The Vail Town Council will be reviewing recommendations and providing direction on five topics that will be used to guide construction and buyer qualifications for its long-awaited housing development at its Tuesday, Dec. 20 meeting. The Chamonix Neighborhood at West Vail topics are listed as action items 7.2 and 7.3 on the evening meeting agenda which begins at 6 p.m. in Vail Town Council Chambers with opportunities for public comment. Tuesday’s discussion on unit mix, floor plans, financial subsidy, deed restriction and the lottery process follows a previous review of recommendations on the topics forwarded by the Vail Local Housing Authority on Dec. 6.
Chamonix Neighborhood at West Vail – Development Plan
The development plan for construction of the Chamonix Neighborhood at West Vail requires key decisions on unit mix and floor plans before moving forward with next steps. During Tuesday’s meeting, the Town Council will review two site plan and five floor plan options for the development.
Site plan “B” includes 16 two-bedroom units and 16 three-bedroom units with square footage ranging from approximately 1,130 square feet to 2,670 square feet with enclosed parking and storage. Site plan “C” includes the same range of unit sizes and the same enclosed parking with 10 two-bedroom units and 22 three-bedroom units.
Also to be discussed is whether the Town Council wishes to provide additional cash subsidy to buyers of the Chamonix homes beyond the current subsidy that has already been provided which includes $3.6 million for land and infrastructure costs, and an estimated $2.6 million in “markup” profit savings. Pricing estimates currently range from the low-$400,000s to the low $700,000s with more than half of the units estimated to cost $550,000 or less.
Deed Restriction/Lottery Selection – Vail Local Housing Authority Recommendations
Also on the Town Council agenda Tuesday is a review of updated recommendations prepared by the Vail Local Housing Authority for the deed restriction and the lottery selection process for the housing development.
The objective of the Chamonix Neighborhood at West Vail, according to previous decisions by the Town Council, is to “create, maintain and sustain community by constructing a for-sale, deed restricted housing development that provides home purchase opportunities for persons and families employed in Eagle County and committed to make Vail their permanent place of residence.” As such, upon the sale or transfer of a home in the Chamonix Neighborhood, the Town of Vail and the future home purchaser will record a restriction on the deed with the Eagle County Clerk and Recorder’s Office. In keeping with the development objective of the Chamonix Neighborhood, recommendations forwarded by the Vail Local Housing Authority are as follows:
- Occupancy of the dwelling unit shall be restricted to person(s) working a minimum of 30 per week on an annualized basis at a licensed business within Eagle County, Colorado.
- The Town of Vail shall be the owner’s primary and permanent place of residency.
- A business entity or corporation shall not be eligible for ownership of a dwelling unit.
- The sale or transfer of the dwelling unit shall be subject to the terms and conditions outlined in the town’s adopted Employee Housing Unit Guidelines.
- The owner’s use of the dwelling unit shall be in compliance with all applicable adopted codes and regulations.
- The owner shall be subject to an annual reporting obligation verifying compliance with the terms of the deed restriction.
- No minimum family size requirement shall apply for purchase of any dwelling unit.
- A maximum resales price shall be established based upon the Annual Area Median Income for Eagle County or similar wage adjusted index.
- Dwelling units shall be subject to a Right of First Refusal granted to the Town of Vail.
- An owner of a dwelling unit shall not own other residential real estate within Eagle County, Colorado at the time of closing. An owner may, however, own residential real estate in Eagle County, Colorado provided said real estate is deed restricted for housing, subject to Town of Vail approval, at the time of closing.
Once the Town Council determines the general conditions of the deed restriction, a final version will be prepared by legal counsel and finalized by the Town Council.
The fifth topic to be discussed at Tuesday’s meeting is the lottery selection process for the new homes. Currently more than 100 people have expressed an interest in the 32 homes. With demand exceeding the available supply, a lottery process is recommended for selecting the future buyers. Recommendations forwarded by the VLHA include:
Requirements for Participation
- Completion of a Chamonix Neighborhood Home Buyer Qualifying Application.
- Demonstrated ability to comply with the terms of the deed restriction if selected for home purchase.
- Demonstrated ability to secure financing for the dwelling unit desired.
- Signed acknowledgement of acceptance of the terms of the Chamonix Neighborhood Pre-sale Agreement and Purchase/Sale Agreement.
- Demonstrated participation and successful completion of a Town of Vail or Valley Home Store sponsored Homebuyer Education Class within the previous 12 months.
- One chance in the lottery selection process per Qualifying Application.
Lottery Selection Procedures
- Each qualified home buyer shares an equal chance of being selected.
- In an instance of multiple home buyers within a household (i.e. marital spouses) each individual home buyer may have a separate chance of selection provided each individual is capable of qualifying independently.
- Qualified home buyers shall select the home(s) for which they are interested in purchasing by placing their name into the hat for said home(s). A certified list of all names within the 32 hats will be created prior to commencing the drawing.
- One qualifying home buyer’s name will be drawn at random for each of the 32 homes.
- The selected home buyer for each of the homes will have the option to execute a pre sale agreement, on its terms, for the home which they selected. If the selected home buyer declines the option, a new qualifying home buyer’s name will be drawn, and so on, until a pre sale agreement is executed for the home. This process will be repeated for each of the 32 homes.
- In an instance where a qualified home buyer is drawn for more than one home, they shall be limited to executing a pre sale agreement for only one home. Once the desired home is selected and a pre sale agreement is executed, the qualified home buyer’s name shall be removed from the lottery selection process.
- If a home buyer declines acceptance of a home, or otherwise fails to execute a pre sale agreement within the established timeframe, the home buyer shall forfeit their position and 1) request to have their name placed back into possible future drawing, or 2) be removed from the lottery selection process for said home entirely.
- A lottery drawing schedule shall be established. Qualified homebuyers need not be present to be drawn.
Once decisions on the unit mix, floor plans, subsidy, deed restriction and lottery selection process are finalized, the development team will pursue a schedule that has the new home construction beginning in the spring of 2017 with the first homes completed before the end of the year. A marketing and reservations campaign is set to launch after the first of the year. It is anticipated the town would conduct a lottery selection process and to begin to accept pre-sale agreements during the second or third quarter of 2017.
The final sales prices of the new homes will be adjusted more accurately once the development application is reviewed and approved by the town’s Planning and Environmental Commission and Design Review Board.
Since August, the town has been working with its partner Triumph Development to prepare initial housing concepts for the 3.6-acre West Vail parcel. Tuesday’s Town Council meeting also includes agenda item 7.4 Resolution No. 37 to authorize the town manager to enter into a pre development agreement with Triumph Development to establish terms of preliminary services to be provided for construction of the Chamonix Neighborhood.
To share your comments in advance of the meeting, email email@example.com or for questions, contact George Ruther, Community Development director, at 970-479-2145 or firstname.lastname@example.org.