04/22/08 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Eagle County HOUSING NEEDS ASSESSMENT 2007 -DRAFT - AUGUST 2007 Prepared for: Eagle County Prepared by: RRC Associates, Inc. 4940 Pearl East Circle, Suite 103 Boulder, CO 80301 (303) 449-6558 and Rees Consulting, Inc. RRC ASSOCIATES, INC.; REES CONSULTING, INC. DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 TABLE OF CONTENTS INTRODUCTION .............................................................................................................................................5 CONTEXT ........................................................................................................................................................6 METHODOLOGY ............................................................................................................................................7 AREA COVERED....................................................................................................................... .................... 7 PRIMARY RESEARCH.............................................................................................................................. ...... 7 STATISTICAL VALIDITY.............................................................................................................................. .... 8 OTHER SOURCES OF INFORMATION ..............................................................................................................8 DEFINITIONS.......................................................................................................................... ...................... 9 OVERVIEW OF THE EAGLE COUNTY NEEDS ASSESSMENT .................................................................11 NEEDS QUANTIFIED..... ........ ................ ............ ............ ...... ................ ....... .......... ................ ........ ............ ....11 GAP ANALySiS........................................................................ ............ ........ ............................................... .12 DEMOGRAPHIC, ECONOMIC AND MARKET CONDITIONS.................................................................................13 HOUSING PREFERENCES.......................................................................................................................... ., .15 SECTION 1- CURRENT HOUSEHOLD TRENDS AND CHARACTERISTICS...........................................17 COUNTY POPULATION AND HOUSEHOLDS ....................................................................................................17 HOUSING UNIT ESTIMATES......................................................................................................................... .17 HOUSEHOLD ESTIMATES............................................................................................................................ .18 HOUSEHOLD DEMOGRAPHiCS.................................................................................................................... ..18 Tenure........................................................................................................................ .......................... 18 Household Type................. ...... ..................... .,. ........................... ....... ............... .................................. .19 Households with Children..................................................................................................................... 19 Change in Households Over Next 5 Years........................................................................................... 19 Residence Type and Size ....................... ....................... ........ ....................... .......................................20 Length of Residency.................................... ....... .......................................... ..... .............................. .... .21 Household Income.............................................. .............................................. ....... ... ....... ........... .......22 HOUSING COSTS............................................................................................................................... ......... .23 HOUSEHOLD AREA MEDIAN INCOME (AMI) ........... ..... ...... ................................................... ................... .......23 HOUSING CONTINUUM............................................................................................................................ .....24 HOUSING AFFORDABILlTY......................................................................................................................... .. .26 SECTION 2. HOUSEHOLD AND EMPLOYER PROBLEMS.......................................................................28 HOUSEHOLDS WITH "HOUSING PROBLEMS" ..................................................................................................28 Cost-Burdened.................................................................................................................. ...................28 Overcrowding.............. ........... .................... ....................... ....... ................... .........................................29 Poor Condition..................................................................................................................... .................30 EMPLOYER PROBLEMS.......................................................................................................................... ..... .30 Workforce Housing Perceptions........................................................................................................... 30 Unfilled Positions....... ................................ ....................... .................................................................... 31 Why you have unfilled positions ................................................................................................ ...........31 Problems Due to Housing, Transportation, Day Care and Cost of Living............................................. 31 SECTION 3 - EMPLOYMENT AND COMMUTING ......................................................................................33 JOB ESTIMATES AND PROJECTIONS ......... ....................... ....................... ...... ................ ........................... .....33 EMPLOYERS' ANTICIPATED CHANGE IN EMPLOYMENT ..................................................................................33 JOBS PER EMPLOYEE AND EMPLOYEES PER HOUSEHOLD.............................................................................34 HOUSEHOLD:JOBS RATIO........................................................................................................................... .34 JOBS BY INDUSTRy................................................................................................................................ .... .36 RRCASSOCIATES, INC.; REES CONSULTING, INC. 2 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 WAGES...................................................................................................................................... ................ .36 SEASONALITY OF EMPLOYMENT ....... ........ ................................................................................................... .37 COMMUTING PATTERNS............................................................................................................................. .39 Where Workers Live............ .... ........... ............... ........................ ................... ....... ............ ..................... 39 Where Residents Work. ........ ... ....................................... .......... ....................................... ........... ........ .39 Methods of Commuting......... ........................................................................................... ............ ........40 TENURE OF EMPLOYMENT ... ................. .................... ....... ............ ..... .......... ........ ............... ..........................41 HOUSING ASSiSTANCE.......................................................................................................................... ......42 Employer Housing Assistance - Current...................................................................................... ..... ....42 Employer Housing Assistance - Future ...............................................................................................42 SECTION 4 - HOUSING INVENTORY .........................................................................................................44 TYPE OF UNITS.................................................................................................................... ........ ....... ........44 CONDITION OF HOUSING STOCK................................................................................................................. .45 AGE OF UNITS................................................................................................................................ ............45 OWNERSHIP OF UNITS................................................................................................................................ .46 DEED-RESTRICTED HOUSiNG.................................................................................................................... ..50 SECTION 5 - OWNERSHIP MARKET .........................................................................................................51 VALUE OF OWNED UNITS ............................................................................................................................51 RESIDENTIAL SALES BY yEAR..................................................................................................................... .53 RESIDENTIAL SALE PRICES. ....... ......... ...... ....................................................... ....... ........ ....... .....................54 NEW AND EXISTING SALES ..........................................................................................................................55 SALE PRICES AND LOCAL INCOMES. ........ ....... ........ ....... ............ ........ ........ ........... ............... ........ ........ .........56 SALES TO LOCALS................................................................................................................................. ..... .57 MULTIPLE LISTING SERVICE. ........ ............... ....... ......... ........... ........ ....... ................................... ...................58 REALTOR INTERViEWS................................................................................................................................ .58 SECTION 6 . RENTAL MARKET ..................................................................................................................59 RENT.......................................................................................................................... ............................... .59 VACANCY RATES.... ................................................................................................................................... .60 RENTAL MANAGER INTERViEWS.................................................................................................................. .61 SECTION 7 . HOUSING PREFERENCES ....................................................................................................62 LOCATION.............................................................................................................................. ................ .....62 Where Want to Live.. ................ ................................. ........................................................ ......... ..........62 Where Now Live......................... ................... ........ ............................. ................................. ........ .........64 Location Attributes............................................................................................................. ...................66 Value of Preferred Location.................................................................................................................. 68 RENTER PREFERENCES............................................................................................................................ . .69 HOMEOWNERSHIP......................................................................................................................... ..............72 UNIT TYPE AND SIZE PREFERENCES ....................... ......... ...... ............... ...... ....... ................ ........... ........ .......73 HOUSING COST PREFERENCES................................................................................................................... 75 DEED RESTRiCTIONS............................................................................................................ ............ .......... 78 AMENITIES............................................................................................................................ ......................79 SENIOR HOUSiNG................................................................................................................................. ..... .80 SECTION 8 . HOUSING NEEDS AND GAPS...............................................................................................83 CATCH-UP NEEDS.................................................................................................................................... . .83 Demand from Unfilled Jobs in 2007 .....................................................................................................83 IN-COMMUTERS (CATCH-UP)...................................................................................................................... .84 Units Needed to Address Overcrowding............. ........................... '" ............ ........... ............ .............. ..85 KEEP UP NEEDS....................................................................... ........ ............ ............................................. .86 RRCASSOCIATES, INC.; REES CONSULTING, INC. 3 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Housing Demand from Job Growth ......................................................................................................86 Demand from Replacement of Retirees ...............................................................................................86 TOTAL NEED FOR ADDITIONAL HOUSING ..................................................................................................",,87 DEMAND BY AM I...................,..........,....."'........"'...."........"......"........,.................".............................. ... ..88 FREE-MARKET AVAILABILITY...............,......."........,......"...............,......................................."......,....."..... .89 GAPS................................."........."............................,....................."......"........................... ................... .90 APPENDIX A . AMI PROFILES ....................................................................................................................92 APPENDIX B . CENSUS PROFILE AND TRENDS....................................................................................100 APPENDIX C . EMPLOYER SURVEY FORM AND OPEN.ENDED COMMENTS .....................................111 APPENDIX D . HOUSEHOLD SURVEY FORM AND OPEN.ENDED COMMENTS ..................................117 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 4 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 INTRODUCTION The purpose of the study is to provide incorporated Eagle County with baseline information about current and future housing needs and the available supply of housing to address these needs. The information in this report will be useful in evaluating and targeting the housing needs of local residents and workers. The information can also be used to discuss housing needs and opportunities with the Department of Housing and Urban Development (HUD) and various other federal, state, local and other public agencies and non- profit and private interests involved in projects for the community. The Eagle County Housing Department commissioned this study to address the county as a whole, However, the department made a special effort to obtain sufficient data for each individual town to further assess their specific circumstances. The analysis contained in this report does not specifically address the towns within the county but such analysis could be undertaken based on the survey data that has been collected. This information may be used to: . Evaluate and potentially modify public policies and housing programs including land use regulations, affordable housing incentives and development codes; . Facilitate partnerships between public- and private-sector organizations to create developments that include housing that is suitable and affordable to different population groups; . Obtain financing for housing projects. Most private, federal and state lending institutions require demographic and housing cost information to support loan or grant applications, Often information presented in a housing needs assessment may be used to support a proposed development with different funding agencies. This information can also be used when a financial institution requires market studies (for example, rental units financed with Low-income Housing Tax Credits); . Assess the distribution patterns of housing throughout Eagle County, particularly in the context of employment; . Establish baseline information from which progress toward meeting agreed upon goals can be evaluated; . Plan for future housing needs connected with anticipated growth in jobs and households in Eagle County; . Understand economic, housing cost and demographic trends in the area; and . Support various other planning-related projects that can benefit from the availability of up-to-date demographic data including transportation studies, environmental impact statements, school expansions and parks/recreation planning. RRC ASSOCIATES, INC,; REES CONSULTING, INC. 5 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 CONTEXT Addressing housing needs, concerns, issues and opportunities is a complex and often emotional issue. A Housing Needs Assessment provides baseline information from which policy decisions, local housing goals and objectives and program options can be evaluated. This information is intended to inform decisions, as well as suggest program and policy options for local governments to consider when addressing community housing needs and opportunities. Ideally, Eagle County will have a mix and balance of housing that supports current and future residents as their housing needs and conditions change to support not only changing life patterns of residents, but also to support the continued economic development of the area by ensuring local employees can find and afford housing. Affordable housing is generally defined as a housing payment that does not exceed 30 percent of gross monthly income and a home that is of a sufficient size to meet the needs of the household. The types of homes that are made available under local housing initiatives vary depending on the housing needs in different communities and the policies and goals established by these communities to support these goals. Customizing policies, goals and programs to local conditions is an important component of any successful housing strategy. The Housing Continuum illustrated below portrays a spectrum of housing that is affordable and most likely to be sought out by households in different income groups. The Housing Continuum depicts what may be ideal for most communities - the availability of housing that is affordable to all households and provides options for changing life circumstances. What is key in this approach is that there are opportunities to buy or rent for households at different economic levels, thus supporting an economically balanced community. The Housing Continuum is discussed in relation to Eagle County in Section 1 of this report. Eagle County Housing Continuum 2007 MIDDLE INCOME 80 .120% AMI LOW INCOME 50 . 80% AMI $36,501. $53,850 2,501 HH 113.8% HH $53,851 . $87,600 5,440 HH /28.8% HH 100% AMI SO.$21 ,900 1,166 HH /6.6% HH ABOVE MIDDLE INCOME +120% AMI Over $87,601 8,129 HH /41.5% HH VERY LOW INCOME 30 . 50% AMI $21,901 . $36,500 1,688 HH /9.3% HH 30% AMI EXTREMELY LOW INCOME <=30% AMI *Dollar amounts represent the HUD AMI defined for an average sized 3-person-family household in Eagle County. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 6 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 METHODOLOGY Area Covered This study covers Eagle County and includes information on workers that in-commute to Eagle County for jobs. A mix of primary research and available public information sources was used to generate information for the county and in-commuting households. Eagle County, Area Covered by the Needs Assessment Source: Eagle County GIS Department, RRC Associates, Inc. Primary Research Primary research was conducted to generate information beyond that available from existing publiC sources. This research included a household survey (distributed to Eagle County households), an employee survey, and local realtor and property manager interviews. Household Survey. The Household Survey was mailed to 8,000 random homes in Eagle County. A total of 1,526 completed household surveys were returned, for a response rate of about 19 percent. Responses from the household survey represent a total of 1,526 households, 4,210 total persons in households and 2,766 employed adults. The primary purpose of the survey was to generate information on housing needs and preferences; opinions on potential housing issues, programs and solutions; and employment and commuting patterns among Eagle County residents. While the survey targeted Eagle County households as a whole, sufficient data was collected to allow future analysis at the individual community level. RRCASSOCIATES, INC.; REES CONSULTING, INC. 7 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 In-Commuting Employee Survey. The 50 largest businesses in Eagle County were contacted to engage their assistance in delivering surveys to their employees that live outside of the County. The survey was designed to primarily reach in-commuting employees; however, given the nature of most businesses having only PO Box address information for employees, some businesses distributed surveys to a mix of in- commuting and County resident employees. Survey responses included 35 county resident employees and 43 in-commuting employees. Employer Surveys. 50 of the largest employers in the county were contacted by phone, of which 34 completed the survey. Another 500 businesses were randomly mailed a survey to reach a variety of business types, sizes and locations in the city. In total, we received about 133 responses, for an average response rate of about 24 percent. Responding businesses together account for an average of 7,021 jobs, or 17 percent of jobs in Eagle County. The intent of the surveys was to determine where employees live; changes in employment over time; to what extent employee housing is perceived to be an issue by employers; whether employers feel housing programs for employees are needed; and their associated level of support for housing assistance. Realtor and Properly Management Interviews. Ten realtors, each representing different companies, and twelve property managers (22 total) were interviewed to supplement the surveys to learn what households are seeking when looking to purchase or rent a unit. Trends in real estate sales and preferences and changes and the rental market were also discussed. Statistical Validity The margin of error for household survey tabulations is generally within 3.5 percent at the 95 percent confidence level. This means that, for tabulations involving the entire sample, there is 95 percent confidence that any given percent reported is no more than plus or minus 3 to 4 percentage points from what is actually the case. When estimates are provided for sub-groups, such as household type, owners and renters, etc., the sample size is reduced causing the tabulations to be less precise. Other Sources of Information A variety of sources of published information were used in the preparation of this report, including: . 1990 and 2000 US Census data, including CHAS (Comprehensive Housing Affordability Strategy) special tabulation data; . Employment information from the Colorado Department of Labor and Employment (2000), the US Bureau of Economic Analysis, the Center for Business and Economic Forecasting (CBEF) and Business Pattern data from the Economic Census; . Employment and population projections from the Department of Local Affairs; . Northwest Colorado Council of Governments for home ownership trends; . 2007 Area Median Income for Eagle County from the Department of Housing and Urban Development; . Eagle County Housing Department rent vacancy surveys; and . Eagle County Assessor data for homeownership and sales information and Eagle County MLS for current sales listings. RRCASSOCIATES, INC.; REES CONSULTING, INC. 8 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Definitions The following definitions are applicable for the terms used in this report. Affordable Housing - when the amount spent on rent or mortgage payments (excluding utilities) does not exceed 30 percent of the combined gross income of all household members. There is no single amount that is "affordable." The term is not synonymous with low-income housing, where, under most Federal programs for low-income housing, occupants pay 30 percent of their gross income for rent and utilities. Area Median Income (AMI) Limits - most communities establish income limits for the programs they administer based on the area median income (AMI) for the area according to household size, which are adjusted annually by the Department of Housing and Urban Development (HUD). Four different income categories are defined for various programs and policies: 1. Extremely low-income, which is less than 30 percent of the median family income; 2. Vet}' low-income, which is between 30 and 50 percent of the median family income; 3. Low-income, which is between 50 and 80 percent of the median family income; 4. Middle income, which is between 80 and 120 percent of the median family income; and 5. Above middle income, which is over 120 percent of the median family income. Cost Burdened - when a household or individual spends more than 30 percent of gross income on rent or mortgage payments. Households paying 50 percent or more of their income for rent or mortgage are said to be severely cost-burdened. Inclusion at}' Zoning - requires a minimum percentage of residential development be provided at below- market rates to serve lower income households as part of new residential developments (30 percent in Eagle County). Inclusionary zoning is a housing production obligation based on the community's need for affordable housing as related to many factors, including a decreasing developable supply of land, rising home values, insufficient provision of housing affordable to residents by the market, etc., in addition to any direct employee generation impacts of development. Low Income Housing Tax Credit - a tax credit (Internal Revenue Code Section 42) available to investors in rental housing projects focused on renters earning less than 60 percent of the AMI. This program encourages investment that helps finance construction and rehabilitation of housing for lower income renters. Mean - the average of a group of numbers, which is the sum of all the data values divided by the number of items. Median - the middle point in a data set. Section 8 Rent Subsidy - the Section 8 Housing Assistance Payment program is offered through the U.S. Department of Housing and Urban Development (HUD). This program pays the difference between 30 percent of monthly household income and the Fair Market Rent (FMR) established by HUD for Eagle County. There are two types of Section 8 assistance: 1) project based where vouchers are attached to specific properties, or 2) vouchers -- households using Section 8 assistance find market rate housing where the landlord is willing to participate in the program. Substandard Housing - a unit that lacks complete kitchen and lor plumbing facilities. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 9 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Levels of Homeownership - When discussing affordability of properties by Area Median Income (AMI) level (defined above) and the types of homes households among different AMI groups are seeking, reference is made to a couple different stages of homeownership. This includes: 1. Entry-level ownership/first-time homebuyers: These are households typically earning in the lower to middle income range. In Eagle County, these are households earning 50 to 100 percent of the AMI. These include households that currently rent (or otherwise do not own a home) and are looking to purchase their first home. 2. Move-up buyers: These are households earning in the middle to upper income range (about 100 to 120 percent AMI or higher) that may currently own a home and are looking to purchase a new or different home for a variety of reasons (relocating, growing family (e.g., having children), shrinking family (e.g., empty-nesters), etc.). Catch-Up Housing - Housing needed to catch-up to current deficient housing conditions. In this report, catch-up housing needs are defined by current resident households reporting housing problems (overcrowded, cost-burdened and/or living in substandard housing conditions), current renters and owners looking to purchase a home and in-commuters that would like to move to the city. Catch-up housing is generally addressed through local city development initiatives, non-profits and housing groups and public/private partnerships. Keep-Up Housing - Housing units needed to keep-up with future demand for housing. In this report, keep- up housing needs focuses on new housing units needed as a result of job growth in the city and new employees filling those jobs. Keep-up housing is often addressed by the existing free-market, as well as regulatory requirements or incentives to produce housing that is needed and priced below the current market. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 10 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 OVERVIEW OF THE EAGLE COUNTY NEEDS ASSESSMENT Eagle County has long recognized that there is a growing disconnect between the market driven cost of housing and what local employees and residents can afford to pay for housing. The purpose of the study is to provide Eagle County with baseline information about current and future housing needs and the available supply of housing to address these needs. The Eagle County Housing Department commissioned this study to address the county as a whole. However, the department made a special effort to obtain sufficient data for each individual town to further assess their specific circumstances. While regional solutions are encouraged, it is also expected that the towns will continue to address issues of affordable housing. The analysis contained in this report does not specifically address the towns within Eagle County but such analysis could be undertaken at a later date based on the survey data that has been collected. This overview highlights the primary gaps identified in the Eagle County housing market as compared to local resident and employee incomes, trends leading to or stemming from these gaps and primary households affected. The following discussion identifies a series of key findings that address housing needs as measured through surveys and other sources of Eagle County specific data. Needs Quantified Approximately 12,500 additional primary resident housing units are needed to provide existing employers with an adequate work force and to sustain growth for the next five years. This would include a mix of ownership and rental housing choices at various price points. This estimate is a measurement of the need for primary residences (Le. homes for local residents as distinguished from second home owners) at all price ranges that are now or will be needed in the next five years, not just affordable workforce housing. This estimation does not account for what the free market will provide. To the extent the free market provides housing, the primary resident housing units needed will reduce accordingly. The needs assessment quantifies primary resident housing needs in terms of "catch up" and "keep up" needs. Catch up needs represent current deficiencies in housing related to falling behind with housing needs in the past. Keep up needs will be generated in the future by new jobs and residents not yet in the county. Catch-Up Needs, based on current deficiencies in housing, are as follows: . 1,420 additional housing units are needed to attract employees to fill the over 4,000 jobs that are now vacant. . Employees who commute in from homes in neighboring counties for jobs in Eagle County and would like to move to be closer to work generate demand for 2,469 additional housing units. . Approximately 557 housing units are needed to address overcrowding of homes in Eagle County. As of April, roughly 1,050 residential units were listed for sale in Eagle County. These free-market units narrow the current catch-up gap to approximately 3,400 units, a number which is close to previous estimates for workforce housing recently derived by the Eagle County Housing Department and the Urban Land Institute. Keep-Up Needs, defined as the number of units needed to keep up with future demand for housing based on projected employment and population growth and the requirement to replace retiring employees, include: RRC ASSOCIATES, INC.; REES CONSULTING, INC. 11 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 . 4,776 additional units to accommodate growth in the labor force through in-migration to sustain business expansion and start ups, and . 3,284 units for employees are needed to fill positions that will be vacated by retiring workers. Gap Analysis There is a significant gap between the current demand for units (catch-up) and the number of homes available as of April, 2007. The difference of 3,398 units between current demand for 4,446 units and 1,048 current listings represents the magnitude of the gap between what residents and in-commuting employees want for housing and what the free market is providing. The difference for each AMI category represents the net demand between what residents and in-commuters can afford and the free market price of units. The gap is largest in the 81 to 120 percent AMI range ($53,850 - $73,000 for a 3-person household). Since federal and state housing programs only serve households with incomes equal to or less than 80 percent AMI (Low Income Housing Tax Credits and several grant programs have even lower income eligibility standards) addressing the gap in the 81 to 120 percent AMI range will require partnering with private developers and other local solutions that do not rely on funding from outside of Eagle County. Proportionately, the free market best serves households with incomes greater than 140 percent AMI; units available as of April could potentially meet approximately 64 percent of catch-up demand in the upper income category. These figures are dynamic; additional units will be placed on the market during 2007 that will slightly lower the gap. With 97 percent of the current listings affordable only for households with incomes greater than 140 percent AMI, the change should not significantly impact planning for solutions to address catch-up demand. Net Demand for Housing Gap (diff. Maximum between Affordable % Current # Current listings Purchase Listings % Current Listings # Current and AMI Range Price (MLS) Demand MLS Demand demand) 50% AMI or less $124,796 0.2% 5.4% 2 242 -240 60% AM I $148,123 0.0% 7.4% 0 327 -327 80% AMI $180,238 0.0% 8.6% 0 384 -384 100% AMI $241,432 0.4% 15.4% 4 683 -679 120% AMI $288,086 0.4% 15.2% 4 678 -674 140% AMI $334,741 1.7% 12.3% 18 545 -527 Over 140% AMI Over $334,741 97.3% 35.7% 1,020 1,588 -568 Total 100% 100.0% 1,048 4,446 -3,398 Source: Eagle County MLS; RRC/Rees Calculations RRC ASSOCIATES, INC.; REES CONSULTING, INC. 12 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Demographic, Economic and Market Conditions Some key demographic and economic trends in Eagle County are highlighted below. r . The Department of Local Affairs projects that Eagle County's population will increase by 27 percent between 2007 (52,236) and 2015 (66,113), adding an estimated 13,887 residents. . The average household size is 2.74 indicating there are currently 18,924 households in Eagle County (69.6 percent own and 30.4 percent rent). . Results from the Household survey indicate that 28 percent of households (about 5,299 households) are cost burdened, meaning they are paying 30 percent or more of their income for rent or mortgage (excluding utilities and HOA). This is an increase of 8 percent since the 1999 Housing Needs Assessment. Cost-Burdened Households, 2007 . Household survey results also indicate that 9.8 percent of households in Eagle County live in overcrowded conditions (defined by having more than 1.5 residents per bedroom). This equates to about 1,855 households in 2007. Residents who are not willing to tolerate living in overcrowded conditions, particularly as they grow older, often leave their jobs and the community. Under 20% "0 CD III CD 20-30% ::l Ol CD 01 E Ol 8 5 30-35% <= ~ -:;:. - <= 35-40% o CD c: r.:t: ~ .e 40-50% CD Q. Over 50% 0% 20% 40% 60% Percent of Households . The median sale price of market-priced homes in Eagle County increased by 60 percent between 2000 ($325,000 median) and 2006 ($519,300). The median household income during this same time period increased by about 28 percent. Change in Median Sales Prices and Median Household Incomes $600,000 $500,000 "..."..~."..'" $400,000 $300,000 $200,000 ---j $100,000 Median household income 28% increase --- --. · $62,682 . $80,000 $0 2000 2006 Year . The percent of residential sales priced below $300,000 decreased significantly from about 46 percent in 2003 to 18 percent in 2006, RRC ASSOCIATES, INC.; REES CONSULTING, INC. 13 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 . Overall, it is estimated that rents increased about 21 percent since 2000, outpacing local renter incomes (about a 15 percent increased based on 2007 survey results). . Based on vacancy rental information collected by the Eagle County Housing Department, vacancy rates have decreased since the 2000 census, with current vacancy rates being near zero. . May 2007 County Assessor data indicates that about 49 percent of units in Eagle County are owned by out-of-area residents. i 0 Eagle County Resident _ Out of !Vea Resident I Condo 36.3% TOTAL 51.2% Manufactured/Mobile 77.7% Single Family 61.6% TownhomelDuplexITriplex 61.4% 0% 20% 40% 60% 80% 100% Percent of Ownership Units . Concern for housing issues is widely identified by employers. Employer survey results indicate that 40 percent of employers lost at least one employee over the last two years due to a lack of housing. Additionally, turnover within the past few of years due to a lack of housing equals about 6.1 percent of currently available positions. Overall, 81 percent of employers feel that the availability of workforce housing is "one of the more serious problems" or "the most critical problem in the county". "Do you feel that the availability of workforce housing is:" 3% 15% I _ Not a problem I_ One of the region's lesser problems I ' D A moderate problem I 0 One of the more serious problems 'I I_ The most critical problem in the , county I 53% . In total, about 30 percent of responding employers indicated they currently provide some sort of housing assistance to their employees including down payment assistance, interest free loans, home search assistance and rent assistance. . Jobs are expected to grow about 25 percent between 2007 and 2015, adding about 10,300 jobs and needing about 8,600 employees to fill these positions. . Eagle County currently has a low ratio of households to jobs (0.45 households per job in 2007). This indicates that Eagle County must rely on housing being available in other communities to meet the needs of the county's workforce. As estimated by DOLA, about 18.3 percent of Eagle County's workforce commutes into the county for work. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 14 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Housing Preferences Location: Edwards is the number one choice among both homeowners and renters of where to live in Eagle County. Locations up and down valley are desired; there is not a strong preference for living in up- valley communities. Differences between renters who want to continue to rent and residents who want to buy suggest that rental units should be developed up-valley while homeownership housing should be concentrated more in mid- and down-valley communities. Residents tend to live in the community where they most want to reside; however, in some communities (Avon, Dotsero/Gypsum and Eagle-Vail), the majority of residents surveyed would rather live elsewhere. When looking for a place to live, cost of housing followed by type of housing are the most important considerations. Community character (family oriented, neighborhoods, etc) is next, outweighing proximity to employment for many. The cost of housing, availability of transportation and proximity to employment are more important to renters than to owners while homeowners place higher value on community character and housing type. About half (47 percent) of the potential home buyers surveyed would pay more for a home that is located in their first choice community -- an average of nearly $195,000 for homeowners interesting in buying a different home and roughly $88,000 for renters who want to move into ownership. Rental Housing: While most of the renters living in Eagle County (65 percent) would like to buy a home, the top choice for unit type among the 35 percent of renters who would like to continue to rent are town homes and duplexes. Renters, however, appear to be willing to compromise if they can not live in the type of unit that they most prefer. Approximately 44 percent of the renter households who want to continue renting have incomes equal to or less than 60 percent AMI, which suggests that Low Income Housing Tax Credits could be used again in Eagle County to address a portion of the need for rental housing. The majority (56 percent), however, have incomes higher than the maximum allowed for tax credits, which means that alternative financing sources will also be needed. Homeownership: Renters who want to move into ownership, owners who want to buy a new or different home and in-commuters who want to move into Eagle County all generate demand for housing units. To "find a larger home" to live in was the single reason most frequently cited for wanting to buy. Nearly three-fourths indicated that a single-family house is their first choice with most wanting three or four bedrooms. Unit type preferences vary according to where potential buyers most want to live. Residents who want to buy in or near Vail have relatively higher preferences for condominiums while preferences for single family homes are higher in down valley communities. Home Prices: Potential home buyers indicated they were interested in purchasing homes in a wide range of prices, with a concentration (55 percent) in the $150,000 to $400,000 range. The incomes of residents who want to buy also indicate that a wide range of pricing is needed. This indicates there are opportunities for mixed-income housing developments serving low through middle income residents with prices between about $150,000 and $400,000. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 15 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Renters who want to move into ownership have significantly lower incomes than owners who want to buy a new or different home. The pricing of units developed for sale would vary depending upon policies established. If moving renters into homeowners hip is given priority over moving owners up into larger homes, prices will need to be much lower. While some renters who want to buy have little if any funds saved for a down payment, over half (52.3 percent) responded that they have between $10,000 and $50,000 available. Deed Restrictions: Deed restrictions that would limit appreciation in value to a maximum rate of 3.5 percent per year on homes priced below market appear to be acceptable to approximately 39 percent of the county's residents who are interested in buying a home. The acceptability of deed restrictions varies between owners and renters. Nearly 63 percent of renters who would like to move into ownership would consider purchasing a deed-restricted residence compared with only 19 percent of residents who already own a home and are interested in buying a different home. About half of the potential homebuyers who indicated that deed restrictions would be acceptable if priced lower than market indicated the price should be $50,000 lower. This suggests that there is a somewhat widely held perception that deed restrictions with appreciation caps reduce the price of homes by $50,000. Amenities: From a long list with numerous features identified, both owners and renters in Eagle County rate in-unit washers and dryers as their most important amenity. Two of the top four amenities - sunlight and energy efficiency, are tied to Eagle County's mountain climate. Eagle County's residents also highly value having private outdoor space and pets. Senior Housing: Upon retirement, more seniors will continue to live in Eagle County (44 percent overall) than will move out of the region (27 percent). Seniors were asked to indicate if they would utilize various types of senior housing and housing-related services. Seniors who are undecided or have a moderate to high likelihood are outnumbered by those who indicated they would not use any of the options offered for consideration. RRCASSOCIATES, INC.; REES CONSULTING, INC. 16 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 SECTION 1 - CURRENT HOUSEHOLD TRENDS AND CHARACTERISTICS This section provides an overview of current household demographics and characteristics as determined by the 2007 Household Survey. It presents current estimates and projections of the population and number of households in Eagle County from the year 2000 through 2015. It also provides a profile of current Eagle County households and residents, indicates potential changes in the demographics since the 2000 Census and serves as a basis for other sections of the report and analysis. County Population and Households According to the US Census Bureau, Eagle County's population in 2000 was 41,659. The Department of Local Affairs projects that the population in Eagle County will increase by about 34 percent between 2005 and 2015, or just under 3 percent per year on average. It is estimated that 52,236 residents reside in Eagle County in 2007, increasing to 57,881 by 2010 and 66,113 by 2015. Of the communities within Eagle County, Avon's population is projected to increase by the largest percentage between 2005 and 2015 (39.6 percent), followed by Gypsum (38.4 percent), Basalt (36.3 percent) and Vail (35.5 percent). Eagle County Population: 2000 to 2015 % Change 2000 2005 2007 2010 2015 (2005.2015) EAGLE COUNTY 41,659 49,375 52,236 57,881 66,113 33.9% Avon 5,561 6,753 7,451 8,256 9,430 39.6% Basalt 1,952 2,247 2,420 2,681 3,062 36.3% Eagle 3,032 4,387 4,247 4,705 5,375 22.5% Gypsum 3,654 5,125 5,602 6,208 7,091 38.4% Minturn 1,068 1,138 1,184 1,312 1 ,499 31.7% Red Cliff 289 312 327 363 414 32.8% Vail 4,531 4,785 5,124 5,678 6,486 35.5% Unincorporated 21,572 24,628 25,929 28,732 32,818 33.3% Source: 2000 US Census; Department of Local Affairs; RRC Associates Housing Unit Estimates Between 1990 and 2000, housing units in Eagle County increased about 45.2 percent. The Department of Local Affairs (DOLA) estimates that the number of total housing units will increase by 33 percent between 2000 and 2010, which is a slower rate of growth than the previous time period. DOLA estimates there are 29,774 housing units in 2007, increasing to 33,023 in 2010 and 37,719 by 2015. Eagle County Eagle County Change in Housing Units: 1990 to 2015 % Change 1990 2000 2005 2007 2010 2015 (1990.2000) 15,226 22,111 28,169 29,774 33,023 37,719 45.2% Source: Department of Local Affairs; RRC Associates, Inc. % Change (2000.2010) 33.0% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 17 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Household Estimates According to DOLA, the average household size in 2005 was 2.74. Assuming the household size remains constant, Eagle County will add approximately 16,738 persons, 9,544 housing units and about 6,067 households1 to the county between 2005 and 2015. It is important to note that the percentage of units occupied by Eagle County residents has been decreasing according to Department of Local Affairs estimates, from about 69 percent in 2000 (based on the Census) to 63.6 percent in 2005. This indicates that the percent of out-of-area owners increased slightly between 2000 and 2005. Eagle County Population, Households and Housing Units: 2000 to 2015 2000 2005 2007 2010 2015 Population 41,659 49,375 52,236 57,881 66,113 Population in households (Census) 41,306 49,023 51,853 57,456 65,628 Household size (Census, DOLA) 2.73 2.74 2.74 2.74 2.74 Housing units 22,111 28,140 29,774 32,992 37,684 Percent occupied (Census, DOLA) 68.5% 63.6% 63.6% 63.6% 63.6% Households 15,148 17,885 18,924 20,970 23,952 Source: Department of Local Affairs; Colorado Demography Section; 2000 US Census; RRC Associates, Inc. Household Demographics The 2000 US Census provides the primary baseline from which household demographics in Eagle County can best be understood. This survey is based on a 100 percent sample of households so is generally the best available data on household characteristics in an area. However, this information is also seven years old. The below section identifies household demographics as determined from a current Household Survey administered by RRC Associates, Inc., in March of 2007. This data has been weighted on key demographic variables based on the 2000 Census to ensure responses are representative of the population as a whole. Other publicly available data is also used in this section to supplement the survey data. The below demographic relationships are used in other sections of this report, as needed. Tenure As of 2007 there are an estimated 18,924 households in Eagle County. DOLA estimates for region 12 show that about 69.6 percent own (12,074 households) and 30.4 percent rent their homes (6,850 households). This represents a slightly higher owner occupancy than reported in the 2000 Census (63.7 percent owner households). Households by Tenure: 2007 Total Total # DOLA % Total households: 18,924 100% Own 13,171 69.6% Rent 5,753 30.4% Source: 2007 Household survey; RRC Associates, Inc. 1 Households were estimated by assuming (1) 99 percent of residents reside in households (DOLA, 2005), (2) the average household size will remain consistent with that reported by DOLA in 2005 (2.74) and (3) residents will occupy about 63.6 percent of housing units, as reported by DOLA 2005 estimates. RRCASSOCIATES, INC.; REES CONSULTING, INC. 18 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Household Type About 27 percent of households in Eagle County are comprised of couples with no children, including 33 percent of owners and 18 percent of renters. Another 27 percent of households in Eagle County are couples with children, including 35 percent of owner households and 14 percent of renter households. Of other types of households, about 23 percent are adults living alone, 10 percent are unrelated roommates, 8 percent are single parents with children at home, 3 percent have family members and unrelated roommates and 2 percent have immediate and extended family members. Households by Type: Eagle County, 2007 Total % Own % 27 33 27 35 23 19 10 3 8 5 3 2 2 2 1 1 100% 100% Source: 2007 Household Survey; RRC Associates, Inc. Couple, no child(ren) Couple with child(ren) Adult living alone Unrelated roommates Single parent with child(ren) Family members and unrelated roommates Immediate and extended family members Other Total Households with Children Rent % 18 14 29 20 13 4 1 o 100% As shown above, about 35 percent of households have children, including about 40 percent of owner households and 27 percent of renter households. Persons residing in Eagle/Brush Creek (48 percent), Dotsero/Gypsum (43 percent) and Avon (40 percent) are more likely to have children in their household than those residing in other areas of the County. Households with persons under 18 have an average of about 1.94 kids, with an average of 1.75 children per household residing in owner household and 2.32 children per household in renter households. Change in Households Over Next 5 Years Survey respondents were asked how their household is likely to change over the next 5 years. As shown below, about 50 percent of households do not expect their household to change. This includes 53 percent of owners and 43 percent of renters. Of households that will change: · Owner households are likely to have children leaving their home (16 percent), will have children/more children (13 percent) or will move out of Eagle County (11 percent). · A relatively similar percentage of renter households stated they are most likely to have children/more children (12 percent) within 5 years. The highest percentage reported they will move out of Eagle County (21 percent) followed by the "other" category (16 percent). About 8 percent of renters stated they will no longer have roommates. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 19 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 "How is your household likely to change over the next 5 years?" Eagle County Households, 2007 Other Household unlikely to change Will move out of Eagle County Children will leave home Will have children/more children Will retire Will no longer have roommates Elderly parent will move in 0% 10% 20% 30% 40% 50% 60% Percent of Respondents Source: 2007 Household; RRC Associates, Inc. Sorted in descending order of owner households. Residence Type and Size About 42 percent of survey respondents occupy single-family homes/cabins, including 54 percent of owners and 21 percent of renters. Another 37 percent of respondents occupy condos/town homes/duplexes, 13 percent occupy apartments and 5 percent occupy mobile homes. "Other" types of homes listed (3 percent), included lock-off, ranch, rental cabin and triplex. Occupied Residence Type by Tenure: Eagle County Households, 2007 Type of Residence Single-family home/cabin Condo/townhouse/duplex Apartment Mobile home Other (lock-off, ranch ete) Total Total % Own % Rent % 21 33 34 5 6 100% 42 54 37 39 13 1 5 4 3 1 100% 100% Source: 2007 Household; RRC Associates, Inc. Residences on average have about 2.9 bedrooms - 3.2 in owner households and 2.3 in renter households. Renter households are likely to have 2-or-fewer bedrooms (58 percent), with about 42 percent of owner households having 3-bedrooms. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 20 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Number of Bedrooms by Tenure: Eagle County Households, 2007 2 221 19.9% I None 2.60 3 42. Yo 31% 4 25.0% 5 8. % 6 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Percent of Respondents Source: 2007 Household; RRC Associates, Inc. Length of Residency About 94.9 percent of survey respondents indicated they reside in Eagle County year-round. This varied slightly by tenure, with 94 percent of owners residing in the area year-round compared to 97 percent of renters.2 Yearly Residency in the County: 2007 3 to 6 months per year 1.6% I 7 to 11 months per year ,- 3.1% All year. 12 months 94.9% Source: 2007 Household Survey; RRC Associates, Inc. Survey respondents were asked how long they have lived in Eagle County. About 60 percent have lived in Eagle County for 10 or more years, including about 69 percent of owners and 44 percent of renters. 2 It is important to note that the household survey was mailed to primary residents of Eagle County only and intentionally did not get mailed to second homeowners. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 21 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Length of Time in Eagle County, 2007 Total Tenure Households % Own % Rent % Less than 6 months 0 0 1 6 months to 1 year 5 2 12 1 up to 2 years 5 3 9 2 up to 3 years 6 3 11 3 up to 5 years 8 7 9 5 up to 10 years 15 16 14 10 years or more 60 69 44 Total 100% 100% 100% Source: 2007 Household Survey; RRC Associates, Inc. Household Income Survey results indicate about a 27.6 percent increase in median household incomes between 1999 and 2007. The median household income reported on the surveys is about $80,000. The median income of owner households is about 64 percent higher ($90,000) than renter households ($55,018). Median Household Income by Tenure: Eagle County, 1999 and 2007 1999 (census) 2007 (survey) % change All Households $62,682 $80,000 27.6% Owner $73,138 $90,000 23.1% Renter $47,743 $55,018 15.2% Source: 2000 Census; 2007 Household Survey; RRC Associates, Inc. Household incomes are highest in Edwards ($225,832 average), Vail ($119,893 average) and Burns/McCoy/Bond/Wolcott ($117,716 average). Average and Median Household Income by Eagle County Region Average Median EAGLE COUNTY $100,804 $80,000 Edwards $125,832 $100,000 Vail $119,893 $75,000 Burns/McCoy/Bond/Wolcott $117,716 $96,098 BasalUEI Jebel/Frying Pan $104,746 $75,565 Eagle-Vail $98,254 $90,000 Avon $94,039 $65,000 Eagle/Brush Creek $90,377 $80,000 Dotsero/Gypsum $85,109 $70,141 Other $72,475 $41,728 Minturn/Red Cliff $66,176 $50,000 Source: 2007 Household Survey; RRC Associates, Inc. Income distributions show that about 33.8 percent of renter households earn less than $40,000 per year, compared to only about 10.9 percent of owner households. In general, a higher percentage of owner households earn over $80,000 per year than renter households, with significant differences seen in the RRCASSOCIATES, INC.; REES CONSULTING, INC. 22 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 $100,000 to $199,999 ranges. About 47 percent of owner households earn over $100,000 per year compared to about 24 percent of renter households. Annual Household Income: Eagle County, 2007 $50,000 - $59,999 12.4r + Less than $20,000 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $60,000 . $79,999 $80,000 - $99,999 I 1.2% I $100,000 - $149,999 $150,000 - $199,999 $200,000 or more 0% 5% 10% 15% 20% 25% 30% Percent of Respondents Source: 2007 Household Survey; RRC Associates, Inc. Housing Costs Median rents increased about 21 percent between 1999 ($952 Census) and 2007 ($1,150 Household survey). Median mortgage payments decreased an estimated -5.15 percent between 1999 ($1,791) and 2006 ($1,700). Median Housing Costs by Tenure: Eagle County, 1999 to 2007 2000 2007 % change (census) (survey) (2000 to 2007) Mortgage $1,791 $1,700 -5.1% Rent (contract) $952 $1,150 20.8% Source: 2000 Census; 2007 Household Survey; RRC Associates, Inc. Household Area Median Income (AMI) The following table shows 2007 income limits for households earning 30 percent AMI, 50 percent AMI, 60 percent AMI, 80 percent AMI, 100 percent AMI, 120 percent AMI and 150 percent AMI. Limits are based on the median family income for Eagle County, which is $81,100 in 2007, as determined by the US Department of Housing and Urban Development (HUD). ''Low-Income'' families, as defined by HUD, have incomes that do not exceed 80 percent of the AMI. "Very Low-Income" families are defined as having incomes that do not exceed 50 percent of the AM I. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 23 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Typically, these income guidelines are used to establish housing targets and thresholds for local housing efforts, as well as for Private Activity Bond allocations, Low-income Housing Tax Credits, Section 8 Rent Subsidy and related housing programs. The income limits are adjusted annually. 50% AMI 60% AMI 80% AMI 100% AMI 120% AMI 140% AMI Area Median Income Limits By Household Size, 2007 Shading denotes median family income. 1.person 2.persons 3.persons 4.persons $28,400 $32,450 $36,500 $40,550 $34,080 $38,940 $43,800 $48,660 $41,900 $47,900 $53,850 $59,850 $56,800 $64,900 $73,000 $81,100 $68,160 $77,880 $87,600 $97,320 $79,520 $90,860 $102,200 $113,540 Source: Department of Housing and Urban Development; RRC Associates, Inc. 5.persons $43,800 $52,560 $64,650 $87,600 $105,120 $122,640 Special tabulations of the 2000 US Census data (CHAS) were used to determine the number and percentage of Eagle County households within each AMI category shown above. For purposes of this analysis, it was assumed that the percentage distribution of households in 2007 across all AMI categories remained the same as that in 2000. The percentages in the table below were used to weight the 2007 survey data results to ensure representation of the population as a whole. As shown in the following table, about 25.6 percent of Eagle County's households earn less than 80 percent AMI (5,356 households), 29 percent earn between 80 and 120 percent AMI (5,431 households) and 43 percent earn over 120 percent AMI (8,138 households). This varies by tenure, where renters are more likely than owners to earn less than 80 percent AMI (45 percent of renters; 21 percent of owners). Income Distribution Of Eagle County Households By Tenure: 2007 Estimates Renters Owners Total # % # % # % 50% AMI or Less 1,473 25.6% 1,383 10.5% 2,858 15.1% 50.1 -80% AMI 1,139 19.8% 1,357 10.3% 2,498 13.2% 80.1-120% AMI 1,674 29.1% 3,767 28.6% 5,431 28.7% 120.1-140% AMI 483 8.4% 1,317 10.0% 1,798 9.5% Over 140% AMI 978 17.0% 5,347 40.6% 6,340 33.5% TOTAL 5,753 100.00% 13,171 100.00% 18,924 100.00% Source: Department of Local Affairs; Colorado Demography Section; CHAS; RRC Associates, Inc. Housing Continuum The Housing Continuum, illustrated below, can be helpful in moving from aggregate estimates of housing units needed (as shown above) to specific programs and policies that target the housing needs within the community. The Continuum shows the percentage and number of households in Eagle County that fall into each AMI category, based on 2007 household estimates, along with a spectrum of housing that is affordable and most likely to be sought out by households in each AMI group. The Housing Continuum depicts what may be ideal for most communities - the availability of housing that is affordable to all households and options for changing life circumstances. What is key in this approach is that there are opportunities for households to buy or rent at different economic levels, thus supporting an economically balanced community. As shown: RRCASSOCIATES, INC.; REES CONSULTING, INC. 24 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · At the lowest income levels, homelessness and the threat of homelessness are important issues. Additionally, special populations who are unable to work (E.g., seniors and the disabled) may require assistance at the lower income levels. Affordability problems, especially for renters, may also be present among the working poor. As shown, about 16 percent of households in Eagle County earn less than 50 percent of the AMI. · As incomes near the median, households are often looking to buy their first home. In Eagle County, homebuyer programs are targeted at 50 to 100 percent of the AMI (about 43 percent of households earn within this range). Policies at this level are typically designed to help bring homeownership within reach, including down payment assistance, first-time homebuyer loans and deed-restricted housing. · Finally, at the highest levels, upper income groups fuel the market for step-up and high-end housing. About 42 percent of Eagle County households earn over 120 percent AMI. Eagle County Housing Continuum 2007 MIDDLE INCOME 80.120% AMI $53,851 . $87,600 5,440 HH / 28.8% HH LOW INCOME 50 . 80% AMI $36,501. $53,850 2501 HH /13.8% HH 100% AMI $0.$21,900 1,166 HH /6.6% HH ABOVE MIDDLE INCOME +120% AMI VERY lOW INCOME 30. 50% AMI $21,901 . $36,500 1,688 HH /9.3% HH Over $87,601 8,129 HH /41.5% HH 30% AMI EXTREMELY LOW INCOME <=30% AMI "Dollar amounts represent the HUD AMI defined for an average sized 3-person family household in Eagle County. While the Housing Continuum shows a spectrum of housing that is affordable and most likely to be sought out by households in each AMI group, it does not show the ideal distribution of households by AMI level. The area median income (100 percent AM) indicates that about 50 percent of the households should make below the median, and 50 percent should make above the median. The distribution of households above and below the median, however, varies by area. As show in the chart below, Eagle County's distribution of households by AMI varies from Colorado's as a whole, with a larger percent of households making between 80 and 120 percent AMI (28.7 vs. 22.3 percent) and households making over 120 percent AMI (43 vs. 38.6 percent) than in Colorado as a whole. 25 RRC ASSOCIATES, INC.; REES CONSULTING, INC. DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 2000 Household AMI Distribution: Eagle County and Colorado .80-120% DOver 120% 43.0% 38.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Department of Housing and Urban Development; RRC Associates, Inc.; CHAS Housing Affordability The following table calculates the maximum affordable purchase price for an average 3-person household in Eagle County and the maximum affordable rent by AMI range for Eagle County households. Purchase prices assume $10,000 down, 6 percent 30-year fixed-rate loan, 20 percent of the monthly payment is used for insurance, taxes, PMI and HOA and no more than 30 percent of gross household income is used toward housing payments. Affordable rentals assume no more than 30 percent of gross household income is paid toward rent. · The largest percentage of renter households (45.4 percent) earn 80 percent or less of the AMI. These households can afford up to $1,346 a month for rent for a 3-person household (e.g. would need a two- to three-bedroom unit). Renter households earning between 80 and 100 percent AMI (16.7 percent) can afford up to $1,825 a month for rent and renter households between 100 and 120 percent AMI (12.5 percent) can afford to pay up to $2,109. · A larger percent of owners (49 percent) are in the first-time homebuyer and entry level housing market (80 to 140 percent AMI). The maximum affordable purchase price for these households is $241,432 (100 percent AMI) and $334,741 (140 percent AMI). The largest percentage of owner households in Eagle County (32.1 percent) make over 140 percent of the AMI. These households can afford to purchase units over $109,500. . RRC ASSOCIATES, INC.; REES CONSULTING, INC. 26 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 AMI Range 80% AM I or Less 80.1-120%AMI 120.1 -140% AMI Over 140% AMI Total Maximum Affordable Purchase Price and Rent by AMI; Eagle County 2007 Maximum Maximum % Renter Affordable % Owner Affordable Households Rent** Households Purchase Price*** 45.4 $1,346 24.3 $180,238 29.2 $2,190 28.6 $288,086 8.4 $2,738 9.4 $334,741 17.0 Over $2,738 32.1 $334,741 or more 100% 100% 'Calculated for a 3-person household. "Assumes no more than 30 percent of household income is used for rent. -Assumes $10,000 down; 6% 30-year loan; approximately 20% of monthly payment for insurance, taxes, PMI, HOA. Max Income* $53,850 $87,600 $109,500 Over $109,500 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 27 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 SECTION 2 . HOUSEHOLD AND EMPLOYER PROBLEMS This section addresses household and employer problems. Households with housing problems are identified by either being cost-burdened by their housing payment (paying 30 percent or more of their household income for rent or mortgage), living in overcrowded conditions (more than 1.5 persons per bedroom) or living in unsatisfactory conditions (poor home condition) as reported on the 2007 household survey. A significant purpose of the 2007 Employer Survey was to understand employer problems and perceptions related to hiring and retaining employees, anticipated changes in employment and employee housing issues. Employer problems include unfilled positions, and issues related to transportation, daycare and cost of living. Households with "Housing Problems" Overall, about 37 percent of households report housing problems (7,002 households), including 27 percent of owners (3,556 households) and 55 percent of renters (3,164 households). As shown in the following chart, the percentage of households in each AMI category with "housing problems" generally decreases as the income of the household increases. Eagle County Households with "Housing Problems" 50.1.80% AMI 100.0% 30% or less AMI 30.1%.50% AMI 80.1% .120% AMI Over 120% AMI 0% 20% 40% 50% 80% 100% Percent of Households Source: 2007 Household Survey Cost-Burdened About 28 percent of households reported being "cost-burdened" by their housing payment, meaning they are paying 30 percent or more of their household income for rent or mortgage (excluding utilities and HOA). Cost burdened households include 25 percent of owners (3,293 households) and 32 percent of renters (1,841 households). In comparison, surveys conducted by RRC Associates for Eagle County in 1990 and 1999 indicated that 16 percent of households in 1990 were cost burdened and 20 percent of households in 1999 were cost RRC ASSOCIATES, INC.; REES CONSULTING, INC. 28 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 burdened. The percent of cost burdened households is estimated to have increased by about 8 percent since the 1999 survey was conducted3. Cost burden vanes by income level, where about 76 percent of households earning under 50 percent of the AMI were cost-burdened, and only 14 percent of households earning over 80 percent AMI were cost burdened. Lower income households typically pay for their housing first, often foregoing food, clothing, utilities and needed medication when cost-burdened. Many of the higher income owner households (those earning over 180 percent AM I) may be cost-burdened by choice, where higher incomes are generally (though not always) more able to afford to pay over 30 percent of their income for housing without sacrificing other needs (food, clothing, medical, etc.). About 15 percent of owners reported having housing problems in this higher income range. Also, lower income owner households (less than 50 percent AMI) are often senior and retired households, where household income may be low compared to housing costs, but other assets can be substantial. Cost.Burdened Households by Tenure: Eagle County, 2007 Under 20% .Own CJ Rent CIl Cl .. ~ 0 20-30% :IE :;:. c CIl II:: .. 30-35% .2 'tl CIl III :::l CIl 35-40% E 0 u .E '0 .... 40-50% c CIl ~ CIl lL Over 50% 0% 10% 20% 30% 40% 50% Percent of Households Source: 2007 Household Survey; RRC Associates, Inc. Overcrowding Results from the 2007 Household Survey indicate that about 9.8 percent of households in Eagle County live in overcrowded conditions (defined by having more than 1.5 residents per bedroom). This equates to about 1,855 households in 2007. Residents who are not willing to tolerate living in overcrowded conditions, particularly as they grow older, often leave their jobs and the community. 3 U.S. Census estimates for the percent of household income spent on housing in 2000 indicate 34 percent of household were cost burdened. For the Census estimate, housing costs include monthly mortgage or rent payments and utilities. The 1990, 1999 and 2007 survey computations include only rent or mortgage payments, not utilities. Additionally, Census estimates reflect households that spent 30% or more of their income on housing, whereas the 1990, 1999 and 2007 survey results report those households that paid over 30% of their income toward housing. These two factors explain, in part, why the Census 2000 figures show a much higher percentage of 'cost-burdened' households overall. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 29 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Overcrowded Units by Tenure: Eagle County, 2007 # % TOTAL 1,855 9.8% Own 356 2.7% Rent 408 7.1 % Source: 2007 Household Survey; RRC Associates, Inc. Poor Condition Respondents to the 2007 Household Survey were asked to rate the condition of their home on a scale of "1_ Poor" to "5-Excellent." As shown below, about 3 percent of households reported the condition of their home to be "1-Poor," or about 568 households in 2007. Less than one percent of owners (0.6 percent) and about 6.7 percent of renters felt their home condition was "1-Poor." Condition of Home: Eagle County, 2007 1 - Poor 2.8% 2 7.3% 5 - Excellent 33.1% ~..". 3 - Good 26.1% 4 30.6% Source: 2007 Household Survey; RRC Associates, Inc. *Rated on a scale of" 1-poor" to "5-excellent' Employer Problems Wornro~eHou&ngPe~~uoos Employers were asked the extent to which they feel the availability of affordable workforce housing in Eagle County is a problem. About 53 percent of respondents felt that workforce housing is "one of the more serious problems" in the county, with another 28 percent indicating it is the "most critical" problem. About 15 percent feel it is a moderate problem, 1 percent feel it is one of the lesser problems in the County and 3 percent feel it is not a problem. "Do you feel that the availability of affordable workforce housing is:" I_ Not a problem 3% 1% 15% \ I I 10 One of the more serious I prob~ms , \_ The most critical problem in \ , the county , I_ One of the region's lesser , problems I CiJ A moderate problem 53% Source: 2007 Employer Survey RRC ASSOCIATES, INC.; REES CONSULTING, INC. 30 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Unfilled Positions About 61 percent of responding employers indicated that they presently have at least one year-round full time unfilled position and 32 percent indicated having at least one year round part time unfilled position. Applied to the seasonal workforce, 40 percent indicate having at least one winter seasonal unfilled position (79 percent full time and 63 percent part time). A sample of the comments given by respondents on unfilled positions is in the table below. Why you have unfilled positions · Between seasons · Can't find laborers · Cost of housing · Cost of living too high - cannot attract qualified people · Difficulty finding qualified professionals · Green card, CDL licence, speak English · Hiring freeze · Just became available (7) · Just became available or lack of qualified candidates · Lack of applicants and affordable housing · Lack of applicants and people say it is too expensive to live up here · Lack of applicants due to high housing costs · Lack of applicants that have flexible hours because people have 2 jobs · Lack of applicants, lack of people willing to relocate · Lack of applicants; cannot find 6-month leases in Eagle County · Mostly summer seasonal openings; visas expiring · New position · No skilled labor available in this area, no affordable housing available · Not looking to fill · Not needed until summer Problems Due to Housing, Transportation, Day Care and Cost of Living Respondents were asked how many employees they have lost in the last two years due to a lack of housing, transportation, day care or cost of living. About 65 percent of employers indicated they lost at least one employee over the last two years due to a lack of housing, transportation, daycare and/or the cost of living. This includes 37.6 percent of employers that lost at least one employee due to a lack of housing, 16.5 percent due to a lack of transportation, 15.0 percent due to a lack of childcare and 55.6 percent due to the cost of living in Eagle County. Survey responses indicate that turnover within the past couple of years due to a lack of housing equals about 6.1 percent of currently available positions. Turnover due to a lack of transportation equals about 2.2 percent of current jobs, turnover due to a lack of day care equals about 0.8 percent of current jobs and turnover of current jobs due to the cost of living in Eagle County represented about 7.7 percent of jobs. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 31 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Employee Turnover Related to Housing, Transportation, Day Care and Cost of Living: Eagle County, 2006 lacked lacked lacked Cost of living housing transportation day care was too high Reason for leaving employment -7 % of businesses that lost at least one employee (65 percent total) # of employees that left positions within the past two years (survey)" % of all employment"" 6.1 % 2.2% 0.8% Source: 2007 Eagle County Employer Survey; RRC Associates, Inc. " Because some employees may have left their position due to a combination of housing, transportation and day care issues, it is not appropriate to sum the number of employment positions vacated due to each individual measure to arrive at a total. **% of employees is based on the assumed average employment for the year as reported by all survey respondents (7,021). 37.6% 16.5% 15.0% 55.6% 427 157 58 544 7.7% RRCASSOCIATES, INC.; REES CONSULTING, INC. 32 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 SECTION 3 - EMPLOYMENT AND COMMUTING This section evaluates employment and commuting trends, including estimates of total jobs and projected growth in jobs, seasonality of employment, commuting, and selected workforce characteristics. Selected results from the 2007 Employer survey that reflect on the economic status of the community are also summarized here, including expected changes (increases or decreases) in employment, current job vacancies and issues filling positions (if any), and estimates of employee tenure and turnover. This information is useful for understanding the impact that locally available housing has on the local economy and employers, and gaining insight into how the needs of local businesses and future employees (based on anticipated changes in employment) can best be met. Job Estimates and Projections Based on estimates from the Colorado Department of Local Affairs (DOLA) - State Demography Office, there are currently 41,727 jobs in Eagle County in 2007. Looking to the future, it is projected there will be 46,173 jobs by 2010 and 52,043 jobs by 2015, as illustrated in the table below. Yearly Average Total Jobs; Eagle County Eagle County Total Jobs Labor Force 2000 2005 2007 2010 34,505 39,390 41,727 46,173 27,244 28,018 29,353 33,001 Source: Colorado Department of Local Affairs (DOLA) 2015 52,043 38,173 % Change 2005 to 2015 32.1% 36.2% The Colorado Department of Labor and Employment (DOLE) estimates that the current (March 2007) unemployment rate among Eagle County residents is a very low 2.6 percent, significantly lower than the statewide unemployment rate of 3.6 percent. Employer survey results show that any unfilled jobs are primarily a result of a lack of applicants, further indicating that Eagle County is a labor shortage area. Employers' Anticipated Change in Employment Respondents to the 2007 Employer Survey were asked whether they expect to increase or decrease employment over the next five years. Employers were also asked if they have any employees retiring during this period and how many will be retiring. · About 47 percent of employers expect to keep their employment levels steady over the next five years, while 41 percent expect to increase their employment, 1 percent expect to reduce their number of employees, and 6 percent are uncertain. On balance, these results suggest a likelihood of significant employment growth in the next five years. · About 23 percent of employers will have employees retire within the next two years, accounting for about 1.6 percent of total jobs, or about 109 positions among survey respondents (648 jobs when projected to the entire employment base). Refilling jobs from retirees can often be challenging in areas where the cost of housing has increased faster than local wages, given that many retirees may have been established in the community before recent housing price increases, whereas many new employees do not have the same advantage. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 33 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Retiring Employees: Eagle County 2007 Survey 2007 Total 7,021 41,727 Average yearly employment Jobs available due to retiring employees (over the next two years) % of jobs available due to retiring 109 1.6% 648 1.6% Jobs per employee 1.2 1.2 Persons needed to fill retiree jobs - 2 yrs 91 540 Source: 2007 Eagle County Employer Survey; RRC Associates, Inc. Jobs per Employee and Employees per Household The household and employee survey asked workers how many jobs they hold during the summer and the winter and how many adults (age 18 and over) in their household are employed. These responses can be used to translate the estimated increase in jobs in the county into households demanded by workers needed to fill new jobs (see Section -9, Housing Needs and Gaps, for projections of future housing demand). · The average number of jobs held by workers employed in Eagle County is 1.2 (2007 household survey). · Households in Eagle County that have at least one working adult average about 1.8 workers per household (2007 Household Survey). Average Jobs Per Employee and Employees Per Household: Eagle County, 2007 Jobs per employee Employees per household (in households with at least one working adult) Source: 2007 Household Survey Overall 1.2 1.8 Household:Jobs Ratio In any housing needs analysis, it is important to understand the relative balance (or imbalance) of resident housing and jobs in the affected area. This is expressed in the below table as the ratio of households to jobs, as reported by the US Census and the Department of Local Affairs (DOLA) - State Demography Office. The equilibrium ratio of households to jobs can vary somewhat by area depending on local demographic and economic factors (e.g. percentage of retiree households, extent of multiple jobholding, unemployment rate, etc.). As a point of reference, the state of Colorado as a whole had a ratio of approximately 0.66 households per job in 2005 (a rough indicator of a "balanced" ratio). In communities that are largely "bedroom" communities - or net suppliers of housing to the regional workforce - this ratio will typically be higher, potentially approaching or exceeding a value of one (1). In communities that supply jobs to much of the region's workforce, the ratio of households to jobs will tend to be lower. By comparing the ratio of households to jobs in Eagle County, it is apparent that Eagle County is a net supplier of jobs to the area, or conversely, that it depends on other communities to house a portion of its workforce. As shown below: RRCASSOCIATES, INC.; REES CONSULTING, INC. 34 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Eagle County currently has a low ratio of households to jobs at (0.45 households per job in 2007). This indicates that Eagle County must rely on housing being available in other communities to meet the needs of its workforce. Conversely, Eagle County supplies many jobs for workers living in the region. · Between 1990 and 2000, the ratio of households to jobs declined slightly, from 0.47 to 0.44, suggesting that Eagle County slightly increased its role as a net supplier of jobs (and importer of workers) to the broader region on a proportionate basis. Since 2000, the housing:jobs ratio has risen very slightly to 0.45, and the ratio is projected to hold steady at 0.45 through 2015. Households Jobs Ratio of Households:Jobs Ratio of Households:Jobs, 2000 thru 2015 1990 2000 2005 2007 (est) 8,354 15,148 17,885 18,924 17,917 34,505 39,390 41,727 0.47 0.44 0.45 0.45 Source: 2000 Census; DOLA; RRC Associates, Inc. 2010 (est) 2015 (est) 20,970 23,952 46,176 52,043 0.45 0.45 For additional context, the figure below uses a combination of US Census data and estimates provided by DOLA to compare the household:jobs ratio of Eagle County to the surrounding counties of Lake, Garfield, Grand, Routt, Summit and Pitkin. As shown, Lake County is a net supplier of housing, with a 2005 ratio of 1.12 households per job. Garfield and Grand counties have the next highest ratios, with Pitkin and Eagle counties showing the lowest households:jobs ratios. Regional Household:Jobs Ratios 1.40 1.20 [II Lake County I II Garfield County . 1.121' 0 Grand County , II Routt County i III EAGLE COUNTY .B 1.00 o .., in "C '0 0.80 .c G) III :::I ~ 0.60 .... o o = ~ 0.40 0.20 0.00 1990 2000 2005 Source: 2000 Census; DOLA; RRC Associates RRC ASSOCIATES, INC.; REES CONSULTING, INC. 35 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Jobs by Industry The Quarterly Census of Employment and Wages (QCEW) reports there were an average of 29,584 jobs in Eagle County in 2006, thru September. This data includes workers covered by unemployment insurance and, therefore, does not generally include self-employed proprietors and many agricultural laborers. However, QCEW provides useful estimates of the types of industries that supply jobs in a region. In 2006, accommodation and food services supplied the largest percentage of jobs in Eagle County (23.8 percent), followed by construction (13.8 percent), arts and entertainment (12.4 percent) and the retail trade (10,2 percent). Share of Eagle County QCEW Jobs By Industry: 2006 thru September Accommodation & food svcs Construction Arts, Ent, Rec Retail Trade Finance. Insurance, real estate, rental & leasing Health care & social assistance Administrative & waste svcs Prof & Tech services Government Educational svcs Other svcs Trans & Warehousing Information Manufacturing Wholesale trade Mgt of companies & enterprises Utilities Ag, Forestry, Fishing, Hunting Zf.8% ] I I I 1,<4.7% 4.4% 41.0% 3.~% 3.2% 1.8%\ 1.4% I 1.3% I 0% 5% 10% 15% 20% 25% % of Jobs in Eagle County 30% Wages Source: Source: Quarterly Census of Employment and Wages (QCEW) The QCEW also reports average wages paid by industry. In 2006 (through September), the average wage earned by Eagle County workers was $38,306, a 21.3 percent increase from $31,583 in 2001. Change in Average Yearly Wage: Eagle County, 2001 to 2006 2001 2002 2003 2004 2005 2006 (thru SeptemberJ) Average annual pay $31,583 $32,102 $33,345 $34,433 $36,427 $38,306 Source: Quarterly Census of Employment and Wages (QCEW) % change 01.06 21.3% 4 The 2006 average yearly wage is estimated from the average weekly wage reported by the Quarterly Census of Employment and Wages for the first, second and third quarter of 2006. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 36 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 The highest average wages are eamed in management of companies and enterprises ($146,782), followed by professional and technical services ($56,199) and healthcare and social assistance ($53,361), which together comprise about 10 percent of employment in the County. The five lowest paying industries, accommodation and food services ($24,427), agriculture, forestry, fishing and hunting ($27,800), administrative and waste services ($27,863), retail trade ($31,509) and transportation and warehousing ($32,350) provide 40.7 percent of the employment in the county. $160,000 $140,000 $120,000 Gl $100,000 Ol .. ;: $80,000 Gl Ol l! $60,000 Gl > < Average Wage by Industry: 2006 I r::::::::JAverage Yearly Wage (2006 est.) -0- % of Eagle County Workforce I $146,782 $51,316 $0 f<> ~ .o~ 00 r!I' f<> f<> ~ f<> 0. ~ ~ ~ 00 0"" f<> .~~ ~ ~#,~~,~~,~~",~",~ ~##~~~~~~~~##&#~~~~. ,oJ> cP~ ~o: <;, Q;-0 0~'lj. ilt'l>"" if .",cr 0dl.. ~~ ~~,~ _ ",,'I>~~ i}0"" ~l; ~ '1>'" o 'lj 0<;' r)' .:io ~'" ~o l> ~. ~"" '1>'" 'S' 6 ~ 6~~# ~ ~ #, .o~ .~~ ~0 '1>'" 0 ~o ~ ~o rt>"'~. ~ # ~~~~ ~ ~ # ~o ~0 ilt Ci..@> ',,0'" f<>~ ~ 6' ,0<; ~ 0 ~ ~ ~ ~ ~ 0 r # ~ ~~,~ ~ ~ J ~ ~ &'1>'" ~ <t, 0~ i'V~ ~ ~ ~ i/' ~'I>'" '1>'" t;j0 .^'I>'" <<~. Source: Quarterly Census of Employment and Wages (QCEW); Sorted in descending order of average wage paid in Eagle County. Sorted in descending order of % of Eagle County Workforce. Seasonality of Employment The following graph compares employment by month from 2001 through the third quarter of 2006. As shown in the graph, there is a seasonal fluctuation of employment by month in Eagle County. The winter months (December through March) have historically been the peak employment months in Eagle County, while the lowest employment levels occur in May and October of each year. In the past five years, employment during the peak winter season has been an average of 19 percent higher than employment during the May/October "trough" months, with the difference primarily attributable to seasonal jobs. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 30% 25% 20% Gl ~ ~ 15% .. ~ '0 10% ;;e. 5% 0% 37 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Monthly Employment, 2001 through September 2006 34,000 32,000 30,000 C .. E 28,000 __ 2006 >- 0 Q. ___ 2005 E w .......2004 ;; 26,000 ~ -><- 2003 I ___ 2002 , 24,000 __2001 I 22,000 20,000 Jan Oct Nov Dee __ 2006 32,230 ___2005 30,769 26,950 28,121 32,139 ,.......2004 29,367 25,664 26,271 30,966 __ 2003 29,212 24,762 24,650 29,220 , ___ 2002 29,592 25,161 25,953 30,367 __ 2001 30,848 25,948 26,445 28,708 Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) Based on the difference between winter and shoulder season employment, there were an estimated 4,863 winter seasonal jobs for Eagle County in 2005. Using this estimation methodology, the number of seasonal jobs has held relatively steady over the 2003 - 2005 period at 4,800 - 4,900 seasonal jobs, down somewhat from almost 5,200 seasonal jobs in 2002. Eagle County Estimated Winter Seasonal Employment: 2005 Estimated Average Year. Average Winter Winter Round Jobs Jobs Seasonal Year (May and Oct.) (Dec. through Mar.) Jobs 2005 26,359 31,221 4,863 2004 24,964 29,830 4,866 2003 24,235 29,049 4,814 2002 24,713 29,891 5,178 2001 25,570 30,491 4,922 Source: Colorado Department of Labor and Employment (QCEW); RRC Associates, Inc. The 2007 Eagle County Employer survey asked employers to provide their total year round, winter seasonal and summer seasonal employment. In total, during the winter months, about 28 percent of all employees are considered seasonal workers. A slightly lower percentage of employees during the summer are seasonal workers (22 percent). While there is a larger percentage of seasonal employees in winter than summer, the total share of businesses reporting seasonal employment is actually higher in summer (44 percent) than winter (33 percent). RRC ASSOCIATES, INC.; REES CONSULTING, INC. 38 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Employer surveys further asked employers to estimate the percentage of seasonal employees which return to work for them from past seasons. Employers reported that an average of 42 percent of winter seasonal employees and 46 percent of summer seasonal employees return to work for them from previous seasons, meaning that the majority of seasonal employees must be newly recruited each year. Commuting Patterns The 2007 household and employer surveys conducted as part of this research also asked where Eagle County residents work and where persons employed in Eagle County live. This information is useful in understanding employee and resident commuting and distribution patterns. Where Workers Live Based on 2007 employer survey results, about 86 percent of workers in Eagle County live within the county, with another 5.3 percent in Garfield County, 4.3 percent in Lake County, 1.4 percent in Summit County and 5.4 percent in other areas. In total, based on survey results, about 14 percent of respondents working in Eagle County are in-commuters. Where Eagle County Workers Live: 2007 2007 Employer Survey Place of Residence % # Eagle 19.2% 6,668 Edwards/Homestead/Singletree 15.8% 5,491 Avon 15.4% 5,345 Gypsum 14.7% 5,099 Vail 10.1 % 3,526 Eagle-Vail 6.2% 2,157 Garfield County 5.3% 1,853 Lake County/Leadville 4.3% 1,500 Other - outside of Eagle County 3.4% 1,177 Minturn/Redcliff 2.7% 922 Summit County 1.4% 486 Rural Areas - outside of Eagle County 1.1 % 392 Beaver Creek/Arrowhead 0.5% 157 Total Workers 100% 34,773 Source: Colorado Department of Local Affairs (DOLA); 2007 Employer Survey; RRC Associates, Inc. Where Residents Work Based on 2007 Household survey results, about 88 percent of employed persons residing within Eagle County also work within the county. Resident renters and owners are about equally likely to work within the County (86 percent of renters, 88 percent of owners). Other areas of employment include Garfield County (1.7 percent), Summit County (0.5 percent), Lake County (0.2 percent), and other areas (9.7 percent, including Pitkin County). Survey results show a slightly higher percentage of Eagle County residents being employed within the county than in 2000 per the US Census (88 percent versus 85 percent, respectively). RRC ASSOCIATES, INC.; REES CONSULTING, INC. 39 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Where Eagle County Residents Work: 2007 2007 Household Survey % # Vail 20.6% 5,833 Avon 14.3% 4,049 Edwards 13.6% 3,851 Eagle 12.0% 3,398 Other - Outside of Eagle County 9.7% 2,747 Beaver Creek 9.0% 2,549 Gypsum 6.1 % 1,727 Other Eagle County 3.9% 1.104 Garfield County 1.7% 481 Summit County 0.5% 142 Lake County 0.2% 57 Total Employed Residents 100.0% 28,317 Source: Colorado Department of Local Affairs (DOLA), 2007 Household Survey; RRC Associates, Inc. Methods of Commuting As shown below, the vast majority of local resident workers in the county typically drive their own car to work (85 percent). Primary Mode of Travel to Work: Eagle County, 2007 Live in Eagle County % Car (one person) 85.3 Carpool/vanpool 4.5 Bus 3.9 Walk 2.7 Other 1.9 Bicycle 0.9 Telecommute 0.9 Total 100% Source: 2007 Household surveys; RRC Associates, Inc. Regarding commute assistance from Eagle County employers, about 57 percent of respondents to the 2007 Employer Survey stated that they provide at least one type of commute option to employees. Of those employers providing commute options, 42.1 percent have on-site company vehicles for employee errands, 31.6 percent offer bus passes, 27.6 percent offer travel stipends, 22.4 percent have carpooling or van pooling services, 21.1 percent offer "other" services, 11.8 percent support telecommuting, and 3.9 percent operate a bus or shuttle business. RRCASSOCIATES, INC.; REES CONSULTING, INC. 40 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 "EMPLOYERS: Do you provide employees with any of the following work commute options?" On-site company vehicle for employee errands Bus passes/coupons 'l:I CIl ~ Travel stipend (i.e., travel e time compensation, etc.) a. .. c o ~ Car pooling/van pooling o ~ ~ Other o CJ Telecommuting Bus/shuttle service (operated by your business) Tenure of Employment 42. % 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% % of Respondents Source: 2007 Employer Survey Household survey respondents were asked how long they have been employed in Eagle County. As shown below, a large majority of respondents have worked in Eagle County for more than 10 years (59,9 percent). "How long have you worked in Eagle County," 2007 Live in Eagle County % Less than 6 months 1.6 6 months up to 1 year 4.6 1 up to 2 years 5.4 2 up to 3 years 7.0 3 up to 5 years 8.2 5 up to 10 years 16.5 10 years or more 59.9 Total 100% Source: 2007 Household Surveys; RRC Associates, Inc. 41 RRC ASSOCIATES, INC.; REES CONSULTING, INC. DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Housing Assistance Employer Housing Assistance - Current About 30 percent of employers indicated they currently provide some sort of housing assistance to employees. In total, survey respondents assist about 436 employees. The types of assistance provided by employers include down payment assistance, interest free loans, home search assistance and rent assistance. Employer Housing Assistance - Future Employers were asked whether they would be willing to assist their employees with housing through a variety of methods. As shown in the following chart, about 27 percent of employers would support master leasing rental units, 21 percent would support security deposits, 20 percent would support purchasing existing housing, 18 percent would support down payment loans, and 17 percent would support rent subsidies. "In the future, would you be willing to assist your employees with housing through one or more of the following methods?" 90% _Yes 80% l_NO o Uncertain 83.0% 10% 70% 60% 50% 40% 30% 20% 0% Master Leasing Rental Units Security Deposits Purchasing existing housing Down payment loans/grants Rent Subsidies Building housing on site Building housing off site Mortgage guarantees Mortgage subsidies Source: 2007 Employer Survey RRC ASSOCIATES, INC.; REES CONSULTING, INC. 42 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Respondents were also asked if they would support a regional, countywide approach to produce affordable employee housing through a variety of programs. As shown in the chart below, about 64 percent of employers would support incentives for housing, 52 percent would support deed restrictions, 48 percent would support development requirements, 43 percent would support the administration of the Housing Department and 27 percent would support fees/taxes for housing. "Do you support a regional, countywide approach to produce affordable employee housing through any of the following?" 70% 10% 64.4% _Yes ,_No o Uncertain 60% 50% 40% 30% 20% 0% Incentives for housing Deed restrictions Development Administration of the Fees/taxes for Requirements Housing Authority housing Source: 2007 Employer Survey RRC ASSOCIATES, INC.; REES CONSULTING, INC. 43 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 SECTION 4 - HOUSING INVENTORY It is important to understand the physical characteristics and ownership of units in Eagle County. This section analyzes data from the County Assessor (May 2007) property records to evaluate current ownership housing inventory. Type of Units Based on the County Assessor property records, about 45 percent of units in Eagle County are condominiums and 40 percent are single-family. Another 9 percent are townhomes, duplexes or triplexes and 6 percent are classified as manufactured and mobile homes. Residential Units by Type; Eagle County 2007 Townhomel Duplex! Triplex 9% Single Family 40% Condo \ 45% Manufacturedl Mobile 6% Source: Eagle County Assessor Data (May 2007); Excludes Apartments Construction since 2000 shows a slightly different mix of units by type then currently exists in the community. In particular, about 56 percent of units constructed since 2000 were single-family homes, whereas only about 40 percent of units in the County are single-family homes. Condominiums, town homes and manufactured/mobile homes represent a lower percentage of units constructed since 2000 compared to the existing mix in the region. This has implications for affordability since multi-family homes are generally more affordable. Housing Units Constructed Between 2000 and May 2007: Eagle County Townhomel Duplex! Triplex 15% Manufacturedl Mobile 4% Single Family 56% Source: Eagle County Assessor Data (May 2007) RRCASSOCIATES, INC.; REES CONSULTING,INC. 44 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Condition of Housing Stock Respondents to the 2007 Household Survey were asked to rate the condition of their home, the adequacy of heating, its' exterior appearance and yard/lot size on a scale of "1-Poor" to "5-Excellent." As shown below, about 4.8 percent of households reported the condition of their home to be "1-Poor." The vast majority of owners felt their homes were in good or excellent condition (73 percent rated 4 or 5-"excellent"). About 70.9 percent rated the adequacy of heating 4 or 5-"excellent" and 76.5 rated the exterior appearance a 4 or 5- "excellent". The lowest rating was the yard/lot size (54.4 percent rated 4 or 5-"excellent"). Condition of Owned Home: Eagle County, 2007 80.0% 04 to 5 - "Excellent" .1 to 2 "Poor" .Average 4.2 73.2% 70.9% 700% 4.1 4.0 60.0% 4.0 .. 54.4% C 3.9 .. -g 50.0% r 0 38 &1 ... .. &1 40.0% .. OJ '0 3.7 l! 1i 30.0% ~ <( e 3.6 3.6 .. lL 9.2% 20.0% 3.5 10.0% 3.4 0.0% 3.3 Condition of Adequacy of Exterior Yard/lot size home heating Appearance Source: 2007 Household Survey; RRC Associates, Inc. "Rated on a scale of" 1-poor" to "S-excellent" Age of Units The age of units can be a factor in the suitability of housing for residents. As demonstrated in the table below, the majority of structures (69.4 percent) in Eagle County were built between 1980 and the present, with 16.3 percent constructed since 2000. About 25.5 p~rcent of existing units were built prior to 1980 (over 27 years ago). Year Structures Built in Eagle County TOTAL Year Built Units* Total % Before 1970 2,258 8;3 1970 to 1979 4,652 17.2 1980 to 1989 6,425 23.7 1990 to 1999 7,964 29.4 2000 or later 4,426 16.3 Unknown 1,378 5.1 Total 27,103 100% Source: Eagle County Assessor Data (May 2007) *Residential properties only, excludes apartments. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 45 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Ownership of Units The percent of Eagle County units owned by persons with a local Eagle County address increased slightly between 2001 and 2007, from 50.5 percent to 51.2 percent. During the same time period, owners from other areas of Colorado increased from 5.3 percent to 5.6 percent, with owners from the Colorado Front Range decreasing slightly from 12.9 percent to 12.2 percent. Owners from other States or Countries also decreased slightly from 31.2 percent to 31.0 percent. Ownership of Residential Units: 2001 and 2007 60% 50.5% 51.2% 50% 40% 30% 20% 10% 0% Eagle County CO Front Range Other CO Other State/Cou ntry Primary Residence of Owner Source: Eagle County Assessor Data (2001 and 2007) As shown on the following chart, ownership of units by locals varies by type of unit. Individuals with an Eagle County address own about 78 percent of the mobile/manufactured homes. Over 50 percent of single- family homes and town homes are also owned by Eagle County Residents. Condominiums have the lowest local ownership rate of 36 percent. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 46 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Type of Property by Owner Residency Status: Eagle County 2007 TOTAL Manufactured/Mobile Single Family Town home/D up lexlT riplex Condo 0% 20% 40% 60% 80% 100% Percent of Ownership Units Source: Eagle County Assessor Data (May 2007) Evaluated another way, about 48 percent of units owned by Eagle County residents are single-family residences, 32 percent are condominiums, 11 percent are townhome, duplexes or triplexes, and 9 percent are mobile/manufactured homes. A higher percentage of out-of-area households own condominiums (59 percent) and a lower percentage own single-family homes (31 percent), townhomes, duplexes or triplexes (7 percent) or manufactured/mobile hbmes (3 percent) than resident owners. Single-family Condo T ownhome/DuplexfT riplex Manufactured/Mobile TOTAL TOTAL # Ownership Residency by Type of Property: Eagle County 2007 Eagle County Out.of.Area owners % owners % 31.4 58.5 7.2 2.8 100% 13,188 48.0 31.7 10.9 9.4 100% 13,857 Source: Eagle County Assessor Data (May 2007) RRC ASSOCIATES, INC.; REES CONSULTING, INC. 47 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Residential Property Ownership ..... u. DDDII Q ~ r- :r:; ~ 0 ~ 0 !l!.-g'o~~ f1 - ::::J CD ~ ~ii~i ill' '" !!l- i;' RRC ASSOCIATES, INC.; REES CONSULTING, INC. 48 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 I Residential Property Ownership [i] 0 p l)1 0 0 j.,) DDDII i Ul 0 i:11 CD ~f.~~[ :::; = 0 Q. i~' , - ~ ell '1l ;;- .." - ::I. '" '" ~ &' l ell .... ~ ~ '" ~ i:11 ell ~ '" ii' ~ II.) '" <IJ ~ 3: ~. 1i;; ~ ~ iD tP RRC ASSOCIATES, INC.; REES CONSULTING, INC. 49 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Deed-Restricted Housing Deed-restricted units are scattered throughout the County. Some of the larger developments are listed below. Additional units are integrated within other developments throughout the county. Comments from the 2007 Household Survey on other deed-restricted housing locations and respondents' feelings on deed- restricted housing are provided in Appendix C. Deed.Restricted Ownership Units in Eagle County TOTAL units Wildwood Townhomes South - Avon 12 Mountain Vista Condos - Avon 20 Miller Ranch - Edwards 280 Eagle Ranch - Eagle 152 (est.) Vail Commons - Vail 53 Red Sandstone Creek - Vail 18 Villas at Brett Ranch - Edwards 158 Riverwalk at Edwards 57 Source: Eagle County Housing Department; Eagle County Assessor (2007); Town of Avon RRC ASSOCIATES, INC.; REES CONSULTING, INC. 50 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 SECTION 5 - OWNERSHIP MARKET This section identifies trends in sales of homes by type of unit, price and ownership. Information from the Eagle County Assessor database and the multiple listing service (MLS), along with realtor interviews, are examined to identify sales trends over time and units currently available to buyers. Value of Owned Units Eagle County assessor records report the total actual value of residential units. The value of owned units reported in this section represent the assessed value as reported by the Eagle County Assessors' office. Two approaches for appraising residential property are the market approach and the cost approach. The market approach looks at the price the property would bring if sold in the open market. The cost approach looks at the cost of replacing the building with a similar one. "After the properties have been appraised, the properties are analyzed to ensure adequate and equitable assessments5/1, Based on these figures: . About 5.4 percent of units in Eagle County are valued under $100,000, or about 1,608 units total (less than 80 percent AMI). However, of the 1,608 units in this value range, 1,560 are manufactured/mobile homes. Condominiums in this value range are sized between 210 square feet and 230 square feet with either zero or one-bedroom. . Entry-level ownership homes (80 to 120 percent AMI), between about $100,000 and $200,000, comprise about 4.1 percent of units. These include condominiums and some single-family residences. . Move-up housing (over 120 percent AMI) priced between about $200,000 and $350,000 comprise about 11.9 percent of existing units in Eagle County. These are primarily condominiums and single-family homes. The median square foot of single-family units in this price category is 1,092 square feet, with an average of two bedrooms. . The remaining 78.6 percent of units are valued over $350,000. 5 Eagle County Assessor; http://www.eaglecounty.us/assessor/taxes.ctm RRC ASSOCIATES, INC.; REES CONSULTING, INC. 51 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Value of Owned Units, Single.family, Condominium and Manufactured/Mobile, 2007 Under $50,000 I I I I I I I 12'ro 13.4% I $50K to $99,999 $100K to $149,999 $150K to $199,999 :: c ::J $200K to $249,999 'tl Gl C $250K to $299,999 ~ o '0 $JOOK to $349,999 Gl .: $350K to $399,999 ~ $400K to $499,999 $500K to $649,999 $650K to $799,999 $BOOK or more 0% 10% 15% Source: Eagle County Assessor Data (May 2007); RRC Associates, Inc, 5% 36.1% 20% 25% 30% 35% 40% . Condo Distribution of Owned Units by Type and Value .Single Family o Manufactured/Mobile Under $50,000 $50K to $99,999 $1 OOK to $149,999 $150K to $199,999 $200K to $249,999 $250K to $299,999 $300K to $349,999 $350K to $399,999 $400K to $499,999 $500K to $649,999 $650K to $799,999 $800K or more 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Eagle County Assessor Data (May 2007); RRC Associates, Inc. As indicated below, generally as the value of homes increases, the percentage of out of area ownership also increases. One exception is ownership of units valued between $50,000 and $99,999. About 39 percent of units in this range are owned by out-ot-area owners. Taking a closer look, 52 percent ot the units owned by out-ot-area owners in this price range (162 units) are condominiums. Otthose condominiums, RRCASSOCIATES, INC.; REES CONSULTING, INC. 52 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 103 are located at the Tames at Beaver Creek and are owned by either the Tames at Beaver Creek LLC or the Vail Corporation. Of units valued over $800,000, about 71 percent are owned by out of area residents. Under $50,000 $50K to $99.999 $1 OOK to $149,999 $150K to $199,999 .. ~ $200K to $249,999 "0 i $250K to $299,999 o '0 $300K to $349,999 Ql -i $350K to $399,999 > $400K to $499,999 $500K to $649,999 $650K to $799,999 $800K or more Value of Owned Units by Residency of Owner: 2007 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Eagle County Assessor Data (May 2007); RRC Associates, Inc. Residential Sales by Year The following table shows sales between 2000 and 2006, by type of units sold. In total, about 42 percent of sales during this time period were single-family homes, with another 40 percent being condominiums. On average, condo sales have been decreasing, with a high of 42.6 percent of all sales in 2001. The percent of townhome sales by year varies between 10.1 percent in 2002 and 15.5 percent in 2006. The average percent of sales for mobile/manufactured homes is 5.4 percent with a yearly individual decrease from 8.6 percent of all sales in 2000 to 4.6 percent in 2006. Sales by Year: 2000 to April, 2007 2000 2001 2002 2003 2004 42.5% 39.3% 40.8% 42.5% 42.5% 36.9% 42.6% 42.0% 41.5% 41.0% 12.0% 11.1% 10.1% 11.1% 12.3% 8.6% 7.0% 7.2% 4.9% 4.2% 100% 100% 100% 100% 100% 2,144 1,913 2,117 2,244 2,764 Source: Eagle County Assessor Data (May 2007); RRC Associates Single-family Condo T ownhome/DuplexfT riplex Manufactured/Mobile Total % Total Sales 2005 42.1% 41.4% 12.8% 3.8% 100% 3,111 2006 44.3% 35.6% 15.5% 4.6% 100% 2,386 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 53 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Residential Sale Prices The following chart shows the general trend of increasing sales prices in Eagle County over the past 5 years. Overall: . The percentage of sales priced below $150,000 declined from about 37 percent of sales in 2000 to 11 percent of sales in 2006. The percent of sales above $400,000 increased from 42 percent in 2000 to 68 percent in 2006. Residential Unit Sales, 2000 to 2006: Average Sales Price, Eagle County Sales Price Source: Eagle County Assessor Data (April 2007); RRC Associates, Inc. The following chart shows the median sales price for all units over the last six years. Based on these figures: . The median sale price of market-priced homes in Eagle County (including sales of single-family homes, townhomes, condominiums, mobile/manufactured homes and other multi-family homes) increased by 60 percent between 2000 ($325,000 median) and 2006 ($519,300). This includes a 67 percent increase in condominium median sale prices, a 56 percent increase in town homes, duplexes and triplexes, a 48 percent increase in single-family home sale prices and a 9 percent increase in mobile/manufactured sale prices. . The median price of single-family home sales increased by 30 percent between 2005 and 2006. Of the sales in 2006, 30 percent were priced over $800,000 (700 sales). The majority of these sales were located in Edwards (241 sales), the Vail area (186 sales) and Beaver Creek (148 sales). RRCASSOCIATES, INC.; REES CONSULTING, INC. 54 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Median Sale Price for All Units $700,000 $600,000 $500,000 GI .~ .t $400,000 GI ii U) $300,000 c 01 '6 GI :::E $200,000 $100,000 )( )( II )( )( )( K -+-Single Family ...... Condo ~ Townhome/DuplexlTriplex ~ Manufactured/Mobile ~Total 2000 I $439,250 , $279,000 $295,000 $45,000 $325,000 2002 $445,000 $270,000 $285,000 $317,000 $48,200 i $41,050 $320,000 $329,000 2003 $439,500 $270,000 $318,750 $30,800 , $327,400 $0 2004 2006 $648,400 $465,000 $460,000 $49,000 $519,300 Source: Eagle County Assessor Data (May 2007); RRC Associates, Inc. The median sale price per square foot offers more insight on actual increases in housing prices. The median sale price per square foot of all residences increased by about 56 percent between 2000 and 2006. Individually, the median per square foot sale price of condos increased the most, 77.3 percent, with single- family homes increasing by 45.4 percent and town homes increasing by 38.9 percent. Condo Single-family T ownhome/Duplex/T riplex Manufactured/Mobile Median Sales Price per Square Foot: Eagle County 2000 to September 19, 2006 % Change 2000 to 2006 77.3% 45.4% 38.9% 18.4% 2000 2001 2002 2003 2004 2005 $238 $224 $241 $246 $268 $327 $186 $185 $190 $193 $201 $217 $184 $171 $181 $185 $194 $213 $38 $39 $38 $32 $27 $36 Source: Eagle County Assessor Data (April 2007); RRC Associates, Inc. 2006 $422 $270 $256 $45 New and Existing Sales New unit sales are defined as housing units sold within one year of their construction. The price per square foot of sales for new construction varies from that of previously owned units. In 2000, the price per square foot for new units ($173 median) was 17 percent lower than for existing units ($203 median). This pattern continued to 2003 and to 2006 with the price per squarefqpt of new units being lower than for existing units. In 2006, 61 percent of newly constructed units (301 units) were single-family residences. The majority of the new single-family residences are in Eagle (135 units) and Gypsum (68 units). RRC ASSOCIATES, INC.; REES CONSULTING, INC. 55 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Median Price per Square Foot Sales of New and Existing Units: Eagle County Sales in 2000, 2003 and 2006 $400 . New $350 CI Existing , . Average $300 '0 0 II.. $250 ~ .. ::I ~ $200 .. Gl Cl. fl $150 'I: lL $100 $50 $0 2000 2003 Year 2006 Source: Eagle County Assessor Data (April 2007) An average of 74 percent of new unit sales between 2000 and 2006 were to Eagle County residents, where about 26 percent were to out of area owners. Distribution of existing sales is slightly more even, with 54 percent of existing sales being to new residents and 46 percent to out of area owners. New and Existing Sales by Residency: Eagle County 2006 Sales 2006 New Existing 74% 54% 26% 46% 100% 100% Source: Eagle County Assessor (May 2007) Eagle County Out of Area Total Sale Prices and Local Incomes As shown below, median family incomes (as defined by the Department of Housing and Urban Development for Eagle County) increased about 17.5 percent between 2000 and 2006, compared to a much higher 59.8 percent increase in median sales prices in Eagle County. The median price of a home in 2000 was about 477 percent higher than the median family income, and this has increased to a 649 percent difference in 2006. A household earning $80,000 in 2006 could generally afford a home priced at about $263,8006, or 330 percent more than the income. As noted in a number of previous studies, incomes in Eagle County are not keeping pace with rising home prices. 6 Affordable purchase price for an average sized 3-person household. Assumes 30-year, 6 percent loan with $10,000, no more than 30 percent of household income paid toward housing payments, 0.49% property tax and 0.50% home insurance. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 56 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Median Price of Homes vs. Median Family Income: 2001 thru 2006 Median Price Median Family Income* Median price as a % of Year of Sale (sales) (HUD . Eagle County) median income 2000 $325,000 $68,100 477% 2001 $320,000 $70,500 454% 2002 $329,000 $74,900 439% 2003 $327.400 $73,600 445% 2004 $350,000 $76,700 456% 2005 $400,000 $79,950 500% 2006 $519,300 $80,000 649% % increase (2000 to 2006) 59.8% 17.5% Source: Eagle County Assessor records; Department of Housing and Urban Development; RRC Associates, Inc. "Median Income reflects the 100% area median income (AMI) for a 4-person family household in Eagle County, or what is commonly referred to as the median family income for an area. Sales to Locals The table below shows sales to locals in Eagle County over the last year by AMI range. . Of the units sold in 2006 that are priced affordably to households earning 80 percent or less of the AMI (below about $180,238), 72 percent were sold to local Eagle County residents. . About 30 percent of Eagle County residents are in the first-time homebuyer/entry level market housing range (80.1 to 120 percent AMI). These residents can afford to purchase a housing unit priced between about $180,239 and $241.432. There is some competition for these units, with Eagle County residents purchasing 88 percent of available units. . Of units sold in price ranges affordable to households earning between 120 and 140 percent of the AMI (generally the move-up housing range), about 79 percent were sold to persons with a local Eagle County address. These are units priced between about $288,087 and $334,741. . Of units priced over $334,741, which is the higher-end ownership market, 50.9 percent were sold to local Eagle County residents. Sales 2006 to Locals by Affordability Levels Max Affordable Mobile Single- % of Sales to Purchase Price* Condo home family Townhome Locals Less than 50% AMI $124,796 0 57 16 4 69.4% 50 to 60% AMI $148,123 10 0 5 1 76.2% 60 to 80% AMI $180,238 10 1 4 0 83.3% 80 to 100% AMI $241.432 62 2 16 14 94.9% 100 to 120% AMI $288,086 37 1 37 33 82.4% 120 to 140% AMI $334,741 66 1 46 30 78.6% Over 140% AMI Over $334,741 212 0 536 167 50.9% Total 397 62 660 249 58.0% "Affordable purchase price for an average sized 3-person household. Assumes 30-year, 6 percent loan with $10,000, no more than 30 percent of household income paid toward housing payments, 0.49% property tax and 0.50% home insurance. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 57 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Multiple Listing Service The multiple listing service, as of April 2007, lists 1,048 relevant units for sale in Eagle County. The median sales price across all product types is $1,195,000. The table below shows median, maximum and minimum prices across all units and by product type. MLS Listings, April 2007, Eagle County Property Type TOTAL Condominium Single-family T ownhomel DuplexfT riplex Median Minimum $1,195,000 $70,000 $1,050,000 $70,000 $1,500,000 $194,999 $894,000 $295,000 Source: Eagle County MLS Maximum $21,000,000 $18,860,000 $21,000,000 $14,950,000 Total Number 1,048 487 381 180 Percent of Units 100.0% 46.5% 36.4% 17.2% Further discussion of the current MLS listings is included in the demand and gap analysis, Section 10, of this report. Realtor Interviews Ten local realtors were interviewed to better understand trends and needs in the local real estate market. Generally, the realtors interviewed feel that second homeownership is increasing, more retirees are moving to the area and locals are having to move farther and farther down valley to afford adequate housing. There is an undersupply valley-wide for homes selling less than $500k. . Currently, it is estimated that about 50 percent of the purchasers are second homebuyers. Second homebuyers are starting to create competition down valley, especially in Avon and Edwards. It is estimated that about 30-40 percent of second homeowners are from the Front Range. Fractional ownership has seen an increase recently and more projects are underway. . The locals that are purchasing homes generally have dual incomes and are young buyers looking for anything under $500k. When they have kids they move down valley to find more space that is affordable. . First-time homebuyers have the most difficulty finding housing because of the rapidly increasing housing prices and condo conversions. Virtually anyone that cannot get significant assistance or cannot get a down payment will have a hard time buying a property. . Opinions on deed restrictions were mixed. Several of the realtors pointed out that Miller Ranch has been a very successful development, proving that deed restrictions do work. Others were proponents of the free market, feeling that there is a need for creativity on the part of developers and government to make housing attainable at opening price points. RRCASSOCIATES, INC.; REES CONSULTING, INC. 58 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Section 6. RENTAL MARKET This section evaluates the current rental market by exploring changes in rent rates and vacancy rates since the 2000 Census. The section concludes with a discussion of comments from property manager interviews regarding their observations of the current rental market and trends. This section helps identify the relative health of the rental market and availability of housing choice for renters in Eagle County. Rent The average contract rent as of the 2000 Census was $952 per month. As shown below, rents have shown a steady increase through 2007 based on periodic surveys and interviews with local rental properties and 2007 Household survey results. Overall, it is estimated that rents have increase about 21 percent since 2000, outpacing local renter incomes (about a 15 percent increase based on 2007 survey results). Interviews with property managers in May 2007 indicate that average rents are about $867 per month, which is within 2 percent of the 2007 Household survey results, Change in Average Rent: 2000 to 2007 % change: 2000 2005 2007 Household 2000 to (Census) (DOLA) Survey 2007 Average rent $952 $1,052 $1,150 21% Source: 2000 US Census; Gordon Von Stroh Rental Vacancy Survey; 2007 Household survey; RRC Associates, Inc. The following table compares average rents for market rate rental properties and income-restricted units. This shows that market rate rents exceed affordable rents only for 1 and 2 bedroom units (between 15 and 23 percent higher). One explanation for the income-restricted studios having a higher average rent than the market rate studios is the physical location of the properties. Middle Creek Apartments in Vail, which are income-restricted units, range from $681 to $823 for a 395 square foot studio apartment. Middle Creek Apartments also has comparatively higher rents for 3-bedroom apartments. Evaluating the average rent per square foot, except for studios, all income restricted unit types have a lower average rent per square foot than the market rentals (between 3 and 26 percent). Avera~e Rent bv Unit Tvpe. March 2007: Market Rate and Income Restricted Units Average Rent Average Rent per Square Foot Market Income % Market Income % Rate Restricted difference Rate Restricted difference Studio $595 $706 18.7% $1.70 $1.83 7.6% 1-b $943 $723 -23.3% $1.61 $1.20 -25.5% 2-b $1,171 $1,001 -14.5% $1.48 $1.23 -16.9% 3-b $1,335 $1,409 5.5% $1.50 $1.45 -3.3% 4-b $1,624 - - $1.76 - - 5-b $1,920 - - $1.68 - - Total units represented 1,098 503 - 1,098 503 - Source: Apartment property manager interviews, RRC Associates, Inc., May 2007. The distribution of rents across AMI affordability was also analyzed based on 2007 Household survey responses. Affordability levels are for a 3-person household, paying no more than 30 percent of their monthly income on rent. Distribution of rents are for units with at least two bedrooms. This shows that about 31 percent of rental units are affordable to a 3-person household making 50 percent AMI or less. RRCASSOCIATES, INC.; REES CONSULTING, INC. 59 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 About 20.0 percent are affordable to households making between 50 and 80 percent AMI, 38 percent are affordable to households making between 80 and 120 percent AMI and 12 percent are affordable to households making over 120 percent AMI. AMI Distribution of Rents: Eagle County, 2007 Max Affordable Rent Distribution of Rents Distribution of Renter AMI affordability (2007)* 2007 Survey % Households % 50% or less $1,461 30.5 25.6 50-80% $2,441 20.0 19.8 80 to 120% $4,015 37.8 29.1 Over 120% Over 2,190 11.8 25.4 Total 100% 100% Source: 2007 Household and Employee survey; 2000 US Census; RRC Associates, Inc. "Based on a 3-person household earning within each AMI range. Vacancy Rates Vacancy rates provide another measure of the health of the rental market. Typically, vacancy rates around 5 percent suggest some equilibrium in the market, meaning that there is sufficient supply to provide renters with a choice of product. Vacancy rates below this threshold indicate under-supply, whereas rates above this level suggest over-supply of housing. Based on vacancy rental information collected by the Eagle County Housing Department on 1,470 to 1,587 units, the County's vacancy rates vary by season, with the summer months having the highest number of vacancies. Overall, vacancy rates have decreased since the 2000 census, with current vacancy rates being near zero. Property manager interviews, conducted in May, 2007, indicate that the vacancy rate in May remains near zero. Vacancy Rates, 2000 to 2007: Eagle County 2000 2003 2003 2005 2005 2007 (Census) (Summer) (Winter) (Summer) (Winter) (April) Vacancy rate 6.6% 10% 5% 4% 2% .07% Source: Eagle County Housing Department, 2000 US Census; RRC Associates, Inc. Vacancy rates by unit type show that in the summer of 2005, studios had the highest vacancy rate (10 percent), followed by 4-bedroom units (6 percent). During the winter months, 2-bedroom units have the highest vacancy rates, followed by 5-bedroom and 3-bedroom units (3 percent each). Vacancy Rates by Unit Type: 2005 to 2007 2005 2005 2007 (April) (Summer) (Winter) % vacant # represented Studio 10% 1% 0% 110 1-bedroom 2% 1 % 0% 280 2-bedroom 2% 2% 0% 721 3-bedroom 5% 3% .07% 328 4-bedroom 6% 4% 0% 21 5-bedroom 5% 3% 0% 10 Source: Source: Eagle County Housing Department, 2000 US Census Apartment Type RRC ASSOCIATES, INC.; REES CONSULTING, INC. 60 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Rental Manager Interviews Additional comments on unit occupancies and demand for units were provided through interviews with eight (8) market-rate apartment property managers and seven (7) income-restricted apartment properties: · Most properties indicated that vacancy rates have been decreasing since Buffalo Ridge and Middle Creek were initially rented out. Turnover is also very low among all of the properties. · Most properties currently have a waitlist. One income-restricted property reported a total of 46 people on the waitlist, including 12 for a 1-bedroom, 22 people for a 2-bedroom and 22 people for a 3-bedroom unit. One market rate property reported that in January they usually have about 100 people on the waitlist. · All of the property managers indicated that there is higher competition for rental units in the winter. The units in most demand vary by property, with 1-bedroom, 2-bedroom and 3-bedroom units being in most demand. Overcrowding is not a problem for most properties, although some have difficulty with "couch surfers" in the winter months. · Income requirements for restricted units require the renter to make no more than 60 percent AMI, with one property requiring the renter to make no more than 50 percent AMI. For market rate units, requirements range from an income of at least 2.5 times the cost of rent to at least 3 times the cost of rent. · Generally, all of the property manager interviews indicated that there is an increasing level of demand for rental housing, which is not being met. Turnover is low and vacancy rates are near zero. Large construction projects in the area are being held up because of a lack of housing for their workers. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 61 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Section 7 . HOUSING PREFERENCES This section of the report provides information for use in the planning, design and development of Affordable Housing. It considers the preferences of Eagle County's residents in terms of where they want to live, the type and size of homes they want to live in, the amount they want to pay and the amenities they want provided. Specifically, it: . Analyzes location considerations including where residents want to live and the importance they place on various location attributes, like proximity to work; . assesses the marketability of deed restrictions; . provides information to aid in the development of rental housing including the type of units desired and lease terms, . examines the market for homeownership housing comprised of both renters who want to buy and owners who are interested in purchasing a different home; provides information on the type of unit and number of bedrooms . examines the preferences of the county's residents regarding the amenities they seek in their home and neighborhood; and, . contains information specific to the design and development of housing for seniors. Location One of the most commonly posed questions when contemplating how to address employee housing needs is: "Where should housing be built?" To answer this question, multiple factors should be taken into consideration including where residents most want to live, where they currently live, where they work and how they value various location attributes. Where Want to Live In total, Edwards is considered the number one choice of where to live above any other town or rural area in Eagle County. This mid-county community is particularly attractive to residents who already own their homes - a sizable percentage (23 percent) indicated it was their first choice. There is no longer a preference for living in up-valley communities. The Eagle/Brush Creek area received more first choice responses than did Vail. Rural communities to the north of 1-70 appeal to the fewest residents. While there is some variation between owners and renters, their location preferences are similar with the same four communities topping the first choice list. The greatest difference is how they rate living in the Mintum/Red Cliff area; renters are more interested in living there than are homeowners. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 62 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Where Want to Live - 1 st Choice Overall Owners 21.6 23.2 17.1 18.3 14.7 15.1 9.3 8.1 8.4 8.8 6.7 5.8 6.3 6.6 5.6 6.1 5.4 5.8 4.9 2.3 100% 100% Source: 2007 Household Survey 1st Choice Edwards Eagle/Brush Creek Vail Basalt/El Jebel/Frying Pan Avon Eagle-Vail Dotsero/Gypsum Other Burns/McCoy/Bond/Wolcott Minturn/Red Cliff Renters 19.0 15.1 14.1 11.3 7.9 8.3 5.8 4.8 4.6 9.1 100% There are decided differences, however, between renters who want to continue to rent and residents who want to buy a home (both renters who want to buy and owners who want to buy a different home). This finding suggests that rental opportunities should be developed up valley while homeownership housing should be concentrated more in mid- and down-valley communities. 1st Choice Location by Want to Buy or Rent Avon BasaltlEI Jebel/Frying Pan BurnslMcCoy/BondIWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Red Cliff Vail Other 0.0% 5.0% 10.0% 15.0% Source: 2007 Household Survey 20.0% 25.0% Both home buyers and renters are often unable to live in the community that is there first choice and must make trade offs involving housing costs, commuting distances, home type and size and other factors. Survey participants were therefore also asked to indicate their second choice for where they most want to live. A comparison of first to second choice responses does not reflect an up valley/down valley shift but rather an in increase in preferences for rural, unincorporated locations. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 63 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Edwards Eagle/Brush Creek Vail-Incorporated BasalUEI Jebal/Frying Pan Eagle-Vail Gypsum/Gypsum Creek Other Avon Mintum/Red Cliff Beaver Creek/Arrowhead Vail-Unincorporated WolcotUBellyache Ridge Bums/Colorado River Road Bond/McCoy/Highway 131 Dotsero Where Now Live Where Want to Live, 1st and 2nd Choices Compared 0.0 10.0 25.0 15.0 5.0 20.0 Source: 2007 Household Survey As shown on the following table by shading, residents tend to live in communities where they most want to live. This is not the case in all communities, however. Less than half of Avon's residents who were surveyed consider Avon their first choice place to live; nearly one-third would prefer to live in Edwards. Only 40 percent now living in the Dotsero/Gypsum area prefer it; over 26 percent who would like to live slightly up valley in the Eagle area. Additionally, most residents of the Eagle-Vail area (45 percent) would rather live elsewhere (40 percent would rather live down valley, 14 percent would like to live in Vail). Vail and the Basal/EI Jebel/Frying Pan area in the Roaring Fork Valley are the two areas with the highest percentage of residents who are currently living in their first choice community. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 64 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Where Live Compared with Where Want to Live Where Now Live Where Want to Avon BasaltlEI Burns, Dotsero/ Edwards Eagle/ Eagle- Minturn/ Vail Live -1st Jebel/Frying etc Gypsum Brush Vail Redcliff Choice Pan Crk Avon 2.3% 0.5% Basalt/EI Jebel 0.6% 1.2% 0.5% Bums ete 2.9% 0.0% 4.2% 0.5% Dotsera/Gypsum 0.0% 0.0% 2.6% 5.0% 0.0% Edwards 31.6% 0.0% 10.3% 13.5% 6.7% Eagle/Brush Crk 2.9% 0.7% 20.5% 3.6% Eagle-Vail 10.5% 2.0% 0.0% 6.2% Mintum/Redcliff 2.3% 0.0% 0.0% 3.6% Vail 6.4% 1.3% 2.6% Other 0.0% 16.1% 5.1% 1.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source: 2007 Household Survey There appears to be a slight correlation between age and location preferences. . Households with at least one member in the 18 through 25 age range are more interested in living in Vail than members of other age groups. . Households with children under the age of 18 and adults in the 26 to 45 age group are more likely to indicate Edwards as their first choice of where to live. . The Eagle/Brush Creek area has relatively high appeal among households with children and senior households. 1st Choice Avon/Beaver Crk BasaltlEI Jebel/Frying Pan Bond/McCoy/Burns/Wolcott Edwards Eagle/Brush Creek Eagle-Vail Gypsum/Dotsero Minturn/Red Cliff Vail Other Total First Choice Community to Live Age < 18 18 - 25 26-45 9.8 10.3 7.8 10.2 7.6 9.7 3.5 2.7 0.8 23.7 21.2 25.5 25.9 19.0 18.0 4.1 4.3 10.2 7.7 7.6 6.8 1.7 4.9 4.4 10.0 19.6 13.3 3.5 2.7 3.6 100.0% 100.0% 100.0% Source: 2007 Household Survey 46-65 10.9 9.1 1.4 18.6 16.5 3.4 8.2 6.6 16.0 9.2 100.0% Over 65 8.0 9.6 0.8 17.6 27.2 4.8 8.0 1.6 15.2 7.2 100.0% There is also a correlation between where employees work and where they want to live although it is not as strong as some might expect. In the employment centers of Vail, Edwards and Eagle, approximately 40 percent of the employees who work there would like to live there (1st choice). The majority would like to live elsewhere. Less than 15 percent of the employees working in the Avon and Beaver Creek area want to live there, most would like to live down valley although some would rather commute up valley. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 65 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 . Where Want to Live by Where Work Where Work Vail Avon Beaver Edwards Crk 8.5 ,JIIIIIT.... 0.6 0.4 1.8 3.4 4.9 6 2.3 3.4 4.8 19.8 36.6 29.8 11.3 14 15.5 6.5 12.8 9.5 4.0 4.9 5.4 I.... 7.5 7.7 5.1 4.9 4.8 100% 100% 100% 100% Source: 2007 Household Survey Where Want to Live Avon/Beaver Crk. Basalt Areas Burns, etc. Dotsero/G sum Edwards Ea Ie/Brush Crk Eagle-Vail Minturn/Red Cliff Vail Other . Total Location Attributes Eagle Gypsum Various sites 2.2 3.9 1.1 4.9 14 11.8 9.8 5.4 26.5 24.7 12.7 2.8 3.2 8.8 1.7 0 2.9 9.9 4.3 10.8 7.7 8.6 7.8 100% 100% 100% Survey participants were asked to rate the importance of nine characteristics associated with location when selecting where they want to live. Cost of housing followed by the type of housing are the most important considerations. Community character (family oriented, neighborhoods, etc) is next, outweighing proximity to employment for many. Cost of Housing Type of Housing Community Character Proximity to Employment Community Amenities Proximity to Services Employment of Others Quality of Schools Proximity to Daycare Average Rating 4.3 4.0 3.8 3.5 3.4 3.2 2.8 2.6 1.6 Importance of Location Attributes 1 . Not At All Important 2 3 2.7% 2.8% 12.1% 3.9% 4.0% 19.6% 6.9% 5.2% 25.1 % 11.6% 7.4% 29.1% 10.7% 8.5% 29.6% 10.7% 12.7 33.3% 30.7% 8.9% 23.9% 46.7% 4.5% 12.2% 72.4% 7.3% 10.1% Source: 2007 Household Survey 4 26.2% 31.4% 31.1% 27.7% 30.5% 30.6% 20.3% 15.4% 5.9% 5. Extremely Important 56.2% 41.1% 31.7% 24.1% 20.6% 12.6% 16.2% 21.2% 4.3% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% Proximity to daycare received the lowest average rating, which is often the situation where relatively few households (27 percent) have children. The quality of schools, however, rated moderately high, almost equal with proximity to the employment of other household members. Closer examination of ratings for proximity to daycare and quality of schools reveals clear differences between households with and without young and school-age children. Households with children under the age of five gave being close to daycare an average rating of 2.9, which is higher than other households but low relative to the average ratings given other location attributes. RRCASSOCIATES, INC.; REES CONSULTING, INC. 66 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Ratings for Daycare and Quality of Schools by Children in the Household Average Rating: 1 = not important, 5 = very important Proximity to Daycare Children in Household Under 5 5 to 11 No 1.4 1.5 Yes 2.9 2.6 11 to 17 1.6 1.7 Quality of Schools Children in Household Under 5 5 to 11 No 2.4 2.4 Yes 4.2 4.3 Source: 2007 Household Survey 11 to 17 2.5 3.7 Quality of schools rated very high among households with elementary school age children and moderately high among households with children in middle and high schools. Quality of schools is much more important overall that is proximity to daY9are. Owners and renters place similar values on location attributes. The cost of housing is even more important to renters than to owners, however. Renters rate availability of transportation and proximity to employment somewhat higher than owners, as is often the case in high-cost mountain communities. Owners value community character and the type of housing that is available more so than renters. Location Attributes by Own/Rent COST OF HOUSING TO BUY! RENT TYPE OF RESIDENCE COMMUNITY CHARACTER PROXIMITY TO MY PLACE OF EMPLOYMENT COMMUNITY AMENITIES PROXIMITY TO SKIINGI OUTDOOR RECREA nON PROXIMITY TO SERVICES PROXIMITY TO PLACES OF EMPLOYMENT FOR OTHER QUALITY OF SCHOOLS PROXIMITY TO BUS! SHUTTLE SERVICE PROXIMITY TO DAYCARE 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Average Rating l~Overall . Own o Rentl Source: 2007 Household Survey RRCASSOCIATES, INC.; REES CONSULTING, INC. 67 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Generally, residents place similar values on location attributes regardless of where they want to live. There are exceptions, however. Specifically: . Residents who rate proximity to skiing and outdoor recreation relatively high are more interested in living in Vail and other up-valley communities. . Proximity to employment is rated particularly high by residents who want to live in the Minturn/ Red Cliff area, as is proximity to bus/shuttle service. . Residents who want to live in Gypsum or Dotsero place a relatively lower value on proximity to services. . The quality of schools is less important to residents who want to live in Vail, Minturn or Red Cliff. . Residents who indicated that Burns, McCoy, Bond or Wolcott is their first choice of place to live, value community character less than residents who prefer other locations. Value of Location Attributes by Where Want to Live Average Rating: 1 = not important, 5 = extremely important 1st Choice Where Want to Live Basalt Burns, Dotserol Eagle! Minturnl Proximity to: Avon Area etc Gypsum Edwards Brush Crk Eagle-Vail Red Cliff Vail My Employment 3.7 3.5 2.9 3.1 3.4 3.3 3.6 4.3 3.7 Employment of 3.1 3.3 2.6 2.9 2.6 2.8 2.8 3.6 2.6 Others Services 3.5 3.3 2.3 2.6 3.4 3.1 3.5 3.5 3.4 Daycare 1.4 2.0 1.2 1.7 1.7 1.8 1.5 1.6 1.4 Bus/Shuttle 2.5 3.2 2.1 2.0 2.1 2.1 2.8 3.4 3.3 Skiing/Outdoor 3.8 3.6 2.8 2.3 3.5 2.6 3.8 3.9 4.3 Recreation Other Factors: Quality of 2.5 2.8 2.3 2.8 2.8 3.1 2.6 1.9 2.0 Schools Community 3.5 3.6 2.5 3.1 3.4 3.5 3.4 3.8 3.6 Amenities Community 3.8 3.7 3.4 3.7 3.8 3.8 3.7 4.0 3.7 Character Cost of Housing 4.4 4.0 4.4 4.5 4.3 4.4 4.4 4.7 4.3 Type of 3.7 4.0 4.1 4.3 4.0 4.1 4.0 4.1 4.0 Housing Source: 2007 Household Survey Value of Preferred Location Potential home buyers (renters who want to buy and owners who are interested in buying a different home) are split regarding their willingness to pay more for a home that is located in their first choice community - 47 percent would and 53 percent would not. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 68 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Willingness to Pay More for Home in First Choice Community Owners Renters Total Yes 47.5% 47.0% 47.3% No 52.5% 53.0% 52.7% Total 100.0% 100.0% 100.0% Source: 2007 Household Survey Respondents who indicated they would pay more were asked how much. The additional amounts they are willing to pay for homes in their first choice community are significant - averages of nearly $193,000 for homeowners interested in buying a different home and roughly $87,000 for renters who want to move into ownership. Price Premium for Location Overall Own 16.1 5.9 37.3 31.0 25.0 29.1 7.7 14.0 13.8 20.0 100% 100% $136,582 $192,796 Source: 2007 Household Survey Up to $25,000 $25,000 to $50,000 $50,000 to $100,000 $100,000 to $200,000 Over $200,000 Total Average Renter Preferences Rent 25.2 43.0 21.4 2.0 8.4 100% $86,594 Most of the renters living in Eagle County (65 percent) would like to buy a home. This finding tracks with survey results in other high-cost mountain west communities where employees are interested in living long- term but are forced to rent long after they are sufficiently committed for homeownership. Of the renters who would like to continue to rent, about half would like to stay where they now live while the others would prefer to rent a new or different unit. Preferences to Rent or Own Consider renting a new or different home 18% Stay at the same residence 17% Source: 2007 Household Survey uy a home 65% Of the 18,924 households current living in Eagle County, 30.4 percent or 5,753 households are renters (DOLA). Approximately 35 percent of these households (2,014 households) would like to continue to rent. These renters are almost evenly split between wanting to stay where they currently live and wanting to move to a new or different residence. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 69 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Households % Renter Occupied # Renter Occupied % Want to Continue Renting # Want to Continue Renting Sources: DOLA; 2007 Household Survey Renter Preferences to Continue Renting 2007 18,924 30.4% 5,753 35% 2,014 Renters who want to continue to rent would like to do so up valley in Avon and Vail, and in the Roaring Fork portion of Eagle County. Where Want to Rent Vail Avon BasaltlEI Jebel/Frying Pan Burns/McCoy/BondlWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Redcliff Other 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Source: 2007 Household Survey The top choice for unit type among renters who would like to continue to rent are town homes and duplexes. Single-family detached houses received the second highest number of first choice responses but dropped to five out of seven when all three choices were combined. The combination of the top three choices signals that renters are realistic and willing to compromise if they can not live in the type of unit that they most prefer. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 70 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Type of Unit Desired by Renters who Want to Continue Renting 1st Top 3 Choice Choices'" 32.1 71.8 24.5 68.1 14.7 62.8 14.4 36.8 12.3 23.8 2.1 11.6 0.0 5.4 100% 280% · Multiple choice question; response totals exceed 100%. Source: 2007 Household Survey Townhouse/duplex Single-family detached house Caretaker unit Apartment Condominium Mobile home Private room & bath, shared kitchen & living room Total More renters would prefer to live in apartments than condominiums although condominiums received the highest number of responses for the top three choices in combination. While caretaker units were ranked third among first choice responses, there is almost no interest in renting private rooms/bathroom with shared kitchens and living rooms. Renters who want to continue to rent were asked to indicate their preferences for four variables associated with renting. Renters have a strong preference for the affordability of rents as compared to the cost of ownership. They also prefer the flexibility that renting gives them to change their living situation but are much more interested in long-term as opposed to short-term leases. 1 - Low Preference 2 3 4 5 - High Preference TOTAL Average Rent.Related Preferences Long.term Short-term Lease Lease 12.1 43.9 1.8 30.0 10.5 11.5 6.7 5.3 68.8 9.2 100% 100% 4.2 2.1 Source: 2007 Household Survey Affordability o o 2.2 8.4 89.4 100% 4.9 Flexibility 8.6 20.7 11.8 9.6 49.2 100% 3.7 Approximately 44 percent of the renter households who want to continue renting have incomes equal to or less than 60 percent AMI, which suggests that Low Income Housing Tax Credits could be used in Eagle County to address a portion of the demand for rental housing. The majority of renters, however, have incomes higher than the maximum allowed for tax credits. Survey findings suggest that alternative financing sources will be needed since roughly 56 percent of new rental units should have higher income restrictions. RRCASSOCIATES, INC.; REES CONSULTING, INC. 71 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 AMI of Renters Who Want to Rent AMI % HH's Want Affordable to Rent Rent - Max. 80.1 to 100% 100.1 to 120% 120.1 to 150% 150.1 to 180% Over 180% 8.7% 12.4% 3.1% 8.1% 8.1% Source: 2007 Household Survey $1,825 $2,190 . $2,738 $3,285 Over 3,285 Homeownership Current demand for ownership of homes in Eagle County that will be used as primary residences is largely generated by: · renters who want to move into homeownership: · owners who are interested in owning a different home; and, · in-commuters who want to move to Eagle County if they can own a home. Market for Homeownership in Eagle County, 2007 # households 2007 Households 18,924 Renter Households 5,753 Renters Who Want to Buy a Home (65%) 3,739 Owner Households 13,171 Owners Who Want to Buy Different Home (35%) 4,610 In Commuters 6,351 In commuters Who Want to Buy in Eagle Co. (70%) 4,445 Total 2007 Market for Primary Home Ownership 12,794 Sources: DOLA, 2007 Household Survey and RRC/Rees calculations. To find a larger home to live in was the single reason most frequently cited by renters who want to buy (cited by 33 percent of respondents) and owners who are interested in buying a different home (48 percent of respondents). Far fewer owners are interested in down sizing. Living in a more rural setting far outweighed interest in living closer to services. To be closer to work rated relatively low among reasons to buy a home. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 72 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Reasons for Buying a Home Overall Owners 41.0 47.7 33.5 19.1 15.4 16.7 14.1 14.3 10.4 13.6 10.2 10.8 5.7 10.5 4.3 4.0 134% 137% Multiple choice question; responses exceed 100%. Source: 2007 Household Survey To find a larger home Other To live in a more rural setting To find a less expensive home To live in a different community To be closer to work To find a smaller home To live closer to city/town services Total Renters 33.2 50.4 13.9 13.8 6.6 9.4 0.0 4.7 132% Edwards is the community most preferred by residents who would like to buy, followed by the Eagle/Brush Creek area with Vail ranking third among first choice locations. Where Want to Buy Avon BasaltlEI Jebel/Frying Pan Burns/McCoy/BondlWolcolt Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Redcliff Vail Other 0.0% 5.0% 15.0% 10.0% Source: 2007 Household Survey Unit Type and Size Preferences 20.0% 25.0% The household survey asked potential buyers to indicate their first and second choices for the type of residence they would like to buy and the number of bedrooms they would need. Nearly three-fourths indicated that a single-family house is their first choice with most of these wanting three or four bedrooms. Combined, these two options received 47.5 percent of responses, far higher than any of the other possible design combinations. The next most popular option was a single-family house with an unspecified number of bedrooms. Townhomes were the second most selected type of residence (11 percent) followed by duplexes then condominiums, which ranked only slightly higher than manufactured homes. No one indicated a mobile home would be their first choice. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 73 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 While most residents would prefer a three or four bedroom home, 22 percent indicated they most preferred two bedrooms. Nearly 18 percent did not specify the number of bedrooms they need, which suggests flexibility in the number of bedrooms that would be acceptable. This relatively high percentage of no response could also be due in part to confusion about the question, Preferred Unit Type and Number of Bedrooms Shading indicates top two design options. Bedrooms Bdrms Not One Two Five+ Specified Total 0.2 3,7 0.0 0.1 4.6 0.0 5.3 0.0 1.8 11,1 0.4 3.0 0,0 0.7 6.6 0.0 9,6 3.1 14.2 74.5 0.0 0.5 0.0 0.7 3.1 0.6% 22.1% 3.1% 17,5% 100% Bdrms Not 2nd Choice One Two Four Five+ Specified Total Condo 0,2 5.6 0.1 0.0 0.3 9.5 Townhome 0.4 2.1 0.1 1.5 23.2 Du lex 0.0 9.3 0.6 7.5 37.8 Single-family 0.0 4.3 0.3 5,3 14.9 Manufactured home 0.0 1.4 0.2 2.9 13.2 Mobile home 0,0 0,0 0.0 0,0 1.4 0,6% 26.7% 36.8% 17,2% 1.2% 17.5% 100% Source: 2007 Household Survey An analysis of second choice options for type of residence and number of bedrooms revealed a shift toward smaller units, from single-family homes to duplexes and town homes, and from three or four bedrooms to two or three bedrooms. Those interested in purchasing a one-bedroom residence remained low, however, at 0.6 percent. Owners who want to buy a different home, and renters who want to own, differ with respect to their preferences. Renters are more interested in multi-family attached product than are owners, 84 percent of whom indicated that their first choice is a single-family home. Far more renters than owners are interested in purchasing two-bedroom units. RRCASSOCIATES, INC.; REES CONSULTING, INC. 74 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 1st Choice by Own/Rent Type Owners Renters Condo 2.6 7.0 T ownhome 7.4 15.3 Duplex 5,1 8.4 Single-family 84.0 63.6 Manufactured Home 0.9 5.7 Total 100% 100% Bedrooms One 0.3 0.8 Two 7.4 39.0 Three 38.1 32.3 Four 28.3 13.3 Five+ 5.8 0.0 Not Specified 20.0 14.5 Total 100% 100% Source: 2007 Household Survey Unit type preferences vary according to where potential buyers most want to live. Residents who want to buy in or near Vail have relatively higher preferences for condominiums while 94 percent to 97 percent of those who would like to own in the rural communities north of 1-70, Dotsero, Gypsum and the Minturn/Red Cliff area prefer single-family homes. 1st Choice Unit Type by Location 1st Choice Location Avon BasaltlEI Jebel/Frying Pan Bu rns/McCoy/BondlWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Red Cliff Vail Other Condo 2.2 2.3 0,0 0.0 8.8 0.9 0.0 0.0 12.6 3.4 Housing Cost Preferences Townhome Duplex 13.3 8.9 14.0 0.0 0.0 0.0 6.3 0.0 18.2 9.4 14.4 0.9 7.7 19.2 2.6 2.6 9.7 11.7 0.0 3.4 Source: 2007 Household Survey Single. family 71.1 79,1 96.8 93,8 60.0 76.6 73.1 94.9 66.0 86.2 Manu. home 4.4 4,7 3.2 0.0 3,5 7.2 0,0 0.0 0.0 6.9 Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100,0% 100.0% The household survey asked residents who want to buy a home to indicate what they "would be willing to pay" for their first and second housing choices. These responses suggest that housing at a wide variety of prices is desired. The $600,000 or more price category received 16.7 percent of the responses, the largest percentage of any single price increment. The distribution of responses was wide with a concentration (55 percent) in the $150,000 to $400,000 range. RRCASSOCIATES, INC.; REES CONSULTING, INC. 75 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Type of Residence Desired, 1st Choice, by Price Willing to Pay Single. Manufactured Condo Town home Duplex family Home Total Less than $95,000 0.0 0.0 0.0 0.5 0.0 0.5 $95,000 - $124,999 0.4 0.7 0.0 1.1 0.1 2.3 $125,000 - $149,999 0.6 0.4 0.0 4.1 0.0 5.1 $150,000 - $199,999 0.3 2.3 1.1 6.8 1.6 12.2 $200,000 - $249,999 0.9 1.4 0.4 7.7 0.3 10.6 $250,000 - $299,999 0.3 2.2 1.3 5.5 1.2 10.5 $300,000 - $349,999 0.7 1.0 1.3 7.1 0.0 10.1 $350,000 - $399,999 0.8 1.2 0.3 9.3 0.0 11.6 $400,000 - $499,999 0.0 1.4 0.7 7.4 0.0 9.5 $500,000 - $599,999 0.1 0.4 1.5 9.1 0.0 11.0 $600,000 or more 0.7 0.2 0.2 15.6 0.0 16.7 Total 4.7% 11.2% 6.8% 74.1% 3.2% 100.0% Source: 2007 Household Survey It appears, however, that many potential homebuyers will not be able to qualify for the prices they want to pay. Overall, approximately 44 percent of potential homebuyers selected a price that appears to be affordable given their household income. The percentage was much lower (23 percent) among households with incomes equal to or less than 80 percent AMI. Household Income Less than $95,000 $95,000 to $124,999 $125,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $349,999 $350,000 to $399,999 $400,000 to $499,999 $500,000 to $599,999 $600,000 or more Total Affordable Price Unaffordable Price Affordability of 1 st Choice Prices Shading denotes affordable price. AMI 80% 100% 120% 140% 160% >160% Total 3 14 32 68 65 69 57 73 57 65 98 601 34 64 164 77.2% 48.3% 63.6% 50.0% 33.3% Source: 2007 Household Survey 59.8% 55.6% Since buyers often hope they can afford more than they can, it is pragmatic to base pricing decisions on the AMI distribution of residents who want buy rather than on what they say they would be willing to pay. The wide distribution of incomes indicates that a wide range of pricing is needed. Renters who want to move into ownership have significantly lower incomes than owners who want to buy a new or different home. RRCASSOCIATES, INC.; REES CONSULTING, INC. 76 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 AMI 50% AM I or less 50.1-80% 80.1% -100% 100 -120% 120% -140% Over 140% AMI- Potential Homeowners Max. Affordable Renters Who Price Want to Buy $124,796 13.8 $180,238 11.7 $241,432 14.3 $288,086 10.9 $334,741 14.5 Over $334,741 34.8 100% Source: 2007 Household Survey Owners Who Want to Buy Different 8.2 7.9 12.0 11.7 14.6 45.6 100% Total 12.0 10.5 13.6 11.2 14.5 38.3 100% The affordability calculations assumed a down payment of $10,000. If buyers already own a home, they may be able to provide a larger down payment thereby increasing the amount they can afford to pay. On average, residents who are interested in buying a home indicated they would have approximately $126.700 available for a down payment. There is a significant difference in down payment availability between owners who have a home to sell and renters who want to move into home ownership. Owners who have a home to sell indicated they have on average $218,600 available for down payments with roughly 28 percent indicating they would have $300,000 or more available. In sharp contrast, renters who want to buy a home have an average of less than $26,300 available for down payments. Approximately 14 percent indicated they have no funds for a down payment. Over half (52.3 percent) however, responded that they have between $10,000 and $50,000 for a down payment, which is in the range often targeted by affordable homeownership programs. Average Down Payment Availability by Own/Rent Overall Owners 8.6 3.2 1.5 1.3 8.2 1.4 9.2 2.5 6.2 0.3 7.3 2.7 8.1 5.6 7.2 8.0 3.2 3.7 10.0 15.6 0.6 1.1 3.8 6.3 7.8 13.9 0.1 0.3 3.4 5.5 0.4 0.8 14.6 27.9 100% 100% $126,696 $218,631 Source: 2007 Household Survey None $1 - $4,999 $5,000 - $9,999 $10,000 - $14,999 $15,000 - $19,999 $20,000 - $24,999 $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 $150,000 - $199,999 $200,000 - $224,999 $225,000 - $249,999 $250,000 - $274,999 $275,000 - $299,999 $300,000 or more Renters 14.4 1.7 15.5 16.5 12.6 12.4 10.8 6.3 2.7 3.9 0.0 1.0 1.2 0.0 1.0 0.0 0.0 100% $26,276 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 77 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Deed Restrictions Deed restrictions that would limit appreciation in value to a maximum rate of 3.5 percent per year on residences initially priced below market, appear to be acceptable to approximately 39 percent of the county's residents who are interested in buying a home. Deed restrictions would be acceptable to 21.3 percent if priced below the amounts they indicated they would be willing to pay for their preferred housing options in their first choice community. Another 17.9 percent would accept deed restrictions for the amounts they previously indicated they would be willing to pay. Nearly 10 percent are uncertain about deed restrictions with price caps, while 51 percent indicated they would not consider purchasing a deed-restricted residence. Acceptability of Deed Restrictions Overall 21.3 17.9 51.4 9.4 100% Source: 2007 Household Survey Yes, if I could pay less than the amount above Yes, for the amount reported above No Uncertain Total Owners 12.1 7.1 71.8 9.0 100% Renters 32.3 30.8 27.1 9.8 100% Of no surprise, the acceptability of deed restrictions varies between owners and renters. About 63 percent of renters who would like to move into ownership would consider purchasing a deed-restricted residence compared with only 19 percent of residents who already own a home and are interested in buying a different home. Potential home buyers who indicated they would consider purchasing a home with a deed restriction if it was priced lower than what they would be willing to pay otherwise responded that the amount lower would need to average around $74,344. The average is affected, however, by a few responses of $150,000 and over. The majority of the responses were in the $50,000 range. This suggests that there is a somewhat widely held perception that deed restrictions with appreciation caps reduce the price of homes by about $50,000. Amount Less $150 $20,000 $25,000 $30,000 Adjustment for Deed Restriction Overall Owners 3.6 0.0 1.7 7.4 3.0 3.0 3.7 Renters 4.7 0.0 3.8 2.8 $75,000 $99,999 $100,000 $150,000 $175,000 $200,000 $250,000 Total Average 7.6 7.7 0.9 4.0 15.7 14.7 6.7 3.7 0.9 4.0 2.7 11.8 3.0 0.0 100% 100% $74,344 $84,675 Source: 2007 Household Survey 7.6 0.0 16.0 7.6 0.0 0.0 3.8 100% $71,336 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 78 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Amenities All survey participants were asked to rate the importance of nine potential home amenities and seven features often associated with neighborhoods. The top rated amenity is in-unit washers and dryers. Two of the top four amenities are tied to Eagle County's mountain climate - sunlight and energy efficiency. Amenities, Average Ratings 1 = not at all important and 5 = extremely important Sunlight In-unit Washer/Dryer Extra Storage Energy Efficiency Multiple Bathrooms Garage/Covered Parking On-site Laundry Facilities Workshop Space Office Space for Business Use 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Average Rating Source: 2007 Household Survey Owners generally tend to rate amenities higher than renters. Energy efficiency scored high overall and even higher among renters than owners, which could stem from the high cost of heating rental units. Most renters are responsible for their utilities; heating costs and other utilities are rarely included with rent. Eagle County's residents highly value having private outdoor space and pets. Shared common areas received a much lower mid-range rating of 2.5. More residents value living where wood burning is allowed than where it is prohibited. Renters and owners generally place similar levels of importance on neighborhood features. Renters, however, rated "wood burning allowed" higher than owners, which is in line with the higher rating they placed on energy efficiency. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 79 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Neighborhood Features, Average Ratings 1 = not at all important and 5 = extremely important Pets Allowed Private Yard/Outdoor Space Garden Space Woodburning Allowed Shared Common Areas Woodburning Prohibited Livestock Allowed 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 Average Rating Source: 2007 Household Survey Senior Housing Survey responses indicate that, upon retirement, more residents will continue to live in Eagle County (44 percent overall) than will move out of the region (27 percent). Homeowners are more likely to stay than are renters. Many residents, however, chose a neutral rating of three indicating indecision on this question. likelihood of Staying in Region upon Retirement Overall Owners Renters 1 - Not At All Likely 16.6 12.3 24.1 2 10.4 9.4 12.0 3 29.4 28.7 30.7 4 22.0 23.3 19.6 5 - Extremely Likely 21.7 26.3 13.5 Total 100% 100% 100% Average Rating 3.2 3.4 2.9 Source: 2007 Household Survey Households with at least one member age 65 or older were asked to indicate the likelihood they would use five types of senior housing. Seniors who are undecided, or have a moderate to high likelihood, are outnumbered by those who indicated they would not use any of the options offered for consideration. · Between 19 percent and 27 percent indicated they did not know if they were likely to use the options provided. · Affordable rental housing received the highest percentage of "definitely would use" ratings (20 percent) and the lowest percentage of "don't know" responses. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 80 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Assistance to make their homes more accessible received the average highest rating and the lowest percentage of "would not use" responses. Likelihood of Using Senior Housing Options Assistance Affordable Rental to Make Rental Housingl Reverse Home Living in 65+ Housing Services Mortgage Accessible Community 1 - Would Not Use 50.1 44.6 50.7 41.9 44.0 2 3.3 2.6 2.7 3.3 5.6 3 3.0 9.9 5.6 10.5 10.8 4 4.2 6.5 4.2 7.1 7.5 5 - Definitely Would 20.0 12.6 10.0 14.8 9.0 Use Don't know 19.4 23.8 26.8 22.3 23.1 TOTAL 100% 100% 100% 100% 100% Average 3.0 3.1 3.0 3.2 3.0 Source: 2007 Household Survey Seniors who rent have more interest in using all of the five options offered than do seniors who now own their homes. Renters and owners are most similar in their interest regarding assistance to make homes more accessible. Interest in Senior Housing Options Average Rating: 1 = would not use, 5 = definitely would use Overall Own Rent Affordable Rental Housing 3.0 2.4 4.3 Rental Housing wI Services 3.1 2.7 4.0 Reverse Mortgage 3.0 2.5 4.0 Assistance to Make Home Accessible 3.2 3.0 3.5 Living in 65+ Community 3.0 2.8 3.4 Source: 2007 Household Survey Residents who own free-market homes in Eagle County were asked to indicate if they plan to sell their homes when they retire. Responses were divided and indecision predominated. One-third indicated they would not sell, which is relevant when considering housing demand generated by employees needed to replace retirees. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 81 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Will Sell Home upon Retirement Don't know 41% Yes 26% Source: 2007 Household Survey Of respondents who indicated they would sell their homes upon retirement, most (84 percent) plan to move out of Eagle County. Housing which is typically smaller, lower maintenance and possibly involves subsidies and/or services, will be needed for the 17.5 percent of retiring seniors who will sell free-market homes but want to stay in the same community or elsewhere in Eagle County. Stay in the same community Move elsewhere in Eagle County Move out of Eagle County Total Where Retiring Home Sellers will Move % Will Sell 9.4 8.1 82.4 100% Source: 2007 Household Survey RRCASSOCIATES, INC.; REES CONSULTING, INC. 82 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 SECTION 8 . HOUSING NEEDS AND GAPS This section of the report estimates the total number of housing units needed by employees in Eagle County both to fill existing gaps in the market and to accommodate future needs based on population and employment growth projections through 2015. The need for additional employee housing is estimated using a combination of factors - growth in jobs, in-commuting, unfilled jobs, replacement of retiring employees and new jobs. Estimates are provided on the number of housing units that are needed to support job growth and sustain employers. Two categories of need are quantified: · Catch-Up Needs -- the number of housing units needed to address current deficiencies in housing calculated by considering overcrowding, unfilled jobs and in-commuting employees who want to live in Eagle County; and, · Keep-Up Needs -- the number of units needed to keep up with future demand for housing based on projected employment and population growth and the requirement to replace retiring employees. The quantitative estimates of need in this section of the report represent the number of additional housing units for which demand is directly generated by jobs. The development of these additional units will not, however, address all existing housing problems, such as lack of affordability. In theory, if the balance between demand/need and supply is brought into greater balance, housing affordability and other problems will improve. If the development of additional units for employees continues to lag behind job growth, other non-development measures for addressing problems will be needed. This section concludes with an analysis of the "gaps" in housing and compares total needs to units provided by the market to better understand at what price points housing is needed to meet resident and local worker needs. Catch-Up Needs Demand 'rom Unfilled Jobs in 2007 The number of units needed to attract employees to fill vacant positions is part of the equation for the total catch-up demand for additional employee housing units in 2007. Based on a combination of assumptions concerning the number of unfilled jobs and the number of employees now living in Eagle County and available for work, approximately 1,420 additional housing units are needed to enable additional employees to move into Eagle County to fill jobs that are currently vacant. Approximately 61 percent of employers surveyed indicated they had at least one unfilled year round or seasonal position. Year-round positions that are part time appear to be the easiest to fill while year-round full time positions are most likely to be vacant. Unfilled Jobs None At least one Total Employers Reporting Unfilled Jobs, by Type Year Round Winter Seasonal FT PT FT PT 9.1 68.2 21.1 36.8 90.9 31.8 78.9 63.2 100% 100% 100% 100% Source: 2007 Employer Survey Total Current 39.1 60.9 100% A total of 716 unfilled positions were reported by employers who were surveyed. This equates to a ratio of .098 unfilled jobs for every job held by an employee. The ratio between filled and unfilled positions is similar for year-round and winter seasonal employment. RRCASSOCIATES, INC.; REES CONSULTING, INC. 83 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 # Employees - Surveyed Employers Unfilled Jobs Ratio total:unfilled jobs Ratio of Filled to Unfilled Jobs Year Winter Round Seasonal 5,258 2,031 507 209 1 :0.096 1 :0.103 Source: 2007 Employer Survey Total Peak Season 7,289 716 1 :0.098 Applying this ratio to total jobs results in an estimate of 4,089 unfilled jobs as of the peak 2006/2007 ski season. Filling all of the over 4,000 positions that are vacant will require in-migration of workers into the county. Of the 35 employers who elaborated on the reasons why they have unfilled positions, the vast majority (75 percent) cited lack of applicants and/or high housing costs as the reasons (see Employer Survey comments in the appendix to this report). The Colorado Department of Labor reports that Eagle County's March 2007 unemployment rate was 2.6 percent. It had been 3.1 percent in January and 2.8 percent in February. In comparison, the average for Colorado was 3.6 percent in March, a full percentage point higher than in Eagle County. Eagle County's average for 2006 was 3.4 percent, varying between 2.8 percent in December and 4.8 percent in May. Unemployment levels are so low that Eagle County should be considered a labor shortage area where there are fewer residents looking for jobs than there are open positions. As such, it will be assumed that in- migration will be required to fill 75 percent of the vacant positions. This estimate is conservative; with an unemployment rate less than 3 percent it may be optimistic to assume that 25 percent of vacant jobs can be filled by employees who already reside in Eagle County. Estimate of Housing Needed to Fill Vacant Jobs Eagle County Total Jobs, 2007 41,727 Jobs to Unfilled Jobs Ratio 1 :.098 Total Unfilled Jobs 4,089 Jobs per employee 1.2 Total employees needed 3,408 In-migration of Employees (75%) 2,556 Employees/Housing Unit 1.8 Housing Demand Generated 1,420 Sources: 2007 Employer and Household Surveys, RRC/Rees calculations. In-Commuters (Catch-Up) Demand from in-commuters represents a catch-up housing need. This is estimated by examining the percentage of in-commuters that would prefer to live in Eagle County over their present community if suitable housing within their price range was available. As of the 2000 US Census, 17 percent of workers commuted into Eagle County for work. Based on the relatively stab.le household:jobs ratio over time, the percent of workers commuting into Eagle County is estimated to have shifted at most only slightly since the US Census. In light of this, for purposes of estimating potential housing demand associated with commuters, DOLA's estimate of 18.3 percent will be used. RRCASSOCIATES, INC.; REES CONSULTING, INC. 84 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Eagle County Total Jobs Avg jobs per employee Total employees Eagle County In-Commuters, 2001 (est) 2001 41,727 1.2 34,773 Jobs Held by Residents 34,106 Avg jobs per employees 1.2 Total employees living in Eagle Co. 28,422 In-commuters 6,351 % In-commuters 18.3% Resident Employment 28,317 Labor Force 29,353 Source: Department of Local Affairs (DOLA), 2007 Household Survey As shown above, about 18 percent of workers (approximately 6,351 total employees) commute into Eagle County from homes outside of the county. In-commuter survey responses indicate that 70 percent or 4,445 of these workers would prefer to live in Eagle County if affordable ownership and/or rental housing were available. Given the increasingly tight housing conditions in the counties where many commuters now live due to oil/gas exploration in Garfield County and reopening of the Climax mine in Lake County, it is not surprising that the percentage of commuters who would like to move to Eagle County is high. With an average of 1.8 employees per household, in commuters generate a catch-up need for roughly 2,469 housing units. Catch-Up Housing Needs Generated by In-Commuting Employees Eagle County Total Jobs 41,727 Avg. Jobs per Employee 1.2 Total Employees 34,773 In-commuters (18.3%) 6,351 # that would move to Eagle County (70%) 4,445 Employees per household 1.8 Total housing units needed 2,469 Sources: DOLA, 2007 In-commuter survey and RRC/Rees calculations. Most of the in-commuters interested in living in Eagle County would like to own; demand for rental units is low. If affordable ownership units are not developed in Eagle County, in-commuters will likely remain living where they now reside and may change jobs to eliminate commuting since employment opportunities in their home counties are increasing. Units Needed to Address Overcrowding While some of the housing problems now existing in Eagle County can be addressed through non- construction methods (Le. monthly subsidies for cost burdened renters, rehabilitation loans for repairs, etc) overcrowding can only be addressed by building additional units. The 2007 Household Survey found that 9.8 percent of households in Eagle County live in overcrowded conditions (defined by having more than 1.5 85 RRCASSOCIATES, INC.; REES CONSULTING, INC. DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 residents per bedroom). This equates to about 1,855 households in 2007 (9.8 percent of 18,924 total households in Eagle County in 2007). Typically, an increase in the supply of workforce housing equal to about 30 percent of the number of overcrowded units will largely address overcrowding to the extent practical, given cost consciousness and cultural preferences. Units Needed to Address Overcrowding Units Total Households 18,924 # Overcrowded Units 1,855 % Needed to Reduce Overcrowding 30% Housing units needed 557 Source: 2007 Household survey and RRC/Rees calculations. Keep Up Needs Housing Demand from Job Growth According to employment forecasts developed by the Colorado Department of Local Affairs, Eagle County will have a net gain of over 4,400 jobs in the next three years and approximately 10,300 additional jobs by 2015. Job growth in Eagle County will be the result of expansion by existing employers, new residential development and new commercial/industrial development. Of employers surveyed, 41 percent indicated they plan a net increase in jobs in the next two years. Given employment growth over the seven-year period between 2000 and 2007 of 7,222 jobs (1,032 per year), the estimated increase of 10,316 jobs in the eight years between now and 2015 (1,290 per year) may be slightly over stated. The 4,776 additional housing units needed to accommodate new jobs by 2015 should, therefore, be viewed as the maximum number likely to be needed solely to support employment growth. Estimate of Housing Needed to Fill New Jobs, 2007 - 2015 2007 2010 2015 Total Projected Jobs 41,727 46,173 52,043 Increase in Jobs over 2007 4,446 10,316 Jobs per Employee 1.2 1.2 1.2 New Employees Needed 3,705 8,597 Employees/Housing Unit 1.8 1.8 1.8 Housing Demand Generated 2,058 4,776 Sources: DOLA, 2007 Household Survey and RRC/Rees calculations. Demand from Replacement of Retirees Approximately 23 percent of employers surveyed now employ a combined total of 109 persons who will retire within two years and will need to be replaced. The new employees who are needed to fill the positions vacated by the retiring employees will generate demand for additional housing units; few of the housing units the retirees now occupy will be available for their replacements. By 2015, there will likely be a surge in the number of employees who will retire based on the age distribution of employed persons. Nearly 35 percent of employees are in the 46 to 65 age range. Employees who are now 57 will reach the typical retirement age of 65 by the year 2015. Therefore, an estimated 40 percent of RRC ASSOCIATES, INC.; REES CONSULTING, INC. 86 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 these employees will be retiring during the forecast period. This equates to approximately 5,900 employees who will likely retire by 2015, or 738 employees per year. Age Distribution, Adults in Employee Households Age 18-25 26-45 46-65 65+ Total # Employees % Employees 4,625 13.3 16,482 47.4 12,136 34.9 1,530 4.4 34,773 100.0% Source: 2007 Household Survey Employees needed to replace retirees will generate demand for approximately 3,284 additional units by 2015. Estimate of Housing Needed to Fill Jobs Vacated by Retirees, 2007 - 2015 Eagle County 34,773 17% 5,911 Total Estimated Employees, 2007 % Employees Retiring by 2015 Replacement Employees Needed Employees/Housing Unit 1.8 Housing Demand Generated 3,284 Source: 2007 Household Survey, RRC/Rees calculations. The number of employees was not adjusted for in-commuting since housing opportunities in areas where commuters now live (Lake and Garfield Counties) will become increasingly limited with few units available for replacement employees. Total Need for Additional Housing At present, there is catch-up demand for approximately 4,446 housing units needed to: · attract employees to fill vacant positions (1,420 units); · accommodate in-commuters who want to move into Eagle County (2,469 units); and, · address overcrowding (557 units). By 2015, keep-up demand for 8,060 units will be generated for approximately: · 4,776 additional units to accommodate growth in the labor force through in-migration to sustain business expansion and start ups, and · 3,284 units for employees needed to fill positions that will be vacated by retiring workers. In total, approximately 12,506 units of housing will be needed to address catch-up and keep-up needs by 2015. These estimates represent all housing needed at all income levels and price ranges, not just affordable housing for low- and moderate-income households. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 87 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Summary of Housing Demand Source of Demand Catch-Up Needs Unfilled Jobs, 2007 In Commuters Overcrowded Units Units Needed 1,420 2,469 557 Total Catch-Up Demand 4,446 Keep-Up Needs New Jobs, 2007 - 2015 4,776 Replacement of Retirees, 2007 - 2015 3,284 Total Keep-Up Demand 8,060 Total Demand for Additional Units by 2015 12,506 It should be noted that the above estimates do not include the demand for retirement/senior housing. If retiring employees do not stay in the homes they now own but cash out to support their expenses, units will be needed for those who wish to remain in Eagle County. Since the homes they now own are largely free- market units, few if any will be affordable for the employees who must move in to fill vacated positions. Demand by AMI The following table specifies the demand for units by income category expressed as a percentage of the AMI. These estimates by AMI were derived by applying the income distribution shown in the current household trends section of this report to total demand generated by new jobs. It is appropriate to assume that the income of the region's households will be similar in the foreseeable future to the current distribution by AMI. No significant shifts in the compoSition of the region's economy are anticipated that could cause a major change in the distribution of incomes. AMI Range 50% AMI or less 60% AMI 80% AMI 100% AMI 120% AMI 140% AMI Workforce Housing Demand by AMI Maximum Affordable Purchase Price*** Max Income* $36,500 $43,800 $53,850 $73,000 $87,600 $109,500 Over $109,500 NA NA $180,238 $241,432 $288,086 $334,741 $334,741 or more Maximum Affordable % of Demand Rent from New Jobs $913 15.1% $1,095 2.9% $1,346 10.3% $1,825 15.9% $2,190 12.9% $2,738 9.5% Over $2,738 Units Needed to Accommodate New Jobs 721 139 492 759 616 454 Over 140% AMI Total 33.5% 1,600 100.0% 4,776 Source: Department of Local Affairs; ColoradO Demography Section; CHAS; RRC Associates, Inc. RRCASSOCIATES, INC.; REES CONSULTING, INC. 88 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Free-Market Availability As of April, 2007, the median price for a single-family home listed for sale in Eagle County was $1.5 million. The median price for condominiums also exceeded $1 million. Prices for townhomes, duplexes and triplexes were slightly lower but relatively few were available (17 percent of total listings). MlS Residential Listings, April 2007 Total Percent Property Type Median Minimum Maximum Number of Units TOTAL $1,195,000 $70,000 $21,000,000 1,048 100.00% Condominium $1,050,000 $70,000 $18,860,000 487 46.50% Single-family $1,500,000 $194,999 $21,000,000 381 36.40% Townhome/ Duplex/Triplex $894,000 $295,000 $14,950,000 180 17.20% Source: Eagle County MLS Nearly half of the units on the market are condominiums. The percentage increases to 55 percent for units priced under $350,000. MlS Listings by Price Range and Type T ownhomel Single- Condo Duplex/Triplex family Total Under $100K 1 1 $100K to $149,999 1 1 $150K to $199,999 1 1 2 $200K to $249,999 1 1 2 $250K to $299,999 4 1 4 9 $300K to $349,999 12 3 7 22 $350K to $399,999 33 8 8 49 $400K to $499,999 73 19 24 116 $500K to $649,999 57 29 39 125 $650K to $799,999 32 13 28 73 $800K or more 272 107 269 648 487 180 381 1,048 Source: Eagle County MLS Very few housing units are available for purchase in Eagle County by households with low, moderate and middle incomes. As of April, only 28 residential units were listed for sale through the MLS for prices that were potentially affordable for households with incomes equal to or less than 140 percent AMI. The number that was truly affordable was likely lower, however, due to high HOA dues that reduce the amount that households can afford to pay. Availability of units that are affordable for households with incomes less than 140 percent AMI is declining. In 2006, 24 percent of sales were at prices affordable for buyers with incomes under 140 percent AMI. As of April, only 2.7 percent of listings were priced to be affordable for the same AMI/price range. Over 97 percent of MLS listings were attainable only by upper income households. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 89 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Availability by AMI, April 2007 % Current # Current 2006 % Listings Listings Sales (MlS) MLS (Assessor) 0.2% 2 5% 0.0% 0 1% 0.0% 0 1% 0.4% 4 4% 0.4% 4 6% 1.7% 18 8% 97.3% 1,020 76% 100% 1,048 100% Source: Eagle County Assessor's Office, Eagle Coun!y MLS, RRC Associates, Inc. AMI Range 50% AM I or less 60% AMI 80% AMI 100% AMI 120% AMI 140% AMI Over 140% AMI Total Maximum Affordable Purchase Price $124,796 $148,123 $180,238 $241,432 $288,086 $334,741 Over $334,741 Maximum Income (3-person HH) $36,500 $43,800 $53,850 $73,000 $87,600 $109,500 Over $109,500 2006 # Sales (Assessor) 111 21 19 99 131 182 1,801 2,364 Of the 28 units listed for sale at prices potentially affordable for households with incomes equal to or less than 140 percent AMI, half were condominiums. Availability by Unit Type and AMI, April 2007 Townhomel Condo Duplex/Triplex Single-family Total Less than 50% AMI 2 0 0 2 80 to 100% AMI 2 0 2 4 100 to 120% AM I 2 0 2 4 120 to 140% AMI 8 3 7 18 Over 140 AMI 473 177 370 1,020 487 180 381 1,048 Source: Eagle County MLS In 2006, 2,364 units sold, which equated to 197 units per month. As of April, the 1,048 MLS listings represented a 5.3 month inventory. This represents a moderately tight market but April is not historically an active month; listings could increase during the summer months. Gaps There is a significant gap between the current demand (catch-up) units and the number of units available as of April, 2007. The difference of 3,398 units between current demand for 4,446 units and current listings of 1,048 units represents the magnitude of the gap between what residents and in-commuting employees want for housing and what the free market is providing. The difference for each AMI category represents the net demand between what residents and in-commuters can afford and the free market price of units. The gap is largest in the 81 to 120 percent AMI range. Since federal and state housing programs only serve households with incomes equal to or less than 80 percent AMI (Low Income Housing Tax Credits and several grant programs have even lower income eligibility standards) addressing the gap in the 81 to 120 percent AMI range will require partnering with private developers and other local solutions that do not rely on funding from outside of Eagle County. Proportionately, households with incomes greater than 140 percent AMI are the best served by the free market, with units available to meet approximately 64 percent of current demand. These figures are dynamic; additional units will be placed on the market during 2007 that will slightly lower the gap. With 97 RRCASSOCIATES, INC.; REES CONSULTING, INC. 90 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 percent of the current listings affordable only for households with incomes greater than 140 percent AMI, the change should not significantly impact planning for solutions to address catch-up demand. AMI Range 50% AMI or less 60% AMI 80% AMI 100% AMI 120% AMI 140% AMI Over 140% AMI Total Maximum Affordable Purchase Price $124,796 $148,123 $180,238 $241,432 $288,086 $334,741 Over $334,741 Net Demand for Housing % Current % Current Listings (MLS) Demand 0.20% 5.4% 0.00% 7.4% 0.00% 8.6% 0.40% 15.4% 0.40% 15.2% 1.70% 12.3% 97.30% 35.7% 100% 100.0% Source: Eagle County MLS; RRC/Rees Calculations # Current Listings MLS 2 o o 4 4 18 1,020 1,048 # Current Demand 242 327 384 683 678 545 1,588 4,446 Gap -240 -327 -384 -679 -674 -527 -568 -3,398 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 91 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Appendix A. AMI Profiles RRCASSOCIATES, INC.; REES CONSULTING, INC. 92 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 This appendix contains demographic and housing preference profiles of Eagle County households based on their income level: 50 percent AMI or below, 50.1 to 80 percent AMI, 80.1 to 100 percent AMI, 100.1 to 120 percent AMI, 120.1 to 140 percent AMI and over 140 percent AMI. This information was compiled from the 2007 Household Survey distributed as part of this study. A comparative summary is presented below, followed by individual profiles for each income group. . Homeownership: The ownership rate increased with household income. Only 40 percent of household earning 50 percent of less AMI own their home, rising to 78 percent of households earning over 140 percent AMI. . Unit Tvpe: Households earning 50 percent or less are more likely to be residing in an apartment (37 percent) than other income groups. The percentage of households in apartments decreases as household income increases, where only 3 percent of households earning over 150 percent AM I reside in an apartment. Conversely, households earning over 140 percent AMI are most likely to live in a single-family home-cabin (52 percent) dropping to 27 percent of household earning 50 percent or less AM I. The income group which is most likely to own a condo earns between 100 and 120 percent of the AMI. . Household Type: About 33 percent of households earning 50 percent of less AMI are single parents with children - dropping to between 1 and 14 percent of households at other AMI ranges. Between 31 and 39 percent of households earning over 80 percent AMI are couples with children. . Households with Seniors: Households with seniors (age 65 or over) comprise the lowest percentage of households earning between 120 and 140 percent AMI (7 percent). Households earning 50 percent AM I or less are more likely than other AM I groups to have a senior in their household (12 percent). . Cost-Burdened: The percentage of cost-burdened households decreases as income increases. Household earning 50 percent AMI or less had the highest percentage of cost-burdened households (75 percent), followed by 50 to 80 percent AMI households (49 percent), 80 to 100 percent AMI households (29 percent), dropping to 19 percent for households earning between 100 and 120 percent AM I, and to between 11 and 7 percent for households earning over 120 percent AM I. . Residence RatinQs: Households earning 50 percent or less AMI were likely to rate certain characteristics of where they live (condition of home, exterior appearance, yard/lot size, adequacy of heating, safety/security and quality of neighborhood) lower than higher income households, earning over 140 percent AMI generally rating their home highest in most aspects. For income groups over 50 percent AMI, the quality of neighborhood and safety/security were rated the highest on average. For all income groups, the yardnot size received the lowest average rating. . Emplovment Status: Households earning 50 percent or less AMI or more likely to be retired (13 percent) than other income groups while households earning over 140 percent AMI are the most likely to be self-employed. Household earning between 120 and 140 percent AM I were most likely to leave their employment to work closer to home if similar/suitable housing was available (77 percent). RRC ASSOCIATES, INC.; REES CONSULTING, INC. 93 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Profile (50% AMI or below) Households Total Households # Tenure Own Rent Cost Burden Under 20% 20-30% 30-35% 35-50% Over 50% % 6% 18% 17% 16% 42% % 40% 60% Would like to buy a new/different home Own Rent 30% 50% Type of Residence Single-fami/y homelcabin Condo/townhouse/duplex Apartment Mobile home Other 27% 23% 37% 8% 4% Employment Status Self-employed Employed by others Unemployed, and looking for work Unemployed, not looking for work Full-time homemaker Retired Full-time student Other Average number of employed adults Household Composition Couple with child(ren) Couple, no chi/d(ren) Adult living alone Unrelated roommates Single parent with chi/d(ren) Family members and unrelated roommates Immediate and extended family members Other % with at least one 65+ person Average number of people in household 11% 9% 37% 7% 33% 2% 1% 0% 12% 2.4 I CI Current Residence . First Choice of Where to Liloe Avon BasalllEI ..lebel/Frying Pan Burns/McCoy/BondlWolcott 0% Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Red Cliff Vail Other Yo 0% 5% 10% 15% 20% 25% 30% Rate where you currently live (rated 4 or 5; scale 1 "poor" - 5 "excellent") Average Condition of home 3.2 Exterior appearance 3.5 Yardnot size 2.8 Adequacy of heating 3.4 Safety/security 3.2 Quality of neighborhood 3.3 26o/q I i 20% 9% %4,5 Excellent 40% 42% 24% 42% 33% 39% Work Location Vail Avon Edwards Eagle Beaver Creek Gypsum Other Eagle County Other Winter 27% 23% 23% 15% 20% 2% 2% 30% 21% 62% 1% 0% 0% 13% 0% 2% 1.1 Summer 20% 31% 27% 14% 27% 0% 0% 42% 10 years or more 6% 5 up to 10 years 3 up to 5 years 2 up to 3 years 1 up to 2 years 6 months up to 1 year less than 6 months 0% 10% 20% 30 Yo 40% 50% 60% 70% Would you leave your employment to work closer to home if similarlsuitable employment was available to you? Yes -I would leave my employment No - I would not leave my employment % 72% 28% Do you: Receive housing assistance Live in a deed-restricted residence 24% 7% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 94 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Profile (50 to 80% AMI) Households Total Households % # Cost Burden Under 20% 20-30% 30-35% 35-50% Over 50% 19% 32% 20% 14% 15% Type of Residence Single-family homelcabin Condo/townhouse/duplex Apartment Mobile home Other 20% 35% 26% 10% 8% Household Composition Couple with child(ren) Couple, no child(ren) Adult living alone Unrelated roommates Single parent with child(ren) Family members and unrelated roommates Immediate and extended family members Other % with at least one 65+ person Average number of people in household 18% 16% 41% 8% 14% 1% 0% 0% 8% 2.1 Eagl I III Current Residence . Firsl- Choice of Where 10 liw I Avon ~. 0 7% I. I bel/Frying Pan % I I /BondlWolcott o I tsero/Gypsum 7% Edwards "7~ % e/Brush Creek o/~6% . Eagle-Vail 0 10% nturn/Red Cliff ot. 10% Vail '?3Yo -.t~ 2 0 Other BasalllEI Je Burns/McCoy Do Mi 0% 5% 10% 15% 20% 25% Rate where you currently live (rated 4 or 5; scale 1 "poor" - 5 "excellent") Average Condition of home 3.6 Exterior appearance 3.4 Yard/lot size 3.1 Adequacy of heating 3.7 Safetylsecurity 3.7 Quality of neighborhood 3.8 %4,5 Excellent 53% 49% 42% 55% 53% 65% Tenure Own Rent % 47% 53% Would like to buy a new/different home Own Rent 35% 61% Employment Status Self-employed Employed by others Unemployed, and looking for work Unemployed, not looking for work Full-time homemaker Retired Full-time student Other Average number of employed adults 15% 76% 0% 0% 3% 6% 0% 0% 1.3 Work Location Vail Avon Edwards Eagle Beaver Creek Gypsum Other Eagle County Other Winter 37% 20% 10% 7% 10% 6% 15% 22% Summer 29% 13% 14% 8% 10% 7% 19% 26% 10 years or more 5 up to 10 years 3 up to 5 years 2 up to 3 years 1 up to 2 years 6 months up to 1 year Yo Less than 6 months 0% 10% 20% 30% 40% 50% 60% 70% Do you: Receive housing assistance Live in a deed-restricted residence Would you leave your employment to work closer to home if similarlsuitable employment was available to you? Yes -I would leave my employment No - I would not leave my employment % 61% 39% 6% 4% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 95 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Profile (80 to 100% AMI) # % Tenure Own Rent Households Total Households % 63% 37% Cost Burden Under 20% 20-30% 30-35% 35-50% Over 50% 21% 50% 10% 15% 4% Would like to buy a new/different home Own Rent 33% 80% Employment Status Self-employed Employed by others Unemployed, and looking for work Unemployed, not looking for work Full-time homemaker Retired Full-time student Other Average number of employed adults 18% 75% 2% 0% 2% 3% 0% 0% 1.7 Type of Residence Single-family homelcabin Condo/townhouse/duplex Apartment Mobile home Other 40% 37% 14% 6% 3% Household Composition Couple with child(ren) Couple, no child(ren) Adult living alone Unrelated roommates Single parent with child(ren) Family members and unrelated roommates Immediate and extended family members Other % with at least one 65+ person Average number of people in household 32% 18% 30% 8% 8% 1% 4% Work Location Vail Avon Edwards Eagle Beaver Creek Gypsum Other Eagle County Other Summer 20% 18% 16% 20% 7% 12% 6% 28% Winter 30% 19% 12% 14% 8% 12% 3% 28% 11% 2.4 I [lJ Current Residence Avon BasaltlEI .lebel/Frying Pan BurnsiMcCoy/BondlWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Red Cliff Vail Other 10 years or more I i I i 22to 1 % I 2"~o 21%1 i i I i I 5 up to 10 years 3 up to 5 years 2 up to 3 years 1 up to 2 years 6 months up to 1 year less than 6 months 0% 5% 10% 15% 20% 25% 0% 20% 40% 80% 60% Rate where you currently live (rated 4 or 5; scale 1 "poor" - 5 "excellent") Average Condition of home 3.8 Exterior appearance 3.6 Yardnot size 3.2 Adequacy of heating 3.7 Safety/security 3.8 Quality of neighborhood 4.0 Would you leave your employment to work closer to home if similar/suitable employment was available to you? Yes -I would leave my employment No - I would not leave my employment %4,5 Excellent 60% 54% 40% 53% 67% 71% % 67% 33% Do you: Receive housing assistance Live in a deed-restricted residence 3% 7% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 96 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Profile (100 to 120% AMI) Households Total Households # % Cost Burden Under 20% 20-30% 30-35% 35-50% Over 50% 34% 47% 10% 8% 1% Type of Residence Single-family homelcabin Condo/townhouse/duplex Apartment Mobile home Other 39% 47% 8% 4% 2% Household Composition Couple with child(ren} Couple, no child(ren) Adult living alone Unrelated roommates Single parent with child(ren} Family members and unrelated roommates Immediate and extended family members Other % with at least one 65+ person Average number of people in household BasalUEI .lebel/Frying Pan BurnslMcCoy/BondlWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle- Vail Minturn/Red Cliff Vail 33% 28% 22% 5% 5% 4% 1% 1% 9% 2.5 1 % 4% I I': 16% o 204 ~% 1 I 5% 0% 5% 10% 15% 20% 25% Rate where you currently live (rated 4 or 5; scale 1 "poor" . 5 "excellent") Average Condition of home 3.8 Exterior appearance 3.8 Yard/lot size 3.4 Adequacy of heating 3.9 Safety/security 4.0 Quality of neighborhood 4.0 %4,5 Excellent 62% 61% 53% 67% 73% 75% Tenure Own Rent % 67% 33% Would like to buy a new/different home Own Rent 36% 63% Employment Status Self-employed Employed by others Unemployed, and looking for work Unemployed, not looking for work Full-time homemaker Retired Full-time student Other Average number of employed adults 30% 58% 1% 0% 0% 8% 3% 0% 1.8 Work Location Vail Avon Edwards Eagle Beaver Creek Gypsum Other Eagle County Other Winter 25% 19% 18% 18% 13% 9% 7% 19% Summer 24% 18% 20% 17% 12% 6% 9% 24% 10 years or more 5 up to 10 years 3 up to 5 years 2 up to 3 years 1 up to 2 years 6 months up to 1 year Less than 6 months 0% 10% 20% 30% 40% 50% 60% Would you leave your employment to work closer to home if similarlsuitable employment was available to you? Yes - I would leave my employment No - I would not leave my employment % 40% 60% Do you: Receive housing assistance Live in a deed-restricted residence 4% 5% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 97 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Profile (120 to 140% AMI) Households Total Households # % Tenure Own Rent Cost Burden Under 20% 20-30% 30-35% 35-50% Over 50% 41% 47% 4% 7% 0% % 69% 31% Would like to buy a new/different home Own Rent 40% 91% Type of Residence Single-family homelcabin Condo/townhouse/duplex Apartment Mobile home Other 46% 42% 10% 2% 0% Employment Status Self-employed Employed by others Unemployed, and looking for work Unemployed, not looking for work Full-time homemaker Retired Full-time student Other Average number of employed adults Household Composition Couple with child(ren) Couple, no child(ren) Adult living alone Unrelated roommates Single parent with child(ren) Family members and unrelated roommates Immediate and extended family members Other % with at least one 65+ person Average number of people in household I:l Current Residence Avon BasaltlEI .lebel/Frying Pan Burns/McCoy/BondlWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Red Cliff Vail Other 39% 33% 12% 13% 2% 2% 0% 7% 2.7 .\"5% 2~o 0% 5% 10% 15% 20% 25% 30% Rate where you currently live (rated 4 or 5; scale 1 "poor" - 5 "excellent") Average. Condition of home 3.8 Exterior appearance 3.6 Yardnot size 3.1 Adequacy of heating 3.8 Safety/security 4.0 Quality of neighborhood 4.1 %4,5 Excellent 64% 58% 37% 63% 73% 79% 30% 62% 0% 0% 5% 3% 0% 0% 1.9 Work Location Vail Avon Edwards Eagle Beaver Creek Gypsum Other Eagle County Other Winter 29% 17% 16% 14% 10% 10% 7% 26% Summer 28% 14% 18% 17% 11% 10% 7% 26% 10 years or more 5 up to 10 years 3 up to 5 years 2 up to 3 years 1 up to 2 years 6 months up to 1 year Less than 6 months 1 % I I I . Lived in Eagle County ! ! III Worked in Eagle County , 0% 20% 40% Would you leave your employment to work closer to home if similarlsuitable employment was available to you? Yes -I would leave my employment No - I would not leave my employment 60% 80% Do you: Receive housing assistance Live in a deed-restricted residence % 77% 23% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 2% 11% 98 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Profile (Over 140% AMI) Households Total Households # % Cost Burden Under 20% 20-30% 30-35% 35-50% Over 50% 70% 23% 3% 3% 1% Type of Residence Single-family home/cabin Condo/townhouse/duplex Apartment Mobile home Other 52% 42% 3% 2% 1% Household Composition Couple with child(ren) Couple, no child(ren) Adult living alone Unrelated roommates Single parent with child(ren) Family members and unrelated roommates Immediate and extended family members Other % with at least one 65+ person Average number of people in household III Current Residence Avon BasaltJEI .lebel/Frying Pan Bu rnslMcCoy/BondlWolcott Dotsero/Gypsum Edwards Eagle/Brush Creek Eagle-Vail Minturn/Red Cliff Vail Other 31% 40% 12% 10% 1% 4% 2% 1% 8% 2.7 0% 5% 10% 15% 20% 25% 30% Rate where you currently live (rated 4 or 5; scale 1 "poor" - 5 "excellent") Average Condition of home 4.2 Exterior appearance 4.1 Yard/lot size 3.7 Adequacy of heating 4.1 Safety/security 4.3 Quality of neighborhood 4.4 %4,5 Excellent 76% 71% 57% 74% 80% 84% Tenure Own Rent % 78% 22% Would like to buy a new/different home Own Rent 37% 75% Employment Status Self-employed Employed by others Unemployed, and looking for work Unemployed, not looking for work Full-time homemaker Retired Full-time student Other Average number of employed adults 38% 53% 0% 0% 1% 7% 0% 1.9 Work Location Vail Avon Edwards Eagle Beaver Creek Gypsum Other Eagle County Other Winter 25% 21% 18% 14% 12% 5% 4% 26% Summer 25% 23% 18% 15% 10% 6% 3% 30% 10 years or more 5 up to 10 years 3 up to 5 years 2 up to 3 years 1 up to 2 years 6 months up to 1 year Less than 6 months 0% 10% 20% 30% 40% 50% 60% Would you leave your employment to work closer to home if similarlsuitable employment was available to you? Yes -I would leave my employment No - I would not leave my employment % 51% 49% Do you: Receive housing assistance Live in a deed-restricted residence 1% 6% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 99 Appendix B . Census Profile and Trends DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Information from the 2000 Census was reviewed for Eagle County as well as for each of the incorporated cities covered by this study. Decennial U.S. Census figures are based on actual counts of persons dwelling in U.S. residential structures. They include citizens, non-citizen legal residents, non-citizen long-term visitors, and illegal aliens. In recent censuses, estimates of uncounted housed, homeless, and migratory persons have been added to the directly reported figures. Census information provides a benchmark from which other information can be evaluated, in addition to providing insights as to community characteristics at the time of the census. 2000 Census Profile. Eagle County For Eagle County, an evaluation of the Census information revealed the following: . Seasonal/recreational use of homes in Eagle County was about 27 percent, compared to the State at 4.0 percent. Overall, residents occupied about 69 percent of units in Eagle County. . As of the 2000 Census, roughly 59 percent of homes in Eagle County were multi-family units (condominiums, townhomes, apartments and duplex/tri-plexes). Only about 33 percent of the homes were single-family detached structures. Another 9 percent of units were comprised of mobile/manufactured homes. . At the time of the Census, 64 percent of homes occupied as primary residences were owner- occupied. Owners have slightly larger households (2.8 average household size) compared to renters (2.7 persons). Not surprisingly, most owner-occupied homes in Eagle County were occupied by families (70 percent). In the US Census, families are defined as a householder living with one or more people related to him or her by birth, marriage, or adoption. A relatively high percentage of renter occupied homes (41 percent) are also occupied by families. . Residential development increased significantly from 1970 to 1980, in keeping with the overall growth cycle of the state and has continued. Roughly 22 percent of homes were built during this time and an estimated 41 percent of homes have been built from 1990 to 2000. . Turnover in the county was fairly high, with 30 percent of residents noting they had moved into their current residence in the 15 months preceding the 2000 Census. Due to the timing of the US Census (April 2000), it is expected the high turnover is partially due to seasonal workforce conditions. . Eagle County has a slightly higher percentage of one-person renter households (25 percent) than owner households (19 percent). . At the time of the Census, the largest householder age group in Eagle County was 25 to 44 yrs (55 percent). A small percentage of households (5 percent) were headed by seniors (age 65+). This is low compared the State (16 percent). . About 7.3 percent of households were overcrowded in Eagle County as of the Census (defined as having 1.01 persons or more per room). This includes 11.5 percent of renter households and 4.9 percent of owner households. Overcrowding may be slightly inflated due to peak season employment periods. . The median income of owners at the time of the census was 1.5 times more ($73,138) than renters ($47,743). Renters were only slightly more likely to pay 30 percent or more of their income for housing (35 percent) than owners (33 percent). Cost burden is generally a growing problem, as the RRC ASSOCIATES, INC.; REES CONSULTING, INC. 101 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 number of households paying more than 30 percent of their monthly income for housing more than doubled between 1990 and 2000. In addition the percentage of cost-burdened households increased from 29 percent in 1990 to 34 percent in 2000. . At the time of the Census, the median value of single-family, owner-occupied homes was $369,100, an increase of over 170 percent since 1990 ($135,900). Median contract rent increased 75 percent, from $544 in 1990 to $952 in 2000. In comparison, the median household income increased only 70 percent. These figures, along with increasing incidence of cost-burden, indicate that homes are continuing to become less affordable to Eagle County households. . The median family income (as reported by HUD) increased 24 percent between 1999 ($64,33) and 2006 ($80,000). . Some important comparisons between Eagle and the State of Colorado are also worth noting: o The median value of all single-family homes in Eagle County in 2000 ($363,100) was about 2.3 times higher than the state of Colorado as a whole ($160,100); o The median rent in Eagle County ($952) was 1.6 times higher than in the state of Colorado as a whole ($611) in 2000. o The median household income of Eagle County residents ($62,682) was only 1.3 times higher than in the state of Colorado as a whole ($47,203). Eagle County Compared to the State of Colorado; 2000 Census 2 2.5 1.5 Times Higher than the State 0.5 o Median Value Median - Owner Mortgage Occupied ISFl Median Median Median Family Contract Rent Household Income Income Source: 2000 Census On the following pages, tabular summaries of US Census data are presented for reference purposes. Although dated, since the county is now seven years beyond the census, the results provide a relative measure of demographics and household conditions at the time of the census. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 102 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Population and Household Profile (2000) Eagle County, CO - Pop. 41,659 Housing Unit Estimates and Physical Characteristics UselTenure Type of Structure # % # % Housing Units 22,111 100.0% Single-Family 7,209 32.6% Occupied as primary home 15,148 68.5% Multi-Family 12,842 58.1% Owner occupied 9,649 63.7% Mobile Homes 2,045 9.2% Renter occupied 5,499 36.3% Vacant 6,963 31.5% Units in Structure Seasonal/recreational use 5,932 26.8% # % * Percent of occupied units, not total units. 1-unit, detached 7,209 32.6% Occupancy l-unit, attached 3,507 15.9% 2 units 694 3.1% Owner occupied 3 or 4 units 1,763 8.0% 44% 5 to 9 units 2,307 10.4% 10 to 19 units 1,765 8.0% 20 or more units 2,806 12.7% Renter occupied Mobile home 2,045 9.2% 25% Boat, RV, van, etc. 15 0.1% Overcrowding/Occupants per Room # % Year Structure Built 1.00 or less 14,042 92.7% # % 1.01 to 1.50 552 3.6% 1999 to March 2000 1,446 6.5% 1.51 or more 554 3.7% 1995 to 1998 3,781 17.1% Overcrowded 1,106 7.3% 1990 to 1994 3,760 17.0% 1980 to 1989 5,906 26.7% Kitchen and Plumbing Facilities - Occupied Units 1970 to 1979 4,950 22.4% # % 1960 to 1969 1,176 5.3% Complete Kitchen 15,072 99.5% 1940 to 1959 418 1.9% Complete Plumbing 15,064 99.4% 1939 or earlier 674 3.0% Incomplete Kitchen 76 0.5% Built since 1990 8,987 40.6% Incomplete Plumbing 84 0.6% Substandard Units 160 1.1% Year Moved Into Current Residence # % Type of Heat - Occupied Units 1999 to March 2000 4,508 29.8% # % 1995 to 1998 5,855 38.7% 1990 to 1994 2,526 16.7% Utility gas 9,817 64.8% 1980 to 1989 1,513 10.0% Bottled, tank, or LP gas 784 5.2% 1970 -1979 566 3.7% Electricity 3,998 26.4% 1969 or earlier 180 1.2% Wood 419 2.8% Other fuel/none 130 0.9% RRCASSOCIATES, INC.; REES CONSULTING, INC. 103 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Household Demographics Household Size Race/Ethnicity Total Owners Renters # % Avg. Persons/Unit 2.73 2.76 2.67 White 13,665 90.2% Black or African Amer. 35 0.2% Persons Per Unit Am. IndianlAlaska Native 87 0.6% Owners Renters Asian 108 0.7% # % # % Hawaiianl Pacific Islander 6 0.0% 1-person 1,810 18.8% 1,358 24.7% Some other race 1,002 6.6% 2-person 3,402 35.3% 1,757 32.0% Two or more races 245 1.6% 3-person 1,697 17.6% 1,006 18.3% Hispanic or Latino 2,181 14.4% 4-person 1,663 17.2% 744 13.5% Household Type 5-person 647 6.7% 305 5.5% Owners Renters Total % 6-person 225 2.3% 178 3.2% Total 9,649 5,499 15,148 100.0% 7+ person 205 2.1% 151 2.7% Family households 6,740 2,280 9,020 59.5% Total 9,649 100.0% 5,499 100.0% Married-couple 5,960 1,621 7,581 50.0% Bedrooms Per Housing Unit Male householderl no wife 301 297 598 3.9% # % Female householderl no 479 362 841 5.6% husband No bedroom 547 2.5% Nonfamily households 2,909 3,219 6,128 40.5% 1 bedroom 2,157 9.8% Male householder 1,723 2,088 3,811 25.2% 2 bedrooms 6,449 29.2% 3 bedrooms 8,081 36.5% Living alone 1,053 848 1,901 12.5% 4 bedrooms 3,770 17.1% Not living alone 670 1,240 1,910 12.6% 5 or more bedrooms 1,107 5.0% Female householder 1,186 1,131 2,317 15.3% Living alone 757 510 1,267 8.4% Senior Households Not living alone 429 621 1,050 6.9% Age of Householder Owners Renters Total 65 to 74 years 471 91 562 Age Distribution 75 to 84 years 162 41 203 Age of Householder Owners Renters Total % 85 years and over 28 12 40 15 to 24 years 189 918 1,107 7.3% Total 661 144 805 25 to 34 years 1,843 2,221 4,064 26.8% % of Households 6.9% 2.6% 5.3% 35 to 44 years 3,035 1,220 4,255 28.1% 45 to 54 years 2,641 763 3,404 22.5% Households with Children 55 to 64 years 1,280 233 1,513 10.0% # % 65 to 74 years 471 91 562 3.7% Total Households 15,148 100.0% 75 to 84 years 162 41 203 1.3% With one or more persons <18 5,254 34.7% 85 years and over 28 12 40 0.3% Married-couple family 4,144 27.4% Single parent family 1,031 6.8% Nonfamily households 79 0.5% RRCASSOCIATES, INC.; REES CONSULTING, INC. 104 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Income, Housing Costs and Affordability 1999 Median Incomes Median Housing Prices/Costs Median in 1999 Household Income $62,682 2000 Owner Households $73,138 Value - Owner Occupied (SF) $369,100 Renter Households $47,743 Value - Owner Occupied (all) $300,900 Family Income $68,226 Mortgage $1,791 Per Capita Income $32,011 Gross Rent $1,007 2006 Median Family Income - Eagle County (HUD) Contract Rent $952 50% 80% 100% Value of Owner-Occupied Units 1 person $28,000 $41,700 $56,000 2 person $32,000 $47,700 $64,000 SF# SF% 3 person $36,000 $53,650 $72,000 Less than $50,000 21 0.4% 4 person $40,000 $59,600 $80,000 $50,000 to $99,999 79 1.4% 5 person $43,150 $64,350 $86,333 $100,000 to $149,999 113 2.0% 6 person $46,350 $69,150 $92,833 $150,000 to $199,999 274 4.9% Change - Median Family Income, 1999 -2006 (HUD) $200,000 to $299,999 1329 23.6% 1999 2006 % Change $300,000 to $499,999 2333 41.4% $64,333 $80,000 24.4% $500,000 to $999,999 1054 18.7% Income Distribution $1,000,000 or more 438 7.8% Owners Renter Total % Less than $5,000 77 165 242 1.6% Mortgage Amount $5,000 to $9,999 121 147 268 1.8% SF# SF% $10,000 to $14,999 144 220 364 2.4% Less than $300 0 0.0% $15,000 to $19,999 177 184 361 2.4% $300 to $499 25 0.4% $20,000 to $24,999 279 362 641 4.2% $500 to $699 65 1.2% $25,000 to $34,999 545 813 1358 9.0% $700 to $999 341 6.0% $35,000 to'$49,999 1290 953 2243 14.8% $1,000 to $1,499 1,213 21.5% $50,000 to $74,999 2333 1407 3740 24.7% $1,500 to $1,999 1,181 20.9% $75,000 to $99,999 1718 652 2370 15.6% $2,000 or more 1,837 32.6% $100,000 - $149,999 1657 407 2064 13.6% With a mortgage 4,662 82.6% $150,000 or more 1314 183 1497 9.9% Not mortgaged 979 17.4% Percent of Income Spent on Housing Gross Rent Owners Renters Total # % <15% 1646 938 2,584 Less than $200 49 0.9% 15 to 19% 689 763 1 ,452 $200 to $299 80 1.5% 20 to 24% 771 900 1,671 $300 to $499 413 7.6% 25 to 29% 649 623 1,272 $500 to $749 1,034 19.1% 30 to 34% 491 389 880. $750 to $999 965 17.9% 35+% 1,387 1,478 2,865 $1,000 to $1,499 1,831 33.9% Not computed 8 311 319 $1,500 or more 774 14.3% % Cost Burdened . No cash rent 256 4.7% 33.3% 34.6% 33.9% # Cost Burdened 1,878 1,867 3,745 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 105 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Trends and Comparisons 1990 2000 % Change Population 21,928 41,659 90.0% 70% 80%+ 66% Housing Units & Households # Housing Units 15,226 22,111 45.2% # Occupied Housing Units 8,354 15,148 81.3% .. 51-80% Ol t:: ... Recreational/Occasional 5,138 5,932 15.5% 0:: Si Total Vacant 6,872 6,963 1.3% ct 31-50% Homeownership Rate 57.5% 63.7% 10.8% Household Size 0-30% Renters 2.42 2.67 10.3% Owners 2.75 2.76 0.4% 0% 20% 40% 60% 80% Overcrowded Units 411 1,106 169.1% Percent of Households Affordability Eagle County % Increase, 1990 & 2000 Cost Burdened Households # 1,755 3,745 113.4% Cost Burdened Households % 29.2% 33.9% 16.1% 180% Average Incomes 160% Household Income $36,931 $62,682 69.7% 140% 120% Family Income $41,183 $68,226 65.7% 100% Per Capita Income $18,202 $32,011 75.9% 80% Average Housing Costs 60% Contract Rent $544 $952 75.0% 40% Value - Owner Occupied $135,900 $369,100 171.6% 20% Mortgage Pmt. $1,031 $1,791 73.7% 0% Household Contract Rent Value - Mortgage Income Owner Pm!. Occupied Owner Occupied Units Renter Occupied Units Median Value - Owner Occupied (SF) Median Mortgage (SF) Median Contract Rent Median Household Income Median Family Income Change in Household Income, 1990 - 2000 % Cost Burdened Residential Growth Rate, 1990 - 2000 Comparison to State of Colorado State of Colorado 67.3% 32.7% $160,100 $1,197 $611 $47,203 $55,883 56.6% 29.3% 22.4% Eagle County 63.7% 36.3% $369,100 $1,791 $952 $62,682 $68,226 69.7% 33.9% 45.2% RRCASSOCIATES, INC.; REES CONSULTING, INC. 106 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 2000 Census-Community Highlights A comparison of the housing characteristics and demographics for each community was prepared using the 2000 Census. Notable observations among the communities include: · The three communities with the highest percentage of single-family structures are Redcliff (78 percent), Gypsum (63 percent) and EI Jebel (59 percent). Correspondingly, the two communities with the lowest percentage of single-family structures are Avon (9 percent) and Vail (12 percent), which also have the highest percentage of multi-family structures (83 and 88 percent respectively). · The communities with the largest percentage of units constructed between 1995 and March 2000 are Edwards (42 percent), Gypsum (36 percent) and Eagle (34 percent). Red Cliff (3 percent) and Vail (8 percent) had the lowest percentage of units constructed during that same time period. Significantly, Vail, between 1990 and 2000, saw a decrease in housing units from 6,102 in 1990 to 5,389 in 2000 (-11.7 percent). One explanation for this decrease is the conversion of large multi- unit structures, generally 20 units or more, into single-family residences and structures with between 3 and 9 units. · The communities with the largest percentage of units constructed between 1995 and March 2000 are Edwards (42 percent), Gypsum (36 percent) and Eagle (34 percent). Red Cliff (3 percent) and Vail (8 percent) had the lowest percentage of units constructed during that same time period. · The largest percentage of owner occupied homes were in EI Jebel (80.3 percent), Gypsum (75.7 percent) and Edwards (72.5 percent). On the other hand, the communities with the highest percentage of renter occupied units were Avon (52.7 percent), Minturn (48.6 percent) and Vail (47.7 percent). Vail, by a large margin, also had the highest percentage of vacationlsecond homeowner units (59.8 percent). The next closest in percentage to Vail is Edwards at 27.9 percent vacation/second homeowner units. · The communities with the largest percentage of married couples with children were Gypsum (44 percent), EI Jebel (40 percent) and Eagle (37 percent). Vail (32 percent) and Avon (27 percent) had the highest percentage of households living with non-related roommates. · The communities with the highest median household income are Edwards ($70,869), Basalt ($67,200) and Eagle ($62,750). These do not necessarily correspond to the median single-family home prices, where Eagle's is among the three lowest median home prices ($278,400). Vail has the highest median home price ($575,000) with Edwards ($487,900) and Eagle ($417,400) following. · Avon, of all the communities, has the highest percentage of overcrowded units (16 percent) and the highest percentage of cost-burdened households (42 percent). RRC ASSOCIATES, INC.; REES CONSULTING, INC. 107 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Description Eagle Avon Basalt Eagle Edwards EI Jebel Gypsum Minturn Red Cliff Vail County Population 41,659 5,561 2,681 3,032 8,257 4,488 3,654 1,068 289 4,531 Housing Units Housing Units 1990 15,226 1,344 507 624 N/A 921 642 434 98 6,102 Housing Units 2000 22,111 2,557 1,218 1,116 3,953 1 ,483 1,210 448 122 5,386 % Change 1990 to 45.2% 90.3% 140.2% 78.8% N/A 61.1% 88.5% 3.2% 24.5% -11.7% 2000 Tenure Occupied as primary 15,148 1,890 1,052 1,064 2,852 1,433 1,150 399 109 2,165 Home Owner Occupied 63.7% 47.3% 67.5% 63.4% 72.5% 80.3% 75.7% 51.4% 67.9% 52.3% Renter Occupied 36.3% 52.7% 32.5% 36.6% 27.5% 19.7% 24.3% 48.6% 32.1% 47.7% Vacant 31.5% 26.1% 13.6% 4.7% 27.9% 3.4% 5.0% 10.9% 10.7% 59.8% Type Single-family 33% 9% 45% 49% 37% 59% 63% 57% 78% 12% Multi-family 58% 83% 49% 44% 51% 9% 18% 20% 8% 88% Mobile homes 9% 8% 5% 7% 11% 33% 19% 22% 14% 0% Other 0% 0% 0% 0% 0% 0% 0% 1% 0% 0% Year Structure Built Total Units 1995 to March 2000 24% 29% 30% 34% 42% 20% 36% 15% 3% 8% 1990 to 1994 17% 27% 25% 12% 28% 25% 12% 6% 2% 6% 1980 to 1989 27% 29% 23% 17% 22% 31% 23% 6% 5% 26% 1970 to 1979 22% 14% 7% 15% 5% 19% 15% 18% 26% 49% 1960 to 1969 5% 1% 7% 5% 3% 4% 3% 14% 5% 10% 1940 to 1959 2% 0% 4% 8% 0% 1% 2% 17% 7% 0% 1939 or earlier 3% 0% 4% 9% 0% 0% 8% 24% 52% 0% Year Moved to Current Residence 1995 to March 2000 68% 81% 72% 67% 77% 51% 67% 59% 47% 64% 1990 to 1994 17% 15% 18% 14% 16% 26% 15% 10% 5% 18% 1980 to 1989 10% 4% 7% 9% 5% 17% 13% 12% 8% 11% 1970 to 1979 4% 0% 2% 7% 2% 5% 3% 8% 15% 6% 1969 or earlier 1% 0% 0% 2% 0% 1% 1% 11% 24% 1% Avg. Persons per Unit Total 2.73 2.81 2.55 2.80 2.89 3.12 3.17 2.68 2.65 2.09 Owner households 2.76 2.64 2.61 2.89 2.89 3.06 3.15 2.80 2.45 2.07 Renter households 2.67 2.95 2.42 2.66 2.91 3.36 3.23 2.55 3.09 2.11 RRC ASSOCIATES, INC.; REES CONSULTING, INC. 108 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Description Eagle Avon Basalt Eagle Edwards EI Jebel Gypsum Minturn Red Cliff Vail County Persons per Units 1-person 21% 21% 24% 21% 18% 14% 12% 20% 23% 33% 2-persons 34% 32% 34% 30% 35% 29% 29% 36% 29% 41% 3-persons 18% 18% 18% 17% 17% 20% 20% 17% 22% 14% 4-persons 16% 14% 16% 20% 16% 20% 21% 15% 15% 8% 5+ persons 11% 14% 8% 12% 14% 16% 17% 12% 11% 3% Bedrooms per Unit None 2% 3% 2% 3% 2% 1% 0% 5% 2% 4% 1-bedroom 10% 17% 9% 13% 4% 4% 0% 9% 11% 13% 2-bedrooms 29% 41% 33% 18% 24% 18% 0% 31% 41% 37% 3-bedrooms 37% 27% 34% 48% 37% 55% 0% 40% 37% 28% 4+ bedrooms 22% 13% 21% 19% 33% 21% 0% 14% 10% 18% Household Type Senior Headed Households (age 65+) 5% 3% 5% 9% 5% 5% 4% 8% 18% 7% Married couple with children 27% 22% 27% 37% 31% 40% 44% 25% 24% 10% Married couple without children 23% 18% 23% 22% 26% 21% 25% 24% 26% 20% Single parent 9% 12% 11% 11% 10% 13% 11% 13% 14% 5% Living alone 21% 21% 24% 21% 18% 14% 12% 20% 23% 33% Other non-family 20% 27% 15% 9% 16% 11% 8% 19% 14% 32% Household Income Median Household Income $62,682 $56,921 $67,200 $62,750 $70,869 $60,685 $59,671 $51,736 $50,104 $56,680 Home Value Median Value (Own, SF) $369,100 $373,000 $417,400 $278,400 $487,900 $335,600 $234,500 $312,700 $180,400 $575,000 Median (Own, ALL) $300,900 $230,200 $379,900 $265,500 $373,800 $263,400 $222,400 $289,000 $170,800 $340,900 Mortgage Median Mortgage $1,791 $2,037 $1,750 $1,551 $2,300 $1,657 $1,401 $1,635 $967 $1,901 Contract Rent Median $952 $954 $1,159 $738 $1,057 $1,027 $785 $734 $1,053 $904 Race/Ethnicity , White 90.2% 80.3% 94.6% 91.0% 89.7% 92.2% 86.1% 87.2% 66.1% 95.4% Black or African Amer. 0.2% 0.7% 0.1% 0.3% 0.2% 0.0% 0.3% 0.3% 0.9% 0.1% Hispanic or Latino 14.4% 26.2% 7.1% 11.7% 14.7% 18.7% 22.9% 36.3% 51.4% 4.2% Some other race 9.6% 19.0% 5.3% 8.7% 10.1% 7.8% 13.7% 12.5% 33.0% 4.5% RRC ASSOCIATES, INC.; REES CONSULTING, INC. 109 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Description Eagle Avon Basalt Eagle Edwards EI Jebel Gypsum Minturn Red Cliff Vail County Percent AMI <30% 7% 10% 7% 4% 4% 7% 5% 9% 12% 7% 30 to 50% 9% 13% 7% 7% 10% 9% 10% 16% 6% 10% 50.1 to 80% 14% 14% 14% 7% 12% 18% 15% 19% 22% 14% 80.1 to 100% 16% 15% 13% 16% 12% 20% 25% 14% 20% 17% 100.1 to 120% 13% 14% 9% 17% 12% 12% 13% 11% 25% 13% 120.1% to 140% 9% 6% 14% 12% 10% 10% 12% 8% 6% 8% Over 140% 32% 27% 37% 37% 40% 24% 20% 22% 9% 32% Housing Problems Overcrowded units (#) 1,106 285 65 72 181 129 108 30 7 82 Overcrowded units (%) 7% 16% 6% 7% 6% 9% 9% 7% 6% 4% Substandard units (#) 160 9 9 5 10 0 19 4 10 28 Substandard units (%) 1% 0% 1% 0% 0% 0% 2% 1% 9% 1% Cost-burdened (30% or more for housing) (#) 3,745 552 314 218 731 345 305 101 24 517 Cost-burdened (30% or more for housing) (%) 34% 42% 39% 25% 36% 36% 34% 30% 25% 33% RRCASSOCIATES, INC.; REES CONSULTING, INC. 110 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Appendix C - Employer Survey Form and Open-Ended Comments RRC ASSOCIATES, INC.; REES CONSULTING, INC. 111 EAGLE COUNTY DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 EMPLOYER SURVEY Eag/e County is sponsoring this study on housing. We need input from employers in the area to determine the extent to which the availabi/ity of housing for the workforce may be impacting employers and business operations and how. needs may best be addressed. Information on your future business plans wiff help us better understand the housing-related needs of businesses and employees. Please respond to the questions below for all business locations of the same type you operate in Eagle County. If you operate more than one type of business in the county, please complete a separate survey for each business type. Note that all results are strictly confidential and the responses from individual businesses wiff not be reported. Your participation in this effort is greatly appreciated. If you have questions regarding this questionnaire, please contact Sarah Brown at RRC Associates, Inc., the independent company assisting the County with this survey, at 1-888-449-4772, ex! 120 (toll free). Thank you for your help. 1. Name of business Contact person (in case we have questions) Phone Fax 2. Type of business: 01) [] Bar/restaurant 02) [] Construction 03) [] Education 04) [] Finance/banking 05) [] Government, transportation, public utilities 06) [] Professional services (legal, medical, technical, etc.) 07) [] Lodging/hotel How many rooms/units 08) [] Real estate/property do you manage? management rooms or units 09) [] Commercial and personal services (auto repair, home/ appliance repair, day care, salon, dry cleaner, etc.) 10) [] Recreation/entertainment 11) [] Retail sales (grocery, sporting goods, etc.) 12) [] Manufacturing or wholesale trade 13) [] Warehouse/storage 14) [] Utilities 15) [] Other: 3. How many business locations do you have in Eagle County? # 4. What percentage of your business is conducted in Eagle County? % 5. What is the approximate net square footage of floor area your business occupies (include all Eagle County locations)? Please estimate your space as accurately as possible. SF Net F/oor Area square footage is the /easeab/e area in which the actual retailing, dining, repair, personal service (massage. medical service, etc.) or office activity occurs. Net square footage does not include hallways, bafhrooms, walls. garages (except commercial parking lots) or storage areas (not associated with business activity). 6. Please indicate approximately how many YEAR ROUND AND SEASONAL workers you employ at your Eagle County location(s). WINTER SUMMER NUMBER OF EMPLOYEES YEAR-ROUND SEASONAL SEASONAL Full-time (30+ hrslwk) Part-time (<30 hrs/wk) TOTAL 7. How many of your employees speak Spanish as their primary language? _ Number of employees 8. If you hire seasonal employees, approximately what percent return to work for you from past seasons? _% of retuming SUMMER seasonal workers _% of returning WINTER seasonal workers 9. How many positions with your business are currently unfilled? WINTER NUMBER OF EMPLOYEES YEAR-ROUND SEASONAL Full-time (30+ hrslwk) Part-time (<30 hrs/wk) TOTAL 10. If you have unfilled positions, can you briefly state why they are unfilled (e.g., lack of applicants, not currently looking to fill them, just became available, etc.)? 11. How does the number of employees you have today compare to the number of employees you had 5 years ago? 1) [] More employees today than 5 years ago 2) [] Fewer employees today than 5 years ago 3) [] No change (GO TO Q. 13) 4) [] N/A - not in business 5 years 12. If you have more employees today, please choose the ONE main reason why you have more employees: 1) [] Increased the size of space in which you do business 2) [] Increased the number of locations for your business 3) [] More employees in the same space - expanded hours 4) [] More employees in the same space - more demanding clientele 5) [ ] Other. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 112 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 1. Within the next two years, do you plan to: 1) [) Increase your number of employees: How many? _# 2) [] Reduce your number of employees: How many? _ # 3) [] Stay about the same 4) [] Don't know 2. How many of your employees will be retiring over the next two years? # 3. How many people, in your estimation, were not hired or left your employment last year because they: Lacked housing: persons Lacked transportation: persons Lacked day care: persons Found cost of living in Eagle County was too high: persons 4. Do you feel that the availability of affordable housing for the workforce in Eagle County is: 1) [] Not a problem 2) [] One of the region's lesser problems 3) [] A moderate problem 4) [] One of the more serious problems 5) [] The most critical problem in the region 5. How has the ability to recruit and retain qualified employees changed for your business over the past three years? 1) [] Improved/gotten easier 3) [] Declined/gotten harder 2) [] Stayed about the same 4) [] Don't knowlnot applicable 6. To the best of your knowledge, where do your employees live? (Please enter the aDDroximate number or Dercentaae of employees that reside in each location.) NUMBER OR PERCENT 01) _# _0/0 Vail 02) _# _% Edwards/Homestead/Singletree 03) _# _0/0 Avon 04) _# _% BeaverCreekJArrowhead 05) _# _% Eagle-Vail 06) _# _% Gypsum 07) _# _0/0 Minturn/Red Cliff 08) _# _0/0 Eagle 09) _# _0/0 Rural areas 10) _# _0/0 Summit County 11) _# _% LakeCounty/Leadville 12) _# _% GarfieldCounty 13) _# _0/0 Other: TOTAL # 100% 7. Does your business provide your employees with any of the following work commute options? (CHECK ALL THAT APPL Y) 1) [] Buslshuttle service (operated by your business) 2) [] Bus passeslcoupons 3) [] Car pooling/van pooling 4) [] On-site company vehicle for employee errands 5) [] Travel stipend (i.e., travel time compensation, etc.) 6) [] Telecommuting-Number of employees? _# 7) [] Other: 8. Do you assist with housing for any of your employees? 1) [] No (GO TO Q. 21) 2) [] Yes-For how many employees? _# AND Please briefly describe the type of assistance you provide (e.g., rent assistance, master lease units, down payment assistance, home search assistance, etc.) 9. In the future, would you be willing to assist your employees with housing through one or more of the following methods? YES NO UNCERTAIN Master leasing rental units............ 1.................2 .................x Security deposits ..........................1.................2 .................x Rent subsidies ..............................1................. 2.................x Down payment loanslgrants .........1.................2 .................x Mortgage guarantees ................... 1.................2 .................x Mortgage subsidies ...................... 1................. 2 .................x Building housing on site................ 1.................2 .................x Building housing off site................ 1.................2 .................x Purchase existing housing............ 1.................2 .................x 10. Do you support a regional, countywide approach to produce affordable employee housing through any of the following? YES NO UNCERTAIN Administration of the housing authority......1.............2.............x Development requirements........................ 1.............2 .............x Feesltaxes for housing............................... 1............. 2 .............x Incentives for housing ................................1.............2 .............x Deed restrictions ........................................1.............2 .............x Do you have any additional comments about housing issues? Thank you for your participation. Please return the survey by faxing to (303) 449.6587. Check a/1 that apply: D Please enter me in the drawing for a $50 grocery certificate. D I would be willing to participate in a future focus group or research to help plan housing. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 113 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Eagle County Employer Survey Comments, Verbatim Why you have unfilled positions · Between seasons · Can't find laborers · Cost of housing · Cost of living too high - cannot attract qualified people · Difficulty finding qualified professionals · Green card, CDL licence, speak English · Hiring freeze · Just became available (7) · Just became available or lack of qualified candidates · Lack of applicants - badly · Lack of applicants (15) · Lack of applicants and affordable housing · Lack of applicants and people say it is too expensive to live up here · Lack of applicants due to high housing costs · Lack of applicants that have flexible hours because people have 2 jobs · Lack of applicants, lack of people willing to relocate · Lack of applicants; cannot find 6-month leases in Eagle County · Lack of applicants; just became available 2 · Lack of applicants; lack of knowledge and experience · Lack of applicants; season change · Lack of office space · Lack of qualified (or even unqualified) applicants · Lack of qualified applicants (6) · Lack of qualified, responsible applicants · Lack of skilled applicants · Lack of skilled help · Lack of skilled labor · Lack of workers, no response to ads · Leaving due to lack of affordable housing · Mostly summer seasonal openings; visas expiring · New position · No skilled labor available in this area, no affordable housing available · Not looking to fill · Not needed until summer · Too late in season to retrain Other type of business · Non-profit · Private airport Other reason you have more employees than 5 years ago · Acquired other condos · Busier RRC ASSOCIATES, INC.; REES CONSULTING, INC. 114 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Busier! · Client base increase · Growing business · Growing business · Growing business · Growing population, more services required (2) · Growth in business · Increase in service demand · Increased business · Increased business · Increased demand · Increased number of projects · Larger population, more pupils · More business · More business · More construction jobs · More jobs going simultaneously · More projectsllarger jobs · More shifts - going to 7 -days a week · More work · More work · Service demands · Tripled size of business Other employee residence location · Aspen · Aspen, Snowmass, Telluride area · Basalt · Basalt · Bond, Wolcott, Glenwood Springs · Carbondale, Basalt · Chaffee, Routt, Mesa · Denver · Denver · Dotsero · Grand Junction · Homeless, staying with owner in rural area · Kremmling · Park County · Pitkin County · Pitkin, Denver · Routt, Denver Other work commute options provided · Car rentals · Eight have company vehicles RRC ASSOCIATES, INC.; REES CONSULTING, INC. 115 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Flex-time · Flex-time · Free parking underground Riverwalk · Fuel reimbursement for business errands · Mileage reimbursement · Mileage reimbursement · Pay for gas Other housing assistance provided · Affordable rent in my own home · Cost of living adjustments, relocation bonus, home search, loans for down payments · Down payment assistance · Down payment assistance · Down payment assistance, own homes for employee purchase or rent with deed restrictions · Employee housing unit · Home search assistance · Home search assistance and application to Middle Creek - Middle Creek is awful · I own condo, temp people stay there · Interest free loan to move into Basalt · Low rent in on-site housing · Lower deposit, no credit check, can leave/start contract at any time, apartments are fully furnished · Master lease units 4 · Occasional temporary subsistence as they relocate, get settled or work away from "home base" · Onsite housing · Onsite housing, first-time homeowner incentive, master leasing · Paid well · Pay half rent · Provide home search assistance, provide housing on premises · Relocation allowance, no interest short term loan · Rent assistance · Rent assistance and master lease units · Rent assistance, master lease, built 8 units for employees required by Vail when built school · Rent paid · Rental advance up to $3,000 or 2/3, paid back through payroll deductions · Search and secure for them · Sublease apartments from county and rent to employees at a discount · Town owned residence · We are buying a house for employee housing as I cannot get skilled labor to move to the area without affordable housing · We are exploring a down payment assistance program · We partner with the town of Vail who provide housing for golf operations in the summer RRC ASSOCIATES, INC.; REES CONSULTING, INC. 116 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Appendix 0 - Household Survey Form and Open-Ended Comments RRC ASSOCIATES. INC.; REES CONSULTING, INC. 117 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 HOUSEHOLD SURVEY - Eagle County The purpose of this survey is to understand the housing needs and preferences of Eagle County households. The results of the survey can help Eagle County understand and plan for existing and future housing needs in the area. Please return this survey in the postage-paid envelope within 10 days of receipt. Be assured that your responses are completely CONFIDENTIAL and will be used for planning purposes only. If you have any questions, please contact Sarah Brown at RRC Associates, Inc. (1.888.449.4772, ext. 120, toll-free). 1. Where is your residence located? 01) [ ] Avon 02) [ ] BasaltlEI Jebel/Frying Pan 03) [ ] Beaver Creek/Arrowhead 04) [ ] Bond/McCoy/Hwy 131 05) [ ] Burns/Colorado River Road 06) [ ] Dotsero 07) [ ] Edwards 08) [ ] Eagle/Brush Creek 09) [ ] Eagle-Vail 10) [ ] Gypsum/Gypsum Creek 11) [ ] Minturn/Redcliff 12) [ ] Vail-Incorporated 13) [ ) Vail-Unincorporated 14) [ ] WolcotUBellyache Ridge 15) [ ] Other: 2. What type of residence do you live in? 1 A artment 3) [ ] Single-family home/cabin 2) [] Mobile home: 4) [ ] Condo/townhouse/duplex [ ] On owned land 5) [ ] Other: [ ] On rented lot 3. How many bedrooms are in your home? 4. Which of the following best describes your household? 1) [] Adult living alone 2) [] Single parent with child(ren) 3) [] Couple, no child(ren) 4) [] Couple with child(ren) 5) [] Unrelated roommates 6) [] Family members and unrelated roommates 7) [] Immediate and extended family members 8) [] Other: 5. Do you receive housing assistance, rent a unit from an employer or live in subsidized housing for employees? 1) [] No 2) [] Yes 3) [] Uncertain 6. Is your residence deed-restricted? 1) [] No 2) [] Yes (if Yes) Which Comp/ex or Neighborhood? 3) [] Uncertain 7. How many months per year do you typically reside in the area? 1) [) Less than 3 months/year 3) [] 7 to 11 months/year 2) [] 3 to 6 months/year 4) [] All year - 12 months 8. How many people live in your household and are in the following age groups? VNCLUDE YOURSELF-INSERT '0' /F NONE) #_ Total number of persons in household #_ Under 18 7 Ages of children: #_ Under 5 #_18t025 # 5toll #_ 26 to 45 # 11 to 17 #_46 to 65 #_ Over 65 9. How long have you worked in Eagle County? How long have you lived in Eagle County? WORKEO IN UVED IN 1) a) 3) 4) 5) 6) 7) 10. How is your household likely to change over the next 5 years? (MARK ALL THA T APPL Y) 1) [J Household unlikely to change 2) [] Will have children/more children 3) [] Children will leave home 4) [] Elderly parent will move in 5) [] Will no longer have roommates 6) [] Will retire 7) [] Will move out of Eagle County 8) [] Other 11. Please rate the following aspects of where you currently live: POOR GOOD EXCELLENT of home 1 2 3 4 5 12. Which choice best describes your satisfaction with your current residence: 1) [] Very satisfied 2) [J Satisfied 3) [ ] Not satisfied 4) [ ] Very dissatisfied 13. Which choice best describes your satisfaction with the community you live in: 1) [] Very satisfied 2) [J Satisfied 3) [ ] Not satisfied 4) [ ] Very dissatisfied RRCASSOCIATES, INC.; REES CONSULTING, INC. 118 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 14. If not satisfied or very dissatisfied with your residence or community, can you briefly describe why? 15. IF YOU WERE TO BUY OR RENT A DIFFERENT HOME, which of the following communities would be your first choice and second choice of where to IlYe, Issumlng that housing would cost the time in .8th community? RRST CHOICE 15) (J ( J other: 16. Do you own or rent your residence? 1) (J Own (GO TO Q.20) 2) (J Rent 3) (I Other -caretaker, house sit, stay with friends IF YOU RENT, CARETAKE OR OTHERWISE DO NOT OWN YOUR RESIDENCE: 17. Within the next three years, do you want to: 1) (J Buy a home (GO TO Q.21) 2) (J Stay at same residence (GO TO Q.27) 3) (. J Consider ren~ng a new or different home (CONT. TO Q.18) IF YOU WOULD CONSIDER RENTING A NEW OR DIFFERENT HOME: 18. IF YOU WOULD CONSIDER ~ A HOME, using a 1, 2 and 3, where "1" is your first choice, please rank your top three housing preferences to .!1D1: (MARK ONL Y THREE) Apartment Condominium T ownhouselduplex Mobile home Room without kitchen Siogle-famHy detached house Caretaker unit Dormitory with efficiency kitchen Private room and bath, shared kitchen & living room Other. 19. IF YOU WOULD CONSIDER fW!DtKi A HOME, list your preferences for the following: LOW HIGH PREFERENCE ~ Long-term lease (12+ mos.) 1 2 3 4 5 ~j~S$~tt..;.i_) c'<<t~,: ..3' ,,'4;;$; Affordability 1 2 3 4 5 ~'to!lMillJe_~' t,.;" .~..,;<;a:;'...!I. ..$;. (GO TO Q.27) IF YOU ARE CURRENTL Y A HOMEOWNER: 20. Are you looking for a new home, or would you consider buying a different home within the next 2 to 3 years? 1) I J No (GO TO Q. 27) 2) I J Yes, I want to buy a home IF YOU WOULD CONSIDER BUYING A NEW OR DIFFERENT HOME: 21. IF YOU WANT TO BUY A HOME, why? 1) (J To be closer to work 6) (J To live in a more 2) ( J To find a larger home rural selling 3) (J To live in a different 7) (J To find a less community expensive home 4) (J To find a smaner home 8) (J Other (please describe): 5) [ J To live closerto cityl town services 22. IF YOU WANT TO IllCt. A HOME, what type of residence would you choose and how many bedrooms would you need? 23. IF YOU WANT TO iYl A HOME, how much would you be willing to pay to mm;!!m your first and second choice home (from Q.22 above)? RRST SECOND 2SlS 2SlS 01) (J (J Less than $95,000 02) I 1 (J 595,000 to 5124,999 OJ) (J (J $125,000 to $149.999 04) (J (] $150,000 to $199,999 OS) I ] (] $200.000 to 5249,999 (6) I J I] $250,000 to $299,999 07) I ) I] $300,000 to $349,999 08) (J [J $350,000 to $399,999 09) I] (] $400,000 to $499,999 10) I 1 I J $500,000 to $599.999 11) ( J (J S6OO,oooormore 24. Would you be willing to pay more for a home that is located In your FIRST CHOICE COMMUNITY (from Q.15 above)? f) (J Yes: How much more? $ ___~___________"_________ 2) (J No 25. To live in your FIRST CHOICE COMMUNITY, would you consider purchasing a deed.restrlcted residence (an affordable residence Priced below market rate that could appreciate In value at most 3.5 percent per year)? ( ] Yes, if I could pay less than the amount reported in Q.23 How much less? $ I ] Yes, for the amount reported in Q.23 ( ] No ( J Uncertain Any comments on your response? 26. How much do you have available for a down Dlvment? (Include the portion of home equity you could spend on a down payment if you were to sell II home you now own.) $ -- RRC ASSOCIATES, INC.; REES CONSULTING, INC. 119 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 ALLSURVEYPARnaPANTS 27. If at least one person is age 65 or older in your household, please indicate how likely you would be to use the following services. (Use I scale of 1 for "Would not use" to 5 for "Definitely would use." Please circle OK for don't know, as appropriate.) WOULD NOT USE 1 2 DERNlTEL Y WOULD OIIIIt USE K#I()W 3 4 5 OK ;';-- ". 1,i,'S'45OK 2 3 4 5 OK 28. When you retire, how likely are you to stay in the region? NOT AT ALL EXTREMa Y LIKEL Y LIKEL Y 1 2 3 4 5 29. If you own a free market home in Eagle County, are you planning to sell it when you retire? 1) () 'ls 2) () No 3) () Don'tknow (IF YES) Where will you move upon retirement? 1) (] Stay in the same community 2) () Move elsewhere in Eagle County: Where? 3) () Move out of Eagle County 30. Please indicate how important the following factors were to you when selecting your current place of residence. (Use a scale from 1 to 5 where 1 = Not At All Important and 5 = Extremely Important) NOT AT AU. /IIPORTANT Proxll1litY to my place of empIoynIent 1 2 Proximity to places of employment for other members of my household 2 Proxinity to Sl!IVices (shopping, traJ1sPor1alitln, etc) 2 Proximity to daycare 2 ~~of~ 2 Community amenities (recreation, parks, libraries, ele.) 2 ComIl1\.Wl~~(famlly~, neighbOrtK:lod ~, e(C.) 2 Cost of h~ing to bUY/rent 2 Type of~ Csingfe-faiJllY, d., COI'IdOminh,m. etC.) 2 Proximity to bus/shuttle service 2 Proxll1litY to skiinglouldoor recreation 2 Other important considerations? EXTREMEL Y ITIIPORTANT 3 4 5 3 4 5 3 4 5 3 4 5 3 4 5 3 4 5 3 4 5 3 4 5 4 5 4 5 4 5 31. For you and your household, please rate the importance of the following items in your choice for housing. (Use I scale from 1 to 5 where 1 = Not At All Important and 5 = Extremely ImpottantJ AMENITIES EIlergy .eIfk:Ien(:y In-unit washer/dryer on-st,e.laundry ~ Garage/covered parking Sunlight Extra storage 0Ilice sp.l!C!tfof tM,I$ines$use Workshop space MldfipIe bathJOOms NElGHBORHOODIPROPERTY FEA TURfS ~ yard/olJtdClClt'~ Shared common areas Woodbuming Slowed Woodbuming prohibited Gartle!l space Pets allowed liveslDck aIIOWlld Other features or amenities: NOTATAU. EXTREMELY IIIPORTANT IIIPORTANT 1 2 ~ 4 5 1 2 4 5 234 5 234 5 32. How many adults over the age of 18 in your household are employed? (CIRCLE ONE} o 1 2 3 4 5+ 33. Please describe the employment status of each person over the age of 18 in your household: (MARl< AU. THA T APPL Y) ADULT: 3) Unemployed. and looking for wor1I [] (] [) [] 4) .U~, ri6i ~ti~^)'t.I;:~:if,~.Jt;fr:f!'~:~;E~ll1 homemaker IF ALL ARE RETIRED OR UNEMPLOYED, GO TO Q. 46 34. How many jobs do employed adults in your household (persons 18 or over only) work in the SUMMER and WINTER? WINTER SUMMER Mulls AU. AduItJ RRC ASSOCIATES, INC.; REES CONSULTING, INC. 120 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 36. Where do you and other adults (persons 18 Of over only) in your household work? (MARK ALL THA T APPl V) Please note the primaty location of your job for each senon. If you wor/( at the same job year-round, please marfl 80TH boxes. 31. When commuting to work, what is your primary mode of travel? 1) [J Car (one pel$On) 2) [] Bus 3) [J Bicycle 4) [J CarpooI!vanpool (2+ people) 5) [] Walk 6) 1] Telecommute-#dayslweek: 7) [J Oll1er: 38. Are you looking to leave your current employment within the next two years? 1 ] No (GO TO Q. 40) I ] Yes - will leave my current job, but will find other WOrl< 1M Eagle County (J Yes - wiH leave my current job and find other worl< OUTSIDE of Eagle County ( ] Yes - retiring or wiD othelWise not be searching for other work (J Yes-other 39. Would you leave your current employment to work c/oserto home if similar/suitable employment was available nearer your residence? I J Yes (J No It is very important that we know some details about your house- hold to fully understand your needs. Please remember that this survey Is CONROENnAL 40. What is your household's current total monthly RENT andlor MORTGAGE PAYMENT? $ per month OR [ ] Do not pay rent or mortgage ( ] Mortgage paid off 41. What are your monthly homeowner fees? $ per month OR 1 ] Do not pay HOA fees 42. What is the approximate average monthly cost of household utilities, including gIS, electricity, water, trash (not phone or cable TV)? $ permomh OR [ ] Included in rent 43. What is the combined gross annual income of all household members (before taxes)? $ 44. Do you have any additional comments or suggestions concerning the availability of housing in Eagle County to meet your household's needs? THANK YOU FOR YOUR PARTICIPA TIONI If you would Ilk. to be entered into the DRAWING, please fill out your name and phone number on the insert and return it with this survey. RRCASSOCIATES, INC.; REES CONSULTING, INC. 121 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Household Survey Open-Ended Comments, Verbatim Where is your residence located? (other) · Colorado River Road · Cordillera · Cordillera · Dowd Junction · Eagle - outside city limits · Eagle -- unincorporated · Eagle -- unincorporated · Eagle -- unincorporated · Eagle County Unincorporated · Eagle/T errace · East Vail · Eby Creek -- Unincorporated Eagle County · Eby Creek Mesa (Eagle area) · EI Jebel · Silverthorne · Singletree · Sweetwater · Sweetwater area · Sweetwater Creek · Sweetwater Road · Wildridge · Woody Creek Other type of residence · Apartment attached to house · Camper · Home with rental caretaker apartment · In laws apartment · Lock-off · Lock-off · Lock-off · Lock-off · Lower level apt in town home · Mobile rented on rented land · Ranch · Rental cabin 280 sq ft · Single-family home with lock off unit · Triplex · Triplex Household - other · With wife's aged mother RRC ASSOCIATES, INC.; REES CONSULTING, INC. 122 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Deed-Restricted Complex/Neighborhood · Aspen Basalt Campground · Aspen Junction · Bluffs · Bluffs in Eagle · Booth Creek town home · Brett Ranch VA · Buckhom Valley · CDOT trailer park · Chapel Square · Chatfield Corners · Cordillera · Eagle Ranch · Eagle Ranch Redstone · Eagle Ranch- West Village Condos · Eagle River Village · Eagle Vail Comm. · Founders Place Eagle Ranch · Gypsum Estates · Homestead/Stag's Leap · Koonces Trailer Park · Lake View · Lodge at Brookside · Lodges at Timber Creek · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Miller Ranch · Mountain Vista · Mountain Vista Sheraton · Pinion Valley townhouses RRC ASSOCIATES, INC.; REES CONSULTING, INC. 123 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Ridge at Vail town homes · Riverwalk · Riverwalk Village Market Building · Sandstone · Seterhus Townhomes · Southside · Souths ide Townhomes · The Bluffs · Two River Village · Vail Commons · Vail Commons · Waive all realtor fees How is your household likely to change in the next 5 years? (other) · 6 mos. out of Vail · Be sold · Build a house · Building new home · Buy a house · Buy home · Depends on interest rates · Divorce · Drop at least one roommate · Get 4th job · Grandchild · I will move out of Eagle County because the cost of living · Keep house for part time · Likely to move due to high cost of real estate · Marriage · May downsize or move · May have children · May have to move/change jobs if housing situation stays the same · May move out of Eagle County · May move within Eagle County · May rent to return to college due to low pay and cost of living · Maybe move within Eagle County · Move part time · Move to town home · New owner will remove house · One resident will need care. · Rent house · Roommate · Taxes too high · Will build larger home · Will move out of Eagle County -- too expensive · Will not spend all year in Eagle County RRC ASSOCIATES, INC.; REES CONSULTING, INC. 124 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 If not satisfied with your residence, why? · 280 sq ft cabin is fine as a single guy but not enough if starting a family. · 6th traffic and speed, 45 mph is too fast · Air quality is falling with too many trucks · Amount of people and vehicles in area and loud music · Area too expensive to live in anymore -- taxes, etc · Avon makes poor planning and road options · Avon schools and community overrun with illegal immigrants · Because of planned development · Because Town of Vail seems to cater to the wealthy and lack of long term career opportunity · Being taxed off my land since 1982 · Builder cut corners and structure integrity suffered. Fixing items already paid for. · Business zone adjacent to residential brings home value down · Can't afford a better house · Close to bar, lots of non-native, non-English speaking neighbors · Community growth strains area, taxes, roads, no adequate pricing · Cost of living is way too high; too much traffic · Cost of living, affordable property · Cost/distance relationship · County is not doing enough to be sure new development is not impacting old negatively. · Crime, problem neighbors, and children · Currently very happy, repercussions of the Ginn development may change that. · Daycare is nowhere to be found and cost way too much · Dealings with Dusty Walls have been unsatisfying and town of Eagle's direction with future developments · Dirty, drugs, rats, no snow removal, illegal immigrants, construction workers, no parking, thefts, broken fire alarms, animal excrement · Dogs · Don't like big box stores · Eagle County too expensive to live when one retires · Eagle has grown too quickly and infrastructure is lacking. · Eagle should have better access to various stores. You cannot walk everywhere. · Edwards is the closest thing to a real town in the Vail Valley · Electric heat averages $260 month · Enforce covenants better · Expensive · Expensive for not great quality. Would like to own but can't afford to and I don't qualify for deed-restricted county housing. · Failure to enforce Willowstone covenants by HO Assoc and law enforcement, parking · Family of 5 cannot afford to buy into market in Eagle County · For single-family residences, we have a lot of multiple families and room rentals in the area · From prior real estate transactions we are able to build our dream home · Getting too crowded · Giving away money on rent. Would prefer to buy and earn equity. · Go · Great neighborhood; can walk to shops RRC ASSOCIATES, INC.; REES CONSULTING, INC. 125 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Growing too fast · Growth in county lacks planning for over-building, traffic and safety · High end neighborhood · High fees for HOA and no maintenance to area · Highway 6 is a mess coming in from airport. Have previously been dissatisfied with Broadway, but it is evolving. · Highway noise! · Home based business · Home is not well built resulting in floods and other repairs · Homeowners Assoc. & increasing fees too quickly to keep up with · House is not big enough for growing family · House needs fixed up · House not very large; cost to remodel high; town guidelines difficult · House too small. few neighbors · Housing costs are absurd · I am satisfied but plan to move because of high cost. · I do not like renting an apartment · I live in an "employee housing" area of Vail -- all transients · I love the community but not where I live. · I make the same $$ (waitress) I did when I moved here in 1982. · I rent a room in a house which is fine. However, I cannot afford my own home which is not good. · I wish I could afford acreage in Eagle · I wish there were more recycling drop offs · I work 60 hours a week to live in the lowest priced neighborhood · I would like to own my own residence · I would rather not live in a mobile home, but my spouse will not move · 1-70 noise and traffic · 1-70 traffic and noise · I'd like to be able to buy · lIIegals · Increased crime in the area (robberies, parking problems) · It will change when Ginn builds his project · It would be nice to have a yard or a duplex with no roommates · It's a "fixer upper" and I have no money or skills to do so · It's great but we rent. When our lease is up I don't know what we will do. · It's great in Edwards · It's too small; high rent; poor heating system equals huge electric bill · It's very expensive to live here · Just dissatisfied with county commissioners. We voted to not have home rule and childcare. · Lack of childcare available · Lack of modern community features, like a sidewalk · Lack of office space · Lack of parking in town of Eagle. Lack of noise control. · Landlord does not take care of the property · Landlord is too money hungry. Have paid for space and it's wasted money. · Leadership of Eagle County schools is very poor. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 126 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Limited parking, other homes have multiple families living in them · Loss of sense of community due to 2nd home owners · Lot size, house size, and home owner is an ass · Loud neighbors · Loud neighbors, no respect for others or for property · Low economy; unused cars in parking lot; trash; high population neighbors · Maintenance · Many condos have 4+ people and who leave glass bottles on cars · Marketing/development company · Media, travel · Messy neighbors; too many people in one house · Mortgage too high · Multiple families buying one house and have 10-12 people and 4-6 cars at the house · My neighbors (same building) are very nasty · My next door neighbor is trashy! We have to call the cops a lot. · My residence is part of a poor HOA and I have no yard · My town home has been poorly built · Need a bigger home · Need more low cost housing for people that live and work here · Need rec center within town limits · Needs to be updated -- new entry to neighborhood, landscaping, sidewalks, etc · Neighbor with a dump truck recently moved in · Neighbors are not friendly like when I was growing up · Neighbors are not interested in spending money to improve roads · Neighbors don't take care of property. Overcrowded complex. · Neighbors have caused problems in the past (one unit only) · Neighbors have unsightly homes/yards; Red Cliff mismanagement of funds · Nightclub (Rumpus Room) has brought noise and late-night traffic · No amenities and nearest grocery store and service station are 27 miles away · No amenities in Gypsum · No covenants, poor construction · No dogs on bike trails in winter · No garage · No Hallmark, video store, department store, Marshall's, T J Maxx, big shoe stores · No outside storage allowed or provided for · No place for kids to play; laundry (not enough for all the apartment) · No privacy and close neighbors · No sense of community · No space · Noise of interstate · Not Eagle Co. · Not enough events to bring people together (building a neighborhood) · Not enough police presence to combat drugs in area · Not in "city limits" of Eagle · Not much sense of neighborhood · Not satisfied with size of home RRC ASSOCIATES, INC.; REES CONSULTING, INC. 127 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Old rundown, small for growing family, expensive · Older home, needs renovation · Our place is small and we cannot afford to buy a larger home · Outside Eagle City limits, pay significantly more for utilities · Over-building of homes · Overpopulated, too much trash, not enough parking, poor maintenance of common areas · Parking issues on street; smaUlot; quality of housing structure · Parking of snowmobiles, 4 wheelers in front yards is not enforced · People are not very friendly · People in county offices are too worried about letting in any more second home owners (weak) · People on crack and cross street trash all over lawn; harassment; total scum · Prairie dogs destroying landscaping · Public transportation · Quality of construction · Real Estate · Rental unit with no insulation; appliances always failing; bad parking · Residence is good. . · Residence too small for growing family; too many stairs for baby; need fenced yard for dogs · Residence too small, bedrooms too small, tiny kitchen & dining area · Safety; security · Schools, inadequate in neighborhood, drive them elsewhere · Summer seasonal construction workers make me feel unsafe · Temporary residents with no community connection beyond drinking. · The home owners association threatens the quality of life here · The middle school and up system is not great · The neighborhood could be supervised by local sheriff or police more often · The trouble that surrounds the condo complex with tenants · The zoning restrictions and the amount of junk in yards · There are lots of irresponsible renters living here too - in the other town homes. · There is no community involvement. If something is done for the community, no one supports it. · They never keep the roads in good driving condition · They wait for problems to happen at the Avon Center. The Avon police department has nothing better to do. · Too expensive · Too expensive · Too expensive and no shopping in Eagle · Too expensive to stay · Too expensive, too many housing association rules, too far from work · Too expensive; poor schools · Too many absent landlords nearby. Gypsum has no consolidated downtown. · Too many children, illegals, graffiti, and crime · Too many dogs · Too many iIIegals here with nothing being done · Too many new people and taxes · Too many part-time residents, loss of "community" · Too many people live in trailers or condos by us RRCASSOCIATES, INC.; REES CONSULTING, INC. 128 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Too many renters short term, so too much noise, not enough permanent residents · Too many rules and restrictions · Too many seasonal rentals, not enough permanent residents · Too many street lights; transfer tax · Too much building · Too much emphasis on "big is bette~'; wasteful with tax money · Too much growth, high cost of living. Can't afford to live here. · Too much growth; poor planning; too expensive · Too much traffic on Valley Road · Too much vehicle traffic · Town council wants too much growth, pushes out older residents or makes them uncomfortable · Town planning · Traffic · Traffic and lack of funds to improve anywhere except Broadway · Traffic, over-development, insufficient infrastructures · Transient; empty second homes; overpriced; 1-70; prefer to live alone but too expensive · Trashy neighborhood · Travel distance to work and town · Unfinished homes and no permits pulled for construction · Unkind neighbors · Unsustainable growth, not smart growth · Vail has no sense of community. I can't wait to buy a house in Eagle or Edwards. · Vail is losing permanent residents and becoming just a place for second homes · Vail needs a rec center · Value not worth the rent paid · Very dirty, no security, Eagle Police don't care · Very few families with children, potable water not always available (2 1/2 years on boil order 2/3/04) · Walk to Basalt businesses is very nice, more development needed · Water problems in park and too many people, no privacy · We are very concerned with the increase in crime in Gypsum · We don't own it · We live on Bellflower Dr just past Vail incorporated and we need more ordinance enforcement · We rent · We would rather have a real home and not a mobile home (it's all we can afford) · Will probably move out of area when Gypsum grows too big · Would be nice to buy land for reasonable price · Would like to own my home · Young transient people, party type crowd Other community you might choose · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen RRC ASSOCIATES, INC.; REES CONSULTING, INC. 129 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Avon · Bachelor Gulch · Boulder, Niwot · Carbondale · Carbondale · Carbondale · Cordillera · Denver · Denver · Denver · Denver · Eagle · Eagle Unincorporated · Elsewhere · Garfield County · Garfield County · Glenwood · Glenwood · Glenwood · Glenwood Springs · Glenwood Springs or Buena Vista · Grand Junction · Grand Junction · Grand Junction · Grand Junction · Hawaii · Klamath Falls, OR · Lake Creek · Lake Creek · Lake Creek · Lake Creek · Lake Creek · Leadville · Montana · New Castle · Out of area/state · Out of county · Out of state · Out of state · Out of state · Out of state · Out of the county · Pagosa Springs · Paonia · Pitkin County · Routt County RRC ASSOCIATES, INC.; REES CONSULTING, INC. 130 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Rural Brush Creek · Singletree · Singletree · Singletree · Singletree · Singletree or Riverwalk · Snowmass · Some other state or Steamboat · Someplace convenient, but I didn't hear 1-70 · Stagecoach (Steamboat Springs) · Steamboat · Sweetwater · Towards Leadville · Warmer area · West · Wild ridge Why do you want to buy a home? (other) · 2 car garage · A quieter place · Affordable · Better design · Better home · Bigger yard · Build equity · Build equity · Build equity and credit · Buy duplex with a yard · Closer to schools · County buying our home by threatened Imminent Domain · Customize more · Equity · Equity · Find a better built home · For equity! · Have a garage · Have land · Health reasons · Housing stability and investment · I need a yard for my dogs · Investment · Investment · Investment · Investment · Investment · Investment RRC ASSOCIATES, INC.; REES CONSULTING, INC. 131 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Investment property · Investment/equity · Larger, newer · Less maintenance · Live alone · Looking for more children in the neighborhood · Lower monthly fees · Make money · More land · Move away from present environment · Newer home · Nicer · Out of 1-70 corridor · Private yard · Purchase non-deed-restricted property · Recreation · Remodel · Rental property · Save money · Save on capital gains · Security · Settle into community · Single family · So I will not have so much noise · So tired after 22 years of constantly having to move for cheaper rent · Stop paying out rent, have a tax write off · Stop paying rent · Stop wasting money in rent $1700/mo · Stronger/smaller community; walkable · Take advantage of tax law · Tax benefits and appreciation · To be able to buy land which you can't in Vail · To build a custom home · To build own home · To buy in · To cash out · To feel more part of community · To find a less expensive place to retire to. Cost of living is too high here. · To have a garage · To have more living security · To have more property, yard etc · To have our own home and not worry · To keep from having more than 250k in Capital Gains · To live in a better, more traditional community · To live in Vail · To not have room mates RRC ASSOCIATES, INC.; REES CONSULTING, INC. 132 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · To own · To own a home · To own a home · To own and not rent · To own home I live in · To own instead of rent · To own my first home · To pay my own mortgage · To purchase a home that is not deed-restricted · To quit throwing away money in rent · To stop paying rent · Two year tax break · Views · Want a yard · Want new · Want to own rather than rent. · We'd like to build our own larger lot, less busy street, in the same neighborhood · Yard Comments about deed-restricted home purchase · "Stuck" in deed-restricted housing · 3.5 percent for the life of the home is just keeping people from being able to move up · As an investor, deed-restricted does not fit my needs. · Bad investment too government controlled · Deed-restricted are majority young first time home buyer · Deed-restricted housing hurts the poor. After the transfer tax its almost the same as renting. Give them love % and let them gain income equity. · Deed-restricted housing presents all real estate risks with no upside gain market fall (market fall=llose; market gain=1 don't). · Deed-restricted is the only way I can afford something here. Appreciation should be more than 3.5%. · Deed-restricted is great, but what type of deed restriction · Deed-restricted is not a best investment. · Deed restriction needs to be more flexible and not include having 3-4 people in residence · Deed restrictions are a poor investment for owners and the communities. · Deed restrictions don't apply to those of us who already own homes worth $1,000,000 · Deed restrictions hurt the people who need property appreciation most! · Deed restrictions limit the growth per $ amount. · Deed-restricted homes do not help anyone trying to get ahead in real estate -- they just perpetuate the situation · Deed-restriction means equity controlled so you can never move up · Does not help equity -- ruins · Don't like construction and prefer free market approach · Free market real estate is one of the few ways employed person can make significant money in this valley · Good option for first time buy, but not good long-term option RRC ASSOCIATES, INC.; REES CONSULTING, INC. 133 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · I can invest my money other places to make more than 3.5%. I understand deed restriction but that is too low. · I do not think messing with the free market works. · I have lost money on upgrades to the home due to bad construction · I would expect to find a better place for the same price. · I would not consider it due to lack of appreciation potential · If I could buy a nicer place in a nicer community I would consider deed-restricted properties · If I was temp. -- this is great but since I am long term I need to be able to keep up w/ everyone else · If it was my first home in the area, that would make a difference. · Is a joke · Just impossible to get in to Miller Ranch · Like the VA restriction I have now · Living in community where value goes up a lot, is not worth only 3.5% · Need to see type and quality of residence · Never · Never! Bad idea, poor investment! · No more than $225,000, may change if I ever had children · Not willing to put that much money toward a non-investment · Only an idiot would do this · Only if it is single-family, not a unit · Part of the importance of owning a home is the investment · Prefer not but if I could actually buy something for that price · Real estate is an investment · Realistically I know a single-family house would never sell for my price range · This is the only way my son/family can afford it; my son and family are trying to move to Glenwood/New Castle area · This valley needs affordable single-family homes that are not deed-restricted · Unknown how this process works · Want opportunity to benefit from full market appreciation · Will probably look at gated community · With value appreciation in the county I would not want to be penalized · Would NEVER buy deed-restricted · Would prefer not to resort to deed-restricted housing · Yes, if I could ever qualify for one · Yes, it will get you in the game, but won't appreciate enough to move up · You can't keep up with the crazy prices with deed restrictions. It is crazy how over extended this valley is, thanks to the obscenely wealthy! Where will you move upon retirement? Move elsewhere in Eagle County: (other) · Edwards · More rural Other important consideration in selecting current residence · 2-car garage · Acreage, zoning, weather · ADA compliant places, wheelchair ADA RRC ASSOCIATES, INC.; REES CONSULTING, INC. 134 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Affordability · Affordability · Affordability · Affordability of land to build on · Affordability, there isn't anything nice/decent for a couple with great jobs for less than $300,000. · Affordable · Affordable and big enough · Agricultural · Allowed my dog - most important · Appreciation / equity · Availability · Away from 1-70 noise · Away from major thoroughfares -- 70, 6, 24 · Being young homeowners, there wasn't much in our price range · Bike paths, parks, rec centers, noise · Can't hear 1-70; proximity to open space; natural landscape -- feeling of being rural without being remote · Character of community; more open space · Character of home · Close to bus stop · Close to family · Closer to school, want kids to be able to walk · Community · Cost · Cost · Cost · Cost · Cost of rent most important · Cost was primary, no choice after that to not be forced to have multiple roommates · Cost! · Disability accessibility · Distance to my child's school · Distance to town, more distance is a plus. · Dog friendly · Dog-friendly house and neighborhood · Everyone lives here all year around. That was very important to feel this was a real community. · Family community and friends · FHA housing 40/0 down payment · Four wheeling access · Friends; neighbors · Future property values · Golf · Good controls on building and basic community rules i.e. dogs, noise, etc · Got us into market · Have non-auto access to goods and services, restaurants · HOA RRCASSOCIATES, INC.; REES CONSULTING, INC. 135 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Horse property · I am a dog owner. · I have been in my current place of residence 21 years. How important the following factors are not would be useful. For instance bus/shuttle service is much more important to me now than it was 21 years ago when you could park I Vail and find a parking space for 2-3 hours to do your errands for free. · In Vail · It was the first affordable housing project -- not really any choice in location, selection, etc · Like the town of Gypsum · Liked the location and house · Location on river bought when single. Other things would have been very important if married with kids if bought. · Location, location, location · Location, Upper Burfehs (sp?) Creek · Location/neighborhood · Long term · Low cost · Major consideration is selling skiing home via east Vail Chutes. Only considered homes in E. Vail. · Mid-valley location · Minority gangs and associates crime · Money; buy where/what you can afford · Must have a swimming pool in the neighborhood · Natural beauty · No barking dogs · No highway noise · No 1-70 noise · No 1-70 or airport noise · No stairs · Noise from 1-70 · Noise from 1-70 · None of the above apply. Have lived in Minturn since 1928. · Not a lot of lights in Bellyache, night skies are like being in heaven' Wildlife of all kinds, land and sky. Views! Sun' Wind! · Not on main road and away from 1-70 · On river, larger lot · Open space · Open space, views, security · Open space; resale; views · Outdoor space at home · Owning land vs. town home · People · Pet friendly · Pet friendly · Pets allowed · Price discount · Price of rent · Price per square foot, better quality of construction, no interstate noise RRCASSOCIATES, INC.; REES CONSULTING, INC. 136 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Price was #1. · Privacy · Privacy · Privacy; safety · Property taxes; quality of lifestyle · Property value · Proximity to Denver for some work · Proximity to neighbors · Proximity to other family · Quality of Environment · Quality of life, away from population · Quiet neighborhood · Quiet, peaceful · Quiet, rural; great views · Raising a child/cost · Real estate, value/appreciation · Recreation · River · Rural setting extremely important · Safe community · Safe neighborhood, mostly free of cars where the kids can ride their bikes · Safety · Safety · Sense of place in Rocky Mountain eco region · Sense of safety · Serenity · Shopping · Sidewalks; neighborhood with stability of residents (families) · Size of yard, style of house, size · Small town atmosphere · Solitude, diversity of neighbors; moved here 30 years ago, priorities have changed · Space · Sun Le. not in deep east or west Vail · There were only three properties in my price range in Eagle County at the time I purchased · To be left alone by Government · Value per cost · Very important for us to live in TOV · View · View, surroundings · View, washer and dryer, 3 bedrooms · Wanted rural community; large parcels; not developed; lots of wildlife/nature · We bought what we could afford and what was available in 1985. We are now retired and won't be able to upgrade. We would like to put in new windows, etc., but are quite afraid of high permit fees and builder costs considering we get no rebate on our rentals to Vail residents/workers. · We built in 1972. No way we could get what we have now. · We have five acres and still enjoy hunting, camping, golfing, etc RRCASSOCIATES, INC.; REES CONSULTING,INC. 137 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Weather · Yard · Yard for pets · Yard/land Other important item in your choice for housing · Acreage · Age & quality of housing · Air conditioning · Basement · Basement · Business and RV parking · Close to river · Clubhouse · Community gathering place · Covenants · Daytime quiet · Deed-restricted · Dog park · Easy access to shopping and recreation without driving · Economical utilities · Fenced yard · Fitness facilities · Garage · Getting away from interstate noise · Golf · Golf and river · Green design, travel less, cut down on air pollution · Grill allowed on deck · Guard house, gated community · Homeowner Association · Horse property · Hot tub · Hot tub · Investment return · Isolation · Little traffic · Lot a lot of traffic · Low crime · Mud room and sink · NA -- thought B-4 Avon Edwards, etc were here · National Forest access · National Forest Service land accessible · Near community pool · Nearby rental units for extra income · Neighborhood pool RRC ASSOCIATES, INC.; REES CONSULTING, INC. 138 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · No association fees · No busy streets near, private · No children · No condos next door · No covenants · No covenants/HOA fees · No immediate neighbors · No restrictions on fencing · No short term rentals · No traffic lights · Noise control · Noise levels · Number of bedrooms · Open space · Outside storage · Park A TV on site · Parking · Parking for guests · Parks · Pool · Pool · Pool and Jacuzzi · Private acreage · Quiet neighborhood · Rec center/pool · Recreation · Recycling on site · Rural · Rural · Rural setting, space · Safe neighborhood · Secluded lot · Security · Security and fire protected · Snow removal, playground, open space · Three parking spaces and good sq footage · Transportation service · Type of neighbors · Utilities included · View · View · Views, quiet · Water access · Wind/power, solar/power, green buildings HVAC materials, etc · Workout, pool RRC ASSOCIATES, INC.; REES CONSULTING, INC. 139 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Other job category · Accounting · Admin Assistant · Administration · Air travel · Airport · Airport · Architecture · Architecture · Assistant golf course super. · Babysitter · Building center · Buy overstocked items · Cashier and sales associate · Clerical · Clerical · Construction; Hair Salon · Consultant · Consultant · Corporate Group Events · Customer service at airport · Delivery driver · Development of orthopedic products · Dog walker; private art lessons · Dry cleaners · Elevator Service/Repair · Event marketing event planner · Finance -- Property Management · Firefighter · Flooring sales · Full time mom; Engineer · Golf course · Golf development · Guests services/ski school · Homeowner Assoc. Management · Hotel -- spa · House cleaning · House cleaning · Human Resources at Vail Valley Jet Center · Interior design · Interior design · Interior design · Investment management · Landlord · Landscape · Landscape RRC ASSOCIATES, INC.; REES CONSULTING, INC. 140 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Laundry · Low voltage design · Lumberyard receiving · Management · Marketing · Massage therapist · Massage therapist · Massage therapist · Minister, TV host · Missionary · Mommy · Mother · Non profit · Non profit agency · Non-profit case worker · Non-profit manager · Nonprofit organization · Oil and gas · On-site managers · Owner sand/gravel pit · Pastor · Pastor · Pastor · Photographer · Property management · Property management · Property management · Radio (layoff) · Ranch · Ranch hand · Ranch manager · Rancher · Rancher · Ranching · Ranching · Ranching · Real Estate · Real Estate · Resort -- spa · Retired · Retired · Rodeo (professional) · Sales · Sales -- dental assistant · Sales; Real Estate · Salon owner RRC ASSOCIATES, INC.; REES CONSULTING, INC. 141 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Self employed - ranch services · Self storage · Service industry - private airport · Ski resort · Snowplow · Temp staffing · Temporary labor · Transportation · Union Pacific Railroad · Volunteer · Volunteer activities · Wholesale plumbing and heating · Woodworking Other work location · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen · Aspen, Basalt · Aspen, Basalt · Aspen, Carbondale · Aspen/Basalt · Basalt · Basalt · Basalt · Basalt · Basalt · Basalt, Aspen · Carbondale · Carbondale RRCASSOCIATES, INC.; REES CONSULTING, INC. 142 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Cordillera · Cordillera · Denver · Dotsero · Eagle/Vail · Eagle-Vail · Eagle-Vail · Eagle-Vail · Eagle-Vail · Eagle-Vail · Eagle-Vail · Eagle-Vail · Eby Creek · Glenwood Springs · Grand Junction · International · Massachusetts · Minturn · Minturn · Minturn · Minturn · Minturn · Minturn · Minturn · Minturn · Minturn · Nannylcaretaker · New Castle · Ouray (?) Co · Out of state · Parachute · Pitkin · Pitkin · Pitkin · Pitkin County · Pitkin County · Pitkin County · Pitkin County (Basalt) · Routt · Snowmass · Snowmass · T elecommute · Twin Lakes · Walcott · Wolcott · Wolcott RRC ASSOCIATES, INC.; REES CONSULTING, INC. 143 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Wolcott · World wide Work mode of travel (other) · Air travel · Airlines · Airplane · Airplanes · Car -- winter { walk -- summer · Company vehicle · Employer offers shuttle service · Home · Home office · Home office · Home office · Home office, no commute · I fly · In home office · Jog · Live on location -- no travel to work · Motorcycle in summer, car in winter · Occasionally carpool · Plane · Plane · Truck · Try to bike when possible · Walk · Walk in warmer weather, drive in winter · Work at home · Work out of home Are you looking to leave your current employment in the next two years? (other) · Anything is possible · Either place; with affordable housing · Full time homemaker · Having a child · Hope to attend college · If we can't afford a home, we will have to leave. · May have to leave work to find more affordable housing/schooling · Self · Transferring outside Eagle County · Travel a bit, then get job · Undecided · Where live leads me · Will be transferred RRC ASSOCIATES, INC.; REES CONSULTING, INC. 144 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Additional comments or suggestions · 1) Need to motivate business owners to provide employee housing; 2) discourage "fly" on local housing market; 3} an Eagle County railroad track for county-wide transpiration · A better bus system in the Valley, lot more affordable housing is needed. · A larger quantity of affordable housing (deed-restricted) is needed. The last lottery at Miller Ranch had 35 applicants and I was only around 15th with eight years in the valley. Also, true affordable housing is $150K-250K, not over $300K like some current ones available. · A single person with a year round salaried position should be able to afford a residence without having to have a roommate (renter) · A transit system would be an incredible benefit for all guests, residents and employers. Would solve huge housing problems and eliminate accidents and D.U.I's. Kids would have more freedom and the community would grow economically, not to mention save energy! · Additional housing opportunities should be included in urban growth boundaries only. Density is better than sprawl. · Additional low-cost (senior, senior assisted living and low income families) · Additional senior housing · Adopt commercial linkage and exclusionary zoning requirements for all new development. Follow the lead of the Town of Vail. · Affordable deed-restricted housing is the only way I stayed in the valley. I am very pleased with Miller Ranch. At this point if I had not bought I would have left the valley. I have a well paying professional job. This is my employer's greatest struggle with retention. We are routinely short staffed due to lack of affordable housing. · Affordable for the amount of money people make in this area with one job, not two. Affordable for year round locals. · Affordable homeownership (let alone rentals) is quickly becoming an unreachable goal for the middle class in the Roaring Fork Valley. Even at a low cost (subsidized housing) quality of material and lifestyle is utmost important. · Affordable housing · Affordable housing (single family) is really only available west of Edwards · Affordable housing for me does not mean sharing a condo with 3 other seasonal employees. I want a "piece of grass" of my own to raise kids. You can't do that sharing space with "drunken ski bums." I am leaving after 6 years of unaffordable living. · Affordable housing for the average person · Affordable housing in Eagle County is extremely important for the workers bees of the valley · Affordable housing is important and has not been adequately addressed in the past 17 years that I have lived in this county. · Affordable housing is needed but should not be made available to any illegal immigrants. An acceptable level of English should be required to those immigrants it is made available to in order to improve the standards in local schools. As a legal immigrant, I believe I have the right to make such comments. Teachers, firefighters and police Should be given priority for affordable housing. · Affordable housing is one of the biggest issues facing Eagle County. If I can't afford to buy a place in the next 3 years, then I will leave Eagle County. · Affordable housing is very important, but you can't put developers out of business · Affordable housing would be nice. $400,000 is not affordable, maybe something nice in the $200,000 range. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 145 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Affordable/deed-restricted housing is great and a necessity in this community. However, it doesn't help people like us. We make too much to qualify for affordable units, yet not enough money to afford a market price single-family home without being forced to Eagle and Gypsum. There is a huge local "middle class" population that is being left out. At this rate there will be no locals left in Vail or Avon within the next 10 years. · Allow smaller lots -- 5, 10 or 15 acres lots · An extreme lack of entry level housing for young (20's to 30's) people. · As a homeowner in Eagle-Vail, I don't think I could sell my house and move up to a bigger one with the equity I've made. I don't know who can afford $700,000+ houses in this valley or who buys them, certainly none of my employed friends who have worked here 10+ years in Eagle County. · As a professional employer in the valley, my number one problem with getting and keeoina good employees is the cost of housing · As working class (police officer and daycare teacher) we love the area in which we live. But we are saddened by the fact that we will never be able to afford to buy a house in this county, specifically in the Edwards-Mintum area. · As you can see from my answers, we will move from this area soon. The sole reason is the high cost of living in the "Vail" valley. · Basalt has a lack of rental units · Basalt should be part of Pitkin County · Beaver Creek parking authority needs to be nice to locals · Because taxes are so high and prices are so high our other two sons had to move out of Basalt. Our last son is still at home because he can't afford anything. · Because the Federal Government owns 85% of the land in Eagle County, the opportunity for affordable housing is almost non existent · Being an old person in this community I'm not too concemed but these young people that are brought in love in horrible conditions (housing provided short time) "furnished." Emp. Housing is a joke and they should be ashamed of themselves. · Better grocery shopping; specialty foods (Le., Whole Foods); better restaurants; quality, affordable retail · Better pay for cost of living · Better quality construction · Bought property 18 years ago, lived in Vail 20 years, here 10 years. Was one of last working Vail residents to afford land/home/built. So much has changed in interstructure (infrastructure?) costs and building costs. Some type of income scale should be devised to sell lands for affordable building, single or multiple? The workforce has changed in large numbers due to demand for all kinds of service needs. More affordable/interest individuality needs to be in place. Scale investment to ownership over time! · Bring down the property taxes or I will have to sell and leave the valley · Buffalo Ridge is a suppose it low income housing. It has become a slum!!! Someone should report them to HUD housing. · Build more deed-restricted housing! Very few locals could afford to buy a free market house or condo these days without having four other roommates. · Build more, we are so glad we were able to buy. We hope more families can have the opportunity. · Build train; housing along transportation route; hiah density; close (walking distance) to everything · Can low-income purchasers really afford green building? I think not. Let's control energy -- stop heating the pavements, walkways, and driveways. How can one even look at efficient housing if they heat their driveways at a cost of $5,000 per month in utilities. How efficient is that cost in the overall "green" building. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 146 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Concern is taxes and continual spending by county commissioners and higher value of home and raising taxes because of it · Consideration should be made for a single working man to quality for housing offered by our community. I am seeking affordable housing. · Control lot rent · Cost of housing and utilities stymie a family's ability to save for future, college costs. Health insurance becomes an "optional expenditure." It is shameful! · Cost of living increases are too high for the actual pay received in valley -- my actual pay is the same as it was 10 yrs ago · Cost of living price - out of control, high taxes and insurance · County commissioners have no clue what they are doing -- they try to reinvent the wheel! Look at other communities at their solutions -- the ones that work! · County housing and towns need to make it easier for private sector to do housing and support the ones that have done it better, not just business advice like Gazunis likes to do · Create more open space and landscaping in high densely projects · Create more open space and slow growth. · Current housing costs would make it very difficult to purchase a home in the Eagle Valley. More affordable housing is needed for the Valley. · Daughter age 22 needs to be able to own a place of her own, but very unlikely with the price of housing. More deed-restricted employee housing? · Deed restriction is fine but the segregation hurts those married couples that want to buy but can't afford to. It makes you feel penalized. · Developer should be held responsible for bike trails, parks, school sites, and road access to new development. All power lines should be buried. But we do need more affordable lots for young people · Developers and builders should add housing products to reflect the aging population. More main floor masters, less stairs, smaller homes such as cluster or patio homes. · Developers need to provide low cost housing as a requisite when building large scale developments and not be allowed to buy their way out these obligations · Did we actually pay someone to create this? · Do not overcrowd the valley. Consider quality construction and energy efficiency. No more "gated" communities. We are all the same community. More reasonable priced homes for locals. We have enough vacation properties. Get rid of Wal-Mart! Support local business! · Do something that's needed for local people not illegal immigrants. The housing you have is not close to accommodate local people that work. People that make up this work force get one room. · Do something to make housing prices for year round locals less expensive to purchase · Do we have an Eagle County representative in Basalt? Do they go to the Master Plan Basalt meetings? · Do what you can to encourage families to stay here while mitigating the effects of second home owners and their pressures on an already expensive real estate market · Don't forget all the other expenses like daycare, $1000 per month, gas $60 per week, utilities $125 month, car payment $300 per month, food $400 per month, car insurance $200 per month, medical insurance $250 per month, phone $25 per month, trash $25 per month. It doesn't leave much to live off and be part of the affordable housing calculation. · Don't see how anyone can afford to live in Eagle County with today's rent and prices of homes. Thank God we lived here all our lives and was able to purchase our home when we did. Course the taxes we pay are more now a month than our 1st mortgage was per month! Eagle Co. is ru~ning the ones that have been here for over 30 years out - making room for the high dollar people! Money talks, B-S walks!! · Don't worry so much about whether or not a house would go to a second home owner. That's prejudice. RRCASSOCIATES, INC.; REES CONSULTING, INC. 147 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Due to family size, we had to move from a town home in Edwards. We tried to get into Miller Ranch and for years tried to get into Vail affordable housing. Unfortunately nothing was available until after we had purchased in Eagle. · Eagle County concentrates on the 1-70 corridor. We're ignored in the Roaring Fork Valley (Aspen area). · Eagle County does not consider the common folk, only the wealthy and illegal Mexicans · Eagle county has "out priced" itself for the middle class family. The county has turned into 2nd home owners and greedy real estate investors. This is why a lot of us "professional" people are moving and buying homes outside of Eagle County. · Eagle County is a nice area to live but cost of living is too high. We have been stuck in townhouses and duplexes. Anywhere else we could afford a larger, better quality single-family home. Better to live somewhere else and just come back for visits. · Eagle County is overpriced for real estate compared to the wages offered · Eagle County is very soon going to loose all of the middle class and therefore loose community feeling. The only people left will be par time renters for ski season and the very wealthy that own summer houses. Goodbye Vail and Beaver Creek! · Eagle County needs to extend the housing program for low income families like Miller Ranch. They need to do this instead of soccer fields and parks that are covered with snow 6 months out of the year. Hundreds of people need decent places to live, so why the doesn't the govemment build more houses like Miller Ranch? It works great especially for the price. · Eagle County needs two items: 1) Mass transit using existing railroad tracks. 2) County wide effort for employer housing both owned and rentals. · Eagle County seriously needs to look at their lack of quality for housing opportunities for employee housing. Learn to share. · Eagle Ranch/Eby Creek -- improve bus system -- use smaller bus/vans in local communities so kids are safe to go into town since there is not a bike path in all areas · Employee housing requirements to builders · Enforce immigration, limit low income housing · Even for professionals, it is hard to find quality and affordability · Even making $100,000 a year we can only afford an interest only mortgage in this community · Even with a good (well paid) job buying a house is insurmountable to most locals who do not already own. "Affordable" is a ridiculous term. It's all too high. We will lose all the young, healthy, productive people in our community and only have old timers and 2nd homeowners. Very sad. · Finance affordable housing on the back of the extremely rich pouring into these valleys in the next 20 years. Charge it as a tax, a fee or whatever works. Tell 'em, that's the cost of moving to the mountains, now. · Financial assistance for struggling long-time local first-home buying program!! · Focus on Eagle County full time families. Keep taxes low, child care available and encourage a sense of community. · For a single adult it is impossible to own in Eagle County on one income. I would have to have several jobs on my current salary to live there. Compared to other cities the wages are high but too low to service (or live) on Eagle County. The cost of housing keeps going high and even if I retire unless my residence is paid off I could not afford to live in Eagle County. · For the health of this community, especially commerce, affordable housing is absolutely necessary. Scarcity of affordable housing will send workers out of the country, where they will spend their money, further depleting the local economy. A solution must be found. Good luck. · Free property tax for seniors like grand county · Future senior citizen housing needs RRC ASSOCIATES. INC.; REES CONSULTING, INC. 148 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Get rid of one percent transfer tax -- undue burden on sellers! Better enforcement of town codes! Too many neighborhoods are a mess. · Give property tax credits to individual home owners to encourage private ownership. Eagle County should not spend tax dollars for "socialist" programs i.e. daycare. · Good, well-kept, affordable housing is not even a real option for those who want to live and work in Eagle County and it should be · Government needs to consider how much its regulations are contributing to the high cost of housing · Government should help facilitate housing but not be in the building and operation of housing. · Government should not be in the housing business nor childcare. Housing and childcare are not government services, in others places it is called welfare. · Growth does not have to happen all at once. Eagle County needs to slow down before the construction companies build themselves out of the valley. · Habitat for Humanity is great but one year ago they built a home and advertised it in the Vail Daily how great it was to see a Spanish woman with citizenship who married a man from Mexico with a resident green card with a very huge family. I know US citizens who have tried for a home in the same situation but was declined help. It still pisses me off to watch this hardcore activity keeping a blind eye to US citizens. · Had we not bought land 15+ years ago and then built our own home, we would not be able to purchase a home in Eagle County. We feel strongly that existing homeowners should not subsidize housing for first-time homebuyers. · Have common green areas required for all new buildings, no tall buildings, think some are too tall as is, would like work done to make 1-70 less noisy for town residents (suggestion: brims, quieter surface, tree line on both sides of 1-70) · Have large corporations pay more with taxes, housing, etc, because they are the ones to benefit. As a retired person, I do not give a crap whether people have housing or not. Just do not tax me anymore. · Having multiple families in a single-family home. It makes our neighborhood look poor and drives down property value. The bad thing is our bylaws don't allow it but they still get the loan with two families on the title. The banks don't check the bylaws. · Highway noise is a major problem I many places in the Vail Valley, especially around Vail. · Home owner's associations are ruining the quality of life for everyone in this country. We don't need lawyers sticking their noses in our backyards and houses. Abolish HOA. We're planning to move away from them forever. · Housing cost nearly impossible for single adult to purchase their own home · Housing development at current rate will ruin the uniqueness and specialness of the area. Water is a huge issue that is being ignored. Housing programs for middle class are only ones that should be encouraged. Current housing options are influencing in a very negative way the work force that is available in the area. There are plenty of multimillion dollar homes. We need affordable housing that offers some quality of life for the American middle class. · Housing has been hard to get and a financial burden for the past 34 years that we lived in Eagle County. · Housing in Eagle County is very expensive. My son is making $52,000 per year as a golf superintendent and cannot afford housing. This is a good example of way young people. I am a retired educator, but must still work part time because it costs so much to live in our area. I still like the area. Many older people have moved away. · Housing is very expensive. I did not choose to live where I live because I like it. I live here out of desperation, it's all I can afford. All of our money is spent on housing at the sacrifice of everything else. · Housing is very expensive in this area, and it is very hard for young couples to get into decent home. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 149 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Housing is way too expensive for what you actually get. I would love to buy a three bedroom home with two bathrooms in Edwards, Eagle or Gypsum for under $400,000, but I know it's impossible. · Housing needs more adequate parking. Rent and mortgage prices are out of control making it almost impossible for average residents to purchase or make a living and still enjoy the valley lifestyle. · Housing needs to remain affordable, so the county retains a substantial employee base. Or risk losing employees to competing counties nearby. · Housing should be affordable for all those who live in Eagle County · I am 77, I wish we had some kind of retirement home - all my friends feel the same. I am a nanny for my daughter and my husband is the caretaker for her property so our circumstances are unusual. I would like to see an assisted living facility and a full nursing home available here. · I am a single parent living at home with my parents and three younger siblings and niece. I'm trying to make a living for me and my son, but it's near to impossible to afford anything our here. There's no affordable housing in Eagle or Gypsum. · I am a single professional that has been trying to buy a home between Vail and Edwards for two years. I have been unable to make this happen and it is becoming more difficult with each passing month. Real estate is going up much faster than salaries. · I am a skilled technology worker and still can't afford a house in the county. The price of housing will most likely cause my departure. · I am an advocate to high density housing developments to solve/address housing needs · I am moving out of the county due to lack of affordable housing · I am not satisfied with public school choices · I am retired and live in Eagle Seminar Aprts. · I am so glad I was able to buy a home in 1990 because I couldn't even afford to rent in Eagle County today, let alone buy, because restaurant pay has not changed in 25 years - still make the same, too many restaurants. · I am sure most agree, but housing is too expensive. I was fortunate to buy mine before the gondola in Avon raised prices or else I would not be able to buy the place I live in today. I was lucky to get my foot in the market and have made some nice equity, unfortunately everything else went up too and I can't afford to move if I wanted to. For others it's even worse because they don't even have that first home in order to afford this place I had to buy in an undesirable, overcrowded neighborhood or else not buy because it was all that I could afford. · I am trying to raise a family here. Affordable single-family homes is important to me. But all the new affordable housing projects are for renters and T.O.v. employees. · I bought my place in 1992 for $94,500. A top, vaulted unit, with 2 bedrooms and 2 baths and a loft. A corner unit in the same building with lots of similarities in the same building sold for $350,000 a few months ago. I could not afford to buy today. · I do not like the influx of Spanish speaking workers especially iIIegals. I do not like having tax dollars go to provide illegals with jobs, health insurance, low cost housing, free food, daycare and especially taking jobs or requiring English speaking Americans to be bilingual to understand them or to be bilingual to get a job. This is not right. · I do not think there is such a thing as affordable housing. We have owned our home since 1946, but with taxes going up, cost of groceries, electric, gas, sewer, water, telephone, cable, we are going broke. · I don't have any housing needs. I feel for those who need less noise, adequate parking, more space, privacy, better law enforcement, etc. This will never happen in the five county high country without a joint effort by county, town, employers, utilities, and transportation. See what Las Vegas and Nevada are doing about employment housing. · I don't think Govemment should be in the housing business RRC ASSOCIATES, INC.; REES CONSULTING, INC. 150 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · I feel there is a great need for affordable housing · I have applied for six Miller Ranch resale units none of which I have gotten. I can't afford to buy anything in the valley. Housing here is a nightmare, it may force me to move away. · I hope that RRC does a better job with this analysis than the one you did for the town of Vail. Try not to "bake" the numbers too much. · I just wish the cost of buying a home was not so expensive · I live in Eaglebend apartments and am a single female. Costs for single person housing keep rising. In 1.5 years living in my apartment, the rent has gone up twice. Considering I do not have roommates I think this is excessive. Secondly, pets are no longer allowed here so at the end of my current lease, I've been told I will have to move. This is incredibly inconvenient as it is becoming increasingly difficult to find housing in Eagle County that allows pets. We may be putting in a new dog park, but where can dog owners live if they cannot afford to buy? · I love living here but find the price of housing outrageous! Especially in the past four years cost has gone up. I'm a single woman who works hard, but how am I supposed to be able to afford $500,000+ for 1/2 duplex!? It's crazy -- deed-restricted has even gone crazy -- Eagle Ranch 1/2 duplex is $387,000 Deed- restricted!!! What? A mortgage on that amount at 6 percent is $2300 per month -- $27,600 per year!! Just for the mortgage!! How can I do this!? (It's very frustrating, I can see why people leave.) · I love living in Eagle Ranch · I moved to Eagle four years ago from Edwards. I purchased a modest home (less than 2000 sn with $100,000 down payment and I could not afford to live here without supplementing my income. My house has since appreciated another $200,000 putting the price far beyond my reach if I were to purchase it today. · I moved to Vail 20 years ago. Employee housing that was affordable was minimal. Today, 30 years late, it still is. So much for governmental programs! · I own a seasonal business in Vail. I wish I could own five acres with a small house that was reasonable, but it isn't. · I really hope this gets solved! Lived here 18 years and consider Vail home. I hope it stays that way. Thank you. · I received housing assistance, total of rent $1,200.00 · I think it is extremely difficult to buy or rent due to expenses. Most employment does not compensate for the high price of living. · I think it is important to consider a program that allows employees to participate in the benefits of the real estate market here. People have been able to get ahead in the past and it's the only way to get ahead now. Price caps create a permanent underclass where people are unable to move into the free market. · I think that a couple of questions regarding highway noise would be helpful · I think the community at Miller Ranch was a very good plan. To have more housing at affordable prices and not be totally shoddy in building, with rules against renting and a sense of community and pride is my idea of paradise. · I think there is a very strong need for more affordable housing that young people can buy. We are the future here and we work hard to make the Valley what it is, but that can't happen if we can't afford to live here. · I want to retire here but probably can't afford to. I want my mother to come here -- no facility for that. · I was fortunate to buy in Minturn when I did. Now it's too late for an average family to buy a single-family home in Eagle Country (esp. up-valley). There are just too many rich people with 2nd, 3rd, or even 4th homes in this county, and it's very sad. . RRCASSOCIATES, INC.; REES CONSULTING, INC. 151 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · I was restricted to a rather small unit due to my household size of one. But if my mother comes to live with me and my brother and sister-in-law come to visit the space would be strained. If mom does come, I still would need minimally 3 bedrooms and probably an additional bath. · I we weren't doing such a large development, we wouldn't have to worry about more "employee" housing. Bigger is not necessarily better. Not only that, what is left for the visitor that's "affordable"? · I will probably move out of Eagle County because of the housing expenses/shortage. As a 30 year old professional, I cannot afford to buy a house here. I think second homeowners should be taxed if this is not their primary residence. · I wish I could afford to buy a home in Eagle County · I would bus to work (Gypsum to Vail) but bus schedule is not conducive to my work schedule. I must be at work at 6am and the bus would get me there at 6:45am. · I would like to see a greater variety of lousing options, especially in the lower price ranges · I would like to see more sub 500K housing developments being built to meet local needs rather than second home owners. There is a lack of housing options for middle income households. · I would love the opportunity to rent/own my own place. Buffalo Ridge is too loud and crime ridden. Rents are astronomical. I cannot afford $950-1000 to rent a one bedroom/studio. For the 50 and older crowd, roommate situations are old. One would like to live independently without breaking the bank. At this rate, I will need to relocate if I ever want to retire. · I would love to buy a home, but nothing is affordable for a single person! · I would not be considered your average citizen. · I would not put taxes on residential building or expansion of current home · I would prefer living in a duplex that was not part of a homeowners association i.e. more like a single- family dwelling. I would like to see more of this type of affordable housing rather than large complexes. · 1-70 noise on Hackamore Rd in Singletree is ridiculous · I'd like to see the area grow in a planned way with more shopping available, especially in the area of groceries, produce, and clothing. Downtown Eagle is too small to accommodate the growing population. Add~ional areas should be well planned, attractive, and accessible. · If Government would keep their hands off housing, the market would have already dealt with it. When you raise my taxes to subsidize low income housing, you have removed the responsibility of the employer as well as my choice to support long term nondeed-restricted housing. Economics 101. · If housing costs continue to rise as fast as they have been, in ten years employers will have to pay $16- 20 per hour to afford $1000 per month for rent. Currently most make $10-12 per hour and spend approximately $650 per month (seasonal employees) who will wait on the rich people. We will have to resort to more foreign help. · If I can't find affordable housing I will be forced to leave Eagle County · If I didn't have my home paid for I couldn't live here. I couldn't afford to rent an apartment here with what I make. · If it is not for Miller Ranch I would not be able to work or live in Eagle County. I have been here for over 13 years and grew up in Colorado. Thank you Miller Ranch. · If the availability of housing for workers cannot be improved soon in Eagle County, I am sorry to say will lose two more worker bees · If the rich in Vail want to retain the level of service that they expect, the cost of housing in Vail needs to stay low. It needs to stay the same or decrease. · If there are waiting lists for deed-restricted residences and shortage of seasonal workers it clearly indicates that there is a housing shortage. What is the point of working so hard if there is nothing to show for it in the end. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 152 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · If there is a green building community - i.e. town homes or houses with a park for dogs and a community garden, I'll pay whatever to live there. It's very important in our developing society. If I can find one elsewhere, I'll probably move. · If you don't have one million dollars Eagle County does not care about you. They import poor workers to replace all locals. · I'll be glad to move out of this trailer park and into a truck and camper so I can move to a real town with people that care more for others than just themselves and their trophy homes · Illegal aliens should not be allowed to rent or buy a residence. · I'm just lucky I was able to purchase FHA housing in Edwards 14 years ago. What may be called affordable housing -. sometimes isn't. Miller Ranch is a wonderful community and is I guess affordable to Eagle County's standards. · I'm pretty sure it will never meet my needs · I'm stuck here for the next 4 years. Guess I should be thankful I can afford my 10' x 12' cell with no closets, no pets. It beats having 3-8 roommates as I did my 1st year. But Avon is too transient, too young and bar oriented. There is no real sense of community. I have tried volunteering and a few churches. · In general, the cost of housing is just absurd, crazy and very difficult for the middle class to afford. It's a good thing I bought 3 years ago. · In the 5 years that I have been here I have paid aprox $51,000 in rent and $36,000 in mortgage payments on my house in a different state. I wish that I could have found a place here that was affordable enough to sell my house and make mortgage payments here to build up equity in property here in the Vail Valley. · In this area is impossible to buy year by year of any property because always is more expensive · It appears that the county wants to continue to raise taxes and drive retired people out of homes that they have worked their entire life for · It is darn expensive · It is difficult for kids that have grown up in Eagle County, cannot afford to live here. Real-estate prices are sky-high and out of reach. Wages have not kept pace with real estate prices or the cost of gas. The only housing that is built in Eagle County is for rich, second-home owners · It is frustrating to know that I will never be able to afford a house with a yard in this community · It is notthe government's job to mandate employee or low income affordable housing · It is obvious that there is not a lot of affordable places to own here. Even medical professionals are moving in and out of here because they cannot afford to be here. Down valley is now out of the average person's price range. This is a problem. · It is way too hard on a person's health, trying to keep up with Vail's economy. You work yourself to death to be here and really never live here the way you should. · It is way too much money to live here, but we love it · It is wrong wrong wrong to trample on the civil liberties and freedoms of the responsible and the productive, forcing them to have a bigger "carbon footprint." (AKA help destroy the environment) so that power can be filtered through fat, sticky, fingers of the government, who then reward people who can't afford to love here with what I have made large sacrifices for. People who can't afford to live here should move!! · It remains a problem to hire new employees because a lack of housing · It was almost impossible to buy our home. If we did not know everyone in this town, who helped us, it never would have happened. Very sad situation for your citizens. · It would be beneficial if the county and town building codes allowed for more lock off usage of property to accommodate seasonal workers RRC ASSOCIATES, INC.; REES CONSULTING, INC. 153 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · It would be fantastic to see retirement communities in Eagle County. I don't suppose I will ever see it. · It would be great to eliminate that eyesore trailer park in Edwards and the one at Dotsero and provide affordable housing for workers. Otherwise, people who work in Eagle Co will be living elsewhere. · It would be great to have an assisted living place in this area · It would be great to live closer to work. However, Vail Resorts does not pay enough to live in Vail. · It would be nice if the town bus would come up Buffer Creek Rd · Keep encouraging environmentally sound building practices and energy efficient, alternative use energy homes · Keep it affordable · Keep the focus on schools. We need families to stay vibrant. · Love Red Sky Ranch · Lower home prices. Eagle Ranch is so overpriced. Over one million for a cracker box! Give me a break! Everything is $200,00 over priced! · Make affordable housing that's affordable i.e. less than $250,000. Tax homeowners who don't reside in Eagle County full time and contribute that to schools, housing, daycare, transportation, bike paths. Also tax golf coursed with the same intentions. · Make BLM, Forest service or developer give a %of acreage. Get with older construction personnel who will donate time and expertise. Remove lawyer driven insurance expenditures, go with builder risk. Keep soft costs to a minimum. Give contractors for "affordable" projects incentives through reduced fees. · Miller Ranch is great. If only there could be another similar place for new families to live in this end of the county so they don't have to commute form Eagle and Gypsum. We feel like the lucky few who can live in Avon/Eagle-Vail. · Miller Ranch was an answer to our prayers. We would not have stayed n the valley much longer if it weren't for our purchase here. · More affordable housed for single parents and assistance for homes · More apartments - what wrong with them? · More communities like Miller Ranch! Ownership options very important. · More deed-restricted housing developments. "Affordable" in Eagle County is currently close to a half million dollars. Regular working class individuals cannot afford these costs. Under $300,000 for a 4 bedroom home is more affordable. Housing assistance programs cannot help those who make $85,000. · More help for senior citizens on housing, health care, utilities and recreation. · More housing for school teachers, county workers, police and fire employees. Reward the people that are protecting and creating a safe community. The housing should be tied to their employment. · More inexpensive housing is needed to support service sector! · More parking availability and more sidewalks would be nice · More parking needed at Vail Village, Uonshead, Ford Park, get the cards parked on Frontage Rd in structures. A rec center in Vail- I drive to the Avon Rec Center to work out. Affordable housing is the most important thing to me. · More rental housing is needed and restricted deeded housing to keep young families in Vail · More single-family and more parking availability · More single family home affordable housing · More small affordable housing and neighborhoods · More zero-lot-line small unattached homes for retirees · Most people that live in the EI JebellBasalt area commute to Aspen. This was ignored in this survey. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 154 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · My daughter has to live with me because it's too expensive to have her own place or she would have to live in tight quarters with lots of roommates. I don't think my children will ever be able to purchase property here. · My daughter moved out of our home 3 years ago and is now 22, married and expecting their first child. They live in a 1 bedroom garage apartment in Eagle and cannot get into anything larger due to increased costs. Chances are they will never be able to afford to buy in this county. I find this outrageous and unacceptable. · My family and I have lived in Basalt since 1986. Given current home values we could not move into Basalt given our financial situation at that time. · My husband and I are 61 and 62. We will have to move out of Eagle County because of housing costs. That means away from grandchildren. We can not afford housing on social security money. · My needs are met · My son would love to purchase his own place instead of paying way too high on rentals · My suggestion to help the housing need in Eagle is to start a shuttle service within town out to airport (Gateway) and to and from Gypsum · Need 1 bedrooms or studios for single to rent/buy for under $1000 a month. There are many single adults in this valley that would like a small residence of their own and not have to rent a lock-off or a bedroom in someone else's home. · Need affordable housing that is more available to legal residents to this country · Need bus transportation in Wildridge · Need more affordable housing for workers in Vail · Need more affordable s. family traditional homes that are not deed-restricted · Need more affordable single family homes. Need more employee housing. Would like to see a whole area cater more to "Middle Class America." Stop allowing large/expensive homes to be built. Where will the working class live? · Need more amenities in Gypsum · Need more homes for "upper middle class" -- nice four to five bedroom homes that are less than $1 million · Need more housing in all prices ranges for employees · Need more realistic affordable housing for full year round family residents · Need to house more local workers. Add to diversity of local residents. · No affordable housing (Government subsidized). We can't afford more taxes for subsidized housing or childcare. If you can't afford to live here leave. Either wages will go up or costs will come down. · No home rule. No childcare. No illegal immigration. · Not housing bus transportation. United needs more completion at Eagle airport. Prices are not competitive. Major improvements in air service has been seen since 1999, however, high speed rail to Denver would be very useful. · Of course we would like a bigger more private house for less money but we are also pleased with the appreciation of our house. On the whole we are very happy and do not plan any drastic changes. · Once quiet communities are being infused with people who don't care about others around them. I have lived all over Eagle County and find this everywhere I go. These noise problems and the disregard for others and property is reason enough for people to move. · One and two bedroom condos that adults can buy · Other adults living in the home can not afford to live on their own or purchase homes because prices have really gone up RRC ASSOCIATES, INC.; REES CONSULTING, INC. 155 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · Our children can barely pay rent on lousy, average apartments, and they can't afford to buy anything either. Rental complexes hare run by corporations with no parking, cars get booted if parked too long at $50 fee to unboot. Mexican managers treat whites very meanly. Our kids are frustrated, but want to live where they grew up. · Our households needs are met but we worry about young families, people in public service jobs, small business owners. We want to live in a community that includes people from all walks of life. We're concerned too much is skewed to the high end, part time resident. · Our needs are met. Do not force developers to build 30 percent of square footage for employee housing -- not a socialist government. · Parking in Vail for employees. Improved public transportation from Eagle to Vail for all times, not everyone works 9-5. · Pay more attention to the Basalt, EI Jebel area · People need to live within their means. We are low income and adjust our needs and wants accordingly. We don't make monthly payments thus don't pay interest. · Please address EI Jebel part of Eagle County · Please do not turn this place into a low cost ghetto and ruin it! This place is a haven for illegals. · Please make more affordable housing. I want to buy in the area. · Prices are absurd!! · Prices are insane, but I am lucky enough to be able to afford to live here · Probably more senior citizen housing is needed. It is growing each day and year. · Provide free tree to plant in · Proximity and access to bicycle paths or lanes is very important to me . Public transportation that includes a rail service throughout the valley would reduce overall housing costs and allow people who work in Vail to access down valley housing without expensive (and polluting) commutes. Up valley housing costs is my primary concern in living in Eagle County. · Quit catering to illegals with multiple children. We're tired of trying to survive and paying for other people. · Quit increasing taxes for open space, we have enough open space. Or, if you want more open space, don't complain about high real estate prices and don't do affordable housing. Open space and affordable housing is contradictory. · RA Nelson should never be able to build for Eagle County · Raise wages not lower housing costs · Real estate investment is the best way to improve your standard or living in Eagle County. Deed- restricted housing oppresses Eagle County employees. Focus on tax breaks and guaranteed loans. · Real estate is far too expensive here, especially in Vail for an average worker to afford. It is cause enough to ensure transience as most folks move on realizing that home ownership is impossible. This leaves Vail an empty heartless shell hell bent on profit, construction, or investment turnover rather than community or depth. · Recall Arn Menconi · Reduce property tax.. . less housing growth · Reduce the illegals and much of your problem(s) will be solved · Seasonal employment housing must be addressed. Year leases do not benefit seasonal employees. · Second home owners are driving the cost of housing up. Eagle County should consider a higher tax levy for second home owners. · Second homeowners should pay more taxes to discourage them from buying property just sitting and just sitting on it. This way workers could live here. After all most of our town's income is in sales tax and if more people were here year round we would have more money. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 156 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · So important to have a full spectrum of housing opportunities for year-round residents, not just resort labor. Need to think about the physical attributes of good "communities" and "neighborhoods" so that people will want to (and are able to) stay here. No office space in Vail-- too bad! · So-called affordable housing is affordable to who? Even though we could qualify for a larger home, we save for retirement and have other expenses. Wages in this valley have not kept pace. We want to have small acreage for horses and that is why we will leave this area. · Some of these question didn't make sense #34, #15. · Stop building. Have a moratorium. Build worker housing up in Beaver Creek. · Stop creating jobs by building second homes and the affordable housing problem will take care of itself. No affordable housing should be built in out of town locations. Dotsero, Wolcott, Battle Mountain should not be developed. It would greatly aggravate many problems in Eagle County. · Stop letting developers continue to rape this Valley!!! No more construction!! Clean out Mexicans!! · Streets need to be bigger to accommodate big hay trucks and horse trailers for people who live south of Eagle. How can we maintain our rural quality of life if you design us out. · Supposed "affordable housing" costs too much for most individuals in the valley to get into. Deed restrictions also hinder any owner to ever get ahead. Each year the value of their house becomes less and less compared to other houses in the valley. · Thank you for doing this survey to gather information to help us all out in the future. I work for the Town of Minturn and unfortunately can not afford to buy in this county. I will probably have to relocate to Leadville after my one year lease is up. · Thank you for your concerns · The American dream of owning a home is tough here. The employee shortage is the unskilled workers. Professionals can earn better money and can buy into condos, etc. The large corporations seem to lock up available employee housing and it leaves the small businessman in a tough spot. Had I not bought my home in 1990 I probably couldn't get into a home now. · The cost of housing is outrageous in Eagle County and it is very likely that we will be forced to buy outside of Eagle County · The cost of housing is outrageous. We have two adult children with very good jobs and they will not be able to purchase homes in Eagle County. They do not want to leave the area, but may not be able to stay. · The county should run the housing for the entire county. They should administer the programs for the towns so people have one source for finding affordable housing units. Not all deed-restricted homes should be priced capped they should also be market drive with an initial discount like the Brett Ranch program from VA etc. · The development in Eagle County is out of control. The unchecked development has turned Vail Valley into just another suburb of a major city - no charm, no personality. I moved to the mountains to get away from strip malls and big boxes but the lax zoning in the county has followed the money and brought them in. Stop ruining our mountains!! The economy of this Valley is hard to judge. On the one hand it is too expensive but on the other if you can get into something it's doable and you stand to make money if you sell. What can be done to better this situation? We should jack the prices up on the gapers and second home owners while discounting locals more on real estate. · The HOAs are sky rocketing due to lack of property management companies. Electric is too high. No assistance with huge HOA and utilities. Mortgages could be doable, but other fees make it unaffordable. · The housing inflation that has gone on the last 10 years- homes build for $150,000 selling for $330,000. Vacant lots that sold originally for 20,000-30,000 now selling for over $100,000 unless you bought 10-12 years ago is it very hard to afford to buy now. RRCASSOCIATES, INC.; REES CONSULTING, INC. 157 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · The lack of "affordable" single-family homes (not located in Gypsum) is a bit worrisome. For those of us who own a condo and would like to upgrade, it's quite a huae leap in mortgage payments. It could potentially force a large part of middle age/class families to move away. · The lack of availability of affordable housing in Eagle County is ridiculous! When we look for places to live the rentals are trashed, ugly, small and we barely make enough to pay the rent each month. And forget buying a house. With the money we earn at all three of our jobs I doubt we will ever be able to buy a house! This place is overrun by rich second homeowners and normal people like us suffer! · The needs for the employees and low income individuals in Eagle County are great and likely to get worse. · The only thing I want from Vail Valley is a good Alzheimer care unit for my wife who is currently in Denver · The only way we are able to live in Eagle County within reasonable distance is through a subsidized housing arrangement with an employer. We will not stay in Eagle County permanently because we can only own 1/2 our home. Our employer owns the other 1/2. Our salary and mortgage payment includes an interest only mortgage arrangement with our employer. I don't know what the solution is but housing is simply too expensive here. We make good money and couldn't buy any kind of home without help. · The rich get richer, the poor get poorer. In other words, the wealthy are exalting sales figures. · The school district is a mess! Avon -- all Hispanic, privates expensive and still unavailable, charters unavailable, and Stone Creek needs funding, public is horrible. Education is more of a concern than housing. · The ski industry should provide housing or more housing to meet their needs · There are a lot of people who would like to live here, but cannot afford it. Many teachers, who I work with, leave due to high cost of living. Teachers cannot teach and work a second job and be effective at both. · There are about 20 people across the street. I've seen them smoking crack in their driveway. They get high and give people a hard time. Trash all over windows coverings on side of building. Explains everything. Please find out why they moved their gas fire place unit and threw it in the trash? For a meth lab? Can you please bust the meth heads across the street in the Vail Commons! · There can never be housing affordable to the common laborer work force with the price of land so high in the county · There is little, if any, of the type of retirement property I am looking for (5-10 acres for horses) in Eagle County, which is why I will leave Eagle County after 27 years · There is no affordable housing in Eagle County · There is no such thing as affordable rental housing in Eagle County unless it is 6 people in two bed category. My needs are very well met because I bought property in Red Cliff in 1966. The mortgage is a home equity mortgage. · There is not enough affordable housing. Affordable housing should have amenities and be a well maintained, safe, and beautiful community. · There is really no availability for us. It is just way too high priced to consider ever living here. There isn't any availability. It's all too expensive. · There isn't anything available on our price range · There isn't available housing in the Valley. We will move within 5 years. I am a single parent with 4 kids. · There needs to be affordable housing. Quit hiring illegals. · There needs to be assisted living housing and full care housing in the Eagle area. I had to visit my father in Carbondale which is an hour drive from my house. This county needs to stop talking about it and just do it. RRCASSOCIATES, INC.; REES CONSULTING, INC. 158 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · There needs to be low cost housing for professional families in upscale units with better parking, i.e. 3 cars per 3 bedroom unit - on the Vail bus route. We are all service people with limited available housing. · There needs to be more day care options for children under 2 years in the Eagle/Gypsum area. We like the idea of having more shopping options in the area. · This is a free market and country. The rich will stay and keep moving here, the poor and those not willing to pay so much for so little will move away. We will move away within a year. · This is a waste of time and money. Is this so Eagle County can overdevelop and use more land? Don't spend any more tax money. · This is the biggest issue facing the valley for long-term sustainability. We are having our first child in six months and are very concerned about space and affordability of moving to a larger residence. · This survey does not even come close to helping identify the problem with housing in Eagle County. Tell the commissioners that building in Eagle County is too costly, mostly because of the way the county approves new developments. · This survey is not really directed at our family. We are satisfied with out current housing and are lucky. However, we started out in the valley working many jobs, renting, saving and were able to buy and then work our way up. We struggled to make that first down payment but somehow did it. If we would have bought a deed-restricted home, we would not have what we have today. Down payment assistance is fabulous, but deed restriction doesn't work, it only keeps people real estate-poor forever. Help people build equity! · This survey, again, reiterates that the Eagle County along the 1-70 corridor still sees the Basalt area as, in your words, "Other Eagle County." · This was a waste of time and tax payers money -- life is not perfect. If you don't like where you live, I say move. Seems like you're pandering to some groups. Could that be possible? · To increase · Too expensive · Too expensive. I can't afford $2000 a month for mortgage. · Too many high end housing and not enough $250,000-500,000 range. More flexibility on the style and construction of housing. · Too many rich idiots · TOV and county commissioners are not listening, there is too much waste. Bear containers are not necessary and don't justify cost. · Town of Eagle needs to buy property west of Gerrard Park next to Eagle River and add it to the park system · Towns must support local employee housing thru deed restrictive housing incentives to developers. Time is running out, do all you can now or locals well be "commuting" too far and quality of employees will go down. · Unless it is federally subsidized, there will be no affordable housing as the market dictates otherwise · Unlikely any government entity would be of assistance for our housing needs. We own 1) duplex home in East Vail 2) duplex (both sides) in 7th Ave historic district in Denver 3) another duplex (both sides) which is rental property in Denver. Five homes total. · Very expensive to live here. Hard to get paid for work done. We are contractors. · Very hard to buy in. In another year, wouldn't be able to afford where I live now. · Very limited space, not enough affordable housing, need affordable housing to raise children in this peaceful neighborhood · Wages for middle class families to offset housing costs. I could stay home two to three days a week with our son if housing costs were more reasonable. · Way too expensive! Could buy same quality house elsewhere for half the price. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 159 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · We all just need places that are affordable but not dumps. Nothing special, just a more than decent place to live. It's unbelievable how many homeless people are in the valley. This is Vaill! For crying out loud! · We are barely scraping by because housing is ridiculous. I'm sick of paying taxes for all the iIIegals. · We are extremely disappointed to hear that Avon is allowing another high-end housing development on the north side of 1-70. They should consider a place for the families that live here. Do something more like Eagle Ranch where there are still multi-million dollar homes along with single-family homes below $800,000. We are a family with important jobs, nurse and police, and we might be stuck in 1,000 sq ft forever. · We are finding it difficult to move from a town home to a duplex because of costs · We are fortunate enough to get the last good deal in Minturn · We are in the service industry and find it very frustrating that we can't afford more than our 768 sq ft apt. We are a family of three and it is very difficult to live in Eagle County. Also, we are not interested in deed-restricted housing as it makes it nearly impossible to ever improve our housing situation. · We are losing our middle class in Eagle, CO. It's unnerving how expensive things are getting besides housing. · We are lucky to have found a home we could afford before the last boom. If we moved here today, we would not be able to buy a home. · We are not the norm. Our children grew up here and cannot afford to own homes here. · We are very fortunate to have been have to buy an old home in Red Cliff when prices were under $100K for a decent size yard and home. Now the same homes area over $400K and we will likely never have neighbors with young children and regular jobs. The sense of community is less every year. Where else could we live?! Selling only means moving out of state and we never want to do that. · We believe in affordable housing for families that want to live in Eagle County. Not necessarily for seasonal workers - new construction should build a percentage for employee housing. · We bought our East Vail condo thinking we would sell in a few years and move into something a tad larger in East Vail. Our son attends VMS so we want to stay close. But now everything is way too expensive to upgrade. In a condo we will stay. · We can take care of our own housing needs and do not need any help from the county · We could never afford to leave and come back. I doubt we would retire here as it is very unlikely our kids could afford to live here. · We could not afford our home if we wanted to buy it today. Our children (college graduates) can't afford to live here. Where will our community "heroes" live? · We do not feel this is a government problem. I would support mill levy county wide to help emergency service personnel and teachers. Please have a plan first before asking for funds. · We don't need big box stores, this is not Denver. Eagle County has gone downhill. Keep the county out of my business. Don't waste money on open space. Too many sheriffs. Towns should not charge for trash and other services. · We feel that it is gov. job to take care of their employee housing needs. It is not tax payers job to take care of community needs. Let free market take care of it. · We have found the cost of living extremely high. We moved here from San Francisco area and my husband has a great job and the only way we could afford our house was with equity from past homes. · We have made sacrifices to our lifestyle, amount of free time, where we work, etc. We are not for tax funded housing of people who have moved here wanting their lifestyle to be subsidized because it is more difficult to buy a nice house than where they came from. We worked multiple jobs, long hours and made lifestyle sacrifices to buy our home. If others want to buy they can make it happen if they are willing to sacrifice. Nothing worth having is free! RRC ASSOCIATES, INC.; REES CONSULTING, INC. 160 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · We have many large and small businesses employing illegal immigrants who are taking up housing, driving the bar of education so low, and using services intended for leQal US citizens! Get ICE up here so we can get our community health care and schools back to the taxpayers who pay for those services! Lower to middle income wages are being held down by illegal labor. I am living this first hand! · We have plenty of overpriced real estate in Eagle County. Affordable housing does not start at $500,000 for a single-family home. Affordable to whom? · We like the small town atmosphere. There are too many people moving to Eagle and the traffic, etc is ridiculous. No big boxes wanted. · We like to walk/bicycle around our community/valley but few places are pedestrian friendly, i.e., no sidewalks or shoulders alongside the road. It is somewhat of a disappointment. · We live in Chatfield Corners in Gypsum -. excellent community! The major problem in Eagle County is to own a home you need two incomes or be wealthy. Also the cost of homes, while beneficial to the homeowner, makes it very difficult to get into a home. · We live in Dotsero as it was the only place we could afford a single-family home. We'd like to move closer to schools, stores and restaurants, but the housing prices are twice what we paid for our current home and up. There was a home in Cotton Ranch, that was just appraised over 1 million. How can we compete with that? Soon the valley will be too expensive for families to live in. Only those houses that squish together multiple families into their living space will be able to stay. · We live in ECSD sponsored housing at Maloit Park. Without the housing opportunity we could not afford to live here and raise our family. · We live in Willits, a beautiful, safe neighborhood within walking distance to parks, stores and other amenities · We love Miller Ranch and hope more housing similar to our neighborhood are built. This location is perfect for our family. We are one of the few families that do not like Eagle. · We moved from Leadville 17 yrs ago to be closer to work. We want to buy a home but affordable options are Leadville or Gypsum. Miller Ranch housing and Vail housing too small. My trailer is large. · We need a change. There's no reason why I have to rent and have roommates to afford to live here when I have a full time job. · We need a lot more affordable housing in the Avon/Edwards area · We need a lot more two bedroom units for rent or for sale and how about a nice local dog park · We need more affordable housing · We need more affordable housing. Please include Spanish versions with original mailing to cater to local demographics. · We need more affordable ownership housing. With us we are at the point of wanting to start a family, which is difficult given the limited amount of affordable family housing. More communities like Miller Ranch are needed -- a lot more. · We need more options in the $200,000-300,000 range for people to get into the housing market, and for responsible professionals, close/in Vail especially -- clean, quiet, private town homes for example · We need some affordable SFR with more than two bedrooms. Also need to keep better control over the way the homes are being built. Very poor quality of home being produced. Just slapping them together for the money! · We need to keep our taxes low so we can afford to stay here in the Vail/Eagle River Valley. We should also tax second home owners who do not reside in Eagle County more than six months a year. This could offset our growing budget. · We need to look into grandfathering in farms that lay within changing zones so older folks and long term residents are not taxed off their property RRC ASSOCIATES, INC.; REES CONSULTING, INC. 161 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · We not only need to take care of young people but also make it affordable for our long term residents and seniors to be able to stay · We own two condos in a four-unit building, our son owns one (3rd), and a cousin owns the other (4th). One of ours and our sons condo is rented out full time to Vail workers. This is a part of our income and helps the housing supply in Vail. We get no credit for this. We do most of the maintenance. Thank you for asking! · We pay a price to live here. That is why within four years I plan on retiring to the Grand Junction area. Young families cannot afford to stay, but are wanting to do so. All of upper valley residents are moving to Eagle and Gypsum. Where are our kids to go? · We purchased 20 years ago and are satisfied with our situation · We severely need more affordable housing. Even modulars go for over $300.000. We are young college-educated, job-holding married couple and we cannot afford to buy anything. We most likely will move out of the area when it's time for children (3-5 years). we love it here so we'd be sad to leave. · We were fortunate enough to buy when things were still affordable, if not, probably all of these answers would be different, I.e. we'd live Down Valley, not as thrilled with the community, would have longer commutes, etc. Thank you for surveying I hope you get many responses that truly reflect the challenges many folks in the county face. · We would have left the valley without Miller Ranch. Thank you Tom Stone. · We would have never been able to purchase a home if we hadn't had help from a family member · We would like housing for only 65 and older in Eagle County with services available if necessary. Amenities that would be helpful would be to own the condo, have meals (some) available, wheelchair accessible, social hall, and activities. · We would like to fence a portion of our yard for our dogs. We would like more families to move back to Vail. · What is attractive about the mid-valley we are losing. Way too much suburban looking sprawl. The area will lose its appeal and then all those houses being built will be unwanted. · When letting night clubs take over restaurant liquor license you should be checking with the actual residents. Our quiet neighborhood now is filled with trash and drag racing up and down the street. The so called restaurant doesn't start till 1 Opm and quits at 2am. It has not been a welcome addition for those of us that work early in the moming and are kept up late at night. "The Rumpus Room" is not a good addition to Edwards community. It has brought more trash, underage drinking, drugs and noise way over the allowed noise limit! · When we moved here we were appalled at the quality of construction, lack of UBC code enforcement, lack of code knowledge by building inspectors, spoiled general contractors, poor work ethic, disregard for publiC safety, lack of middle class, while the scenery and outdoor activities are great, local governing bodies and elected officials are backward at best, criminal at worst! Not a valley you can be proud to live in. · When we moved to Eagle County, we moved west to Eagle (city) so we could afford to buy something. Then when we saved (through sacrifice and hard work, multiple jobs) we bought in Edwards. Hard to purchase in Eagle County but because of that it helps as an investment. · Wild ridge needs to have some sort of public transportation. · Will have to leave area on retirement. I absolutely cannot afford area after I retire. · With all the high end real estate development going on, we local wage earners are seeing our property taxes go up way faster than inflation. Our taxes went up 40% last year. I expect increases, but there should be a max limit on the yearly percentage increase close to the real CPI, or somewhat higher, but not 40%. Why build new employee housing when Vail keeps losing its existing workers who can't afford to live here and have to move away from Vail? RRC ASSOCIATES, INC.; REES CONSULTING, INC. 162 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 · With housing limits for regular folks so restricted more deed restrictions might help; tax part time (home owners, residents) more · Work on more senior citizens residential housing. My needs are met but many working class people can't afford housing in this county. · Would like to buy a house, but the only available are huge trophy homes that start over a half a million dollars. I just need a small house to live and hang my hat. I can't afford the prices in Eagle County, so I'm living in a highly Hispanic community to survive. I'm scared to walk alone with all the crime. · Would like to find affordable housing without deed restrictions · You cannot afford to buy a larger place in this valley on one income. Not much available for the 'working class," Why do foreign workers get to pay way less in rent and pay $30/year to store items when storage for locals is $50 a month? · You did not ask a question about moving in the next 2-5 years because we need to decrease our monthly mortgage payments. · You didn't ask about taxation. We find it totally equitable that only property owners are taxed locally for schools. It is not fair that homeowners are responsible and cannot afford this "contribution." Some can barely make their mortgages, many can't. There should be more balance in support of the education system particularly considering those who have no children. RRCASSOCIATES, INC.; REES CONSULTING, INC. 163 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Rent/Utility assistance Provides grants to Potential for an expanded role for Assists very low income households income-qualified renters the County Housing Department - those that make trade ofts Housing assistance, not for rent and/or utility between rent and roduction a ments. food/medication/other necessities. Income-restricted Offers quality housing at Private, non-profit and govemment Mixed income developments will rentals (tax credit, below-market rental rates development programs; State mitigate the perception of "Iow- USDA, HOME, etc) for income-qualified Division of Housing (HOME and income" housing projects and will renters (typically income CDBG funds). increase options for low-income Typically multi-family, restricted for households residents. Rental housing should be rentals (60% AMI or earning below 30% and up The Towns and County can encouraged in areas near lower) to 60% AMI). This may encourage developers to pursue community services and accessible also include rentals that tax credit and other options for low- transit routes are age-restricted for income rentals through expedited seniors and that are application processes, assistance Tax credit financing is available to disability with state agency applications for private sector developers, as well as restricted/accessible. grants/funding and deferred non-profits and housing authorities, payment of development fees/fee although these developments have rebates, for example. been difficult to put together in mountain communities because of relativel hi h wa es. Rental rehabilitation Explore options to provide Home Improvement Loan Program, Makes use of existing, older housing low-interest loans to or non-profit assistance stock. Improves "fa~ade" of Does not produce new otherwise encourage community by upgrading/renovating housing, but makes landlords to upgrade older older areas of town. Improves units inhabitable/ rental properties. energy effiCiency of homeslreduces suitable for occupancy/ Altemative opportunities to energy costs. energy efficient, etc.; purchase rental rentals properties, renovate and re-lease at below- market/income-restricted rates Sweat-eauitv and New homes locals can Habitat for Humanity Opportunity to use and renovate fixer-upper proarams own, built in part by existing housing stock to improve themselves, volunteers USDA Section 523 Mutual Self- occupancy and suitability of existing Typically ownership and family. Program Help Housing program units. Satisfaction with being units for 60 to 120% options could also involved in own home construction. AMI households - but encourage acquisition of depends on needs in older homes and area. renovation through sweat equity. Both new home production and existing home renovation otential. Low-interest Low-interest loans to Rehab Loan Program Makes use of existing, older housing rehabilitation loans make needed health and stock. Improves overall community safety improvements to by upgradinglrenovating older areas Housing assistance, not owner-occupied housing of town. Improves energy efficiency new home production, for seniors and lower of homes/reduces energy costs. renovate existing income households. housing stock. Support rehabilitation loan programs that can be available to first-time homebu ers. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 164 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Permanentlv affordable housing (deed-restricted) Typically ownership units for 80 to 120% AMI households - but depends on needs in area. Single family, multi-family or mixed- use Loan assistance Housing assistance, not production Housing assistance, not production All types of units Units sold at below market prices for income-qualified buyers. Appreciation of these homes is limited to ensure permanent afford ability upon tumover of the unit to a new income-qualified buyer, thereby creating a supply of permanently affordable ownershi units. May include grants or no- interest or low-interest loans to cover closing costs for income-qualified buyers; education programs of the loan process; work with local lenders to tailor loan ro rams to local needs. Provides grants or no- interest or low-interest loans to buyers to cover down payment costs. Programs may have time limits to determine grant versus loan - e.g. if home is occupied for over five years, it's a grant; if resold within 5 ears, it's a loan. Identify key sites for future housing development that are either currently publicly owned or that couldlshould be purchased for future housing development. Develop workable designs for future housing projects on these properties when needed. Typically produced through housing requirements such as inclusionary zoning or linkage programs, or products provided through non- profit and government programs. Eagle County Housing Department, local banks, Fannie Mae, CARHOF and the State Division of Housing may be sources of funds Eagle County Housing Department and same potential sources of funds as loan assistance May be federal or state grants or loans available Deed-restricted homes provide households that are normally priced out of the housing market with an opportunity to purchase a home, build equity and establish themselves in the community. Needs funding source/lender agreements. Helps renters take the first step toward homeownership. Down payment assistance will help renters take the first step toward homeownership. Needs funding source/lender agreements. Adjacent landowners may object. Incorporates affordable housing into community development plans. Requires continued public education about intended development plans for sites. RRCASSOCIATES, INC.; REES CONSULTING, INC. 165 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Annexation Policies Produces multi-family and single-family homes, variety of income ranges, typically ownership. Fee Rebate (this is NOT a fee waiver) Applicable to all types of housing production owner, renter, etc Streamlinedl expedited approval process Applicable to all type of housing production (owner, renter, etc) With cooperative policies between the County and local municipalities, developers may seek annexation to acquire andlor increase development potential. Because municipalities have broad discretion with annexations, policies can require the provision of affordable housing. Rebate of development fees to the developer of affordable housing. Value used to subsidize housing development. Developments proposing substantial public benefit by incorporating affordable housing may be placed through a streamline/expedited approval process to decrease the costs and time of production of the project to the developer. This may include reduced pre-meeting plat costs, "front of the line" status, citylcounty cooperation to expedite needed inspections/help with state applications for funding (where needed - e.g., CHFA , etc. Develop and enforce an annexation policy and affordable housing requirements. No outside funding needed. Local government can identify a source of funds that is appropriate for affordable housing, such as general fund revenues, and establish a pot to pay the fees for the developer. Establish specific criteria and procedure, administer program. Level of effectiveness dependent upon annexation opportunities. Program may not be popular among adjacent landowners. Still provides needed revenue to the city/county for services/other required fees; revenue shortfalls for rebates may occur. Developers often express costs and time incurred during the approval process to greatly limit their ability to provide more affordable housing; need to set realistic targets for streamlining (not every step of the process can be streamlined); public education needed for the justifications of streamlining; may not be popular among adjacent landowners RRCASSOCIATES, INC.; REES CONSULTING, INC. 166 DRAFT - EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Applicable to all types of housing production (owner, renter, etc) Accessory Units Small rental units, serves singles, seasonals, cou les Inclusionary Zoning Requirements Typically ownership units; single-family or multi-family; typically for 80% to 120% AMI households, but dependent on local needs Residential Employee Generation Mitigation Same as above Commercial Employee Generation Mitigation Same as above Permits modification of certain zoning requirements (setbacks, lot size, etc.) in exchange for improved development design (incorporated for example mixed-use development, open space, etc.). There may be a minimum affordable housing requirement that would need to be met for these developments. May incorporate aspects of density bonuses and streamlined a roval. Optional, small second units attached to or within single family units. Mandatory inclusion or set aside of affordable housing units (usually the same type or similar to other units in development). Program may allow cash-in-Iieu, land-in-Iieu, purchase/renovation of existing units or off-site housing as an option for compliance. Requirement for residential development to provide housing or fees-in- lieu for some portion of employment positions created by the development (residential services, etc. Zoning provisions that require commercial development (lodge, retail, industry, etc), to provide funds or housing to meet some portion of seasonal and/or long-term employment generated by new development (15% to 60% range common). Administration of zoning and deed restrictions. Administration of zoning and deed restrictions. Allocation of cash-in- lieu andlor land-in-lieu if collected. Administration of zoning andlor deed restrictions. Allocation of funds, if collected. Administration of zoning and/or deed restrictions. Allocation of funds, if collected. Improved design and livability potential for new subdivisions; incorporates affordable units with market units to integrate housing design; public education of new development designs needed; may not be popular with adjacent landowners. Consider changes in ordinances that not only encourage development of permanently affordable housing, but also make it feasible for the private market to provide lower priced market-rate units. Should be deed restricted. Income and occupancy difficult to enforce. Integrates free-market and income restricted housing. Places burden on residential developer to provide housing (which may be passed on to the free-market consumer). Locational issues include transportation impacts and achieving a desirable socio- economic mix within developments. Perception that deed restricted units may affect value of free market units. When mitigation is provided on-site, attention must be provided to locational issues and compatibility of housing. If fees collected, acts as a revenue source for housing programs. Possible mass and scale consequences. Site suitability issue -- short-term accommodations would be located differently than long-term worker housing. If fees collected, acts as a revenue source for housing programs. Combined residential and commercial mitigation shares the housing burden across both types of develo ment. RRC ASSOCIATES, INC.; REES CONSULTING, INC. 167 DRAFT -EAGLE COUNTY HOUSING NEEDS ASSESSMENT 2007 Fees-based Programs (Impact fees, fees-in- lieu of housing production, etc.) Applicable to all types of housing production (owner, renter, etc) Tax-based Programs (sales tax. lodQinQ tax. etc.) Applicable to all types of housing production (owner, renter, etc) Partnerships between public. non-profit and private entities Applicable to all types of housing production (owner, renter, etc) Dedicated fee-based funding sources that can be used for housing programs. Examples include impact fees, business license fees, etc. Could also include the voluntary real estate transfer fee. Augment housing fund with dedicated tax-based funding sources. Options include sales tax, housing excise tax, head tax, property tax, recreation activities tax, luxury tax, lodging tax, etc. A variety of methods exist for public and private entities to jointly develop affordable housing. The focus of these efforts would be to leverage public resources. Tendency to use funds for low and moderate income groups. Middle income needs might not be met (unless complemented with other programs). Spreads burden beyond just the development community. Tendency to use funds for low and moderate income groups. Middle income needs might not be met (unless complemented with other programs). Spreads the burden for local housing beyond just the development community. Tourism can help pay for impacts. Potential exists to involve private sector entities, both large and small, to develop housing solutions. Eagle County has a wide array of existing non-profit and private activity in local housing mitigation - pooling resources could make programs even more effective. RRCASSOCIATES, INC.; REES CONSULTING, INC. 168 4/22/08 DRAFT EAGLE COUNTY LOCAL-REsIDENT HOUSING GUIDELINES: ADMINISTRATIVE PROCEDURES TABLE OF CONTENTS PART I - LOCAL-RESIDENT HOUSiNG................................................................................ 1 PART 1-100 Eagle County Incomes............................................................................................ 1 PART 1-200 2008 Maximum Sales Prices for Affordable For-Sale Housing............................. 1 PART 1-300 2008 Maximum Pricing for Affordable Rental Housing........................................ 1 PART 1-400 Spectrum Pricing Preferences ................................................................................ 2 PART 1-500 Unit Mix and Sizes ................................................................................................. 2 PART 1-510 Storage ..................... .............. .............................. ...............................................2 PART 1-600 Housing Plan Requirements ................................................................................... 2 PART 1-700 Criteria for Location of Local-Resident Housing.................................................... 3 PART II - ADMINISTRATIVE PROCEDURES GOVERNING COMMERCIAL MITIGATION .... ........ ........ ..... .............. ................ ..... ........... ................ ..... ....... ...... ........ .............. 4 PART II-IOO Quantification of Effects of Commercial Development in Eagle County.............. 4 PART III - IN LIEU OF PAYMENT CALCULATIONS ........................................................ 5 PART III-IOO Calculation of Payment- in-Lieu ........................................................................... 5 PART IV - ELIGIBIL TY ..............................................................c............................................... 5 PART IV-lOO Application Process .............................................................................................. 5 PART IV -200 Selection Criteria .................................................................................................. 6 PART V - SALES OF LOCAL-RESIDENT HOUSING .......................................................... 7 PART V-lOO Listing Units .......................................................................................................... 7 PART V-110 Permitted Capital Improvements ........................................................................... 8 PART V-120 Inspections Prior to Sale ........................................................................................8 A ppen dix A ..... ........................ ........ .......... ......... ..... ........... ...... ................ ........ ........... ..... .............. 0 Wage Appreciation Data (pursuant to Section 5-180) ................................................................. 0 Appendix B...... ........................ ........ ........... ....... ....................... ........... ........ ..... .................. ...... ...... 1 Examples of Application of the Guidelines ................................................................................. 1 Appendix C ............. ............. ........ .......... ....... ............. ........ ................. ........ ................... ........ ........ 3 Eagle County Legal Forms ................. .................................... ...................................................... 3 PART I - LOCAL-RESIDENT HOUSING The Administrative Procedures provide the technical procedure for developing, selling, purchasing, reselling, and renting Local-Resident Housing. PART 1-100 Eagle County Incomes This information shall be used throughout the Guidelines to determine applicable AMI levels. 2008 Eagle County AMI Levels # Persons Percent of Area Median Income (AMI) In Household 200% 160% 140% 120% 100% 80% 60% 50% 1 $117,400 $93,920 $82,180 $70,440 $58,700 $46,960 $35,220 $29,350 2 $134,000 $107,200 $93,800 $80,400 $67,000 $53,600 $40,200 $33,500 3 $150,800 $120,640 $105,560 $90,480 $75,400 $60,320 $45,240 $37,700 4 $167,600 $134,080 $117,320 $100,560 $83,800 $67,040 $50,280 $41,900 5 $181,000 $144,800 $126,700 $108,600 $90,500 $72,400 $54,300 $45,250 6 $194,400 $155,520 $136,080 $116,640 $97,200 $77,760 $58,320 $48,600 PART 1-200 2008 Maximum Sales Prices for Affordable For-Sale Housini These calculations are relevant to initial pricing of Affordable For-Sale Housing, as provided for in Sections 3-160, et seq., of the Guidelines. PART 1-300 2008 Maximum Pricing for Affordable Rental Housing The following table represents the maximum rents for Affordable Rental Housing for 2008, as provided for in Section 3-161 of the Guidelines: 2008 Maximum Rental Rates 80% AMI 90% AMI Studio $1,174 $1,321 1 BR $1,340 $1,508 2BR $1,508 $1,697 3BR $1,676 $1,886 4BR $1,810 $2,036 1 The above figures assume seven percent (.07) fixed mortgage with ten percent (.1) down payment with thirty-year amortization. Property tax, insurance, HOA dues, and PMI (mortgage insurance) are assumed at 21.39 percent (.2139) of mortgage payment. These assumptions may also be updated annually based on market-rate mortgage rates. "Affordability" requires that residents pay no more than 30 percent of their Gross Household Income as housing payments. - 1 - Builders of affordable properties must convey a one-tenth of one-percent (.001) undivided ownership interest in all Affordable Housing units to Eagle County in a form substantially similar to Appendix C. PART 1-400 Spectrum Pricing Prejerencei The chart below provides for the preferred distribution of pricing of Affordable For-Sale units, as provided for in Section 3-160 of the Guidelines. 2007 Needs Assessment Ga 7.1% 2008 Preferred Distribution for Affordable For Sale PART 1-500 Unit Mix and Sizes The chart below provides for preferred bedroom mix and sizes, pursuant to Section 3- 700 of the Guidelines. An additional 150 minimum and 300 maximum Net Square Feet will apply for each additional Bedroom above four. Net Square Footage calculations set forth in the Housing Plan must be verified by the Program Administrator prior to the issuance of any building permits. PART 1-510 Storage Pursuant to 3-500 of the Guidelines, seven square feet of storage (exclusive of parking) is required per 100 square feet of Affordable Housing and Resident-Occupied Housing. Applicants may count storage at .5 of Net Square Footage obligations (e.g., 100 square feet of storage excuses 50 Net Square Feet of Affordable Housing or Resident-Occupied Housing). Storage credit may not exceed 10 percent (20 percent of the Net Square Footage) of the total Net Square Footage of the Affordable or Resident-Occupied Housing. PART 1-600 Housing Plan Requirements Pursuant to Section 3-200 of the Guidelines, 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, Bedroom mix,. floor plans 2 Calculations based on three-person Household; 7% fixed mortgage; 10% down payment; 30-year amortization. Property tax, insurance, HOA dues, and PMI assumed at 21.39% of mortgage payment. - 2 - and elevations, targeted incomes, and sales prices or rents for all Affordable Housing calculated pursuant to the Administrative Procedures, as amended annually; 3. Net Square Footage of any Commercial Development, Affordable Commercial Space, and number of employees generated from the development utilizing standards set forth in these Guidelines; 4. Average Net Square Footage of the proposed Local-Resident Housing and average size of finished Net Square Footage of market rate housing units; 5. Average lot size ofproposed Local-Resident Housing and average lot size of market rate housing units, as applicable; 6. Location of proposed Local-Resident Housing within the development, by unit type and size; 7. Proposed production schedule of Local-Resident Housing and market units; 8. Market analysis and concept for marketing to Eligible Households or to employers who may purchase units for occupancy by their employees; and 9. Justification for requests to pay fees in lieu or to be provided incentives allowed by these Guidelines, 10. Any proposed alternative methods of compliance with these Guidelines, including development of Local-Resident Housing off site. PART 1-700 Criteria for Location of Local-Resident Housing Pursuant to Section 3-180 of the Guidelines, sites for Affordable Housing and Resident Occupied Housing should be evaluated pursuant to the following criteria: 1. The proposed site and proposed housing conforms to the Eagle County Comprehensive Plan, all applicable Sub-Area Master Plans, and Eagle County Land Use Regulations, and is located within an appropriate zone district. 2. The proposed Affordable Housing site is within a "Community Center," as defined in the Eagle County Comprehensive Plan or any other applicable sub-area master plan, or in a similar location suitable for Residential Development as approved by the BoCC. 3. The Affordable Housing site scores at least an 80 on Eagle County's Sustainable Community Design Index, as adopted by the BoCC. 4. The site is located either in unincorporated Eagle County or in an Eagle County municipality. 5. The site's location in relation to the proposed Residential Development or Commercial Development. 6. The site is not within an area that has potential geologic hazards associated with development, such as areas at high risk of flooding or fIre. 7. The site is on a slope less than twenty percent. 8. Public infrastructure is available to the site. 9. The site has suitable drainage and soils. 10. The site is not adjacent to nuisances or health and safety hazards. 11. The site is served by public transit. - 3 - PART II - ADMINISTRATIVE PROCEDURES GOVERNING COMMERCIAL MITIGATION PART II-I 00 Quantification of Effects of Commercial Development in Eagle County Pursuant to Section 3-110 of the Guidelines, to provide housing for those Households earning under 140 percent of the AMI, the Guidelines require mitigation at the rate of 55 percent. This results in 715 square feet of Affordable Housing for every 1,000 square feet of commercial space, and 204 square feet of Affordable Housing per Lodge Room. Commercial Mitigation Calculation by Type of Use Job Generation & Mitigation Commercial Lodging Per Per 1,000 SF Room 2.8 0.8 1.2 1.2 2.3 0.7 1.8 1.8 1.3 .37 1,000 1,000 1,300 370 55% 55% S uare foota e re uired 715 204 Source: Rees Consulting, Inc. & RRC Associates, Inc. Nexus / Proportionality Analysis for Commercial Development / Worliforce Housing Linkage, Eagle County, January 2008 The calculation method is based on average job generation rates of2.8 jobs per 1,000 square feet of space or .8 jobs per Lodge Room. The rates used were produced by a merged database with surveys of commercial space in similar mountain resort counties; the rates for Eagle County ~re generally higher. The averages used are aggregate-total square feet of space or total rooms divided by total jobs. Weighted averages and median job generation rates are higher, approximately 4.0. Commercial and Lodging Job Generation Rates Merged Database Bar/restaurant Construction Education Office (FinancelBanking, Legal, Medical, Prof. Services) Government 1.8 1.2 Real estate/property management (office) 6.1 9.2 Retail sales 3.0 3.6 Service (personal and commercial service) 1.9 2.6 Recreation/attractions/amusements 5.5 2.0 Utilities 1.4 1.6 Overall 2.8 3.1 LodgingihoteIlhousekeeping 0.8/room 0.9/room Property Management (units) O.4/unit 0.5/unit Source: Rees Consulting, Inc. & RRC Associates, Inc. Nexus / Proportionality Analysisfor Commercial Development / Worliforce Housing Linkage, Eagle County, January 2008 8.7 5.4 1.3 Eagle County 1990/1999/ 2001/2007 10.6 7.3 1.3 3.7 4.6 Rates for various types of commercial space are provided in the table above. - 4- Factors necessary to convert the number of employees generated to the amount of Affordable Housing required are as follows: . Multiple Job Holding - The 2007 Eagle County Housing Needs Assessment determined that employees in Eagle County hold an average of 1.2 jobs per worker. In determining the number ofhousing 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 Assessment, 2007 Update, 1.8 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. . Mitigation Rate: The rate of 55 percent is based on 100 percent of the demand generated for Households with incomes equal to or less than 140 percent AMI adjusted for in commuting (82 percent of employees live in Eagle County and 18 percent in-commute). As such, the mitigation rate is reduced by this percentage to account for current commuting patterns. Changes in the factors used to convert from jobs to housing demand, and from housing demand to the amount of space required by the Local-Resident Housing Guidelines will not regularly change. PART III - IN LIEU OF PAYMENT CALCULATIONS PART III-IOO Calculation of Payment- in-Lieu Pursuant to 3-131 ofthe Guidelines, the payment-in-lieu fee for 2008 is as follows: Calculation 0 Fees in Lieu - 2008 105% AMI Average Target Income Point (3-person Households) Affordable MontWy Housing Pmt. * Based on a fixed-rate, 3D-year mortgage at 7.0 percent interest with 78.61 percent of monthly payment covering principal and interest; 21.39 percent of payment covers property taxes, insurance, PMI and HOA fees. PART IV - ELIGIBILTY PART IV-IOO Application Process Households interested in purchasing or renting Local-Resident Housing must submit an application to the Program Administrator. Once approved, they will receive an Eligible Household certificate good for up to ninety (90) days, which will include the qualifying unit-size category. Approved applicants will also be added to a master list to be maintained by the - 5 - Program Administrator. The application and any accompanying documentation will become the property of Eagle County and will not be returned to the applicant. The application steps are as follows: 1. Obtain an application from the Eagle County Housing Department, (970) 926-0794, www.eaglecounty.uslhousing. 2. Provide evidence of Qualified Employee status as follows: (1) an affidavit of the person, (2) verification by employer, (3) two most recent pay stubs, and (4) other documents that the Program Administrator deems necessary to make a determination, including, but not limited to, voter registration information, place of automobile registration, driver's license address, income tax returns, and statement of Household assets. 3. Provide a letter of pre qualification from a mortgage lender for a mortgage with a fixed- rate mortgage of at least 5 years duration and submit a copy to Eagle County. Reverse amortization mortgages are prohibited. 4. Supply a valid copy of the Homebuyer Education Class certification approved by the Program Administrator. 5. Provide a down payment equal to at least one percent (1 %) ofthe purchase price. 6. Refrain from making an offer to purchase or signing a lease until a Letter of Certification is issued by the Program Administrator. A Letter of Certification is valid for ninety (90) days from the date of issuance. 7. Execute an Acknowledgement of Deed Restriction, a document accepting the purchaser's agreement to be bound by (1) the recorded deed restriction covering the sale unit and (2) the Guidelines. PART IV-200 Selection Criteria The following applies to all sales and re-sales of Affordable Housing units: 1. Once basic eligibility has been met, the applicant 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, Eligible Households will receive preference and will be prioritized for selection as the top bidder based on the highest score using the criteria listed below. a. 25 points if Gross Household Income is equal to or less than 10 AMI percentage points above the Affordable Housing Unit's purchase price or 15 points for Gross Household Incomes equal to or less than 20 AMI points above the equivalent AMI value of the Affordable Housing Unit's purchase price. b. 2 points for each calendar year of full-time employment in Eagle County up to a maximum of 20 points. Partial years shall be awarded points on a pro-rata basis. c. 1 point for each calendar year of residence in Eagle County up to a maximum of 20 points. Partial years shall be awarded points on a pro-rata basis. d. 5 points for each year of service, more than thirty (30) hours per week, of work as the following, capped at 40 points: firefighters, police officers, EMS technicians, plow operators in the public service, mechanics in public service, dispatchers in the public service, 911 information service employees, other emergency service workers, hospital-employed medical professionals, public water and sanitation workers, government public transportation workers, pre- school, primary, secondary and post-secondary teachers, federal, state, and local - 6- government employees, and employees of entities with I.R.S. 501(c)(3) designations. e. 15 points per Household member who works full-time within 3 miles of the Affordable Housing unit, capped at 30 points. f. 15 points per Household member under the age of 18 for Current owners of Affordable Housing Units. g. Intergovernmental agreements shall mandate the points specified in those agreements. The following rules apply to the selection process described above: 1. The physical place of residence and employment is relevant-the applicant's mailing address is not. 2. If two individuals are applying jointly, their points will not be combined. The single individual with the longest record of employment or residency will be used to determine length of employment or residency. 3. All claims must be verified by the Program Administrator. Claims of residence or employment that cannot be verified will not be counted in determining length of employment or residency. 4. If there is one applicant with the most points, the unit will be awarded to that applicant. 5. 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. 6. If two or more qualified bids are submitted at the highest bid price and the bidders have equal point 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 applicant. The drawing shall be held by the Program Administrator during regular business hours and witnessed by the applicants with equal point priority, if desired. PART V-SALES OF LOCAL-RESIDENT HOUSING PART V-IOO Listing Units The seller of Local-Resident Housing must follow these steps: 1. Execute a standard Listing Contract on forms approved by the Program Administrator. 2. Consult with the Program Administrator to review the deed restrictions recorded against the unit to determine the Maximum Resale Price permitted and other applicable provisions concerning a sale. The Program Administrator shall administer the sale in accordance with the requirements in effect at the time of listing. 3. Consult legal counsel regarding examination of title and all contracts, agreements and title documents. The retention of such counsel, licensed real estate brokers, or such related services (excluding all sales fees), will be at the purchaser's or seller's own expense and shall not be included in the calculation of the Maximum Resale Price. The Program Administrator shall act exclusively on behalf of Eagle County during any sales transaction. - 7 - PART V-IlO Permitted Capital Improvements Value will be given for the Pennitted Capital Improvements on Affordable Housing as follows: 1. The addition of a habitable room or storage space; 2. The fmishing 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, but only "Energy Star"-rated appliances shall be included in the value of the renovation; 6. Replacement or repair of existing fixtures (e.g., flooring or painting). 7. Installation of permanent landscaping or air conditioning. 8. Window treatments. No other categories or types of expenditures may qualify as Pennitted Capital Improvements unless pre-approved in writing by the Program Administrator. Pennitted Capital Improvements shall be depreciated pursuant to the depreciation schedule set forth in the Marshall & Swift Residential Cost Handbook.. Upon completion of the work, legible copies of receipts, invoices and proof of payment by a third party must be submitted to the Program Administrator. Owners must also retain original receipts and invoices. When an owner pays cash for payment of receipt or invoice, the owner must provide additional documentation of payment from a third party. If no such payment can be produced, the Program Administrator can inspect the improvement completed in the Unit. Up to 75 percent of value for market rate cost of similar work may be included after an inspection, at the Program Administrator's sole discretion. Work that requires and is perfonned without the issuance of all required building pennits or Property Owners Association application shall not be considered a Pennitted Capital Improvement. In calculating the costs allowed as Pennitted Capital Improvements, only the owner's actual out-of-pocket costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to owner's labor, or that of his employees or business, or to any appreciation in the value of these improvements. The value of the Pennitted Capital Improvements will be added to the appreciated value of the unit at the time of sale. No appreciation is allowed on Pennitted Capital Improvements. Other improvements to the Affordable For-Sale Housing unit are allowed, but adjustments to the Maximum Purchase Price will only be given for Pennitted Capital Improvements. Improvements that reduce the consumption of energy, including but not limited to roof replacement; furnace replacement; modifications or improvements to accommodate a person with a disability as defined in the Americans with Disabilities Act of 1990; or other improvements necessary for the maintenance of the unit will not be limited under the provisions of Pennitted Capital Improvements, but shall be added to the base price of the unit, for purposes of calculating resale price, at time the improvement is made when a final building pennit or certificate of occupancy is issued. These improvements must be approved in writing by the Program Administrator prior to the commencement of work on the improvement. PART V-l20 Inspections Prior to Sale The seller of an Affordable Housing unit shall make the unit available for inspection by t through the time of closing. All repair items shall be remedied by the seller prior to closing or the cost of - 8 - remediation, plus a 15 percent administrative fee, shall be deducted from any closing proceeds to the seller. The following is a list of inspected items: Inspection Standards for Resale 1. Clean unit, as explained below. 2. Carpets steam-cleaned two or three days prior to closing. 3. All scratches, holes, burned marks repaired in hardwood floors, linoleum, and tile, counter tops, etc. 4. No broken or foggy windows. 5. All screens in windows (if screens were originally provided). 6. All doors will be in working order with no holes. 7. All locks on doors in working condition. 8. All keys provided (e.g., door, mail box, garage). 9. All mechanical systems in working order. 10. Walls paint ready. 11. Normal wear and tear on carpet; if carpet has holes, stains, etc., the carpet and padding shall be replaced or escrow funds at current market value per square foot for a comparable product shall be held at the time of closing to be used by the new buyer. 12. No leaks from plumbing fixtures. 13. No roofleaks. 14. Any safety hazard remedied prior to closing. 15. Remediation of radon issue if found at time of inspection. 16. All light fixtures in working order. Cleaning Standards Kitchen 1. Range - inner and outer services will be cleaned. 2. Range hood and exhaust fan will be cleaned 3. Refrigerator and freezer - inner and outer surfaces of refrigerator and freezer will be clean. Freezer will be defrosted. 4. Cabinets and countertops - exterior and interior surfaces of cabinets and drawers will be clean. Door and drawer handles, ifprovided, must be cleaned and in place. 5. Sink and garbage disposal- sink and plumbing fixtures will be clean. If garbage disposal provided, this must be in working order. 6. Dishwasher - Ifprovided, dishwasher must be in working order and inner and outer surfaces must be cleaned. Blinds, Windows, Screens 1. All custom mini-blinds, Venetian blinds, vertical blinds, pull shades must be cleaned. 2. All window surfaces-the inside and outside of the window glass-must be cleaned. 3. Screens - Screens must be cleaned and in place with no holes and tears. Closets: Closets, including floors, walls, hanger rod, shelves and doors, must be cleaned. Light Fixtures: Light fixtures must be cleaned and shall have functioning bulbs/florescent tubes. Bathrooms 1. Bathtub, Shower Walls, Sinks - Bathtubs, shower walls and sinks must be cleaned. - 9- 2. Toilet and Water Closet - Water closets, toilet bowls and toilet seats must be cleaned. If the toilet seat is broken or peeling, the seat shall be replaced. 3. Tile - All tile and grout must be cleaned. 4. Mirrors and Medicine Cabinets - Mirrors and medicine cabinets must be cleaned inside and out. 5. Shelves or Other Cabinetry - All other shelving or cabinetry must be cleaned inside and out. Walls, Ceilings, Painted Doors and Baseboards: Painted surfaces must be cleaned with care to ensure the surface is clean without damaging the paint. Floors: Floor cleaning includes sweeping and mopping and could include stripping, waxing and buffing. Types of floor surfaces include wood, wood parquet tiles, linoleum, asphalt tile, vinyl tile, mosaic tile, concrete and carpet. If carpet, all carpets must be cleaned at least two days prior to closing. Interior Storage/Utility Rooms: Storage/utility rooms must be cleaned. Property cleaned storage/utility rooms must be free from odors, removable stains, grease marks or accumulations. Safety Hazard: Any item that provides a safety hazard shall be fixed. This includes, but is not limited to, curing exposed electrical wiring, federally unacceptable radon levels, ventilation gas for hot water system, and other safety hazards. Walls Paint-Ready: All holes patched; all posters, pictures, etc., removed from all walls; all nails, tacks, tape, etc., removed from all walls; and all walls clean and ready for the new buyer to paint. If wallpaper has been placed on the wall and is in good condition, the wallpaper can remain; if the wallpaper is peeling off, the wallpaper must be removed. Windows: If a window is broken, including the locking mechanism, the window shall be replaced. If the window has a fog residue in the inside, it shall be replaced. -10 - Appendix A Wage Appreciation Data (pursuant to Section 5-180) Bureau of Labor Statistics Data Eagle County, Colorado Average Weekly YEAR Wage % change 1998 $ 527 1999 $ 552 4.74% 2000 $ 582 5.43% 2001 $ 607 4.30% 2002 $ 617 1.65% 2003 $ 641 3.89% 2004 $ 662 3.28% 2005 $ 701 5.89% 2006 $ 750 6.99% 2007 Not yet available Annual Data is available approximately October of the following year. (2007 Annual Average W eekly Wage available approx. October 2008) - 0 - Appendix B Examples of Application of the Guidelines Example 1 (Large-Scale Residential): Applicant proposes 100,000 Net Square Feet of total Residential Development (condominiums) on the valley floor, in a community center appropriate for Affordable Housing. Housing Options: (Parts II-I 00 - II-102) 1) 35,000 Net Square Feet ("nsf.") Affordable Housing ("AH") (100,000 x 35%); or 2) 30,000 nsf. AH (100,000 x 30%) and 10,000 RO (100,000 x 10%); or 3) 25,000 nsf. AH (100,000 x 25%; 5 AH point credit for transfer assessment) and 10,000 RO (100,000 x 10%) with 1.5% transfer assessment on all sales of market-rate units paid to a non-profit entity. or 4) 30,000 nsf. AH (100,000 x 30%) with 1.5% transfer assessment. Example 2 (Small-Scale Residential): Applicant proposes 5 single family homes of 6,500 nsf each; the site-located in a remote valley-is not suitable for Affordable Housing. The "grossed- up" total nsf. (adding the Affording Housing to the total) is 50,000 (5 units x 6,500 nsf each = 32,500 SF /.653 = 50,000 total residential nsf) Housing options (Parts II-IOO - 11-102): 1) 17,500 nsf. AH (50,000 x 35%); or 2) 15,000 nsf. AH (50,000 x 30%) and 5,000 RO (50,000 x 10%); or 3) 12,500 nsf. AH (50,000 x 25%; 5 AH point credit for transfer assessment) and 5,000 RO (50,000 x 10%) with 1.5% transfer assessment; or 4) 15,000 nsf. AH (50,000 x 30%) with 1.5% transfer assessment; Example 3 (Small-Scale Residential, Only Lots): Applicant proposes to create lots for 5 single family homes, but does not intend to build the homes. The applicant proposes that homes not exceed 7,000 Net Square Feet each, for a total of 35,000 nsf. Applicant's obligations are as follows: I) 17,500 nsf. AH (50,000 x 35%) (with or without 1.5% transfer assessment, but if adopted, proceeds from first sale to go to applicant); or 2) 15,000 nsf. AH (50,000 x 30%) and 5,000 nsf RO (50,000 x 10%); or 3 The .65, or 65%, represents the "gross up factor," or factor needed to show the total square foot of the project based on the market-rate percentage, assuming 35% HA. In this instance, the applicant has proposed 35,000 nsf. of market-rate housing. To arrive at the total nsf. of the project, including 35% of AH, the applicant must divide by the percentage of market rate, or .65 - 1 - 3) 12,500 nsf. AH (50.000 x 25%; 5 point AH credit for 1.5% transfer assessment) and 5,000 nsf. RO (50,000 x 10%); and or 4) 15,000 nsf AH (50,000 x 30%) with 1.5% transfer assessment. This obligation is imposed at the time of subdivision. If a purchaser buys a lot from applicant, and the purchaser wishes to build more than 7,000 Net Square Feet, then the purchaser must meet the requirements ofthe Guidelines for the additional Net Square Footage. Example 4 (Commercial Development): Applicant proposes 100,000 Net Square Feet of Commercial Development in a community center appropriate for Affordable Housing on site. The applicant will build the following: I) 100,000 nsf. Commercial Development; and 2) 71,500 nsf. AH. Job generation rate Jobs per employee Employees generated Employees per Household Housing demand generated A vg. unit size Square footage needed Mitigation rate Square footage required Commercial /1,000 SF 2.8 1.2 2.3 1.8 1.3 1,000 1,300 55% 715 Example 5 (Commercial Development-No New Jobs): A pizza parlor seeks to expand by knocking down a wall in what formerly was a hair salon. No additional square footage is proposed. No Affordable Housing is required. Example 6 (Mixed Use Development): An applicant proposes 100,000 Net Square Feet of total Residential Development (including Affordable Housing) and 50,000 Net Square Feet of Commercial Development. Housing options are as follows: 1) Commercial Mitigation: 35,750 nsf. (50,000 total commercial square feet x .715 nsf. AH per 1,000 SF commercial) (Parts 11-110 - 11-120) 2) Inclusionary Housing: No additional AH requirement, as 35% of 100,000 (35,000) is less than 35,750. (Part II-120) or 3) 32,500 nsf. AH with imposition of a 1.5% transfer assessment (1,300 x 50% mitigation rate = 650 nsf AH per 1,000 SF commercial) (Part 11-102) 4) RIO not an option for Commercial Mitigation. Example 7 (Hotel): Applicant proposes a 60 Bedroom hotel. (Parts 11-110 and 11-100) 1. 12,240 nsf. of AH (60 rooms x 204 nsf. per room) (Part 11-100) - 2 - Appendix C Eagle County Legal Forms Form Master Covenant (Example 1) MASTER COVENANT FOR THE OCCUPANCY AND RESALE OF EAGLE COUNTY HOUSING (Option for Condominium and Townhome Units) IN EVENT OF DEFAULT OR INITIATION OF FORECLOSURE, NOTICE MUST BE PROVIDED TO THE DECLARANT, THE [INSERT NAME] HOA, AND EAGLE COUNTY PURSUANT TO THE TERMS OF THIS COVENANT, THE REFERENCED OPTION TO BUY, ATTACHED HERETO AS EXHIBIT 1, THE REQUEST FOR NOTICES, ATTACHED HERETO AS EXHffiIT 2, AND C.RS. 38-38-101 ET. SEQ. THIS MASTER COVENANT FOR OCCUPANCY AND RESALE OF EAGLE COUNTY HOUSING (the "Covenant") is made and entered into this _day of , 20_, by [INSERT NAME], a , together with its successors and assigns ("Declarant") and is enforceable by EAGLE COUNTY, COLORADO or its designee (the "County"), as and to the extent set forth herein. RECITALS: This Covenant is made with reference to the following facts: A. Declarant owns the real property legally described in "Master Exhibit A" attached hereto and incorporated herein (the "Real Property"). For the purposes of this Covenant, the Real Property and all appurtenances, improvements, and fixtures associated therewith shall hereinafter be referred to as the "Property". B. Declarant desires to develop the Real Property for [retail, office and residential uses] (the "Project") in accordance with and as more particularly described in the [insert name] PUD Guidelines, and the [insert name] PUD Agreement. C. Eagle County has promulgated the Local-Resident Housing Guidelines and Administrative Procedures (collectively, the "Guidelines") as amended from time to time, which govern development, eligibility and transfer of Local-Resident Housing. D. In conjunction with development ofthe Project, Declarant has committed [insert amount] net residential square footage as "WHUs", as that term is defined in this Covenant, in accordance with and as more particularly described in the [insert name] Housing Plan (the "Housing Plan"), which is attached hereto as Master Exhibit B and incorporated herein by reference, and subject to the procedures set forth in the Guidelines. The Project also is planned to include market rate residential units that are not WHUs and are not subject to the restrictions imposed by this Covenant. E. In conjunction with 'the development of the Project, Declarant will record a Declaration of Covenants, Conditions, and Restrictions (the "Declaration") and a Condominium Map (the "Map") for the Project. The WHUs will be identified on the Map, will be subject to the terms of the Declaration and the restrictions in this Covenant, and will fully satisfy the Project commitments and obligations with respect to the provision of workforce housing units. F. There is a demonstrated need for affordable housing for residents of Eagle County and this Covenant restricting the acquisition and transfer ofWHUs to "Qualified Buyers", as defmed in this Covenant, supports the health, safety, and welfare of the citizens of Eagle County. G. Declarant wishes to restrict the acquisition or transfer of the WHUs to Qualified Buyers as set forth in the Housing Plan. In addition, the Declarant intends that this Covenant shall constitute a resale restriction setting forth the maximum sales price for which the WHUs may be sold, the amount of appreciation, and the terms and provisions controlling the resale of the WHUs. Finally, by this Covenant, - 3 - Declarant restricts the WHUs against use and occupancy inconsistent with this Covenant in accordance with the terms of the Housing Plan. NOW, THEREFORE, in consideration of the foregoing, Declarant hereby represents, covenants, and agrees as follows: 1. Defmitions: (a) "Qualified Buyers" are (i) natural persons meeting the eligibility requirements as defined in the Guidelines, or (ii) local employers or entities purchasing units for rent or sale to their employees at Eagle County's sole discretion. Eagle County will review and provide verification of the eligibility of all Qualified Buyers to the Declarant in accordance with the Housing Plan. (b) "WHU" is a workforce housing unit located on the Property, which is offered to Qualified Buyers, and whose occupancy, sale, assignment, or transfer are limited by the terms of the Housing Plan and this Covenant. WHUs shall not include commercial or retail space, or any market rate residential units that may be located on the Property. (c) "Owner" is a Qualified Buyer who acquires an ownership interest in a WHU in compliance with the terms and provisions of this Covenant and the Housing Plan. Such person, persons, or entity shall be deemed an Owner of a WHU only during the period of such Owner's ownership interest in the relevant WHU and shall be obligated hereunder for the full and complete perfonnance and observance of all restrictions encumbering such WHU as set forth herein during such period. 2. Development of the WHUs: In connection with development of the Project, Declarant shall provide the greater of * units or * of the net residential square footage within the Project at fmal completion (but in any event no less than * sq. ft.) as WHUs in accordance with the unit mix and sales price provisions of the Housing Plan. Declarant shall record the Map, which shall identify and legally describe each of the WHUs. Recording of the Map shall automatically and without requirement of further action constitute a release of all portions of the Property other than the WHUs designated as such on the Map, such that only the individual WHUs remain encumbered by this Covenant. Until such time as the Map is recorded, this Covenant shall run with and bind the entire Property. Upon Declarant's written request, Eagle County shall promptly execute a written instrument acknowledging the foregoing release, which instrument Declarant may cause to be recorded at any time after recording of the Map. 3. Transfer of Declarant's Rights: Within 30 days after title to all WHUs has been transferred to the initial Qualified Buyers, Declarant shall execute an assignment to Eagle County of all Declarant's rights under this Master Covenant pertaining to the WHUs in such form as approved by Eagle County. Declarant shall transfer no rights under the Declaration. 4. Concurrently with the execution of this Covenant, Declarant shall convey a one-tenth of one percent interest in each of the WHUs to the Eagle County Housing Authority or similar agency. Said one-tenth of one percent interest is hereinafter referred to as the "Eagle County Interest." The conveyance of the Eagle County Interest shall be expressly subject to the understanding and agreement that: a) ownership of the Eagle County Interest only gives Eagle County the right to enforce the rights created by the Covenant against the WHUs and does not give the Eagle County any authority or rights that are not specifically set forth in this deed restriction; b) in all other respects, the Eagle County shall be deemed to have no ownership rights or responsibilities in connection with the WHUs, and the record owner of the remaining interest in the WHUs shall have full right and authority to lease, encumber, or otherwise deal with the WHUs as if such owner held a 100% interest therein; c) Eagle County shall have no liability to third persons arising solely out of its ownership of the Eagle County Interest, and the party conveying the Eagle County Interest shall indemnify Eagle County from and against any losses or liabilities arising solely out of its ownership of the Eagle County Interest; d) the Eagle County Interest in a WHU will be conveyed to the Owner of the WHU if and when the Colorado legislature or a court of competent jurisdiction legalizes the imposition of rent restrictions on affordable housing units. 5. Restrictions on Owner's Use. Occupancy. Rental. and Re-Sale of the WHUs: - 4- (a) The use and occupancy of the WHUs shall be limited to housing for Qualified Buyers and their families as set forth in the Housing Plan and Guidelines with the following exceptions: (i) A WHU may be held by County in the event offoreclosure or as permitted by this Covenant and the Guidelines. (ii) The WHUs may be held from time to time by certain districts or governmental entities as permitted under a separate intergovernmental agreement with Eagle County. (Hi) The WHU s may be held by employers of Qualified Buyers as provided for in the Eagle County Local-Resident Housing Guidelines and Administrative Procedures, as amended from time to time. (b) Re-Sale ofWHUs: In the event that an Owner desires to sell a WHU, the Owner shall sell to a Qualified Buyer and shall comply with and follow the procedures establishing the amount of appreciation and other re-sale procedures as set forth in the Housing Plan. (c) Rentals ofWHUs: WHUs may be rented pursuant to the terms of the Housing Plan and pursuant to the procedures promulgated in the Guidelines. At no time may rents for a WHU exceed the maximum rental amounts set forth therein. WHUs may only be rented to Eligible Households, as defmed in the Guidelines. All tenants and leases shall be approved through Eagle County before occupancy of a WHU or execution of a lease. Any non-compliant lease shall be void ab initio. 6. Breach of Covenant for Violation of Use. Occupancy or Transfer Restrictions: (a) Any remedy for a breach of this covenant by an Owner or a Qualified Buyer is specifically enforceable by Eagle County and its Board of County Commissioners, and their respective successors and assigns, as applicable. (b) Sale or Transfer to a non-Qualified Buver or Violation of Resale Restrictions: (i) Iftitle to a WHU vests in any party who is not a Qualified Buyer (i.e. a non- qualified transferee as that term is defined in the Housing Plan), the terms of this Covenant that may require sale or other relief shall govern. (ii) If a WHU is sold or conveyed in violation of the Housing Plan, the Guidelines or this Covenant, such sale or conveyance shall be void ab initio and shall confer no title whatsoever upon the purported buyer. Each and every conveyance of a WHU, for all purposes, shall be deemed to include, incorporate, and be made subject to the covenants herein contained, even without reference therein to this Covenant. (c) Violation of Use or Occupancy Restrictions: If a violation of this Covenant is discovered, Eagle County shall follow the procedures set forth below and any additional consistent procedures provided for in Eagle County Land Use Regulations in effect at the time of violation: (i) Upon discovery of a violation, Eagle County shall give written notice to the (insert name] HOA. Not less than 15 days after issuing notice to the [insert name] HOA, Eagle County may inspect a WHU between the hours of8:00 a.m. and 5:00 p.m. Monday through Saturday upon no less than 24 hours written notice to the Owner to investigate such alleged violation. For purposes ofthis paragraph only, notice of hearing or inspection to the Owner shall be provided by posting notice on the front door of the WHU a minimum of 24 hours in advance of the compliance hearing or inspection. (ii) Upon completion of the hearing and inspection, Eagle County may issue a written finding that there has been a violation of this Covenant or the Guidelines, and that the Owner of the WHU has breached this Covenant. If the Owner does not cure the breach in 60 days, Eagle County may elect to assess penalties against the Owner. Penalties which Eagle County may - 5 - assess against the Owner include, but shall not be limited to, eliminating resale gain, requiring sale of a WHU, assessing penalties and seeking remedies set forth in the Eagle County Land Use Regulations or the Guidelines then in effect. (iii) In addition to any of the elective remedies enumerated above, in the event of a violation of this Covenant by an Owner, his or her heirs, successors, or assigns, the Maximum Sales Price of a WHU as defmed and set forth in the Housing Plan shall, upon the date of such breach as determined by Eagle County cease to increase, and shall remain fixed until the date of cure of said violation. (d) Remedv: If an Owner fails to cure any violation of this Covenant, the Housing Plan, or the Guidelines, Eagle County may pursue any and all available legal action, including, but not limited to, filing a complaint seeking specific performance of this Covenant or a mandatory injunction requiring the sale of a WHU by the Owner. The costs of such sale shall be taxed against the proceeds of the sale with the balance being paid to the Owner. 7. Seniority of Covenant: Any interest in or lien upon a WHU acquired by any person or entity shall be subject and subordinate to the covenants and restrictions set forth in this Mater Covenant, with the sole exception of a first deed of trust. 8. Violati~n of Covenant in the Case of Default Under a Promissorv Note or Foreclosure: ( a) Owner shall not default in payment or other obligations due or to be performed under a promissory note secured by a first deed of trust encumbering a WHU. Owner must notify Eagle 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. (b) Upon default by the Owner under the terms and provisions of any deed of trust or mortgage on an Owner's WHU, Eagle County may, in its sole discretion, offer loan counseling or distressed loan services to the Owner, if any of these services are available. Any time after default Eagle County is entitled to require the Owner to sell the WHU to avoid the commencement or continuance of any foreclosure proceeding against the WHU. If Eagle County determines that sale ofthe WHU is necessary to avoid the foreclosure process, Eagle County may require and Owner shall immediately execute a standard listing contract on forms approved by the Colorado Real Estate Commission with Eagle County, providing for a 30-day listing period. At that time, the Owner shall deposit with Eagle County an amount equal to one half percent (\I, %) of the estimated value of the Unit. If the Owner is unable to pay the one half percent (\1,%) at the time oflisting, the same shall be paid at the time of closing at Eagle County's sole discretion. If a sales contract has not been executed within the initial 30-day period, the Owner shall extend the listing period for an additional 180 days, provided such extension does not conflict with the statutory rights of any secured creditors. Eagle County shall promptly advertise the WHU for sale by competitive bid to Qualified Buyers. At the time of closing, the Owner shall pay to Eagle County in addition to the one half percent (\1,%) paid at the time of listing an additional one and one-half percent (1 \I, %), for a maximum fee of two percent (2%) of the actual sales price. In the event of a listing of the WHU pursuant to this Paragraph 7b, Eagle County is entitled to require the Owner to accept the highest of any qualified bids which satisfies the Owner's fmancial or other obligations due under the promissory note secured by a first deed of trust and deed of trust in favor of Eagle County as described herein, and to sell the WHU to such qualified bidder. In accordance with the Guidelines and the Housing Plan, Eagle County may in its sole discretion elect to purchase a WHU under this paragraph 7b for rental or for sale to a Qualified Buyer. Upon default of Owner, as provided in Paragraphs 7a and 7b, Eagle County shall have the right, in its sole discretion, to cure the default or any portion thereof. In such event, the Owner shall be personally liable to Eagle County for past due payments made by Eagle County together with interest thereon at the rate specified in the promissory note secured by the deed of trust, plus one percent (1 %) in addition to the interest rate identified in the promissory note and all actual expenses of Eagle County incurred in curing the default. The Owner shall be required by Eagle County to execute a promissory note on commercially reasonable terms acceptable to County and secured by deed of trust encumbering the WHU in favor of - 6- Eagle County for the amounts expended by Eagle County as specified herein, including future advances made for such purposes. Eagle County shall be entitled to all rights and remedies under the deed of trust including the right offoreclosure. The Owner may cure the default and satisfy its obligation to Eagle County under this subparagraph at any time prior to execution of a contract for sale, upon such reasonable terms as specified by Eagle County. Otherwise, Owner's indebtedness to Eagle County shall be satisfied from the Owner's proceeds at closing. 9. Option to Buy: Release and Waiver of Restrictions on WHUs: (a) In the event that a holder ofa first deed of trust or mortgage on a WHU becomes the record owner of such WHU by way of a deed in lieu of foreclosure, a public trustee's confirmation deed, or a sheriff's confirmation deed, Eagle County has an Option to Buy such WHU from such record owner. Upon becoming the record owner of such WHU, such person or entity shall provide written notice thereof to Eagle County as provided in the notice requirement set forth in Exhibit 1, Option to Buy, attached hereto. Upon receipt of such notice, Eagle County has the right to exercise its Option to Buy as provided in said Exhibit 1. (b) Eagle County agrees to release and waive the deed restrictions and other covenants set forth herein, in favor of the holder ofa fITst deed of trust or mortgage pertaining to a foreclosed WHU, if and only (i) said holder (including assigns of the holder) ofa first deed of trust or mortgage becomes the record owner of a WHU by way of deed in lieu of foreclosure, public trustee's confllTj.ation deed or sheriff's confirmation deed; and (ii) Eagle County fails to exercise its Option to Buy the WHU as set forth in Exhibit 1 hereto and as provided in paragraph 6(d) hereof. At the time a Qualified Buyer acquires the WHU, Eagle County agrees to execute and record a subordination agreement with the holder of a fITst deed of trust or mortgage, subordinating Eagle County's rights under this Master Covenant, including but not limited to the deed restrictions applicable to the WHU, to said first deed of trust or mortgage. 10. If Eagle County or its assigns exercises the Option to Buy and acquires title to a WHU as set forth in Exhibit 1, Eagle County or its assigns may thereafter sell the WHU to a Qualified Buyer or rent the WHU in accordance with the terms of the Housing Plan or Guidelines. 11. Covenant Runs with the Land. Declarant and all subsequent Owners ofWHUs, and all other parties with an interest in title to the WHUs hereby acknowledge or are deemed to acknowledge by virtue of recordation of the deed by which such Owner takes title to the WHU that this Covenant shall constitute a covenant running with the WHUs, as a burden thereon, and shall be specifically enforceable by Eagle County, its Board of County Commissioners, the [insert name] HOA, and their respective successors and assigns, as applicable, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction. 12. Notices. A Request for Notice must be recorded immediately after conveyance and recording of deeds of trust related to the sale of all WHUs in the form attached hereto as Exhibit 2. Any notice, consent, or approval that is required to be given hereunder shall be given by mailing the same, certified mail, retum receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the parties indicated below as long as prior written notice ofthe change of address has been given to the all parties as indicated. Said notices, consents and approvals shall be sent to the following addresses unless otherwise notified in writing: To Declarant: To [insert namel HOA: To Eagle County: Eagle County Housing Department - 7- Post Office Box 850 Eagle, CO 81631-0179 and Eagle County Attorney Post Office Box 850 Eagle, CO 81631 To an Owner: To the address set forth in the records of the Eagle County Tax Assessor for purposes of mailing tax bills. 13. Dispute Resolution. There is hereby reserved to the Declarant, Eagle County, the [insert name] HOA, and their respective successors and assigns any and all remedies provided by law for breach of this Covenant or any of its terms. In any dispute, the prevailing party shall, as determined by a court of competent jurisdiction, shall be entitled to recover its costs and attorney's fees arising from the suit. The exclusive forum for any dispute resolution shall be the Eagle County District Court. 14. Severability. Whenever possible, each provision of this Covenant and any other related document shall be interpreted in such a manner as to be valid under applicable law; but if any provision of any of the foregoing shall be invalid or prohibited under said applicable law, such provisions shall be ineffective to the extent of such invalidity or prohibition without invalidating the remaining provisions of such documents. 15. Choice of Law. This Covenant and each and every related document are to be governed and construed in accordance with the laws of the State of Colorado. 16. Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the respective heirs, successors and assigns of the Declarant and Eagle County . 17. Part Headings. Paragraph or Part headings within this Covenant are inserted solely for convenience or reference, and are not intended to, and shall not govern, limit or aid in the construction of any terms or provisions contained herein. 18. Waiver. No claim of waiver, consent or acquiescence with respect to any provision of this Covenant shall be valid against the Declarant and Eagle County except on the basis of a written instrument executed by both the Declarant and Eagle County. However, the party for whose benefit a condition is inserted herein shall have the unilateral right to waive such condition. 19. Gender and Number. Whenever the context so required herein, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. 20. Personal Liability. By taking title to any WHU, each Owner agrees that he or she shall be personally liable for compliance with the applicable terms and conditions of this Covenant. 21. Further Actions. The Declarant and Eagle County agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent of this Covenant or any Covenant or document relating hereto or entered into in connection herewith. 22. Modifications. The Declarant and Eagle County agree that any modifications of this Covenant shall be effective only when made by writings signed by both parties and recorded with the Clerk and Recorder of Eagle County, Colorado. After assignment and assumption of Dec1arant's rights pursuant to Part 3 ofthis Covenant, Eagle County reserves the right to amend this Covenant unilaterally where deemed necessary to effectuate the purpose and intent of this Covenant, and where such unilateral action does not materially impair an O\\'l1er's rights or any lender's rights under this Covenant. The Declarant and Eagle County agree to modify this covenant as necessary to comply with lending requirements imposed by Fannie Mae and other similar lending entities. - 8 - 20. Pet:Petuities Savings Clause. If any of the tenus, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Option to Buy shall be unlawful or void for violation of: (a) the rule against perpetuities or some similar statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period of the lives of the then-current duly elected and seated Eagle County Commissioners, and the then-current Eagle County employees, their now living descendants, ifany, and the survivor of them, plus twenty-one (21) years. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year above fIrst written. [INSERT NAME], A Colorado limited liability company: By: Title: STATE OF )ss: COUNTY OF ) The foregoing instrument was acknowledged before me this _day of as of[insert name). ,2007, by Witness my hand and official seal. My commission expires: Notary Public - 9- ACCEPTANCE BY EAGLE COUNTY The Foregoing Deed Restriction Covenant for the Occupancy and Resale of Eagle County Housing and its terms are hereby adopted and declared by Eagle County. EAGLE COUNTY, COLORADO A body corporate and politic by and through its Board of County Commissioners By: *, Chairman STATE OF COLORADO) COUNTY OF EAGLE ) ) ss: The foregoing instrument was acknowledged before me this _ day of *, Chairman Eagle County Board of County Commissioners. ,2007, by Witness my hand and official seal. My commission expires: Notary Public EXHIBIT 1 OPTION TO BUY If the holder (or holder's assigns) of a promissory note secured by a first deed of trust on a WHU acquires title to said WHU by deed in lieu of foreclosure or by confirmation deed from the public trustee or sheriff, Eagle County (or its assigns) shall have the option to purchase the Property which shall be exercised in the following manner: A. Notice. The Owner and the holder shall give such notice to Eagle County as is required by law or as required in the Master Covenant. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Housing Department Eagle County Post Office Box 179 Eagle, CO 81631 and Eagle County Attorney Post Office Box 850 Eagle, CO 81631 B. Option to buy. -10 - Eagle County or its assigns shall have ( sixty) 60 days after receipt of notice by Eagle County, as provided for in paragraph A above, of the public trustee's or sheriff's confIrmation deed or deed in lieu of foreclosure in which to exercise this Option to Buy. 1. In the event of foreclosure and issuance of a public trustee's or sheriffs confirmation deed, County may exercise its Option to Buy by tendering to the Transferee of such deed or its assigns, in cash or certified funds, the redemption price that would have been required to redeem from such transferee as if Eagle County were the next redemptioner entitled to redeem under Colorado law, and any additional reasonable costs incurred by said transferee during the option period directly related to the foreclosure. ii. In the event of a deed in lieu of foreclosure, Eagle County may exercise its Option to Buy by tendering to the Transferee ofthe deed in lieu offoreclosure or its assigns, in cash or certified funds, an amount equal to the amount due on the note, secured by the deed of trust or mortgage, and any additional reasonable costs incurred by said transferee during the option period. C. Title. Upon receipt of the option price, the Transferee shall deliver to Eagle County or its assignee a special warranty deed, conveying the subject WHU to Eagle County or its assignee. The Transferee shall convey only such title to the subject WHU as the Transferee obtained by way of the foreclosure or by deed in lieu of foreclosure. The Transferee shall not create or participate in the creation of any additional liens or encumbrances against the subject WHU following the Transferee's acquisition of title to the subject WHU. The Transferee shall not be liable for any of the costs of conveyance to Eagle County or its assignee. D. Release. Upon notice to Eagle County of a Transferee's acquisition of title to the subject WHU, Eagle County or its assigns shall have sixty (60) days in which to exercise the option to buy by notifying the Transferee in writing of its intent to exercise the option. In the event that Eagle County does not notify the Transferee in writing of its intent to exercise the option to buy as set forth herein, Eagle County's Option to Buy and the Master Covenant recorded at Reception Number _ in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the WHU which is the subject of said Option to Buy as of the sixty-first day after notice to Eagle County, as provided for above. It is the intent of Eagle County that the Option to Buy and the referenced Master Covenant be terminated automatically upon the failure of Eagle County to provide written notice of its intent to exercise its option to buy to the Transferee, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Transferee and without the necessity of recording a release of such Master Covenant. It is agreed that this Part D shall not result in a release of the Master Covenant from the WHU that are not the subject of foreclosure or deed in lieu of foreclosure and nothing contained herein shall require County to release and waive its ability to enforce the Master Covenant in the event of foreclosure of a lien in second or subsequent position or in the event of a deed in lieu of foreclosure of a lien in second or subsequent position. E. Perpetuities Savings Clause. If any of the terms, covenants, conditions, restrictions, uses, limitations, obligations or options created by this Option to Buy shall be unlawful or void for violation of: (a) the rule against perpetuities or some similar statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing like or similar time limits, then such provision shall continue only for the period ofthe lives of the then-current duly elected and seated -11 - Eagle County Commissioners, and the then-current Eagle County employees, their now living descendants, if any, and the survivor of them, plus twenty-one (21) years. F. Successors and Assigns. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties hereto. G. Modifications. The parties hereto agree that any modification to this Option to buy shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder of Eagle County, Colorado. Exhibit 2 REQUEST FOR NOTICES EAGLE COUNTY, COLORADO, a body corporate and politic, by the EAGLE COUNTY ATTORNEY, whose address is P.O. Box 850, Eagle, CO 81631-0850, claims an interest in each of the properties described below and requires (1) that Eagle County and the Eagle County Housing Department receive a copy of any combined notice of right to cure and right to redeem required to be mailed pursuant to the provisions ofC.R.S. ~ 38-38-103; and (ii) that it he named as a party in any civil action commenced by any person to quiet title to any ofthe properties described below. NAME OF OWNER(s) OF RECORD AS OF LEGAL DESCRIPTION OF PROPERTY: ADDRESS OP PROPERTY: Notices should be mailed.to Eagle County, Colorado, as follows; Eagle County Attorney Eagle County Building 500 Broadway P. O. Box 850 Eagle, CO 81631 Eagle County Housing Director Eagle County Building 500 Broadway P. O. Box 850 Eagle, CO 81631 Dated this _ day of OFFICE OF THE EAGLE COUNTY ATTORNEY By: -12 - (Example 2) DECLARATION OF RESTRICTIVE COVENANT FOR This DECLARATION OF RESTRICTIVE COVENANT (this "Covenant") is made this _ day of , 20_ by and between , a ("Declarant"), and EAGLE COUNTY, COLORADO, a body corporate and a political subdivision of the State of Colorado (the "County"). RECITALS A. Declarant is the owner of certain property in Eagle County, Colorado, more particularly described in Exhibit A and depicted in Exhibit B, both of which are attached hereto and incorporated herein by this reference (the "Property"). B. Declarant has applied for approval of has applied to Eagle County for approval of such application. on the Property and C. It is a condition of the that Declarant create a valid and enforceable covenant running with the land that assures that the units to be developed on the Property will be affordable over time in accordance with the Eagle County Affordable Housing Guidelines. D. With this Covenant, Declarant intends, declares and covenants that the regulatory and restrictive covenants set forth herein governing the use of the units described and provided for herein shall be and are covenants running with the land and are intended to be and shall be binding upon Declarant and all subsequent owners of such units for the stated term of this Covenant, unless and until this Covenant is released and terminated by Eagle County in the manner hereafter described. E. This Covenant IS recorded against the Property pursuant to Section _ of the AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, the terms, provisions, covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Defmitions. For the purposes of this Covenant, certain words are defmed as below. Any terms, phrases, words, or clauses not defined herein will have the meanings as defmed in Exhibits C. D and E, attached hereto, or as in the Eagle County Land Use Regulations. Restricted Unit: Any dwelling unit upon which a restrictive covenant has been placed to ensure that it remains an Affordable For-Sale Housing Unit, an Affordable Rental Housing Unit, or Resident-Occupied Housing Unit. 2. Restricted Units. Declarant shall construct no less than L-> Restricted Units on the Property, consisting of L-> Affordable For-Sale Housing units, L-> Affordable Rental Housing Units and L-> Resident-Occupied Units. Prior to the sale of the first Restricted Unit, Declarant will record a covenant substantially in the form attached to this Agreement as Exhibit Cover L-> Affordable Housing Units, a covenant in substantially the form attached to this Agreement as Exhibit D over the L-> Affordable Rental Housing units, and a covenant in substantially the form attached to this Agreement as Exhibit E over the_Resident-Occupied Units. L-> of the Affordable For-Sale Housing Units will contain not less than _ bedroom(s) and_ square feet; the other L-> Affordable For-Sale Housing Units will contain not less than bedrooms and square feet. L-> of the Affordable Rental Housing Units will contain not less than _ bedroom(s) and _ square feet; the other L-> Affordable Rental Housing Units will contain not less than _ bedrooms and square feet. All Restricted Units will conform to the current defmition of Affordable For-Sale Housing Unit, Affordable Rental Housing Unit or Resident-Occupied Unit as set forth in Chapter II of the Eagle County Affordable Housing Guidelines. -13 - 3. Original Sale of a Restricted Unit. An Affordable Housing Unit, upon completion of construction by the Declarant, shall be sold to an initial purchaser who qualifies as a Qualified Employee at no more than 80% of the Area Median Income based on family size and the size of the units, as defined in the Eagle County Affordable Housing Guidelines. A Resident-Occupied Unit shall be sold to an Eagle County resident as his or her Primary Residence. 4. Covenants Running with the Land. The Restricted Units shall hereafter be held, sold, and conveyed subject to the covenants, restrictions, and conditions herein, all of which shall be covenants running with the land, which shall be binding on all parties having any right, title, or interest in the Property, or any part thereof, their heirs, successors, assigns, legal representatives and personal representatives and all subsequent owners of the Property or any interest in any part therein and shall inure to the benefit of Eagle County. Without limiting the generality of the preceding sentence, once a Restricted Unit has been sold by Declarant, the provisions of this Covenant shall apply to each owner of such Restricted Unit subsequent to Declarant. Declarant and each Restricted Unit owner agree that this Covenant does not constitute an unreasonable restraint on alienation of the Property or any interests therein, and that any and all requirements of the laws of the State of Colorado to be satisfied in order for the provisions of this Covenant to constitute a restrictive covenant running with the land shall be deemed to be satisfied in full, and that any requirements of privity of estate are intended to be satisfied, or in the alternative, that an equitable servitude has been created to insure that the covenants, conditions and restrictions set forth herein run with the land. Each and every contract, deed or other instrument hereafter executed conveying the Property, any portion thereof, or any Restricted Unit, shall expressly provide that such conveyance is subject to this Covenant; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to successors and/or assigns of all or any portion of the Property and any Restricted Unit, regardless of whether such contract, deed or other instrument hereafter executed conveying the Property, any portion thereof, or any Restricted Unit, provides that such conveyance is subject to this Covenant. 5. Default; Notice. In the event of any failure of Declarant to comply with the provisions of this Covenant, Eagle County may inform Declarant by written notice of such failure and provide Declarant a period of time in which to correct such failure. If any such failure is not corrected to the satisfaction of Eagle County within the period of time specified by Eagle County, which shall be at least thirty (30) days after the date any notice to Declarant is mailed, or within such further time as Eagle County determines is necessary to correct the violation, but not to exceed any limitation set by applicable law, Eagle County may without further notice declare a default under this Covenant effective on the date of such declaration of default; and Eagle County may then proceed to enforce this Covenant as hereafter provided. 6. Enforcement. This Covenant is for the benefit of Eagle County. Each provision of this Agreement shall be enforceable by Eagle County by a proceeding at law or in equity against the owner of the Property, or any part thereof, and such right of enforcement shall include but not be limited to a right of specific enforcement. Failure by Eagle County to enforce any provision of this Covenant shall not operate as a waiver of any such provision, the right to enforce such provision thereafter, or of any other provision of this Covenant. 7. Effect of Provisions of this Covenant. Each provision of this Covenant, and any agreement, promise, covenant and undertaking to comply with each provision of this Covenant: (i) shall be deemed incorporated into each deed or other instrument by which any right, title or interest in any portion of the Property is granted, devised or conveyed, whether or not set forth or referred to in such deed or other instrument; (ii) shall, by virtue of acceptance of any right, title or interest in any portion of the Property by an owner be deemed accepted, ratified, adopted and declared as a personal covenant of such owner and, as a personal covenant, shall be binding on such owner and his heirs, personal representatives, successors and assigns; and (iii) shall be deemed a real covenant by Declarant, for itself, its administrators, successors and assigns, and also an equitable servitude running in each case as a burden with and upon the title to each and every portion of the Property 8. Modification/Termination of Agreement. For so long as Declarant owns the Property, or any part thereof, the restrictions, covenants and limitations of this Covenant may be waived, terminated or modified only by written instrument, in recordable form executed by Declarant and Eagle County, in order to: (i) provide clarification to any provisions hereof which may be unclear or subject to differing interpretations; (ii) correct any errors identified herein; or (iii) amend Article III of the covenant attached hereto as Exhibit C in any way that makes this Covenant less restrictive on the Owners of Affordable -14 - Housing Units. Once Declarant no longer owns any portion of the Property, Declarant's rights hereunder shall cease and Eagle County shall have the unilateral right to amend the restrictions, covenants and limitations of this Covenant, including exhibits hereto, as provided herein. When a restrictive covenant in the form attached hereto as Exhibit C or Exhibit D has been recorded against all U Restricted Units and when all other terms and conditions of this Covenant have been complied with, Eagle County will record a release of this Covenant. Eagle County may terminate this Covenant by recording a release in recordable form without the signature of Developer. For convenience, such instrument may run to "the owner or owners and parties interested" in the Property. If Eagle County desires to terminate this instrument as to one or more of the Restricted Units, but less than all of the Restricted Units, Eagle County's instrument may run to "the owner or owners and parties interested" in the specific Restricted Units to be released from this Covenant. 9. Declarant's Covenant of Authority. Declarant covenants, represents and warrants to Eagle County that Declarant has full and complete legal authority to execute and deliver this Covenant to Eagle County. 10. Equal Housing Ooportunity. Pursuant to the Fair Housing Act, neither Declarant nor Eagle County shall discriminate on the basis of race, creed, color, sex, national origin, familial status or disability in the lease, sale, use or occupancy ofthe Restricted Unit. 11. No Conflicting Agreement. Declarant shall not execute any agreement with provisions contradictory to, or in opposition to, the provisions of this Covenant, and in any event, it is agreed that the provisions of this Covenant are paramount and controlling as to the rights, obligations and limitations herein set forth and shall supersede any other provision in conflict herewith. 12. Entire Agreement. This Covenant constitutes the entire agreement and understanding between the parties relating to the subject matter of this Covenant, and supersedes any prior agreement or understanding relating thereto. 13. Severability. In case one or more of the provisions contained in this Covenant or any application hereof shall be invalid, illegal or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions contained in this Covenant and the application thereof shall not in any way be affected or impaired thereby. 14. Attorney's Fees. If any action is brought in a court of law by any party to this Covenant concerning the enforcement, interpretation or construction of this Covenant, the prevailing party, either at trial or upon appeal, shall be entitled to reasonable attorney's fees as well as costs, including expert witness's fees, incurred in the prosecution or defense of such action. 15. Applicable Law. This Covenant shall be interpreted in all respects in accordance with the laws of the State of Colorado. 16. Recording. This Covenant shall be placed of record in the real property records of Eagle County, Colorado. 17. No Third Party Beneficiaries. This Covenant is made and entered into for the sole protection and benefit of Eagle County and Declarant. Except as otherwise specifically provided for herein, no other person, persons, entity or entities, including without limitation prospective buyers of the Restricted Units, shall have any right of action with respect to this Covenant or right to claim any right or benefit from the terms provided in this Covenant or be deemed a third party beneficiary of this Covenant. 18. Vesting and Term. Declarant and Eagle County agree that Eagle County's rights and interests under this Covenant are vested immediately and that this Covenant, and any amendments hereto, shall be binding and in full force and effect in perpetuity, unless terminated as herein provided. 19. Section Headings. Section headings are inserted for convenience only and in no way limit or defme the interpretation to be placed upon this Covenant. 20. Terminology. Wherever applicable, the pronouns in this Covenant designating the masculine or neuter shall equally apply to the feminine, neuter and masculine genders. Furthermore, wherever applicable within this Covenant, the singular shall include the plural, and the plural shall include the singular. IN WITNESS WHEREOF, the parties have executed this Covenant as of the date first above written. -15 - [INSERT NAME OF DECLARANT] By: Its: STATE OF COLORADO) COUNTY OF BOULDER) ) ss. The foregoing instrument was acknowledged before me this _day of 20_ by , as of Witness my hand and official seal. (S E A L) EAGLE COUNTY, COLORADO Notary Public My Commission Expires: , Chair By: Eagle County Board of County Commissioners By: , Commissioner Eagle County Board of County Commissioners By: , Commissioner Eagle County Board of County Commissioners Attest: By: Title: Clerk to the Board ExmBIT A Legal Description of Property EXHIBIT B Depiction of Property EXmBIT C Deed Restriction for Affordable Housing Units AFFORDABLE HOUSING UNIT RESTRICTIVE COVENANT FOR UNIT , EAGLE COUNTY, COLORADO -16 - This Affordable Housing Unit Restrictive Covenant for Unit _, of , Eagle County, Colorado, (this "Restriction,") is made this _ day of 20~ ~ a hereinafter referred to as "Owner". RECITALS: WHEREAS, Owner is the owner of that certain real estate located in Eagle County of Eagle, State of Colorado, and legally described as follows: Unit , of , according to the plat thereof now on file in the Office of the Clerk and Recorder for Eagle County, Colorado, under Reception No. (the "Unit"); and WHEREAS, ; and WHEREAS, NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner hereby declares that the Unit shall hereafter be held, sold, and conveyed subject to the following covenants, restrictions, and conditions, all of which shall be covenants running with the land, and which are for the purposes of ensuring that the Unit remains available for purchase and occupation by persons working in Eagle County, Colorado, as moderately priced housing, and protecting the value and desirability of the Unit, and which covenants, restrictions, and conditions shall be binding on all parties having any right, title, or interest in the Unit, or any part thereof, their heirs, successors, and assigns, and shall enure to the benefit of the Owner of the Unit and Eagle County. ARTICLE I DEFINITIONS 1.1 The terms, phrases, words, and clauses in this Restriction will have the meaning assigned below. Any terms, phrases, words, or clauses not defined herein will have the meanings as defmed in the Eagle County Land Use Regulations. Affordable For-Sale Housing Unit: Units for Qualified Employees meeting initial sales prices, resale price-appreciation caps, size, quality, and other criteria set forth in the Eagle County Affordable Housing Guidelines. 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 this Restriction, 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. Capital Improvements: Any fixture erected as a permanent improvement to the Unit excluding repair, replacement, and maintenance costs. Dependent: A minor child by blood or adoption (21 years of age or younger) or other relative of Owner, 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 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. Depreciated Value: The cost or price of any professionally installed Capital Improvements, depreciated pursuant to the schedule provided in the most current edition ofthe Marshall & Swift Residential Cost Handbook. Household: All individuals who will occupy the Unit regardless of legal status or relationship to Owner. Maximum Resale Price: Owners' purchase price multiplied by the allowable appreciation plus the Depreciated Value of Capital Improvement costs including labor and for which verification of the expenditure is provided as more particularly set out in the Eagle County Affordable Housing Guidelines, Appendix B, Calculation of Resale Price. Such amount shall not include an amount attributable to Owner's labor, or that of his employees, or to any appreciation in the value of these improvements unless Owner obtains a cost estimate from a licensed professional and then completes the work himself. -17 - Primary Residence: The primary place of residence as determined using the criteria set forth in Section 4- 100.6 of the Eagle County Affordable Housing Guidelines. Owner will be deemed to have ceased to use the Unit as his sole and exclusive place of residence by accepting permanent employment more than three (3) miles beyond the Eagle County border or registering to vote outside of Eagle County, or residing in the Unit fewer than nine (9) out of any twelve (12) months, as demonstrated by f?]. Qualified Employee: A person(s) meeting the income, employment, and net worth limitations as defmed in the Eagle County Affordable Housing Guidelines. ARTICLE II PURPOSE 2.1 The purpose of this Restriction is to restrict ownership and sale of the Unit in such a fashion as to provide, on a permanent basis, moderately-priced housing to be occupied by Qualified Employees, which Qualified Employees, because of their income, may not otherwise be in a position to afford to purchase, own, and occupy other similar properties, and to help establish and preserve a supply of moderately priced housing to help meet the needs of the locally employed residents of Eagle County. ARTICLE III OWNERSHIP RESTRICTIONS 3.1. Ownership and Occupancy Restrictions. The ownership and occupancy ofthe Unit is hereby limited as follows: 9. Owner shall use the Unit as his Primary Residence and maintain it as his Primary Residence during the Owner's ownership. Owner will be deemed to have ceased to use the Unit as his Primary Residence by accepting permanent employment more than three (3) miles outside the Eagle County boundary, by residing in the Unit fewer than nine (9) months out of any twelve (12) month period, or by registering to vote outside of Eagle County. 10. Owner shall be a Qualified Employee and must remain a Qualified Employee for as long as he owns the Unit. 11. Neither Owner nor any member of the Household may own other residential real estate. A current residence may not be deeded to a corporation or other person or entity except at fair market value. During ownership, neither Owner nor any occupant shall own any interest alone or in conjunction with others, in any other developed residential property or dwelling unit. In the case of an owner 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 owner's business shall not constitute other "developed residential property." 12. [For all Affordable Housing three Bedroom units:] Owner shall maintain a Household size of three or more persons in the Unit; or 13. [For all Affordable Housing four or more Bedroom units:] Owner shall maintain a Household size offour or more persons in the Unit. 14. Only Dependents who have been continuously listed on federal income tax forms and who reside in the Household at least six (6) months and one (1) day out of every twelve (12) month period of time (or as otherwise indicated on joint custody agreements) shall be counted as a member of the Household. A pregnancy may be counted toward the family size requirement as long as a note from a medical doctor is provided. 15. Eagle County will determine whether a person meets the defmition of Qualified Employee, 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. -18 - 16. No later than February I of each year, Owner shall submit to Eagle County two (2) copies of a sworn affidavit on a form to be obtained from Eagle County, verifying that Owner continues to meet the Guidelines in effect at the time. 17. Failure to provide information as required by Eagle County, the Eagle County Affordable Housing Guidelines, or this Restriction may result in forfeiture of appreciation or a county-mandated sale, at Eagle County's exclusive discretion. 3.2 Leave of Absence. A leave of absence may be granted for one year, in the sole discretion of Eagle 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 Eagle 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 Eagle County, be extended for one year, but in no event shall it exceed two years. In the case of a leave of absence, Owner shall only rent to an individual who meets the eligibility requirements herein. The tenant shall obtain a Letter of Certification. A copy of the lease agreement executed between Owner and tenant shall be provided to Eagle County. ARTICLE IV RESALE OF UNITS 4.1. Resale. Owner may sell the Unit provided that the buyer meets the requirements set forth herein. No Unit shall be transferred subsequent to the original purchase by Owner except upon full compliance with the procedures set forth in this Article IV. 42. Notice. In the event that Owner desires or is required to sell or otherwise transfer his Unit, he shall notify Eagle County in writing of his intention to do so. 4.3 Listin~. The Unit shall be listed for resale with Eagle County or with a licensed real-estate broker authorized by Eagle County. 18. In the event that Owner desires or is required to sell the Unit, Owner shall execute a standard Listing Contract on forms approved by the Colorado Real Estate Commission or the Eagle County Housing Department pursuant to terms as dictated by the Eagle County Housing Department. 19. Owner shall consult with Eagle County staff and review this Restriction to determine the Maximum Resale Price permitted and other applicable provisions concerning a sale. Eagle County staff or a designee shall administer the sale in accordance with the requirements of the Eagle County Affordable Housing Guidelines in effect at the time of listing. All sales will be subject to the sales fee set forth in Section 6.3, below. 20. Eagle County staff shall act exclusively on behalf of Eagle County during any sales transaction. 21. Owner and buyer 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 Owner's or buyer's own expense and shall not be included in the calculation of the Maximum Resale Price. The fees required by Section 4.4, below, shall be paid to Eagle County regardless of any actions or services that Owner or buyer may undertake or acquire. 4.4 Sales Fees and Closing Costs. 22. A. At closing, Owner shall pay a sales fee to the entity listing the Unit for sale of no greater than 2 percent (2%) of the sales price. Eagle County shall instruct the title company to pay said fees to listing entity from the funds held for Owner at the closing. In the event that Owner 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, he shall be obligated to pay one-half percent of the listing price directly to Eagle County. In the event that Owner withdraws for failure of any bids to be received at maximum price or with acceptable terms, Owner shall be responsible for all advertising and administrative costs incurred by the listing entity. 23. B. Owner shall not permit any prospective buyer to assume any of Owner's customary closing costs, including the fees set forth in this Section 4.4, nor accept any -19 - other consideration that would increase the purchase price above the bid price so as to induce the owner to sell to such prospective buyer. 4.5. Maximum Resale Price. The resale price may not exceed the Maximum Sales Price that will be determined as follows: 24. A. The Owner's purchase price plus the percentage" increase for each year of the average wage for Eagle County as determined by the Colorado Department of Labor and Employment using the most current available data (in the event that Owner owns the Unit for only a portion of any year, the percentage increase shall be prorated quarterly and Owner shall be given credit through the quarter in which the sale occurs); plus 25. B. The Depreciated Value of Permitted Capital Improvements including labor, if professionally installed, and for which verification has been provided. The Unit shall be allowed Permitted Capital Improvements equal to ten percent of the initial purchase price over each five- (5-) year period, with exceptions to be granted by application to the Eagle County Housing Department for major Capital Improvements, such as roof repairs, foundation repairs, and basement finishes. Further details on qualifying improvements as Permitted Capital Improvements are set forth in the Eagle County Affordable Housing Guidelines, Appendix B, Calculation of Resale Price, as the same may be amended from time to time. 4.6. Compliance. Any sale, transfer, and/or conveyance of the Unit shall be wholly null and void and shall confer no title whatsoever upon the purported transferee unless (i) there is recorded in the real property records for Eagle County, Colorado, along with the instrument of conveyance evidencing such sale, transfer or conveyance, a completed copy of the "Memorandum of Acceptance ofResidentiaI Housing Restrictive Covenant for Unit _, of , Eagle County, Colorado" attached hereto as Attachment I, which copy is executed by the transferee and acknowledged by a Notary Public, and (ii) the instrument of conveyance evidencing such sale, transfer, and/or conveyance, or some other instrument referencing the same, bears the following language followed by the acknowledged signature of an authorized representative of Eagle County, to wit: "The conveyance evidenced by or referenced in this instrument has been approved by Eagle County as being in compliance with the Eagle County Affordable Housing Guidelines for Unit of , Eagle County, Colorado, recorded in the records of Eagle County, Colorado, on the _ day of , 20_, at Reception No. Each sales contract for the Unit shall also (a) recite that the proposed purchaser has read, understands and agrees to be bound by the terms of this Restriction; and (b) require the proposed purchaser to submit such information as may be required by Eagle County under its rules and regulations or policies adopted for the purpose of ensuring compliance with this Restriction. 4.7. Failure to Comply. In the event that the Unit is sold, resold, transferred and/or conveyed without compliance with this Restriction, such sale, transfer and/or conveyance shall be wholly null and void and shall confer no title whatsoever upon the purported transferee. Except as otherwise provided herein, each and every conveyance of any Unit, for any and ail purposes, shall be deemed to include and incorporate the terms and conditions of this Restriction, including, but not limited to, those provisions governing the sale, transfer or conveyance ofthe Unit. ARTICLE V DEFAULT AND ENFORCEMENT 26. 5.1 Default: Notice. In the event of any failure of Owner to comply with the provisions of this Covenant (other than the failure of a selling Owner to pay to Eagle County the amount required by Subsection 4.4.A ofthis Covenant), the Town may inform the defaulting or non-complying Owner by written notice of such failure and provide the defaulting or non-complying Owner a period of time in which to correct such failure. If any such failure is not corrected to the satisfaction of Eagle County within the period of time specified by Eagle County, which shall be at least thirty (30) days after the date any notice to the defaulting or non-complying Owner is mailed, or within such further time as Eagle County determines is necessary to correct the violation, but not to exceed any limitation set by -20 - applicable law, Eagle County may without further notice declare a default under this Covenant effective on the date of such declaration of default; and Eagle County may then proceed to enforce this Covenant as hereafter provided. 5.2 Equitable Relief. Owner agrees that in the event of Owner's default under or non-compliance with the terms of this Restriction, Eagle County shall have the right of specific performance of this Restriction, and the right to obtain from any court of competent jurisdiction a temporary restraining order, preliminary injunction and permanent injunction to obtain such performance. Any equitable relief provided for in this Section may be sought singly or in combination with such legal remedies as Eagle County may be entitled to, either pursuant to the provisions of this Restriction or under the laws of the State of Colorado. 5.3 Liquidated Damages. Owner acknowledges that the unavailability of adequate employee housing within Eagle County requires the expenditure of additional County funds to provide required governmental services and thereby results in an economic loss to Eagle County. Eagle County and Owner further recognize the delays, expense and unique difficulties involved in proving in a legal proceeding the actual loss suffered by Eagle County in such circumstance. Accordingly, instead of requiring such proof, Eagle County and Owner agree that if Owner violates Article III of this Restriction, Owner shall pay to County the sum of $100 per day for each day in which Owner's Unit is not occupied in strict compliance with such restrictions. Such amount is agreed to be a reasonable estimate of the actual damages which Eagle County would suffer in the event of a violation of such Article. The provisions of this Section shall not apply to any violation of this Restriction other than a violation of Article III of this Restriction. The liquidated damages provided herein shall commence as of the date on which Owner's Unit is first used in violation of Article III, and not on the date when Eagle County learns of such violation or on the date when Eagle County gives notice of default as provided in Section 5.1. Further, the total amount of liquidated damages payable to Eagle County under this Section shall in no event exceed the then-current value of the Unit. The liquidated damages provided for in this Section may be collected by Eagle County personally from Owner, either singly or in combination with an action for equitable enforcement of this Restriction as provided in Section 5.2 of this Restriction. 5.4 County Authority to Enforce. The restrictions, covenants and limitations created herein are for the benefit of Eagle County which is hereby given the power to enforce this Restriction in the manner herein provided. 5.5 Expenses of Enforcement. In the event that Owner or Eagle County brings any action as the result of any breach of the terms of this Restriction by the other party, the party bringing such action shall be entitled to recover from and against the party in breach of this Restriction, in addition to any and all other remedies available at law or in equity, reasonable attorney's fees and costs incurred in the enforcement of this Restriction. If fees and costs are awarded in Eagle County's favor, then Owner shall be personally liable for the payment of such fees and costs, and such award and judgment shall constitute a lien against the Unit, which lien may be enforced by foreclosure of the Unit in the manner for foreclosing a mortgage on real property under the laws of the State of Colorado. ARTICLE VI GENERAL PROVISIONS 6.1 Equal Housing Opportunity. Pursuant to the Fair Housing Act, neither Owner nor Eagle County shall discriminate on the basis of race, creed, color, sex, national origin, familial status or disability in the lease, sale, use or occupancy of the Unit. 6.2 Waiver; Modification or Termination of Restriction. Failure by Eagle County to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right by Eagle County to do so thereafter. No modification or termination of this Restriction shall be effective until the proper instrument in writing shall be executed and recorded in the office of the Clerk and Recorder of Eagle County, Colorado. 6.3 Waiver of Exemptions. Owner, by taking title to the Unit, shall be deemed to have subordinated to this Restriction any and all right of homestead and any other exemption in, or with respect to, such Unit under state or federal law presently existing or hereafter enacted. 6.4 Severability. Invalidation of anyone of the covenants or restrictions contained herein by judgment or Court order shall in no way affect any other provisions, it being the intent of the Owner that such invalidated provision be severable. -21 - 6.5 Term. The restrictions contained herein shall run with the land and bind the land for a term of 99 years from the date that this covenant is recorded, after which time the terms of this Restriction shall be automatically extended for successive periods of 10 years. 6.6 Successor to County. In the event that, at any time during the duration of this Restriction, rights and obligations of Eagle County pursuant to this Restriction are transferred to another legal entity, all reference in this Restriction to Eagle County shall, thereafter, mean such successor legal entity, its successors, and assigns which shall then have the right to administer or enforce the provisions hereof, or to perform the functions of Eagle County as described herein. 6.7 Notices. Any notice, consent or approval which is required or permitted to be given hereunder shall be given by mailing the same, certified mail, return receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the party as long as prior written notice of the change of address has been given to the other parties to this Restriction. Said notices, consents and approvals shall be sent to the parties hereto at the following addresses unless otherwise notified in writing: To Owner: To Eagle County: Eagle County Attn: Eagle County Manager PO Box 850 500 Broadway Eagle, CO 81631 IN WITNESS WHEREOF, the undersigned, being the Owner herein, has set its hand unto this Restriction this day of , 20_. STATE OF ) ) ss COUNTY OF The foregoing instrument was acknowledged before me as of the _ day of ,200_, by WITNESS my hand and official seal. Notary Public My Commission Expires: -22 - ATTACHMENT 1 MEMORANDUM OF ACCEPTANCE OF RESIDENTIAL HOUSING RESTRICTIVE COVENANT FOR UNIT , OF EAGLE COUNTY, COLORADO WHEREAS, purchasing from $ _[purchase price amount] as: the plat recorded under Reception No. County of Eagle, Colorado (the "Unit"); and [Buyer Name] [Seller Name] , real property described [Legal Description] (the "Buyer") is (the "Seller") at a price of , according to , in the real property records of Eagle WHEREAS, the Seller ofthe Unit is requiring, as a prerequisite to the sale transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled "Residential Housing Restrictive Covenant for Unit _, of , Eagle County, Colorado", recorded on ,20-, under Reception No. , in the real property records of Eagle County of Eagle, Colorado (the "Restrictive Covenant"). NOW, THEREFORE, as an inducement to the Seller to sell the Unit, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Restrictive Covenant, has had the opportunity to consult with legal and financial counsel concerning the Restrictive Covenant and fully understands the terms, conditions, provisions, and restrictions contained in the Restrictive Covenant. 2. States that the Notice to Buyer, pursuant to Section 6.7 of the Restrictive Covenant, should be sent to: 3. Directs that this memorandum be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Eagle County. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day of ,20_. BUYER(S): By: Printed Name: STATE OF ) ) ss. ) COUNTY OF The foregoing instrument was acknowledged before me this day of , by Witness my hand and official seal. My commission expires: Notary Public -23 - EXIDBIT D Deed Restriction for Affordable Rental Housing Units -24 - AFFORDABLE RENTAL HOUSING UNIT RESTRICTIVE COVENANT AND NOTICE OF LIEN FOR UNIT , EAGLE COUNTY, COLORADO This Affordable Rental Housing Unit Restrictive Covenant and Notice of Lien for Unit _, of , Eagle County, Colorado, (this "Restriction,") is made this _ day of 20_, by a hereinafter referred to as "Owner". RECITALS: WHEREAS, Owner is the owner of that certain real estate located in Eagle County of Eagle, State of Colorado, and legally described as follows: Unit , of , according to the plat thereof now on file in the Office of the Clerk and Recorder for Eagle County, Colorado, under Reception No. (the "Unit"); and WHEREAS, ; and WHEREAS, NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner hereby declares that the Unit shall hereafter be held, sold, and conveyed subject to the following covenants, restrictions, and conditions, all of which shall be covenants running with the land, and which are for the purposes of ensuring that the Unit remains available for rent and occupation by persons working in Eagle County, Colorado, as moderately priced housing, and protecting the value and desirability of the Unit, and which covenants, restrictions, and conditions shall be binding on all parties having any right, title, or interest in the Unit, or any part thereof, their heirs, successors, and assigns, and shall enure to the benefit of the Owner of the Unit and Eagle County. ARTICLE I DEFINITIONS 1.1 The terms, phrases, words, and clauses in this Restriction will have the meaning assigned below. Any terms, phrases, words, or clauses not defined herein will have the meanings as defmed in the Eagle County Land Use Regulations. Affordable Rental Housing Unit: Units for rent to Qualified Employees meeting initial sales prices, rental rates, resale price-appreciation caps, size, quality, and other criteria set forth in the Eagle County Affordable Housing Guidelines. Affordable Rental Housing: Rental housing that may be rented and occupied only by Qualified Employees, and which is owned, in part, by Eagle County or a designated non-profit corporation satisfying the requirements of Internal Revenue Tax Code No. 63-20 and in a corporate form approved by the Eagle County Attomey's Office. 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 this Restriction, 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. Capital Improvements: Any fixture erected as a permanent improvement to the Unit excluding repair, replacement, and maintenance costs. Dependent: A minor child by blood or adoption (21 years of age or younger) or other relative of Tenant, which child or relative is taken and listed as a Dependentfor federal income tax purposes by Tenant or his present or former spouse. Dependents must also be related by blood or adoption and be residing with the individual claiming the Dependent at least six months and one day (183 days) out of every 12-month period. -25 - Depreciated Value: The cost or price of any professionally installed Capital Improvements, depreciated pursuant to the schedule provided in the most current edition of the Marshall & Swift Residential Cost Handbook. Eagle County: Eagle County, Colorado. Household: All individuals who will occupy the Unit regardless oflegal status or relationship to Tenant. Maximum Resale Price: Owners' purchase price multiplied by the allowable appreciation plus the Depreciated Value of Capital Improvement costs including labor and for which verification of the expenditure is provided as more particularly set out in the Eagle County Affordable Housing Guidelines, Appendix B, Calculation of Resale Price. Such amount shall not include an amount attributable to Owner's labor, or that of his employees, or to any appreciation in the value of these improvements unless Owner obtains a cost estimate from a licensed professional and then completes the work himself. Primary Residence: Tenant's primary place of residence as determined using the criteria set forth in Section 4-100.6 of the Eagle County Affordable Housing Guidelines. Purchase Money Mortgage: A consensual interest created by a real estate mortgage, a deed of trust on real estate or the like, which is given by an owner to the extent that it is (a) taken or retained by the seller of an Affordable Housing Unit to secure all or part of the payment of the purchase price; or (b) taken by a person who by making advances, by making a loan, or by incurring an obligation gives value to enable the owner to acquire the Affordable Housing Unit if such value is in fact so used. Qualified Employee: A person(s) meeting the income, employment, and net worth limitations as defmed in the Eagle County Affordable Housing Guidelines. Tenant: A Qualified Employee to whom Owner rents or leases the Unit. ARTICLE II PURPOSE 2.1 The purpose of this Restriction is to restrict ownership and sale of the Unit in such a fashion as to provide, on a permanent basis, moderately-priced housing to be occupied by Qualified Employees, which Qualified Employees, because oftheir income, may not otherwise be in a position to afford to rent and occupy other similar properties, and to help establish and preserve a supply of moderately-priced housing to help meet the needs of the locally-employed residents of EagIe County. ARTICLE III USE AND OCCUPANCY RESTRICTIONS 3.1 Prohibition on Future Condominium Conversion. . The Unit shall remain an Affordable Rental Housing Unit and shall not be converted in the future to a free-market condominium. 3.2. Use and Occupancy Restrictions. The rent and occupancy ofthe Unit is hereby limited as follows: 27. Tenant shall use the Unit as his Primary Residence and maintain it as his Primary Residence during the Tenant's rent of the Unit. Tenant will be deemed to have ceased to use the Unit as his Primary Residence by accepting permanent employment more than three (3) miles outside the Eagle County boundary, by residing in the Unit fewer than nine (9) months out of any twelve (12) month period, or by registering to vote outside of Eagle County. 28. Tenant shall be a Qualified Employee and must remain a Qualified Employee for as long as he rents the Unit. 29. Neither Tenant nor any member of the Household may own other residential real estate. A current residence may not be deeded to a corporation or other person or entity except at fair market value. During ownership, neither Tenant nor any occupant shall own any interest alone or in conjunction with others, in any other developed residential property or dwelling unit. In the case of a Tenant 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 Tenant's business shall not constitute other "developed residential property." 30. [For aU Affordable Housing three Bedroom units:] Owner shall require that Tenant maintain a Household size of three or more persons in the Unit; or -26 - 31. E. [For all Affordable Housing four or more Bedroom units:] Owner shall require that Tenant maintain a Household size of four or more persons in the Unit. 32. F. Only Dependents who have been continuously listed on federal income tax forms and who reside in the Household at least six (6) months and one (1) day out of every twelve (12) month period of time (or as otherwise indicated on joint custody agreements) shall be counted as a member of the Household. A pregnancy may be counted toward the family size requirement as long as a note from a medical doctor is provided. 33. G. Eagle County will determine whether a person meets the definition of Qualified Employee, 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. 34. H. Owner shall require that no later than February 1 of each year, Tenant shall submit to Eagle County two (2) copies of a sworn affidavit on a form to be obtained from Eagle County, verifying that Tenant continues to meet the Guidelines in effect at the time. 35. 1. Failure to provide information as required by Eagle County, the Eagle County Affordable Housing Guidelines, or this Restriction may result in forfeiture of appreciation or a county-mandated sale, at Eagle County's exclusive discretion. ARTICLE IV RESALE OF UNITS 4.1. Resale. No Unit shall be transferred subsequent to the original purchase by Owner except upon full compliance with the procedures set forth in this Article IV. 4.2 Notice. In the event that Owner desires or is required to sell or otherwise transfer his Unit, he shall notify Eagle County in writing of his intention to do so. 4.3 Listing. The Unit shall be listed for resale with Eagle County or with a licensed real-estate broker authorized by Eagle County. 36. In the event that Owner desires or is required to sell the Unit, Owner shall execute a standard Listing Contract on forms approved by the Colorado Real Estate Commission or the Eagle County Housing Department pursuant to terms as dictated by the Eagle County Housing Department. 37. Owner shall consult with Eagle County staff and review this Restriction to determine the Maximum Resale Price permitted and other applicable provisions concerning a sale. Eagle County staff or a designee shall administer the sale in accordance with the requirements of the Eagle County Affordable Housing Guidelines in effect at the time of listing. All sales will be subject to the sales fee set forth in Section 7.3, below. 38. Eagle County staff shall act exclusively on behalf of Eagle County during any sales transaction. 39. Owner and buyer 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 Owner's or buyer's own expense and shall not be included in the calculation of the Maximum Resale Price. The fees required by Section 4.4, below, shall be paid to Eagle County regardless of any actions or services that Owner or buyer may undertake or acquire. 4.4 Sales Fees and Closing Costs. 40. A. At closing, Owner shall pay a sales fee to the entity listing the Unit for sale of no greater than 2 percent (2%) of the sales price. Eagle County shall instruct the title company to pay said fees to listing entity from the funds held for Owner at the closing. In the event that Owner 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 -27 - advertising has commenced, he shall be obligated to pay one-half percent of the listing price directly to Eagle County. In the event that Owner withdraws for failure of any bids to be received at maximum price or with acceptable terms, Owner shall be responsible for all advertising and administrative costs incurred by the listing entity. 41. B. Owner shall not permit any prospective buyer to assume any of Owner's customary closing costs, including the fees set forth in this Section 4.4, nor accept any other consideration that would increase the purchase price above the bid price so as to induce the owner to sell to such prospective buyer. 4.5. Maximum Resale Price. The resale price may not exceed the Maximum Sales Price that will be determined as follows: 42. A. The Owner's purchase price plus the percentage increase for each year of the average wage for Eagle County as determined by the Colorado Department of Labor and Employment using the most current available data (in the event that Owner owns the Unit for only a portion of any year, the percentage increase shall be prorated quarterly and Owner shall be given credit through the quarter in which the sale occurs); plus 43. B. The Depreciated Value of Permitted Capital Improvements including labor, if professionally installed or if Owner obtains a cost estimate from a licensed professional and then completes the work himself, and for which verification has been provided. The Unit shall be allowed Permitted Capital Improvements equal to ten percent of the initial purchase price over each five- (5-) year period, with exceptions to be granted by application to the Eagle County Housing Department for major Capital Improvements, such as roof repairs, foundation repairs, and basement fmishes. Further details on qualifying improvements as Permitted Capital Improvements are set forth in the Eagle County Affordable Housing Guidelines, Appendix B, Calculation of Resale Price, as the same may be amended from time to time. 4.6. Compliance. Any sale, transfer, and/or conveyance ofthe Unit shall be wholly null and void and shall confer no title whatsoever upon the purported transferee unless (i) there is recorded in the real property records for Eagle County, Colorado, along with the instrument of conveyance evidencing such sale, transfer or conveyance, a completed copy of the "Memorandum of Acceptance of Residential Housing Restrictive Covenant for Unit _, of , Eagle County, Colorado" attached hereto as Attachment 1, which copy is executed by the transferee and acknowledged by a Notary Public, and (ii) the instrument of conveyance evidencing such sale, transfer, and/or conveyance, or some other instrument referencing the same, bears the following language followed by the acknowledged signature of an authorized representative of Eagle County, to wit: "The conveyance evidenced by or referenced in this instrument has been approved by Eagle County as being in compliance with the Eagle County Affordable Housing Guidelines for Unit of , Eagle County, Colorado, recorded in the records of Eagle County, Colorado, on the _ day of ,20-, at Reception No. " Each sales contract for the Unit shall also (a) recite that the proposed purchaser has read, understands and agrees to be bound by the terms of this Restriction; and (b) require the proposed purchaser to submit such information as may be required by Eagle County under its rules and regulations or policies adopted for the purpose of ensuring compliance with this Restriction. 4.7. Failure to Comply. In the event that the Unit is sold, resold, transferred and/or conveyed without compliance with this Restriction, such sale, transfer and/or conveyance shall be wholly null and void and shall confer no title whatsoever upon the purported transferee. Except as otherwise provided herein, each and every conveyance of any Unit, for any and all purposes, shall be deemed to include and incorporate the terms and conditions ofthis Restriction, including, but not limited to, those provisions governing the sale, transfer or conveyance of the Unit. ARTICLE V DEFAULT AND ENFORCEMENT 44. 5.1 Default: Notice. In the event of any failure of Owner to comply with the provisions of this Covenant (other than the failure of a selling Owner to pay to Eagle County -28 - the amount required by Subsection 4.4.A of this Covenant), Eagle County may inform the defaulting or non-complying Owner by written notice of such failure and provide the defaulting or non-complying Owner a period of time in which to correct such failure. If any such failure is not corrected to the satisfaction of Eagle County within the period of time specified by Eagle County, which shall be at least thirty (30) days after the date any notice to the defaulting or non-complying Owner is mailed, or within such further time as Eagle County determines is necessary to correct the violation, but not to exceed any limitation set by applicable law, Eagle County may without further notice declare a default under this Covenant effective on the date of such declaration of default; and Eagle County may then proceed to enforce this Covenant as hereafter provided. 5.2 Equitable Relief. Owner agrees that in the event of Owner's default under or non-compliance with the terms of this Restriction, Eagle County shall have the right of specific performance ofthis Restriction, and the right to obtain from any court of competent jurisdiction a temporary restraining order, preliminary injunction and permanent injunction to obtain such performance. Any equitable relief provided for in this Section may be sought singly or in combination with such legal remedies as Eagle County may be entitled to, either pursuant to the provisions of this Restriction or under the laws of the State of Colorado. 5.3 Liquidated Damages. Owner acknowledges that the unavailability of adequate employee housing within Eagle County requires the expenditure of additional County funds to provide required govemmental services and thereby results in an economic loss to Eagle County. Eagle County and Owner further recognize the delays, expense and unique difficulties involved in proving in a legal proceeding the actual loss suffered by Eagle County in such circumstance. Accordingly, instead of requiring such proof, Eagle County and Owner agree that if Owner violates Article III of this Restriction, Owner shall pay to County the sum of$lOO per day for each day in which Owner's Unit is not occupied in strict compliance with such restrictions. Such amount is agreed to be a reasonable estimate of the actual damages which Eagle County would suffer in the event of a violation of such Article. The provisions of this Section shall not apply to any violation of this Restriction other than a violation of Article III of this Restriction. The liquidated damages provided herein shall commence as of the date on which Owner's Unit is first used in violation of Article III, and not on the date when Eagle County learns of such violation or on the date when Eagle County gives notice of default as provided in Section 5.1. Further, the total amount ofliquidated damages payable to Eagle County under this Section shall in no event exceed the then-current value of the Unit. The liquidated damages provided for in this Section may be collected by Eagle County personally from Owner, either singly or in combination with an action for equitable enforcement of this Restriction as provided in Section 5.2 of this Restriction. 5.4 County Authority to Enforce. The restrictions, covenants and limitations created herein are for the benefit of Eagle County which is hereby given the power to enforce this Restriction in the manner herein provided. 5.5 Exoenses of Enforcement. In the event that Owner or Eagle County brings any action as the result of any breach of the terms of this Restriction by the other party, the party bringing such action shall be entitled to recover from and against the party in breach of this Restriction, in addition to any and all other remedies available at law or in equity, reasonable attorney's fees and costs incurred in the enforcement of this Restriction. If fees and costs are awarded in Eagle County's favor, then Owner shall be personally liable for the payment of such fees and costs, and such award and judgment shall constitute a lien against the Unit, which lien may be enforced by foreclosure of the Unit in the manner for foreclosing a mortgage on real property under the laws of the State of Colorado. ARTICLE VI SENIORITY OF COVENANT AND FORECLOSURE PROCEEDINGS 6.1. This Restriction is senior to any Purchase Money Mortgage for the Unit, except that this Restriction is subordinate to any Purchase Money Mortgage for the Unit that is funded by the Federal National Mortgage Association. In the event of a foreclosure of a Purchase Money Mortgage by the holder of a first priority deed of trust against the Unit (the "first lien holder"), which foreclosure is in accordance with the provisions of Colorado statutes concerning real estate foreclosure proceedings and that results in the first lien holder obtaining either a Public Trustee's Deed or a Sheriff's Deed to the Property, and only in such event, all restrictions, and conditions set forth in this Restriction shall, thereafter, only with respect to their application to the property described in such Public Trustee's Deed or Sheriffs Deed, be null and void and of no effect. If this Restriction shall become null and void pursuant to this section, the Town shall, -29 - upon written request, release this Restriction of record and waive its ability to enforce the provisions of this Restriction with respect to the property described in such Public Trustee's Deed or Sheriffs Deed. The first lien holder shall be the only party entitled to take the Unit free ofthis Restriction. 6.2. Lien. Declarant, each and every Owner, and each and every holder or beneficiary of any Purchase Money Mortgage in the Unit, by having taken title to or becoming the holder or beneficiary of such Purchase Money Mortgage in the Unit, hereby grants and conveys to Eagle County a lien upon and against each and every Unit described in this Restriction, which lien shall be for the purpose of securing for Eagle County cure and redemption rights in the event of a foreclosure of a Purchase Money Mortgage, or any other lien right which is superior hereto, so as to allow the Property to remain and continue as Affordable Rental Housing as more particularly described in Article II of this Restriction. The lien granted and conveyed by this Section 6,2 shall be superior to all other liens and encumbrances against the Unit except for the following: 1. Liens and encumbrances recorded prior to the recording of the deed restriction filed against the Affordable Housing pursuant to these Guidelines; 2. Real property ad valorem taxes and special assessment liens duly imposed by Colorado governmental or political subdivision or special taxing districts; 3. Liens given superior priority by operation of law; and 4. The lien of any first mortgage or first deed of trust against the Affordable Housing. 6.3. Notice. In the event that any holder of a Purchase Money Mortgagor other lien or security interest against a Unit shall initiate foreclosure, collection, or any other enforcement proceedings against such Unit, the Owner shall give notice of such foreclosure, collection or enforcement action to Eagle County, which notice shall be given in writing via first class mail, postage prepaid, within five days of the date such action is commenced. 6.4. Cure. So long as this Restriction shall remain in effect, upon the initiation offoreclosure, collection, or enforcement proceedings against any Unit or Owner by a holder of a Purchase Money Mortgage, or any lien right which is superior thereto, Eagle County shall have the right to cure the default of an Owner under any Purchase Money Mortgage, or any lien right which is superior thereto, the same as Owner is entitled to cure such default, and any and all sums paid by Eagle County in order to cure the default of the Owner under any such Purchase Money Mortgage, or other lien, together with any costs or expenses incurred in conjunction therewith, and including any costs and expenses incurred with regard to maintaining the Unit, and the cure parties' interest therein, including reasonable attorney's fees and costs, together with interest thereon at the rate being applied to such obligation immediately prior to such cure, or at the rate of twelve percent (12%) per annum, whichever is greater, shall be a lien against the Unit of such Owner superior to all other liens against the property, except for the lien for general taxes and the lien arising from any Purchase Money Mortgage which was in default, and such party which cured such default by Owner shall thereafter be entitled to foreclose such lien against the interest of Owner of the Unit, and all persons having any interest therein, in the same manner, and with all rights attendant thereto, as mortgages may be foreclosed in the State of Colorado. . 6.5. Redemption. So long as this Restriction shall remain in effect, Eagle County shall have redemption rights, as otherwise provided under Colorado law, immediately following the redemption rights ofthe Owner ofthe Unit, and prior to the redemption rights of any holder of a lien against the Unit which lien is not a Purchase Money Mortgage, in any foreclosure, collection, or enforcement proceeding. 6.6. Resale Following Redemption. Except as provided in Section 6.1 of this Restriction, any person or entity that becomes an Owner of a Unit as the result of any foreclosure proceeding, or as the result of any tax sale, shall, unless such Owner would otherwise qualify to purchase the Unit had such Unit been offered for resale pursuant to the provisions of this Restriction, immediately offer the Unit for sale subject to the terms and conditions of Article IV set forth hereinabove. 45. -30 - ARTICLE VII GENERAL PROVISIONS 7.1 Equal Housing Opportunity. Pursuant to the Fair Housing Act, neither Owner nor Eagle County shall discriminate on the basis of race, creed, color, sex, national origin, familial status or disability in the lease, sale, use or occupancy of the Unit. 7.2 Waiver; Modification or Termination of Restriction. Failure by Eagle County to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right by Eagle County to do so thereafter. No modification or termination of this Restriction shall be effective until the proper instrument in writing shall be executed and recorded in the office of the Clerk and Recorder of Eagle County, Colorado. 7.3 Waiver of Exemptions. Owner, by taking title to the Unit, shall be deemed to have subordinated to this Restriction any and all right of homestead and any other exemption in, or with respect to, such Unit under state or federal law presently existing or hereafter enacted. 7.4 Severability. Invalidation of anyone of the covenants or restrictions contained herein by judgment or Court order shall in no way affect any other provisions, it being the intent of the Owner that such invalidated provision be severable. 7.5 Term. The restrictions contained herein shall run with the land and bind the land for a term of 99 years from the date that this covenant is recorded, after which time the terms ofthis Restriction shall be automatically extended for successive periods of 10 years. 7.6 Successor to County. In the event that, at any time during the duration of this Restriction, rights and obligations of Eagle County pursuant to this Restriction are transferred to another legal entity, all reference in this Restriction to Eagle County shall, thereafter, mean such successor legal entity, its successors, and assigns which shall then have the right to administer or enforce the provisions hereof, or to perform the functions of Eagle County as described herein. 7.7 Notices. Any notice, consent or approval which is required or permitted to be given hereunder shall be given by mailing the same, certified mail, return receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the party as long as prior written notice of the change of address has been given to the other parties to this Restriction. Said notices, consents and approvals shall be sent to the parties hereto at the following addresses unless otherwise notified in writing: To Owner: To Eagle County: Eagle County Attn: Eagle County Manager PO Box 850 500 Broadway Eagle, CO 81631 IN WITNESS WHEREOF, the undersigned, being the Owner herein, has set its hand unto this Restriction this day of ,20_. STATE OF ) ) ) ss COUNTY OF -31 - The foregoing instrument was acknowledged before me as of the _ day of ,200_, by WITNESS my hand and official seal. Notary Public My Commission Expires: -32 - WHEREAS, purchasing from $_[purchase price amount] as: the plat recorded under Reception No. County of Eagle, Colorado (the "Unit"); and ATTACHMENT! MEMORANDUM OF ACCEPTANCE OF RESIDENTIAL HOUSING RESTRICTIVE COVENANT FOR UNIT , OF EAGLE COUNTY, COLORADO [Buyer Name] [Seller Name] , real property described [Legal Description] (the "Buyer") is (the "Seller") at a price of , according to , in the real property records of Eagle WHEREAS, the Seller of the Unit is requiring, as a prerequisite to the sale transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled "Residential Housing Restrictive Covenant for Unit _, of , Eagle County, Colorado", recorded on ,20_, under Reception No. , in the real property records of Eagle County of Eagle, Colorado (the "Restrictive Covenant"). NOW, THEREFORE, as an inducement to the Seller to sell the Unit, the Buyer: I. Acknowledges that Buyer has carefully read the entire Restrictive Covenant, has had the opportunity to consult with legal and financial counsel concerning the Restrictive Covenant and fully understands the terms, conditions, provisions, and restrictions contained in the Restrictive Covenant. 2. States that the Notice to Buyer, pursuant to Section 7.7 of the Restrictive Covenant, should be sent to: 3. Directs that this memorandum be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Eagle County. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day of ,20_. BUYER(S): By: Printed Name: STATE OF ) ) ss. ) COUNTY OF The foregoing instrument was acknowledged before me this day of ,by Witness my hand and official seal. My commission expires: Notary Public -33 - EXHIBIT E Deed Restriction for Resident-Occupied Units RESIDENT-OCCUPIED UNIT RESTRICTIVE COVENANT FOR UNIT , EAGLE COUNTY, COLORADO This Resident-Occupied Unit Restrictive Covenant for Unit --' of , Eagle County, Colorado, (this "Restriction,") is made this _ day of 20_, by a hereinafter referred to as "O\\mer". RECITALS: WHEREAS, Owner is the o\\mer of that certain real estate located in Eagle County of Eagle, State of Colorado, and legally described as follows: Unit , of , according to the plat thereof now on file in the Office ofthe Clerk and Recorder for Eagle County, Colorado, under Reception No. (the "Unit"); and WHEREAS, ; and WHEREAS, NOW, THEREFORE, in consideration ofthe foregoing Recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner hereby declares that the Unit shall hereafter be held, sold, and conveyed subjectto the following covenants, restrictions, and conditions, all of which shall be covenants running with the land, and which are for the purposes of ensuring that the Unit remains available for purchase and occupation by persons residing full-time in Eagle County, Colorado, and protecting the value and desirability of the Unit, and which covenants, restrictions, and conditions shall be binding on all parties having any right, title, or interest in the Unit, or any part thereof, their heirs, successors, and assigns, and shall enure to the benefit of the Owner of the Unit and Eagle County. ARTICLE I DEFINITIONS 1.1 The terms, phrases, words, and clauses in this Restriction will have the meaning assigned below. Any terms, phrases, words, or clauses not defined herein will have the meanings as defmed in the Eagle County Land Use Regulations. Household: All individuals who will occupy the Unit regardless of legal status or relationship to Owner. Primary Residence: The primary place of residence as determined using the criteria set forth in Section 4- 100.6 ofthe Eagle County Affordable Housing Guidelines. . Owner will be deemed to have ceased to use the Unit as his sole and exclusive place of residence by registering to vote outside of Eagle County, or by residing in the Unit fewer than nine (9) out of any twelve (12) months, as demonstrated as demonstrated by [?]. Resident-Occupied Unit: A unit whose deed restriction requires that it be occupied by an Eagle County resident as his or her Primary Residence. No initial sales price restrictions or price-appreciation caps shall apply to Resident-Occupied Units. -34 - ARTICLE II PURPOSE 2.1 The purpose of this Restriction is to restrict ownership and sale of the Unit in such a fashion as to provide, on a permanent basis, moderately-priced housing to be occupied by residents of Eagle County, which residents, because of their income, may not otherwise be in a position to afford to purchase, own, and occupy other similar properties, and to help establish and preserve a supply of moderately-priced housing to help meet the needs of the residents of Eagle County. ARTICLE III OWNERSHIP RESTRICTIONS 3.1. Ownership and Occupancy Restrictions. The ownership and occupancy of the Unit is hereby limited as follows: 46. Owner shall use the Unit as his Primary Residence and maintain it as his Primary Residence during the Owner's ownership. Owner will be deemed to have ceased to use the Unit as his Primary Residence by residing in the Unit fewer than nine (9) months out of any twelve (12) month period or by registering to vote outside of Eagle County. B. No later than February 1 of each year, Owner shall submit to Eagle County two (2) copies of a sworn affidavit on a form to be obtained from Eagle County, verifying that Owner continues to meet the Eagle County Affordable Housing Guidelines in effect at the time. C. Failure to provide information as required by Eagle County, the Eagle County Affordable Housing Guidelines, or this Restriction may result in forfeiture of appreciation or a county-mandated sale, at Eagle County's exclusive discretion. 3.2 Leave of Absence. A leave of absence may be granted for one year, in the sole discretion of Eagle 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 Eagle 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 Eagle County, be extended for one year, but in no event shall it exceed two years. In the case of a leave of absence, Owner shall only rent to an individual who meets the eligibility requirements for Resident-Occupied Units in the Eagle County Affordable Housing Guidelines. The tenant shall obtain a Letter of Certification. A copy of the lease agreement executed between Owner and tenant shall be provided to Eagle County. ARTICLE IV RESALE OF UNITS 4.1 Resale. Owner may sell the Unit provided that the buyer meets the requirements set forth in the Eagle County Affordable Housing Guidelines, as the same may be amended from time to time. No Unit shall be transferred subsequent to the original purchase by Owner except upon full compliance with the procedures set forth in this Article IV. 4.2 Notice. In the event that Owner desires or is required to sell or otherwise transfer his Unit, he shall notify Eagle County in writing of his intention to do so. 4.3 Listing. The Unit shall be listed for resale with Eagle County or with a licensed real-estate broker authorized by Eagle County. 47. In the event that Owner desires or is required to sell the Unit, Owner shall execute a standard Listing Contract on forms approved by the Colorado Real Estate Commission or the Eagle County Housing Department pursuant to terms as dictated by the Eagle County Housing Department. 48. All sales will be subject to the sales fee set forth in Section 4.4, below. 49. Eagle County staff shall act exclusively on behalf of Eagle County during any sales transaction. 50. Owner and buyer 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 serviees, will be at Owner's or buyer's own expense. The fees -35 - required by Section 4.4, below, shall be paid to Eagle County regardless of any actions or services that Owner or buyer may undertake or acquire. 4.4 Sales Fees and Closing Costs. 51. A. At closing, Owner shall pay a sales fee to the entity listing the Unit for sale of no greater than 2 percent (2%) of the sales price. Eagle County shall instruct the title company to pay said fees to listing entity from the funds held for Owner at the closing. In the event that Owner 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, he shall be obligated to pay one-half percent of the listing price directly to Eagle County. In the event that Owner withdraws for failure of any bids to be received at maximum price or with acceptable terms, Owner shall be responsible for all advertising and administrative costs incurred by the listing entity. 52. B. Owner shall not permit any prospective buyer to assume any of Owner's customary closing costs, including the fees set forth in this Section 4.4, nor accept any other consideration that would increase the purchase price above the bid price so as to induce the owner to sell to such prospective buyer. 4.5. Compliance. Any sale, transfer, and/or conveyance of the Unit shall be wholly null and void and shall confer no title whatsoever upon the purported transferee unless (i) there is recorded in the real property records for Eagle County, Colorado, along with the instrument of conveyance evidencing such sale, transfer or conveyance, a completed copy of the "Memorandum of Acceptance of Residential Housing Restrictive Covenant for Unit -' of , Eagle County, Colorado" attached hereto as Attachment 1, which copy is executed by the transferee and acknowledged by a Notary Public, and (ii) the instrument of conveyance evidencing such sale, transfer, and/or conveyance, or some other instrument referencing the same, bears the following language followed by the acknowledged signature of an authorized representative of Eagle County, to wit: "The conveyance evidenced by or referenced in this instrument has been approved by Eagle County as being in compliance with the Eagle County Affordable Housing Guidelines for Unit of , Eagle County, Colorado, recorded in the records of Eagle County, Colorado, on the _ day of , 20_, at Reception No. " Each sales contract for the Unit shall also (a) recite that the proposed purchaser has read, understands and agrees to be bound by the terms of this Restriction; and (b) require the proposed purchaser to submit such information as may be required by Eagle County under its rules and regulations or policies adopted for the purpose of ensuring compliance with this Restriction. 4.7. Failure to Complv. In the event that the Unit is sold, resold, transferred and/or conveyed without compliance with this Restriction, such sale, transfer and/or conveyance shall be wholly null and void and shall confer no title whatsoever upon the purported transferee. Except as otherwise provided herein, each and every conveyance of any Unit, for any and all purposes, shall be deemed to include and incorporate the terms and conditions of this Restriction, including, but not limited to, those provisions governing the sale, transfer or conveyance of the Unit. ARTICLE V DEFAULT AND ENFORCEMENT 53. 5.1 Default: Notice. In the event of any failure of Owner to comply with the provisions of this Covenant (other than the failure of a selling Owner to pay to Eagle County the amount required by Subsection 4.4 A of this Covenant), the Town may inform the defaulting or non-complying Owner by written notice of such failure and provide the defaulting or non-complying Owner a period of time in which to correct such failure. If any such failure is not corrected to the satisfaction of Eagle County within the period of time specified by Eagle County, which shall be at least thirty (30) days after the date any notice to the defaulting or non-complying Owner is mailed, or within such further time as Eagle County determines is necessary to correct the violation, but not to exceed any limitation set by applicable law, Eagle County may without further notice declare a default under this -36 - Covenant effective on the date of such declaration of default; and Eagle County may then proceed to enforce this Covenant as hereafter provided. 5.2 Equitable Relief. Owner agrees that in the event of Owner's default under or non-compliance with the terms of this Restriction, Eagle County shall have the right of specific performance of this Restriction, and the right to obtain from any court of competent jurisdiction a temporary restraining order, preliminary injunction and permanent injunction to obtain such performance. Any equitable relief provided for in this Section may be sought singly or in combination with such legal remedies as to which Eagle County may be entitled, either pursuant to the provisions of this Restriction or under the laws of the State of Colorado. 5.3 Liquidated Damages. Owner acknowledges that the shortage of full-time resident-occupied housing within Eagle County requires the expenditure of additional County funds to provide required governmental services and thereby results in an economic loss to Eagle County. Eagle County and Owner further recognize the delays, expense and unique difficulties involved in proving in a legal proceeding the actual loss suffered by Eagle County in such circumstance. Accordingly, instead of requiring such proof, Eagle County and Owner agree that if Owner violates Article III of this Restriction, Owner shall pay to County the sum of $100 per day for each day in which Owner's Unit is not occupied in strict compliance with Article III of this Restriction. Such amount is agreed to be a reasonable estimate of the actual damages which Eagle County would suffer in the event of a violation of such Article. The provisions of this Section shall not apply to any violation of this Restriction other than a violation of Article III of this Restriction. The liquidated damages provided herein shall commence as of the date on which Owner's Unit is fIrst used in violation of Article III, and not on the date when Eagle County learns of such violation or on the date when Eagle County gives notice of default as provided in Section 5.1. Further, the total amount of liquidated damages payable to Eagle County under this Section shall in no event exceed the then-current value of the Unit. The liquidated damages provided for in this Section may be collected by Eagle County personally from Owner, either singly or in combination with an action for equitable enforcement of this Restriction as provided in Section 5.2 of this Restriction. 5.4 Countv Authoritv to Enforce. The restrictions, covenants and limitations created herein are for the benefit of Eagle County which is given the power to enforce this Restriction in the manner herein provided. 5.5 Expenses of Enforcement. In the event that Owner or the brings any action as the result of any breach of the terms of this Restriction by any other party, the party bringing such action shall be entitled to recover from and against the party in breach of this Restriction, in addition to any and all other remedies available at law or in equity, reasonable attorney's fees and costs incurred in the enforcement of this Restriction. If fees and costs are awarded in Eagle County's favor, then Owner shall be personally liable for the payment of such fees and costs, and such award and judgment shall constitute a lien against the Unit, which lien may be enforced by foreclosure of the Unit in the manner for foreclosing a mortgage on real property under the laws of the State of Colorado. ARTICLE VI GENERAL PROVISIONS 6.1 Equal Housing Opportunitv. Pursuant to the Fair Housing Act, neither Owner nor Eagle County shall discriminate on the basis of race, creed, color, sex, national origin, familial status or disability in the lease, sale, use or occupancy ofthe Unit. 6.2 Waiver: Modification or Termination of Restriction. Failure by Eagle County to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right by Eagle County to do so thereafter. No modification or termination of this Restriction shall be effective until the proper instrument in writing shall be executed and recorded in the office of the Clerk and Recorder of Eagle County, Colorado. 6.3 Waiver of Exemptions. Owner, by taking title to the Unit, shall be deemed to have subordinated to this Restriction any and all right of homestead and any other exemption in, or with respect to, such Unit under state or federal law presently existing or hereafter enacted. 6.4 Severabilitv. Invalidation of anyone of the covenants or restrictions contained herein by judgment or Court order shall in no way affect any other provisions, it being the intent of the Owner that such invalidated provision be severable. 6.5 Term. The restrictions contained herein shall run with the land and bind the land for a term of 99 years from the date that this covenant is recorded, after which time the terms of this Restriction shall be automatically extended for successive periods of 10 years. -37 - 6.6 Successor to County. In the event that, at any time during the duration of this Restriction, rights and obligations of Eagle County pursuant to this Restriction are transferred to another legal entity, all reference in this Restriction to Eagle County shiill, thereafter, mean such successor legal entity, its successors, and assigns which shall then have the right to administer or enforce the provisions hereof, or to perform the functions of Eagle County as described herein. 6.7 Notices. Any notice, consent or approval which is required or permitted to be given hereunder shall be given by mailing the same, certified mail, return receipt requested, properly addressed and with postage fully prepaid, to any address provided herein or to any subsequent mailing address of the party as long as prior written notice of the change of address has been given to the other parties to this Restriction. Said notices, consents and approvals shall be sent to the parties hereto at the following addresses unless otherwise notified in writing: To Owner: To Eagle County: Eagle County Attn: Eagle County Manager PO Box 850 500 Broadway Eagle, CO 81631 IN WITNESS WHEREOF, the undersigned, being the Owner herein, has set its hand unto this Restriction this day of , 20_. STATE OF COUNTY OF ) ) ) ss The foregoing instrument was acknowledged before me as of the _ day of ,200_, by WITNESS my hand and official seal. Notary Public My Commission Expires: -38 - ATTACHMENT 1 MEMORANDUM OF ACCEPTANCE OF RESIDENTIAL HOUSING RESTRICTIVE COVENANT FOR UNIT , OF EAGLE COUNTY, COLORADO WHEREAS, purchasing from $ _[purchase price amount] as: the plat recorded under Reception No. County of Eagle, Colorado (the "Unit"); and WHEREAS, the Seller of the Unit is requiring, as a prerequisite to the sale transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled "Residential Housing Restrictive Covenant for Unit _, of , Eagle County, Colorado", recorded on ,20_, , in the real property records of Eagle County of Eagle, Colorado (the [Buyer Name] [Seller Name] , real property described [Legal Description] (the "Buyer") is (the "Seller") at a price of , according to , in the real property records of Eagle under Reception No. "Restrictive Covenant"). NOW, THEREFORE, as an inducement to the Seller to sell the Unit, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Restrictive Covenant, has had the opportunity to consult with legal and financial counsel concerning the Restrictive Covenant and fully understands the terms, conditions, provisions, and restrictions contained in the Restrictive Covenant. 2. States that the Notice to Buyer, pursuant to Section 6.7 of the Restrictive Covenant, should be sent to: 3. Directs that this memorandum be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Eagle County. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day of ,20_. BUYER(S): By: Printed Name: STATE OF ) ) ss. ) COUNTY OF The foregoing instrument was acknowledged before me this day of ,by Witness my hand and official seal. My commission expires: Notary Public -39 - -40 - 4/22/08 DRAFT EAGLE COUNTY LOCAL-RESIDENT HOUSING GUIDELINES TABLE OF CONTENTS CHAPTER I - NEED, STRATEGIES, PURPOSE SUMMARY, AND DELEGATION OF AUTHORITY TO PROMULGATE RULES AND REGULATIONS 1 SECTION 1-100 Eagle County's Need for Housing...............................................................................................................................1 SECTION 1-110 Pwpose of the Guide]ines ............. .... ........................................... .... ............................................................................ 2 SECTION 1-200 Swmruuy of the Guideline Requirements ...................................................................................................................2 SECTION 1-300 Administrative Procedures... ......... ............................................................................................................................... 4 CHAPTER II - DEFINITIONS 4 CHAPTER III - REQUmEMENTS FOR AND DEVELOPMENT OF AFFORDABLE HOUSING AND RESIDENT- OCCUPIED HOUSING 7 SECTION 3-100 Inclusionary Housing....................... .................................... ........................................................................................7 SECTION 3-101 Resident-Occupied Housing Option........... ............... ........ ...................................................................................7 SECTION 3-102 Voluntary Transfer Assessment Option...............................................................................................................7 SECTION 3-103 Residential Lots ................................... ................. ..................................... ........................................................... 7 SECTION 3.] ] 0 Commercial Mitigation........................... .... .................................................. ................................................. .............. 7 SECTION 3-]] I Affordable Commercial Space.....................................................................................................................................8 SECTION 3.120 Mixed-U se Developments ...... .... ......... ............ .... ........................................................................................................ 8 SECTION 3-130 Alternative Means of Compliance ................... ............................ ................................................................................ 8 SECTION 3-131 Payment in-lieu.................. ............................................ .......................................................................................8 SECTION 3-132 Land in-Lieu ................................................................................................. ..................... ................................... 9 SECTION 3-133 Affordable Housing Credits ...............................................................................................................................10 SECTION 3.] 34 Other Proposals..... .... ................. .... ..................... .......................................... ........................................... ...........1 0 SECTION 3-140 Incentives for Meeting or Exceeding the Guidelines ................................................................................................ 10 SECTION 3-150 Eagle County Interest in Affordable Housing...........................................................................................................1] SECTION 3-] 60 Initial Pricing of Affordable For-Sale Housing......................................................................................................... ] ] SECTION 3-161 Maximum Rental Rates of Affordable Rental Housing.....................................................................................11 SECTION 3-162 Price Adjustments for Structured Parking..........................................................................................................]] SECTION 3-163 Pricing of Resident-Occupied Housing... ............. ........ ...................................................................................... I ] SECTION 3-170 Timing of Construction of Local-Resident Housing................................................................................................. II SECTION 3-180 Location of Local-Resident Housing....... ............. .... ...................................... ........................................................... II SECTION 3-200 Housing Plan Required ........... .... .... ..................... .... .................................................................................................. 12 SECTION 3-300 Homeowners and Condominium Associations .........................................................................................................12 SECTION 3-310 Divided Ownership of Affordable Rental Housing Limited.....................................................................................12 SECTION 3-400 Unit Quality and Size................................ .... ................. .... .................................. ...................................................... ] 2 SECTION 3-500 Storage.................. .... ..... ................................. ................. .... .................................................. ..................................... 13 SECTION 3-600 Unit Design ........... ......................... .... ............................ ............................. ........................................... ...... .... .......... 13 SECTION 3-700 Local-Resident Housing Bedroom Mix and Size......................................................................................................13 SECTION 3-800 Initial Sales and Marketing of Affordable-Housing and Resident-Occupied Units ................................................. ] 3 CHAPTER IV - MATERIAL TERMS OF DEED RESTRICTIONS (RESTRICTIVE COVENANTS) 13 SECTION 4-100 Deed Restrictions for Local-Resident Housing.........................................................................................................13 SECTION 4-110 Deed Restrictions for Affordable For-Sale Housing.................................................................................................13 SECTION 4-120 Resident-Occupied Housing .......... ..... ........................ .... ......................... .................................................................. 14 SECTION 4-130 Affordable Rental Housing ........ ............................. ................................................................................................... ] 4 SECTION 4-]40 Deed Restrictions for Affordable Commercial Space...............................................................................................14 CHAPTER V - OWNING AND RENTING LOCAL-RESIDENT HOUSING 15 SECTION 5-100 Eligibility..... .......................................... .... .... .... ......... ............................. ................................................................... IS SECTION 5-110 Employment Qualification.......... ..... ..................... .... ................................................................................................. IS SECTION 5-120 Limits on Owning Other Real Estate.........................................................................................................................]6 SECTION 5-] 30 Income and Assets Limitations........................ ................. .... ......................... ............................................................ 16 SECTION 5-] 40 Rental of Local-Resident Housing by Qualified Employers for Employees ............................................................16 SECTION 5-150 Applying for Local-Resident Housing ...................................................................................................................... 16 SECTION 5-160 Maintaining Occupancy....... .................................... .......... ......... .... ................................. .......................................... 16 SECTION 5-16] Re-Certification .......................................................... ............................. ...........................................................17 SECTION 5-170 Leave of Absence............................................................................... ........................................................................ ] 7 SECTION 5-180 ReseJling Affordable Housing ....... ...................................................... .... ............... ................................................... 17 SECTION 5-181 Listing Units for Resale......................................................................................................................................17 SECTION 5-182 Pennitted Capital Improvements.............. ................. .... .... ................................................................................. 18 SECTION 5-183 Sales Fees ........................................ .... .... ............. ......................... .... .................... ............................................. 18 SECTION 5-184 Closing Costs................... ........ .... ......................... ............................................. ................................................. 18 CHAPTER VI - MISCELLANEOUS PROVISIONS 18 SECTION 6-100 Liberal Construction ............................................... .................. ..... ........................ .................................................... 18 SECTION 6-200 Severability ............. ..................................... .... ..................... ........................ ............................................................. 18 SECTION 6-300 Modification....... ..................... .... ........ ......................... .............................................................................................. 19 SECTION 6-400 Grievance Procedures ..................................................................... ..................................... ...................................... 19 SECTION 6-500 Enforcement ............................................................................................................................................................... 19 SECTION 6-600 Foreclosure............ ......................... .... ........ .................................................................... ............................................ 19 SECTION 6-700 Exemption for Lack of Reasonable Relationship or Impracticability....................................................................... ] 9 SECTION 6-800 Effective Date ......................................................... ................................................................................................... 19 1 CHAPTER I - NEED, STRATEGIES, PURPOSE SUMMARY, AND DELEGATION OF AUTHORITY TO PROMULGATE RULES AND REGULATIONS SECTION 1-100 Eagle County's Needfor 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 demonstrating these needs, which were completed in 1990, 1999 and 2007. As detailed more fully in Eagle County's 2007 Housing 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 the!f 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 progres sively 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 ofhomes 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 ofthe 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 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; 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 1 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 hous ing 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: 1. Housing is available and affordable for no less than 70 percent of Eagle County's worliforce. 2. Housing needs are clearly identified, and housing types are appropriately balanced to meet all community needs, appropriately located to reduce long distance commutes, and appropriately managed to assure long term ajJordability for Eagle County's worliforce. 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 worliforce housing needs. Associated strategies include: · Mandate that attainable workforce housing be considered part of the required infrastructure for all new development applications. · Continue to utilize Inclusionary Housing and Employee 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 terms 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. SECTION 1-200 Summary of the Guideline Requirements Through the Guidelines, Eagle County seeks to preserve community character and vitality, support economic sustainability by housing its workforce, maintain the relationship between 2 Primary Residences and vacation homes, and keep the negative impacts associated with commuting from worsening. The Guidelines include the following key components: (1) Inc/usionary Housingfor 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 ofa project, a figure substantially below the 52 percent of the residential square footage in Eagle County 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 1.5 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. OR (2) Commercial Employee Housing Mitigation. All new Commercial Development resulting in the need for one or more units must address up to 100 percent of the housing demand generated for Households with incomes less than 140 percent AMI, accounting for current in-commuting rates (totaling a 55 percent effective rate). 20 percent Affordable Commercial Space of Net Square Footage of the Commercial Development reduces the effective mitigation rate 10 percentage points. Only the higher ofthe (1) (Inclusionary Housing) or (2) (Commercial Mitigation) requirements apply at the lowest applicable AMI-affordability levels. Either rental or ownership housing may be constructed to comply with the Inclusionary Housing and Commercial Employee Housing Mitigation component ofthe Guidelines. 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. 3 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, 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, AMI, property taxes, insurance, PMI, and HOA fees; 2. Application procedures and the selection process for Households interested in purchasing or renting Local-Resident Housing; and 3. The process for re-certification of residency and employment requirements. 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 of Local-Resident Housing. Affordable Commercial Space: Commercial rental or for-sale space meeting the requirements of Section 3-111. Affordable For-Sale Housing: For-sale units, in which the 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 are subject to deed restrictions. Affordable Housing: Affordable For-Sale Housing and Affordable Rental Housing. Affordable Housing Credits: Housing credits may be awarded at Eagle County's sole discretion for projects that exceed the requirements of the Guidelines. Affordable Rental Housing: Affordable Housing units, serving as rental stock, that are burdened by a deed restriction consistent with Section 4-130 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. 4 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: 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 US.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: 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, employment, 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 oflegal 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 family 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 and setting forth how the Residential Development will satisfy them. Inclusionary Housing: The Eagle County policy that requires that a percentage of units or Net Square Footage within Residential Developments is 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 Room. 5 Maximum Purchase Price: The maximum price for which Affordable For-Sale Housing may be initially sold, as provided for in Section 2-100.2. Maximum Rental Rate: The maximum average monthly rent payment for an Affordable Rental Housing unit, based upon 80 percent AMI, unit size and Household Size (Bedroom plus one assumed). 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, irifra, plus the value of all Permitted Capital Improvements, as provided for in Section 5-182, irifra. Net Square Footage (Feet):l 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, irifra. Primary Residence: The owner or renter's Primary Residence using criteria set forth in Section 5-160, irifra. Program Administrator: The administrator of the rules and regulations promulgated pursuant to Guidelines; the Program Administrator shall be the Eagle County Housing Director, unless otherwise appointed by the BoCC. Qualified Employees: Employees meeting the requirements of Section 5-110, infra. 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 oblig ations 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. 1 This definition differs from the square footage defmition in the Eagle County Land Use regulations, which is based on exterior-wall measurements. 6 CHAPTER III - REQUIREMENTS FOR AND DEVELOPMENT OF AFFORDABLE HOUSING AND RESIDENT-OCCUPIED HOUSING SECTION 3-100 Inc/usionary 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 ten (10) percent of the Net Square Footage of new Residential Development as Resident-Occupied Housing may be substituted for five (5) percentage points of the Affordable Housing requirement. SECTION 3-102 Voluntary Transfer Assessment Option The applicant may impose an ownership transfer assessment of one-and-one-halfpercent (.015) on all sales of free-market units sold not non-Eligible Households for a 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 a non-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 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, additional housing or in-lieu of 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. 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, except that 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 for current in-commuting rates.) 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 hotel 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. 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 Commercial Development then the applicant may use the proven lower job-generation rate in calculating Commercial Mitigation obligations. The standard "unit," for purpose of calculating Commercial Mitigation requirements, shall be 1,000 Net Square Feet. 7 SECTION 3-111 Affordable Commercial Space Applicants for Commercial Developments where 10 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 sixty percent (.6) of existing market conditions, as determined by Eagle County in its sole discretion. Affordable Commercial Space may be leased directly by the applicant, but only to a non-relative. Side payments from tenants or purchasers are prohibited. The tenant or purchaser must be approved by Eagle 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 Mixed-Use Developments If both Commercial Mitigation and Inclusionary Housing apply because the application contains a mix of Commercial Development and Residential Development, then only the higher requirement for Affordable Housing applies, at the lower initial sales price rate. SECTION 3-130 Alternative Means of Compliance In an effort to provide the flexibility necessary for the development industry, an applicant may comply with the requirement for Inclus ionary Housing and Commercial Mitigation housing in the following ways, all of which are subject to approval by the BoCC, at its sole discretion: A. An applicant may build the units on site or off site, at the discretion of Eagle County. This discretion shall be based on the criteria in Section 3-180. B. Pursuant to Section 3-131, an applicant may provide Eagle County with Payment-in-Lieu of units. C. An applicant may dedicate land to Eagle County that meets all criteria in Section 3-132. 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. 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. Applicants are specifically prohibited from counting any units built as replacement of low- cost housing, including mobile homes parks, toward satisfaction ofInclusionary Housing or Commercial Mitigation requirements. Purchase of existing units that have historically been occupied by employees is also not allowed. SECTION 3-131 Payment in-Lieu An applicant may apply to satisfy all or part of its Inclusionary Housing or Commercial Mitigation obligations 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 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 fifteen percent (.15) administrative fee, 8 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 rate 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 of fee as provided for herein would render the development impracticable, but only if I) 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 amount, and 3) the in-lieu of payment would exceed 3 percent (.03) of the estimated market value of the units to be constructed. Under this method, the in-lieu of f~e cannot be lowered to less than 3 percent (.03) of the value of the units to be constructed. Any reduction in the in-lieu offee must be approved by the BoCC as part of the land-use approval process. Particular consideration may be given to developments ofless than 30,000 sq. ft. or development on less than 1 acre. SECTION 3-131.1 Calculation of Payment in-lieu Payments-in-lieu 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). Eagle County updates 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 dedication ofland to Eagle County. The land conveyed must be commensurate in value with the total payment-in-lieu, including administrative fee and must be capable of supporting the amount of housing the applicantis required to build. The land must also meet the criteria set forth in Section 3-160. 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 dedicated to Eagle County may be located within any of the Eagle County municipalities. 9 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 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- Resident Housing, or other forms of affordable housing or other community benefits 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 standards for Inclusionary Housing or Commercial Mitigation Housing, 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 may 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. 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 may 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. 10 SECTION 3-150 Eagle County Interest in Affordable Housing To qualify as Affordable Housing, Eagle County must take an interest in the Affordable Housing unit through a 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 need as established by the 2007 Eagle County Needs Assessment. The Program Administrator is authorized to make set this distribution; 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 low 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 ADDs, 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. ADDs 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 80 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 Prices for Resident-Occupied Housing are not limited. A spectrum of pricing responsive to market demand is encouraged. SECTION 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 Local-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 Location of Local-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 Housingtoff-site if the off-site location better serves the needs of workforce housing; relevant criteria may 11 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 slop, 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 solely 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 setting forth amount, unit type and size, unit prices, location, construction schedule, market demand, alternative-compliance methods, and other factors determined to be relevant factors by the Program Administrator. All such additional factors shall be consistent with the terms and intent of the Guidelines and shall be expressly forth in the Administrative Procedures. Compliance with the Housing Plan shall be a condition of approval for the Development Permit. 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 ofthe Program Administrator. In the event of non-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; in-lieu of payment for ECO Build 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 considered when considering applications. 12 SECTION 3-500 Storage Requirements for storage in Local-Resident Housing shall be set by the Program Administrator; sufficient storage shall be provided to meet the needs of Local-Resident Housing. 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 concerns, climate, lifestyle, and needs ofthe 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 Mix and Size 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 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 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. CHAPTER IV - MATERIAL TERMS OF DEED RESTRICTIONS (RESTRICTIVE COVENANTS) All Local-Resident Housing shall contain deed restrictions, running with the land, as provided for in the Guidelines. All purchases 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 4-100 Deed Restrictionsfor Local-Resident Housing All Local-Resident Housing units must contain resale restrictions binding future buyers and sellers to the applicable conditions set forth in the Guidelines in a form approved by the Program Administrator and the Eagle County Attorney's Office. SECTION 4-110 Deed Restrictionsfor Affordable For-Sale Housing The material terms for restrictive covenants against Affordable For-Sale Housing are as follows: 13 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 5-161); f. Initial sales pricing restrictions (Section 3-120); g. Resale, price-appreciation cap (Sections 5-180,5-182); h. Ownership interest conveyed (3-150); and 1. Resold 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. Eligible Households only (Section 5-100). SECTION 4-130 Affordable Rental Housing The material terms for restrictive covenants against Affordable Rental Housing, except ADDs, 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). ADDs are acceptable as Affordable Rental housing with no rental or condominium restrictions, but they must be rented to and occupied by Eligible Households; ADDs cannot be used as guest accommodations or left vacant. 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 a non-relative (Section 3-111); b. Rents and purchase prices must be set at 60 percent of market rate (Section 3- Ill); and c. Appreciation and rent increases set at 5 percent, non-compound, annually (Section 3 -Ill). 14 CHAPTER V - OWNING AND RENTING LOCAL-RESIDENT HOUSING SECTION 5-100 Eligibility Local-Resident Housing units shall be owned or rented only by Eligible Households that meet the eligibility requirements provided for in this Chapter or by employers of Qualified Employees. Eligibility requirements must be met before submitting a bid to purchase or rent a Local-Resident Housing unit. In determining the priority of Eligible Households the Program Administrator may consider the following criteria: Gross Household Income in relation to purchase price (preferring Eligible Households with fewer financial options); length of employment in Eagle County; length of residency in Eagle County; service for governmental and public-service entities in Eagle County; proximity of work to housing; current ownership of Affordable Housing; and intergovernmental agreements. Purchasers must provide a down payment on the Local-Resident Housing unit in an amount no less than one percent (.01) ofthe purchase price. 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, priority 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 unit A) all members of an Eligible Households must cumulatively earn at least seventy-five percent (.75) of the Household's Gross Household Income in Eagle County or B) include at least one occupant-owner who is a Qualified Employee pursuant to the following criteria: I. 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 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 a full-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. 15 SECTION 5-120 Limits on Owning Other Real Estate No member of an Eligible Household (including, but not limited to, spouses and children under 18 years of age) may own residential real estate anywhere as of closing or signing the lease for the Affordable Housing, subject to the following exceptions: I. 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 Eligible 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 (I) year, and submits annual verification that the property remains leased at a market rate. 4. 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. A current residence may not be deeded to a corporation or other person or entity except at fair market value, nor may a current residence be deeded to a corporation or other legal entity in which the Eligible Household member has any financial interest. Subject to the exceptions above, during ownership, an Eligible Household member shall not own any interest alone or in conjunction with others, in any other developed residential property or dwelling unit in Eagle County. SECTION 5-130 Income and Assets Limitations All purchasers and renters of Affordable Housing must have a Gross Household Income 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 one hundred fifty 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 Local-Resident Housing by Qualified Employersfor Employees Qualified Employers may purchase and lease Local-Resident Housing for employees who are members of Eligible Households. Qualified Employers may not impose additional deed restrictions to Local-Resident Housing without the express consent of the Program Administrator. SECTION 5-150 Applyingfor Local-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. SECTION 5-160 Maintaining Occupancy The occupant of an Affordable Housing unit or the owner of a Resident-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. 16 SECTION 5-161 Re-Certification Once a 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. Failure to provide information as required by the Program Administrator and any applicable deed restrictions may result in forfeiture of appreciation, a county-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 a Resident-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 a 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 absenc~, the owner shall only rent to an individual who meets the eligibility requirements herein. Rents charged during the a leave of absence may not exceed Maximum Rental R>>.tes 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 rental maximums for Affordable Rental units. SECTION 5-180 Reselling Affordable Housing No owner of an Affordable For-Sale Housing unit shall sell the unit for an amount greater than the Maximum Resale Price for the unit, which shall be calculated as follows: 1. Start with the "base price." This includes the original purchase price paid for the unit, but excludes any selling and financing costs incurred. 2. Calculate the percentage increase for each full year (non-compounded) according to the average wage for Eagle County as determined by the U.S. Department of Labor, Bureau of Labor Statistics, as adopted by the Program Administrator as wage appreciation for Eagle County. 3. For years that do not consist of twelve (12) full months, prorate the amount to the previous month. 4. Add in the value of eligible Permitted Capital Improvements less depreciation pursuant to the depreciation schedule maintained by Eagle County and reflected in Permitted Capital Improvements, below. 5. Eagle County shall have the right to inspect the unit immediately prior to sale. The cost to repair all items identified in the inspection shall be deducted from the Maximum Resale Price. There are no resale price limitations on Resident-Occupied Housing units. SECTION 5-181 Listing Unitsfor Resale All Local-Resident Housing (Affordable and Resident-Occupied) must be listed for resale with Eagle County or its designee using a standard listing contract from approved by the Program Administrator. 17 SECTION 5-182 Permitted Capital Improvements Owners of Affordable Housing are allowed a maximum often (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 sale. 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 at the Program Administrator's discretion. There are no Capital Improvement limits on Resident-Occupied Housing. Value will be given for the Permitted Capital Improvements on Affordable Housing pursuant to procedures 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. Ifthe 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 p~rmanent 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 one-half percent (.005) 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 one-half percent (.005) 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 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. 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. 18 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 terms 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, ifpossible. 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 Comprehens ive 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 Exemption for Lack of Reasonable Relationship or Impracticability 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 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. SECTION 6-800 Effective Date The Guidelines shall be effective upon adoption or as soon a applicable law allows. 19 "Va.1. "Val.l.leg PRRTnERSHIP~ April 21,2008 Eagle County Board of County Commissioners Ms. Sara Fisher, Mr. Arn Menconi, Mr. Peter Runyon PO Box 850 Eagle, Colorado 81631 Dear County Commissioners: It has come to our attention that there will be a public hearing regarding the recently drafted Eagle County Housing Guidelines on Tuesday, April 22, 2008. As the County's leading and largest business advocate, the Vail Valley Partnership, through our nearly 800 members, has been receiving substantial input regarding the issue of workforce housing and labor acquisition and recognize these issues as some of the most important, if not the most important affecting business vitality now and in the future. While due to the diversity of our membership, we can't speak as a unified body in support of the Housing Guidelines as presented, we can encourage continued discussion and timely action with regard to solving this difficult problem. The importance of providing a good quality of life in the valley can't be underestimated. As we face the possibility of downturns in the H2B Visa program, an increase in the cost of living, and as promises of a "world class destination" continue to be made, the importance of finding solutions to this problem become more mission critical to more and more businesses throughout Eagle County every day. We understand the difficulty in identifying issues and creating programs that can move forward in a way that treats both potential workforce residents and developers fairly, but there is no doubt that working toward achieving meaningful progress will benefit all in the long run. We thank you for your efforts to date. We encourage frank, open-minded discussions and we hope that all involved can work toward the solution from the high ground. Sincerely, u4vDM Michael D. Kurz PresidenUCEO * 101 Fawcett Road Suite 240* Avon, CO 81620 * p. (970)476-1000 * f. (970)476-6008 * www.visitvailvalley.com RONALD C. WOLFE 107 PRIMROSE PO BOX 1985 AVON, COLORADO 81620 (970) 845-7425 (970) 845-7460 FAX (970) 376-6945 CELL April 18, 2008 Honorable Commissioners: The availability of a spectrum of housing products adequate to meet the diverse needs and financial capabilities of working individuals and families is a major issue for our County. For years our development policies, the desirability of living in a recreation and resort based community and the growing numbers of ageing affluent residents have converged here to produce a very unbalanced and unlivable housing situation for even very successfvl families. Fortunately we have collectively acknowledged the problem and are now coming together across jurisdictions to deal with it. We need to do things differently and better. Our communities have different priorities for housing solutions and differing ideas about what will and won't work, but we do agree that action has to be taken now. I applaud the comprehensive and aggressive Housing Guidelines Policy before you on April 22ncl. Admittedly, these are uncharted waters and there is no guarantee that this policy will have the intended success of addressing our affordable housing challenge or if unintended negative consequences will require revision and adjustment. However, I believe that we have studied the issue more than long enough and action must be taken now. You have my personal enthusiasm and support for adopting the Housing Guidelines Policy. -~--- April 21, 2008 Eagle County Commissioners PO Box 850 Eagle, CO 81632 Dear Commissioners, This year the Vail Valley Medical Center (WMC) will celebrate 46 years of serving communIties In Eagle County. -We have facilities that spread over 35 miles. WMC Is one of the largest employers in the county with approximately 750 full-tIme employees. Our medical staff includes 172 full time and affiliated physicians. We are exceptionally proud of the services offered by our committed staff. WMC, like many employers in the area, has expressed concern with the dramatic rise in housing costs and both our governing board and our administration understand the need to retain highly qualified staff for the ongoing delivery of qualityhealthcare services. The Vall Valley Medical Center supports community Initiatives that promote the development of quality workforce housing and we look forward to future opportunities that meet our mutual interest. The hospitalls currently in the process of developing a housing strategy that will include capital Investment and other assistance programs for our staff. We feel this is critical to the ongoing success of our community hospital and anticipate the need to obtain housing throughout the county. It is our hope that the newly created County Housing Guidelines will help broaden the spectrum of workforce housing and we wanted aU members of the Eagle County Government to know that we are supportive in the continued identification of methods to assist this endeavor. Sincerely, Stan Anderson Senior Vice President of Operations Vail Valley Medical Center '" Introduction Linkage programs would require that developers of commercial space contribute to the provision of affordable housing in proportion to the affordable housing need that they generate by creating new employment. The basic premise of employee housing mitigation programs is that new commercial development fuels demand for housing by generating new jobs. In Eagle County, and other areas where land is expensive and housing demand is fueled by wealth from outside the region, the private market tends to supply housing that is priced beyond the reach of most local employees. This results in an undersupply of adequate housing that is affordable for low- to middle-income employees and, therefore, also results in housing prices that tend to escalate much faster than wages. This trend was most recently documented in the Eagle County Housing Needs Assessment dated December 2007. This Nexus Analysis report establishes the link between new commercial development and the demand for employees. It provides a rationale for determining the percentage of employees that should be mitigated by new development through linkage programs and presents a formula for determining the amount of fee that could be paid in lieu of producing units. This report does not address inclusionary requirements. The 2007 Housing Needs Assessment provides key measurements on which an inclusionary policy could be based including the percentage of units occupied as primary residences, the gap between the number of units needed to house the workforce and market availability, demand generated by income commuters who are forced to live outside of the county, and the distribution of incomes expressed at a percentage of the Area Median Income (AMI). In summary, this report finds that housing linkage programs that target employee households earning less than 140% AMI could require up to a 55% mitigation rate in Eagle County based on current housing service levels in the County. Lower mitigation rates could be required depending upon community needs, supplemental housing programs and development undertaken by the County, and desired outcomes from linkage housing programs. Methodology The following seven-step process is used to establish a nexus/proportionality formula for these employee mitigation programs. The process uses well-documented statistics from primary research conducted in Eagle County and other mountain resort communities in Colorado and neighboring states to provide a method for quantifying the number of jobs and corresponding housing demand generated by development. The steps are: RRC Associates, Inc.lRees Consulting, Inc. January 2008 1. Identifying the level of service that has been set for Eagle County in terms of the percentage of low-income households and employees for which housing is to be ensured; 2. Determining the number of jobs generated by existing commercial development to calculate the housing demand generated by new development; 3. Accounting for multiple job holding to avoid double counting employees; 4. Converting the number of employees to households by applying an employees per household ratio; 5. Identifying the households to target in the employee housing mitigation programs by examining the income levels of Eagle County's residents; 6. Crediting developments for contributions to employee housing; and 7. Consolidating the information on job generation, job holding patterns, employees per household, and income levels into a formula that can be applied to commercial or mixed-use projects to calculate mitigation requirements. The above formula often results in a fraction of a dwelling unit being required. When this occurs, or in other circumstances as may be permitted by the County's Housing Guidelines, fees can be paid in lieu of producing units. The amount of the payment in lieu is based on the affordability gap, which is the difference between what targeted households can afford to pay and market prices for housing. This report concludes with an estimate of the gap between affordable and market costs and a calculation of the payment in lieu. Level of Service Programs that require new development to produce affordable housing as mitigation for the housing demand generated by the development must conform to level of service standards applicable for both existing and future needs. The level of service indicates the current level of affordable housing that exists in the community and, when considered in conjunction with County commitments for providing housing, provides a guideline for workforce housing mitigation requirements. It should be noted, however, that new development requirements need not be limited by the current level of service in the community if the county has adopted higher goals and is actively implementing housing programs to increase the current level of service. The level of service is defined by the current percentage of households residing in the study area that earn within the income range targeted by the adopted housing program. It takes into account commuting and the income distribution of households in the county, expressed as a percentage of the AM I. Proposed changes to Eagle County's "Local Resident Housing Guidelines" would expand the income range targeted by commercial linkage by eliminating minimums and raising the maximum income allowed to 140% AMI. The guidelines call for ownership and/or rental units to be provided at a variety of price points and rent levels so that households with incomes ranging from extremely low through 140% AMI are served. RRC Associates, Inc.lRees Consulting, Inc. 2 January 2008 Orienting programs to the County's median family income, as published by the U.S. Department of Housing and Urban Development (HUD) each year, corresponds with State and Federal programs that might be used by private developers as well as the public sector to produce employee housing, as these programs also base income levels on the County's median family income. The following table shows U.S. Department of Housing and Urban Development (HUD) estimates of the median household incomes in Eagle County for one- through five-person households in 2007. Table 1. Area Median Income Limits By Household Size, 2007 Shading denotes median family income. 1-person 2-persons 3-persons 4-persons 50% AMI $28,400 $32,450 $36,500 $40,550 60% AMI $34,080 $38,940 $43,800 $48,660 80% AMI $41,900 $47,900 $53,850 $59,850 100% AMI $56,800 $64,900 $73,000 $81,100 120% AMI $68,160 $77,880 $87,600 $97,320 140% AMI $79,520 $90,860 $102,200 $113,540 Source: US Department of Housing and Urban Development (HUD) 5-persons $43,800 $52,560 $64,650 $87,600 $105,120 $122,640 Household incomes by AMI in 2007 were estimated from the 2000 US Census CHAS (Comprehensive Housing Affordability Strategy) special tabulations of households by AMI in 1999, the 1999 and 2005 HUD median family incomes in Eagle County, housing tenure and incomes from the 2000 US Census and the estimated number of Eagle County households in 2007. These projections include the following assumptions: the percentage of households in each AMI group has remained fairly constant since 1999 and household tenure has remained relatively constant since 2000. These estimates indicate that about 59% of owners and 83% of renters earn less than 140% AMI, for a total of 66.5% of all households. Table 2. Income Distribution of Eagle County Households by Tenure: 2007 Estimates Renters Owners Total # % # % # 1,471 25.6% 1,383 10.5% 2,854 1,141 19.8% 1,360 10.3% 2,501 1,677 29.2% 3,763 28.6% 5,440 484 8.4% 1,312 9.9% 1,796 978 17.1% 5,352 40.6% 6,333 5,753 100.0% 13,171 100.0% 18,924 50% AMI or Less 50.1 -80% AMI 80.1-120% AMI 120.1-140% AMI Over 140% AMI TOTAL % 15.1% 13.2% 28.8% 9.5% 33.5% 100.0% Total :5140%AMI 4,773 83.0% 7,818 59.4% 12,591 66.5% Source: Department of Local Affairs; Colorado Demography Section; CHAS; RRC Associates, Inc. Since all employees do not live in Eagle County, it is appropriate to take into account commuting when calculating the existing level of service. According to information referenced in the 2007 Housing Needs Assessment from the Colorado Department of Local Affairs, 81.7% of employees working in Eagle County also live in the county while 18.3% commute in from homes elsewhere. This methodology results in an existing level of service of 55%. In other words, 55% of all households generated by jobs in Eagle County Jive in the county and have incomes equal to or less than 140% AMI. RRC Associates, Inc./Rees Consulting, Inc. 3 January 2008 Level of Service Estimate Households with Incomes >140% AMI 27% Households with Incomes :5140% AMI 55% It is recognized that a portion of the households in Eagle County that earn less than 140% AMI are cost-burdened. However, these households are still residing in the County regardless of their ratio of income to housing payments and are, therefore, being served by housing in the community. Employee housing programs such as Section 8 rent subsidy vouchers and down payment assistance are intended to ease the burden on these lower-income households and provide more affordable housing options for local workers. This not only results in a more stable and content workforce, but also helps the County compete with other areas for employees by providing suitable and affordable housing for the workforce. The Eagle County Housing Office has a comprehensive work program for addressing existing housing needs including affordability. The above approach generates a potential measurement for the County's existing level of service for housing linkage guidelines through which residents with incomes equal to or less than 140% AMI would be served. The data comfortably support a mitigation level of 55% and may support mitigation depending upon potential changes to adopted policies and continuation of workforce housing efforts by the Eagle County Housing Office. Levels of service could increase over time with the production of additional workforce housing units. It is important to recognize that alternative interpretations of the level of service standard may be more or less conservative than presented herein, potentially supporting a higher or lower mitigation rate than the 55% presented above. Job Generation Rates When new commercial/industrial/lodging projects are built, additional employment is generated. New commercial employment may be from new businesses or from businesses relocating from other space (thereby freeing up that space for other tenants). Regardless, the net effect over time is a net increase in employment in the community. Job generation rates that measure the number of jobs typically generated by residential units and in various types of commercial spaces can be used to estimate the number of jobs that will be created by new development. RRC Associates, Inc.lRees Consulting, Inc. 4 January 2008 Commercial Linkage RRC Associates and Rees Consulting, Inc., both members of The Housing Collaborative, LLC, have been conducting housing needs assessments in mountain resort communities throughout Colorado and in neighboring states since 1990. As part of these studies, public and private sector employers were surveyed concerning the number of jobs they offer and the amount of space they occupy. From these surveys, a total of 2,169 employers were used to compile a database on job generation ratios, which are expressed as the number of total jobs (full and part time combined, not FTE) per 1,000 square feet of space. The study area includes both core resort areas as well as nearby communities, which are listed below, with survey dates ranging between 1990 and 2007. . Blaine County, ID: 1990, 1996 . Chaffee County: 1994 . Copper: 2001 . Eagle County: 1990,1999,2001,2007 . Estes Park: 1991, 1999 . Frisco: 1998 . Grand County: 1992, 2001, 2007 . Gunnison County: 1992, 1998 . Composite of Pitkin, Eagle, and Garfield Counties (from Healthy Mountain Communities surveys of 1997/98 season) . Keystone: 2001 . Pitkin County: 1991 . Routt County: 1990 . San Miguel County: 2000 . Snowmass Village: 1999 . Summit County: 1990, 2001 . Telluride: 1993, 1996,2001 . Teton County: 2006 . Aspen 2002 . Garfield County 2004 . Pitkin County 2004 For the purposes of comparison with Eagle County, results from Chaffee County and Estes Park were not included in the merged database runs shown below in Table 4. The composite database shows about 2.8 employees work in every 1,000 square feet of commercial space overall. The ratios are considerably higher for restaurants and bars (8.7 per 1,000 SF) and recreation-related establishments (5.5 per 1,000 SF) and slightly higher for retail space (3.0 per 1,000 SF). Generation rates in Eagle County are similar, or slightly higher, than the composite database for most categories. Table 3. Commercial Job Generation Rates Merged Eagle County Database. 1990/1999/2001/2007 Bar/restaurant a.7 10.6 Construction 5.4 7.3 Education 1.3 1.3 Office (Finance/Banking, Legal, Medical, Prof. Services) 3.7 4.6 Government 1.a 1.2 Real estate/property management (office) 6.1 9.2 Retail sales 3.0 3.6 Service (personal and commercial service) 1.9 2.6 Recreation/attractions/amusements 5.5 2.0 Utilities 1.4 1.6 Overall 2.a 3.1 Lodging/hotel/housekeeping O.a/room 0.9/room Property Management (units) O.4/unit D.5/unit *Merged database excludes Estes Park and Chaffee County. Source: RRC Associates, Inc. RRC Associates, Inc.lRees Consulting, Inc. 5 January 2008 Considerations for Commercial LinkaQe Reauirements When developing commercial linkage requirements, some communities use a single average while others combine similar categories into several groups. The rates are usually used to estimate employment when the PUD or building permit application is filed. The rates can be applied to new development and to redevelopment that results in additional space being created. Using a single average makes it less problematic when the exact use of space is not defined at the time of project approval; however, it can place disproportionate burden on commercial uses that have lower job generation rates. Utilizing multiple rates can complicate the situation when a change in use occurs. Some programs consider change in use to be exempt while others provide a credit. Most programs provide the opportunity for the applicant to provide their own job generation estimates in the event that the proposed use is expected to generate jobs at a different rate than established by the community. It is important to note that the overall average of 2.8 jobs per 1,000 square feet of space is low for typical uses likely to be developed in Eagle County in the future. The average was calculated by aggregating all space then dividing it by the total number of jobs in that space. Large areas with few employees, like schools and warehouses, disproportionately affect the average. The median is 4.0 jobs:1 ,000 sq. ft. while the weighted average is 4.1 jobs: 1,000 sq. ft. As such, using the lower overall average of 2.8 results in conservative estimates of employment and makes it unlikely that many applicants will provide alternative calculations of job generation. The merged database contains 301 valid cases from Eagle County (103 in 1990, 100 in 1999/2001 combined and 98 from 2007). The compared composite database has 1,856 valid cases sampled from 1990 through 2007 and combines surveys from commercial core areas, where space tends to be intensively used, and nearby communities and unincorporated areas, where employment is often less. Although the figures generated from Eagle County surveys could be used to determine local job generation, it is recommended that the merged dataset be used rather than specific local figures for the following reasons: · The smaller number of cases in individual communities is less statistically valid than the merged data set, particularly when broken down by types of businesses. · Surveys of individual communities provide point-in-time estimates of job generation during the year of the survey. These rates are subject to change depending on many factors, including local and regional economic conditions and changes in development incentives, ordinances and regulations that may affect the intensity of commercial space usage in the community. · The merged data set provides a more general sample of the types of businesses and intensity of uses found in resort communities over a period of time that includes both economic booms and slumps. This results in numbers that represent average commercial job generation that can be comfortably used over an extended period of time, rather than constantly changing with point-in-time economic conditions. · The merged data set also provides a more general sample of the intensity of uses of businesses in multiple resort communities. Because each community represents a different "maturation" state, the database presents an average mix of intensities that RRC Associates, Inc.lRees Consulting, Inc. 6 January 2008 could be expected as communities change and as businesses move into and out of communities. The merged database provides job generation rates that recognize the economic mix of communities change over time, both within and between different industries, and accommodates this change. Accounting for Multiple Job Holding The job generation ratios for commercial space measure the total number of full- and part-time employees combined; no adjustment was made when counting part-time jobs. Some of the employees, particularly the part-time workers, may also hold other jobs. To avoid double counting and potentially requiring two different commercial developments to pay for housing the same employee, the number of total employees in commercial space that generate demand for housing in Eagle County needs to be adjusted for multiple job holding. The 2007 Eagle County Housing Needs Assessment found that employees in Eagle County hold an average of 1.2 jobs. This measure was calculated by evenly weighting the number of jobs held during the winter, summer and shoulder seasons. It is similar to the results found in other mountain resort communitieswhere, over the years, the number of jobs held by employees has typically ranged between 1.15 and 1.35. The projections of jobs and workers holding jobs in Eagle County in 2005 that were compiled by the Department of Local Affairs also average about 1.2 jobs per worker. Converting from Workers to Households Employees often live together in family and unrelated roommate households. Housing requirements need to recognize these lifestyle patterns. Based on the 2007 Housing Needs Assessment survey, the number of employees per household averages 1.8. This is the same average reported by the 2000 Cef')sus for all households with employees. The number of households generated by a project equals the number of new employees divided by 1.8 employees per household. Identifying Program Methods and Household Targets It is important that developers not be "double-charged" by housing requirements to avoid the need for crediting developments for payments made through other mechanisms (see the section on Credits in this report). For example, many programs implemented in other Colorado mountain resort communities typically employ either residential linkage or inclusionary zoning to avoid "double-charging" residential developments for the same employees or set different income targets for the different methods. The Guidelines for Eagle County prevents double- charging by having inclusionary for residential development and linkage requirements for commercial. Income ranges served by programs are unique for each community depending on their specific household needs. Different ranges can be targeted based on local needs - for example, Aspen/Pitkin County have eight service-level categories, covering from low-income households through four levels of upper-income categories. The County has the discretion to require different mitigation rates for residential and commercial development, provided the rates are based on a legitimate public purpose. For example, RRC Associates, Inc.lRees Consulting, Inc. 7 January 2008 commercial development can be assessed a lower mitigation rate than residential provided there is a finding of fact that doing so achieves a public purpose, such as the encouragement of economic development and the support of fiscal soundness through the generation of sales tax revenues. Credits Any taxes or fees paid by new development that are used to address existing housing deficiencies must be credited for the amounts paid. In Eagle County, none of the fees or taxes paid by residential or commercial development are allocated to housing. Mitigation Formula To determine the number of affordable housing units that commercial, residential, or mixed-use projects must produce, the following formula is used. For illustrative purposes, the below table is based on the assumption that a 30% mitigation rate is required for commercial and 30% for residential mitigation. Other mitigation rates could easily be substituted, if desired. Commercial Factor Size of Development Jobs generated 2.8 per 1,000 SF Employees generated 1.2 jobs per employee Households generated 1.8 employees per unit Units Required 55% mitigation rate Lodging and Property Management Size of Development Jobs generated Table 6. Calculation of Commercial and Residential Linkage Requirements Calculation Leasable Square Feet rate x SF/1,000 Jobs generated /1.2 Employees generated/1.8 Households generated x 55% Employees generated Households generated Units required Lodge/Hotel- D.8/Room Prop. Management - O.4/Unit 1.2 jobs per employee 1.8 employee per unit 55% mitigation rate # Rooms or # Units # rooms x 0.8 # units x 0.4 Jobs generated /1.2 Employees generated/1.8 Households generated x 55% . The size of the project is first multiplied by the appropriate job generation rates to estimate the number of jobs that will be created; . The number of jobs generated for commercial space and lodging is then divided by the average job holding ratio of 1.2 jobs per employee to estimate the number of new employees that will be generated by the development; · The number of new employees is then divided by the number of employees per household (1.8) to estimate the number of new households generated by the project; and . The total number of households is then multiplied by the percent mitigation rates, as approved by the Eagle County Board of Commissioners, to determine the number of units required. RRC Associates, Inc.lRees Consulting, Inc. 8 January 2008 The number of new households for which housing must be provided is a function of public policy as well as proportionality. Eagle County can require developers to provide housing for up to 100% of the income-targeted households generated by the development, particularly in light of existing Eagle County programs and projects that address affordable housing needs of households in the targeted categories. Based on the analyses presented in this report, a 55% percent mitigation rate would be easily supported for programs targeting households earning 140% AMI or less. The mitigation requirements can be less than the maximum permitted for residential or commercial development, or both, based on the desires of the County to achieve its goals and objectives for Community Housing through mechanisms other than linkage guidelines. Fee in Lieu Calculation The difference between prevailing market prices and what targeted low-income households can afford to pay for housing is the gap that must be taken into consideration when determining the amount of fee that could 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. The basis is the median family income for three-person households in Eagle County. The income for three-person households was used since the average household size in Eagle County as of 2007 is 2.74 persons (as estimated by the Department of Local Affairs). The income range must be updated annually to reflect changes in the published wage or median income figures, depending upon which is used as an eligibility measure. As a result, the amount of the gap and resulting payment in lieu will fluctuate yearly. 2. The target income point within the range is then set so that a single gap calculation can be performed. The point has been set at 100% AMI since both renter and ownership units will be produced and it is at the middle of the range of the averages required. 3. The affordable monthly housing payment is next established based on a commonly used standard: 30% of gross income equals housing payment. 4. The affordable monthly housing payment is then converted to an affordable purchase price by assuming the cost of property taxes and insurance is equal to 20% of the total affordable housing payment, then assuming that mortgage terms based on the remaining 80% of the payment include a 5% down payment and a 6.5% fixed rate of interest for 30 years. 5. The average size is based on the propose Guidelines - 1,000 square feet. 6. The per square foot sales prices of dwelling units recently purchased in Eagle County is used as the basis for housing costs. The figure of $385 per square foot was the median cost of units sold in 2007 through December 25th (with outliers removed). The cost of units sold rather than the cost of construction has been used for several reasons: · Market-rate prices on a per square foot basis can be readily obtained and can be used to update the fee on a regular basis; RRC Associates, Inc./Rees Consulting, Inc. 9 January 2008 · Construction costs vary widely, depending upon numerous variables. Adding the cost of land further complicates the calculation; and . The County may use the fees obtained to purchase existing units, provide rent subsidies, or support other housing efforts in addition to new construction projects. 7. 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. Table 7. Calculation of Fees in Lieu based on Median Income Limits 100% AMI Average Target Income Point (3-person households) Affordable Monthly Housing Pmt. $73,000 $1,825 Property Taxes/lnsurance/HOA estimate (20% of Aff. Monthly Hsg. Pmt.) Mortgage Payment Max. Mortgage Amount" $365 $1,460 $231,000 Affordable Purchase Price $243,150 Average Sq. Ft of Units Median per Sq Ft. Market Cost per Unit 1,000 $385 $385,000 Affordability Gap Plus 15% Administrative Fee Payment in Lieu per Unit $141,850 21,278 $163,128 It should be noted that the calculations presented above assume that any HOA fees (plus property taxes and insurance) would be covered by 20% of the "affordable monthly housing payment." This percentage can be amended depending upon expected HOA dues being lower or higher than this allowance. 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. RRC Associates, Inc.lRees Consulting, Inc. 10