Whitefish Community Housing Committee

WHITEFISH COMMUNITY HOUSING COMMITTEE AGENDA Tuesday, April 2, 2024, at 2:00 p.m. City Hall – City Council Conference Room 1. Call to order 2. Appointment of Officers: Chair, Vice Chair, Secretary 3. Communications from the public 4. Approval of minutes from the December 19 th meeting 5. Discuss annexation policy proposal 6. Communications from Staff 7. Other items not on the agenda 8. Next committee meeting scheduled for a. April 22nd at 4pm 9. Adjourn. Committee Documents: Click here to access the Whitefish Community Housing Roadmap Click here to access the 2022 Whitefish Area Community Housing Needs Assessment Click here to access the Workforce Housing Needs Assessment Click here to access the 2017 Whitefish Strategic Housing Plan WCHC Annexation Policy Discussion 4/2/24 Goal of Annexation Policy (2022 Housing Roadmap): Maintain the 70% Full time occupancy rate of homes per 2022 Roadmap • Develop and adopt annexation policy requiring a significant percentage of homes developed on annexed property be deed restricted Community Housing. • Balance the community housing percentage policy with state regulatory concerns/conservative legislature. The 2017 Plan recommended 80% community housing. • Considerations: o Best practice includes affordability requirements for deed restriction to ensure community housing is affordable for intended occupants. At a minimum, require a deed restriction “light”. Applicability: • ONLY applicable to Annexation by Petition (voluntary by request of property owner). • Ownership housing product (would not include control of rentals as rentals are subject to Landlord Tenant Act) • All parcels created through a subdivision process, including those created after annexation, some may be released per Guidelines Staff Goals: • Easy to understand and administer. • Easy for property owner/applicant to understand what is required and receive annexation from the Council without extensive public hearing process. Methods: • See draft of the Annexation Policy Guidelines Pros: • No cost to the City other than staff time, enforcement at sale is done by lenders • Long-term solution (permanent deed restriction) • Encourages development closer to what we want, likely no more Iron Horse developments • Targeted at the higher AMI needs which aren't being addressed by other programs • Developers have flexibility in terms if unit type, arrangement, size, etc. Not as limiting as programs such as Legacy Homes. Cons: • Developers choosing to develop in the County as opposed to Annexation. This often results in a poor patchwork of developments with ineffective transportation networks, utility infrastructure, open space, etc. We strongly prefer that property is annexed before development. • Existing and future zoning density considerations for annexed property on edges of town (typically larger residential lots). Growth Policy update could be part of the review of these areas. This policy may work better if paired with a zoning overlay/update/incentive that increases density. Existing density may not be enough to offset lower costs of land/construction. • Deed Restriction is a limitation on developers when financing/selling/constructing a project. We do not want to limit construction to the point that we gain no units. Additional housing supply is needed at all price levels. Developers have provided feedback and stated concern. Ultimately the state of the market and conditions of each site make it difficult to qualify impact overall. • Deed Restriction would likely terminate upon a foreclosure of the property. • Future Legislative prohibition/lawsuit. Not much we can do to avoid this. • No enforcement mechanisms after sale. Discussion: 1. Are there any concerns with the draft guidelines or program overall? 2. Does this program meet the goal we identified? 3. Do we feel that the pros outweigh the cons for the program?  2024 Annexation Policy for Community Housing Administrative Guidelines Adopted Res. 24‐XX Contents 1.0 COMMUNITY HOUSING ANNEXATION POLICY: ADMINISTRATIVE GUIDELINES .................................. 2 2.0 INTENT OF THIS POLICY ......................................................................................................................... 2 3.0 ANNEXATION POLICY PROGRAM REQUIREMENTS ....................................................................... 2 3.1 Definitions ....................................................................................................................................... 2 3.2 Deed Restriction .............................................................................................................................. 2 3.2 Release from Deed Restriction ....................................................................................................... 3 4.0 PROCEDURE ........................................................................................................................................... 4 4.1 Annexation ...................................................................................................................................... 4 4.2 Subdivision ...................................................................................................................................... 4 4.3 Building Permit ................................................................................................................................ 4 7.0 RESPONSIBILITY FOR ADMINISTRATION ............................................................................................... 5 7.1 Program Coordinator ...................................................................................................................... 5 7.2 Planning and Building Department............................................................................................... 5 7.3 City Council ................................................................................................................................... 5 APPENDIX A: Procedure Outline ................................................................................................................... 6 Annexation Policy for Community Housing Admin Guidelines - 1 1.0 COMMUNITY HOUSING ANNEXATION POLICY: ADMINISTRATIVE GUIDELINES The purpose of this administration document is to:  Provide the technical procedures to deliver housing for residents through the Annexation Policy; and  Establish procedures for the City of Whitefish, staff, boards, or committees, the program administrator, and any agent of the City to implement and administer the Housing requirements of the Annexation Policy. 2.0 INTENT OF THIS POLICY Objective 3 of the 2022 Whitefish Community Housing Roadmap compels the City to “maintain and, if possible, increase the percentage of homes occupied by residents of the community as their primary residence.” Specifically, 70% of homes within the study area should be occupied by a full‐time resident. This objective is important to ensure Whitefish retains the community feel and economic vitality that has made it a desirable destination. Increasing pressure from investors, second‐home owners, and corporations have limited the availability of homes for local residents. This policy is intended to ensure future growth and development of the City of Whitefish will positively contribute to the community feel and economic vitality of the area. While tourism does play a significant role in the economy of Whitefish, the community does not desire to grow in ways that significantly increase second‐home ownership and short‐term rentals. By placing a deed‐restriction on parcels upon annexation requiring future occupancy be limited to full‐time occupancy, locals in search of housing will have more options and less competition when searching for a home. 3.0 ANNEXATION POLICY PROGRAM REQUIREMENTS Petition annexations will be required to accept a deed restriction on existing and additional units constructed restricting the purchase of the unit to a local resident using the property as a primary residence. Depending on the specific characteristics of the property, development proposal specifics, proposed uses, and desire for annexation an entire property or some portions of a property may be released from the Deed Restriction. See Section 3.3. 3.1 Definitions “Primary Residence” means occupying the Property for at least ten (10) months out of each calendar year. "Qualified Household" means a household containing at least one natural person who is using or will use the Property as a Primary Residence. 3.2 Deed Restriction The developer or any owner must cause to be recorded with the Flathead Clerk and Recorder’s Office a deed limiting the occupancy of the property to a Qualified Household unless released subject to the terms of this program. The effect of recording said deed restriction is to create, in accordance with state law, an obligation that runs with the property restriction and will apply to additional units constructed through a subdivision, CUP, PUD, or other process. The Program Annexation Policy for Community Housing Admin Guidelines - 2 Coordinator/City Attorney will provide a template deed restriction to be used for the transaction. The deed restriction will be for a term of 75 years and will be renewed upon expiration. All deed restrictions applicable to (PROGRAM NAME) homes must include resale restrictions binding future buyers and sellers to the applicable conditions set forth in this Program Administration as updated annually and will be in a form approved by the Program Coordinator and the Whitefish City Attorney. 3.3 Release from Deed Restriction Properties or portions of a development may be released from the deed restriction if certain criteria are met. The release will be effective until additional for‐sale residential units are constructed or the use of the property changes to include for‐sale residential units. If one or more criteria apply to a development or property, it is eligible to apply for a release from Deed Restriction.  Properties developed prior to annexation, which have experienced a failure or significant deterioration of the septic system and which are requesting annexation for the primary purpose of obtaining connections to City utilities.  All commercial, multi‐family units, and properties which are not developed as for sale residential including parkland, open space, etc.  30% (in whole units) of the total number of created lots (or units) in a development. o To calculate the number of units, multiply the number of proposed units by 30% (X units x 0.30 = # Deed Restricted Units/Properties) and the result is the number of units eligible for release. Any resulting fraction must round down to the nearest whole unit. NUMBER OF UNITS EXAMPLES: A proposal to build eight single- family attached townhomes would require 16 x .30 = 4.8 units. The four whole units are eligible for release. 3.4 Marketing to and Certifying Resident Status In order to meet the “Qualified Household” criteria, the household must contain at least one natural person who will use the Property as a Primary Residence and submit an Affidavit stating the former must be submitted to the City of Whitefish, or its designee. Residents are then eligible to purchase deed restricted units. Marketing of the units is the responsibility of the developer, Annexation Policy for Community Housing Admin Guidelines - 3 realtor, owner, or property manager. The City of Whitefish will not assist with marketing and will not be responsible for a unit being vacant because of insufficient marketing or any other reason. Reviews, background checks, decision to sell/rent or not to sell/rent, execution of sale, and the day‐to‐day management of units will be the responsibility of the developer, owner, realtor, property manager or their designee or successor. 3.5 Initial certification of residency after occupancy Initial certification of residency will occur at time of purchase only. No future certifications are required, except as described in Section 6.1. No certification is required for the rental of a unit. 3.6 Rental Units may be rented an any time without submitting an affidavit. 3.7 Terms of Compliance Housing developments subject to the annexation requirements must maintain required occupancy rules for deed restricted units for a period of 75 years after the date of issuance of a certificate of occupancy for the entire development or portions thereof. Subsequent 75‐year deed restrictions must be renewed upon expiration. This requirement is applicable to successors in title by means of a deed restriction. A City approved deed restriction template must be used. 4.0 PROCEDURE 4.1 Annexation At the time of Annexation, a Resolution of Annexation which includes a condition that a Deed Restriction will be applied to the property under consideration will be drafted. 4.2 Subdivision At the time of subdivision, the developer/property owner/applicant may submit a Housing Mitigation Plan which the City of Whitefish, or its designee, will preliminarily agree to exempt units based on the program criteria. The Housing Mitigation Plan may be modified or adjusted after subdivision upon mutual agreement between the applicant and the City of Whitefish. The formality of The Housing Mitigation Plan shall contain: i) Clearly identified units to be constructed. ii) Units for which a partial exemption is requested. iii) Units which are fully eligible for exemption based on the exemption criteria. 4.3 Building Permit Prior to development, the property will be required to have a recorded deed restriction in accordance the requirements set forth in this policy. Upon certificate of occupancy, the property owner/developer may request a full or partial release from the Deed Restriction in accordance with the Release from Deed Restriction section. The City will complete a release form and the property owner will file with the Flathead County Clerk and Recorder. Annexation Policy for Community Housing Admin Guidelines - 4 4.4 Resale In order to meet the “Qualified Household” criteria, the household must contain at least one natural person who will use the Property as a Primary Residence and submit an Affidavit stating the former which shall be submitted to the City of Whitefish, or its designee. Residents are then eligible to purchase deed restricted units. Owners must sell the property to a Qualified Household. 5.0 RESPONSIBILITY FOR ADMINISTRATION 5.1 Program Coordinator The Program Coordinator is responsible for the following functions regarding administration of the (PROGRAM NAME): 7.1.1 Attend a pre‐submission conference with City Planning Staff and the applicant of an annexation request to review requirements. 7.1.2 Facilitate flow of information and communication among City staff, developer and homeowners. 7.1.3 Review the individual HMPs in coordination with City staff to determine if each plan can be approved by staff or recommended for approval by the City Council. If Plans are found to be deficient, the Program Coordinator and City staff will work with the developer to resolve deficiencies. 5.2 Planning and Building Department This City department or its designees will be responsible for the following functions regarding administration of the (PROGRAM NAME): 7.2.1 Attend a pre‐submission conference with the Program Coordinator and the applicant of an annexation request to review Program requirements. 7.2.2 Require applicants to prepare a HMP concurrently and as part of the development review process. 7.2.3 For administrative CUPs, review and approve HMPs as part of development approval process. 7.2.4 Monitor developer compliance with regulations for the Annexation Program through completion of construction, and in the event of noncompliance, request the City Manager direct action by appropriate departments regarding the department's responsibility for administrating the Program. 5.3 City Council The City Council will be responsible for adopting any updates to this Program Administration document including changes to the deed restriction or occupancy requirements and evaluating whether the housing goals are being met. Annexation Policy for Community Housing Admin Guidelines - 5 APPENDIX A: Procedure Outline •City •Provides program information •Homeowner/Developer •Submits Intent to Annex documents Pre‐Application •Reads Annexation Policy and Program guide which will outline the program and expecations •City •Drafts Resolution of Annexation which includes a condition of annexation that a Deed Restriction will be applied to any further development •Developer •Reviews Resolution of Annexation Annexation •Executes Deed Restriction •City •? •Developer •Completes applicaton for properties to exempt from the deed restriction requirements contained within the Subdivision/ Resolution of Annexation (if applicable) PUD •City •? •Developer/Owner Certificate of •Submits "Qualified Household" Affadivit Occupancy/Sale •City •Documents Occupancy Certification from Prospective Buyer to certify them as an approved buyer •Prospective Owner •Submits"Qualified Household" Affadivit Resale Annexation Policy for Community Housing Admin Guidelines - 6 When Recorded Return to: City Clerk City of Whitefish PO Box 158 Whitefish, MT 59937-0158 DEED RESTRICTION This Deed Restriction is entered into this ________ day of _______________, 20___, between ___________________________ ("the Owner"), and the City of Whitefish ("the City”). This Deed Restriction applies to the real property ("the Property") commonly known as _______________________________________________________ the legal description of which follows: [Legal Description] RECITALS WHEREAS, the Property was annexed by the City by petition pursuant § 7-2-4601 through § 7-2-4625, MCA; and WHEREAS, the Owner has benefitted from annexation through the provision of City services; and WHEREAS, as a condition of the Owner benefitting from annexation through the provision of City services, the City required the Property to be sold to and occupied by a Qualified Household; and WHEREAS, this Deed Restriction will benefit current and future residents of the City by promoting a sense of community through year-round residency, providing an opportunity for more workforce housing, and creating an option for current homeowners to ensure their home offers the ability for future residents to work and live in the City; and WHEREAS, the intent of the City and the Owner is to secure and preserve housing for Qualified Households and to assign to the City and/or its designee the right to enforce compliance with this Deed Restriction. NOW THEREFORE, in consideration of the benefits received by the parties, the sufficiency which is hereby acknowledged, the parties agree as follows: DEFINITIONS -1- The following terms shall have the meanings defined herein: “Primary Residence” means occupying the Property for at least ten (10) months out of each calendar year. "Qualified Household" means a household containing at least one natural person who is using or will use the Property as a Primary Residence. COVENANTS 1. Restrictions on Occupancy/Use. 1.1 Residential Use Only. The Property must be used only for residential purposes and any incidental activities related to residential use that are permitted by the applicable zoning. 1.2 Occupancy. The Property must be occupied by a Qualified Household. The City, or designee may, in its sole discretion, grant a temporary waiver of this occupancy requirement for good cause such as to facilitate sale of the Property to a Qualified Household, illness, temporary job relocation, military deployment/service, or sabbatical. 2. Release 2.1 For Commercial/Multi-Family Development. The Owner may request release of this Deed Restriction in the event the Property is developed entirely with: (1) commercial uses; (2) multi-family rental units; or (3) mixed use containing only multi-family rental units. Provided, however, if multi-family rental units are later converted into individually owned condominium units, this Deed Restriction will continue in full force and effect. 2.2 Partial Release. The Owner may request that up to 30% of the whole units be released from this Deed Restriction in accordance with the Annexation Policy for Community Housing Administrative Guidelines. 3. Sale of the Property. 3.1 Requirements. The Owner may sell the Property if all the following conditions are met: i. The Owner must deliver a written notice of its intent to sell the Property to the City or designee, as required by the Annexation Policy for Community Housing Administrative Guidelines. ii. To proceed to the closing of the sale of the Property the City or designee must certify in writing that the prospective buyer is a Qualified Household. -2-  3.2 Selling the Property. The Owner may sell the Property by selling the Property to a Qualified Household located through any method. The Owner is ultimately responsible for selling the Property, including any real estate commissions and Administration Fee. 3.3 Administration Fee. [FLAT FEE PLACEHOLDER] 4. Prohibited Sale/Transfer. 4.1 Effect. Any prohibited sale/transfer of the Property in violation of this Deed Restriction or an attempt to make a prohibited sale/transfer is void and is a material breach. 4.2 Sales/Transfers Not Prohibited. The following are not considered prohibited sales/transfers: (i) Transfer of title by gift, devise, or inheritance to the Owner’s spouse or natural or adopted children; (ii) Transfer of title due to the Owner’s death to a surviving joint tenant or tenant by entireties; (iii) Transfer to a spouse as part of divorce or dissolution proceedings; (iv) Transfer of title by the Owner into an inter-vivos trust in which the Owner is the beneficiary; or (v) Transfer of title or an interest in the Property to the spouse in conjunction with marriage. 5. Breach. 5.1 Notice and Cure. Upon violation of any of the provisions of this Deed Restriction, either the City or its designee will give written notice to the Owner by certified mail, return receipt requested, specifying the nature of the violation. If the violation is not corrected to the satisfaction of the City or its designee within a reasonable period of time, not to exceed thirty (30) days after the date the notice is mailed, or within further time as is determined to be necessary to correct the violation, the City or its designee may declare a default. 5.2 Remedies Upon Default. Upon the declaration of a default, the City or its designee may invoke any remedies available under this Deed Restriction including, but not limited to, seeking a court order for specific performance of the obligations of this Deed Restriction, for an injunction prohibiting a proposed sale/transfer in violation of this Deed Restriction, for a declaration that a sale/transfer in violation of this Deed Restriction is void, or for any other such relief at law or equity as may be appropriate. 5.3 Attorney Fees and Costs. In the event of a default by the Owner, the Owner and/or the Owner’s transferee must hold the City and its designee, their officials, employees, and agents harmless and reimburse the expenses, attorney fees, and costs for any action the City or its designee take to enforce the provisions of this Deed Restriction. 6. Foreclosure. 6.1 Effect. In the event of foreclosure, acceptance of deed-in-lieu of foreclosure, or any similar action, this Deed Restriction shall remain in full force and effect. 6.2 Notice. The Owner must deliver to the City or its designee a foreclosure notice or any similar document they receive from a mortgagee within five (5) days of receipt. -3-  6.3 Option to Cure. Within sixty (60) days after receipt of notice, the City or its designee may, but are not obligated to, make any payment required to avoid foreclosure. Upon making such payment, the City or its designee may place a lien on the Property in the amount paid to cure the default, including all fees and costs. The Owner shall execute all documents required to make such lien legally effective. 7. Term. This Deed Restriction must continue in full force and effect for a period of seventy-five (75) years after the date of recordation. 8. General Provisions. 8.1 Notice. Any notice required or permitted under this Deed Restriction must be given in writing and delivered in person or mailed, by certified or registered mail, return receipt requested, at the address set forth below, or such other address designated by the written notice. All notices must be effective upon being deposited in the United States Mail or, in the case of personal delivery, upon actual receipt. If to City: The City of Whitefish Attn: P.O. Box 158 Whitefish, MT 59937 If to Owner: 8.2 Severability. Whenever possible, each provision of this Deed Restriction and any other related document must be interpreted in such manner as to be valid under applicable law. However, if any provision must be invalid or prohibited under said applicable law, such provisions must be ineffective only to the extent of such invalidity or prohibition without invalidating the remaining provisions of such document which will continue as a contractual obligation. 8.3. Deed Restrictions to Run with Property. The Property is burdened with the covenants delineated herein, which covenants run with the Property for the benefit of the City, its designee, their successors and assigns, who may enforce the covenants and compel compliance therewith. 8.4 Choice of Law and Venue. This Deed Restriction must be interpreted in accordance with and governed by the laws of the State of Montana. Venue for any legal action arising from this Deed Restriction must be in Flathead County, Montana. 8.5 Waiver. Waiver by the City or its designee of any term or condition of this Deed Restriction, or the failure of the City or its designee to take action with respect to any breach of any such term or condition, must not be deemed to be a waiver of such term or condition with regard to any subsequent breach of such term or condition, or of any other term or condition of the Deed Restriction. The City or its designee may grant waivers in the terms of this Deed Restriction, but such waivers must be in writing and signed by the City or its designee before becoming effective. -4-  8.6 Successors. The provisions and covenants contained herein must inure to the benefit of, and be binding upon, successors and assigns of the parties. 8.7 Authority. Each of the parties warrants that it has complete and full authority, without limitation, to commit itself to all terms and conditions of this Deed Restriction, including each and every representation, certification and warranty contained herein. 8.8 Further Actions. The parties agree to execute such further documents and take such further actions as may be deemed reasonably necessary to carry out the provisions and intent of this Deed Restriction or any agreement or document relating hereto or entered into in connection herewith. 8.9 Amendment. This Deed Restriction may not be amended unless in writing, signed by all parties, and recorded with the Flathead County Clerk and Recorder. 8.10 Conflicts. To the extent any Covenants, Conditions and Restrictions, bylaws, or any other limitations or restrictions placed upon the Property by a builder, developer, or homeowner’s association conflicts with any provisions of this Deed Restriction or the Guidelines, the applicable provision of this Deed Restriction shall prevail. 8.11 FHA Loans. If the Property is encumbered by a mortgage insured by the Federal Housing Authority, the provisions of 24 C.F.R. 203.41 prevail to the extent such provisions conflict with any provisions of this Deed Restriction. -5-  AFFIDAVIT OF RESIDENCY STATE OF MONTANA ) ) ss: County of Flathead ) I, the undersigned, being first duly sworn state: 1. My name is: ___________________ My date of birth is: ________________ 2. I currently reside at the following address: _______________________________, Whitefish, Montana, 59937. 3. I am occupying, or will occupy, the property identified in Paragraph 2 for at least ten (10) months out of each calendar year. I acknowledge that the City, or designee, may grant a temporary waiver of this occupancy requirement for good cause such as to facilitate sale of the property to a Qualified Household, illness, temporary job relocation, military deployment/service, or sabbatical. I acknowledge it is my responsibility to request such temporary waiver. 4. The following people can attest to my residency as described above: Name: __________________ Relationship to me: __________________ Name: __________________ Relationship to me: __________________ 5. This Affidavit is made for the purpose of providing proof of my primary residence to the City of Whitefish, or its designee, in connection with the Deed Restriction encumbering the property identified in Paragraph 2 and the Annexation Policy for Community Housing Administrative Guidelines. _______________________________ Signature This instrument was acknowledged before me on this ______ day of_______, 20__, by _______________________. ___________________________ Notary Signature  Annexation Policies on Affordable/Workforce Housing Crested Butte, CO Subdivision Regulations: Subdivider shall reserve at least 60% of total number of proposed residential units in the new development annexed to the town as local housing units (M. Rees recommended increasing to 70% to match existing ratios, but the change was never made). Those units are deed restricted to a variety of mixed-income people who earn >80% of their income in the County. 21% of total number of units must be reserved to be affordable (111%-153% of AMI) and can be a subset of local units. Subdivider may offer substitute percentages and open negotiation – town is not obligated to accept. Planner Mike Yerman: • not a pro-development town, so if development is discouraged by regulations they are ok with that • half of all, and some of most important, affordable housing has come via annexation (but there is no more land to annex now) • local deed restrictions don’t always achieve what intended • critical to limit and enforce short term rentals – CB applies an affordable housing tax on STRs • helpful to provide options to developers – build local units on or off site, dedicate land to town, or pay in-lieu-fee to Housing Authority or other organization; the expectation is x, y, z, but everything is negotiable • town subsidizes development of affordable housing Rees to CB: The annexation policy serves as a guide for consideration of future annexations, and the basis for negotiations. Breckenridge, CO Annexation Policy: On proposed annexations, a minimum of 80% of the proposed dwelling units are developed as deed restricted housing and a max of 20% are market rate units. Planner Nichole Rex: • no negative consequences from adopting policy in 1999; did not discourage developers from annexation because often it was the only way to have a viable development due to lack of access to water, or some other limitation on the land…also about out of new land for annexation • deed restrictions can be by affordability to different AMI brackets, by “local” residency, or as simple as no short- term rentals allowed (enforcement is key)- it varies by development • Town provides developers with greater allowable densities via transfer of development rights, deferring water tap fees, and waiving permit fees • Use of points system with a lot of points awarded for affordable housing • land available to annex is very limited now, but in the past 18 years they increased their deed restricted housing by about 420 units (about 40% of total) Examples of Community Annexation Policies Relative to Provision of Housing (June 2019) Ashland, OR Annexation and Zone Change Ordinance requires 25% of base density be restricted for affordability or land transfer to public housing corp of same amount Bend, OR Annexation Policy (part of Comprehensive Plan): no reference to affordable/workforce/local housing; must comply with specific expansion area policies or area plans Boulder, CO Annexation Policy: for annexation considerations emphasis is given to the benefits achieved from the creation of permanently affordable housing Bozeman, MT Annexation Policy: no reference to affordable/workforce/local housing Breckenridge, CO Annexation Policy (within Aff Housing Strategy): on proposed annexations, minimum of 80% of proposed units must be deed restricted housing (max of 20% market rate units); deed restrictions may specify income levels, local residency, or simply no STRs; 1% Real Estate Transfer Assessment (RETA) as an alternative option for compliance Housing Planner Nichole Rex: Define local residency How administered/enforced Crested Butte, CO Subdivision Regulation: Article 12 – Affordable Housing and Local Housing. Subdivision with >4 residential units shall reserve at least 60% of the total number of proposed residential units as local housing units – deed restricted for people who earn 80% of their income in the County. Planner M. Yerman: • Primary Residence= the usual place of return for housing as documented by the vested title property owner of record signing an affidavit to that affect and providing at least two of the following: motor vehicle registration, driver’s license, state ID card, voter registration, or tax documents. A person can have only one primary residence. • Vested title deeds: the underwriter should recognize the property must be a primary residence for purchases, and an affidavit is required of the purchaser (even if housing authority/town not involved in verification) • Qualifications for Ownership in Kapushion Annexation: federal income tax returns, wage statements, landlord verification, driver’s license, vehicle registration, voter registration, other verification requested by town. Procedures for sales outlined (market prices, but market limited to those who qualify as local) • Created zoning district that is applied to newly annexed properties. Example, R2A: A large portion of the units in the District are deed restricted to provide housing for people who work and live in the immediate area. Durango, CO Land Use and Development Code, Chapter 5 Growth Management, Article 5-4 Fair Share Housing: application for annexation must comply with Fair Share Housing regulation which requires 16% of new residential projects be deed restricted for affordability Annexation Policy: require mix of housing types and pricing; affordable housing requirements Glenwood Springs, CO Annexation Policy (from Comprehensive Plan): All commercial and residential developments occurring on annexed land should include community (affordable workforce) housing. Examples of Community Annexation Policies Relative to Provision of Housing (June 2019) Moab, UT Annexation Policies and Procedures chapter 1.32. Utah is one of 13 states (including MT) that does not provide for real estate transfer taxes, however, Moab municipal code includes Title 3 Chapter 29 Real Estate Transfer Assessment Agreements. Use of RETA agreements as a condition for development approval is prohibited, but agreements are authorized, fees paid to city and must be used for specified public purposes (including affordable housing). Could be a voluntary option for developers rather than deed restricting for locals. Park City, UT Land Management Code, Chapter 8 Annexation (considered PC’s Annexation Policy): City considers community issues including affordable housing and balance of housing types and ownership in analyzing request. Housing Mitigation Plan required. Annexation Agreement to include provision of affordable housing (15% of total residential units deed restricted for affordability; housing also must be provided for 20% of employees generated by the commercial component of the project) Steamboat Springs, Area Plan for West SS: as part of annexation, each new development must provide a minimum of 20% permanently CO affordable housing (IZ), incentives for providing more than 20% West SS Annexation Agreement: 80% of new homes/lots to be deed restricted for locals (defined as employment in Routt County or primary residence evidenced by state or federal income tax is within the county, work can be ‘location neutral’); enforcement is the responsibility of the town and housing authority Jason Peasley, Executive Director of Yampa Valley Housing Authority: HA does ensure buyers are “local” qualified, apparently not that onerous. They work with seller’s realtor to make sure they’re somewhat pre -screening and sharing info about deed restriction with potential buyers. Currently HA has 2 administrative staff, overseeing about 100 deed restricted units with another 100 coming online soon. Winter Park, CO Annexation Policy: each petition for annexation requires an annexation agreement which addresses affordable housing. May include construction of affordable housing on-site or off-site, dedication of land to town for affordable housing, ILFs, or RETA of 0.5-1% Telluride, CO If not deed restricted for affordability, 3% RETA