The Vail Town Council will be reviewing recommendations and providing direction on the last remaining topic that will be used to guide construction and buyer qualifications for its Chamonix Neighborhood housing development at its Tuesday, Jan. 3 meeting. The discussion on the lottery selection process is listed as action item 4.1 on the evening meeting agenda which begins at 6 p.m. in Vail Town Council Chambers with opportunities for public comment.
Currently more than 100 people have expressed interest in how they might become eligible to purchase one of the 32 homes that will be built by the town in partnership with Triumph Development. Since demand exceeds the available supply, a lottery process is being recommended for selecting the future buyers. Recommendations developed by the Vail Local Housing Authority and to be discussed by the Town Council Tuesday include:
Lottery 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 to be present to be drawn.
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.
Tuesday’s discussion follows earlier decisions by the Town Council on unit mix, floor plans, financial subsidy and the Chamonix Neighborhood at West Vail deed restriction.
Chamonix Neighborhood at West Vail – Unit Mix/Floor Plans
The development plan for construction of the Chamonix Neighborhood at West Vail, as approved by the Vail Town Council, includes 10 two-bedroom units and 22 three-bedroom units with five floor plan options ranging from approximately 1,130 square feet to 2,670 square feet. All units have enclosed parking. Next steps include a review by the Planning and Environmental Commission on Jan. 9. 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. There will be no additional cash subsidy provided to buyers of the Chamonix homes beyond the current subsidy that has already been provided which includes $3.6 million for acquisition of the 3.6- acre parcel and infrastructure costs, plus an estimated $2.6 million in “markup” profit savings.
Chamonix Neighborhood at West Vail – Deed Restriction
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 that will contain the following provisions:
- 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 resale 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 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.
A marketing and reservations campaign is set to launch in early January. It is anticipated a lottery selection process and pre-sale agreements will be taking place during the second quarter of 2017. The first homes could be ready for occupancy by November 2017. The final sales prices of the new homes will be set by the Town Council once the development application is reviewed and approved by the town’s Planning and Environmental Commission and Design Review Board.