HomeMy WebLinkAboutagenda.council.worksession.20090414MEETING AGENDA
Apri114, 2009
4 PM Council Chambers
QUARTERLY JOINT WORK SESSION
OF CITY COUNCIL & BOCC
4:00 Joint Executive Session
4:30 Housing Frontiers Group Report
5:30 Housing Guidelines Discussion
6:00 Adjourn (City Council to convene work session with Historic
Preservation Task Force)
MEMORANDUM
TO:
Mayor and Council
Board of County Commissioners
FROM : Tom McCabe
THRU: Barry Crook
DATE: April 14, 2009
RE: GUIDELINE CHANGES AND RECOMMENDATIONS APPROVED BY THE
HOUSING BOARD BROUGHT FORWARD BY HOUSING FRONTIERS
GROUP
SUMMARY: The Housing Board approved a policy change late last yeaz that it is forwazding to
you for consideration and, hopefully, adoption by the City Council and the BOCC. The Housing
Frontier Group has also met with the Board over the last couple of months and those proposals are
also being brought forward for discussion and approval.
GUIDELINE CHANGE REQUEST: We would like to take this opportunity to ask both the
BOCC and City Council to approve the following Guideline changes. If both City Council and
BOCC endorse the changes, APCHA will bring them to each entity for final approval.
• LISCOIIIIIIUm iw ww » ..,. »-~ ~- --- --__ ____ _
com lex: This request affects certain sections of the City Land Use Code and also the
ability for an owner in Pitkin County to "buy" out of their employee housing obligation.
The City Land Use Code's off-site mitigation option, however, requires APCHA
approval of the unit. In order for APCHA to accept a unit in afree-market complex, the
applicant would be required to have that specific homeowner's association change their
assessment arrangement for this specific unit. The likelihood of this happening is very
remote. The current requirement for any newly deed-restricted mixed project requires
special assessments to be proportioned based on the valuation of the free-market units
versus the deed-restricted units. The Housing Boazd is asking approval to purchase the
units listed below upon resale, release the deed restriction, and sell the property as a free-
mazket unit. The funds would be added to the 150 fund (if in the City) or the County
Housing Fund if in the County.
The affected properties are as follows:
Alpine Grove
Aspen West
Little Victorian
Park Avenue Townhome
Park Circle
420B Pacific Avenue, AABC
104 West Cooper Avenue #5
634 West Main #2
170 Park Avenue #B
425 Park Circle A-1
Page 1
Sagewood Condominium 910 West Hallam #11
Shadow Condominium 605 West Main #OOA
Villas at Elk Run 7202 Elk Lane & 8208 Elk Run, Basalt
Water View 301 Water View
Winfield Arms 119 East Cooper #1
Currently, the Housing Boazd has helped owners of these units in their special
assessments and has spent over $16,426, with the potential of another $85,000 hit for an
addition that is being proposed for the entire building at Aspen West. APCHA's ability
to continue this program is very limited.
City Council and the BOCC believed that having a mix of affordable housing and free
mazket would make for a more diverse community and that lights would always be on in
a specific neighborhood. No one foresaw what the ramifications would be for the
homeowner of the deed-restricted units. The current regulations control the special
assessment change to the deed-restricted owner by the difference between current values
of the deed-restricted unit versus the free-market unit.
Staff, with the approval from the Housing Boazd, is requesting that these units be bought
at the time of resale and sold as free-mazket units with the proceeds reallocated to the
City or County.
REQUESTS APPROVED BY HOUSING BOARD FROM HOUSING FRONTIER
GROUP:
• Capital Improvement Policv: The Guidelines define a capital improvement as "any
fixture erected as a permanent improvement to real property excluding repair,
replacement, and maintenance costs." A capital improvement adds to the valuation of a
property and is not regazded as a repair or maintenance item. A capital improvement
should not be mistaken as a capital reserve. Capital Reserves will be addressed later in
this memo.
The Housing Frontier Group recommended two capital improvement policies -one for
condominiums and one for single-family homes. The Housing Boazd approved the
recommendations that are shown in Attachment A. In summarizing the requested
changes and/or additions, the major change in the policy is to be able to add an additional
percentage of allowed capital improvements for each year over the l0a' yeaz that someone
owns their home. If an owner has owned their home for 15 years, they would get up to
15% of capital improvements. If an owner does something to the unit that is due to
health and safety, energy efficiency, water conservation or something to do with green
building products, this cost is exempt from the percentage cap; however, all capital
improvements will depreciate over time. Attachment A deals with capital improvements
on condominiums and townhomes and Attachment B deals with capital improvements on
free-standing single-family homes.
Page 2
• Six-month Rentals for Retirees: The' current policy allows for an owner to retire
(currently at the age 65) and remain in their unit. All owners are currently required to
live in their unit for nin^months each year, and this includes retirees.
,..
In order to maximize the availability of our deed-restricted resource, the Housing Board,
with a recommendation by the Housing Frontier Group, is recommending that a retired
owner of adeed-restricted unit be allowed to vacate and rent their home for up to six
months (less one day) to a qualified employee. The owner would still be required to
maintain the home as their principal residence as defined by the IRS, is a registered voter
in Pitkin County, and live in their unit six months and one day out of each year. The
retiree would be required to request a Leave of Absence during that period of time by
completing the appropriate paperwork and obtaining their homeowner association
approval. The rent that can be charged based on all other Leave of Absence requests.
Attachment C is a sample of the policy that would be incorporated into the Guidelines.
• Buydown/'1'radedown Policy: The Housing Frontier Group studied the trade-down
concept. As the housing program has matured, it is appazent that many employees in
APCHA deed-restricted housing have had changes in the original criteria under which
they qualified for housing. Some of these changes are, but are not limited to, the
following: marital status, dependents living at home and employment status. These
changes may result in needs for a larger or smaller unit. At present, the APCHA
guidelines do not address, nor did the guidelines anticipate the impact of these life
changes in the housing program. The Housing Frontier Group members decided to
survey owners of APCHA deed-restricted housing to determine the interest in a trade-
down program. The survey was sent to more than 900 owners and there were more than
200 responses. Approximately 20% of the respondents indicated an interest in the trade-
down plan with appropriate incentives. A copy of the survey and accompanying letter is
attached as Attachments C and D.
Using the information from the survey, the Housing Frontier Group began work to
incentivize the basics of a trade-down program:
• No requalification requirements.
• Ability to downsize to a studio, one- ortwo-bedroom from atwo-, three- or four-
bedroom unit.
• Possible monetary incentive to downsize.
• Difference in number of bedrooms (i.e., certain amount for a bedroom; double if
downsize by 2 bedrooms).
• Consideration for length of time in unit.
• Increase in capital improvement credit.
Page 3
determine if deed-restricted housing owners have a working knowledge of their
association's Capital Reserve Plan and its funding levels (survey is attached as
Attachment H). The survey was mailed the first part of March. There were 109
respondents representing 42 out of 84 homeowner associations. What was derived from
the survey is that most homeowners do not know if they have a Capital Reserve Plan -
whether written or not. In addition it appears that Capital Reserve Funds aze minimal in
most associations. Over half responded that they would be interested in a seminar on
capital reserve plans.
Develop and Present a Short Training Seminar: The results of the survey reflected the
low awareness of Capital Reserve programs, consistent with the original poll. The
Housing Frontier Group recommends presenting a short seminaz designed for the purpose
of offering Capital Reserve information to current and future affordable housing owners.
Time: Eazly June
Venue: Council Chambers; Wheeler Opera House; donated Conference Room
Topics:Capital Reserves, CCIOA, history of Aspen's affordable Housing
Program; difference between condominium and free-standing homes
Presenters: Recommendations from Colorado Hotel and Lodging Association and/or
expert from Association Reserves, Inc., Alpine Legal Aid, local
contractors
Cost: TBD (hopefully free to attendees through sponsorships and underwriting)
The Housing Boazd directed the Housing Frontier Group to work on this training
seminar. After further discussion by the Housing Frontier Group, the training session
will be scheduled for eazly June. If the seminaz proves to be well-received and
informative, the Housing Frontier Group recommended that it be incorporated as an
educational tool for current and future deed-restricted housing applicants. This
educational program could become a requirement of the affordable housing application
process or an incentive through additional weighting in the lottery.
The Housing Frontier Committee members believe that education for current and future
owners of deed-restricted housing is an integral part of understanding the responsibilities
involved with ownership.
• Revision of Puraose/Mission Statement: There is a potential for current and future
retirees to sell their free-market units and enter into the deed-restricted mazket. This is
inconsistent with the purpose of the housing program and would result in the loss of
housing to residents who aze already retired. A change in the Purpose/Mission Statement,
along with defining qualified employees, was recommended.
Currently, the purpose/mission statement is as follows:
Page 5
"To assure the existence of a supply of desirable housing for persons currently
employed in Pitkin County, persons who were employed in Pitkin County prior to
retirement, the handicapped, and other qualified persons of Pitkin County as defined
herein."
-Aspen/Pitkin County Housing Authority's Goal -
(OriginallyAdopted 1983)
The Housing Frontier Group is recommending a slight change to the purpose/mission
statement, along with the definition of a qualified employee for the housing program:
"To assure the existence of a supply of desirable housing for persons currently
employed in Pitkin County, maintain housing for those persons in deed-restricted
housing who retired as defined herein, and other qualified persons of Pitkin County
as defined herein."
- AspenlPitkin County Housing Authority's Goal -
(Amended and Adopted 2009)
This would also affect two other sections -defining qualifications under the Rental and
Sales section of the Guidelines.
Currently, the sections are as follows:
Be a full-time employee working in Pitkin County for an employer whose
business address is located within Aspen or Pitkin County, whose business
employs employees within Pitkin County, whose business license is in Aspen or
Pitkin County, and/or the business taxes aze paid in Aspen or Pitkin County (if
an employer is not physically based in Pitkin County, an employee must be able
to verify that they physically work in Pitkin County a minimum of 1500 hours
per calendar year for individuals, businesses or institutional operations located in
Pitkin County); or a retired person who has been afull-time employee in Pitkin
County a minimum of four yeazs immediately prior to his or her retirement (as
further defined in the Definition section); or a handicapped person residing in
Pitkin County who has been afull-time employee for a Pitkin County employer a
minimum of four yeazs immediately prior to their disability as defined in these
Guidelines; or in the event of the qualified employee's death, the spouse of any
such employee, retired person, or handicapped person; and/or a dependent living
with that qualified employee, retired person or handicapped person. In a two-
person household of two adults only (no dependents as defined in the
Guidelines), both adults must be working in Pitkin County to qualify for an
additional bedroom.
The Housing Frontier Group recommended, and the Housing Board approved, the
following change:
Page 6
Be a full-time employee working in Pitkin County for an employer whose
business address is located within Aspen or Pitkin County, whose business
employs employees within Pitkin County, whose business license is in Aspen or
Pitkin County, and/or the business taxes are paid in Aspen or Pitkin County (if an
employer is not physically based in Pitkin County, an employee must be able to
verify that they physically work in Pitkin County a minimum of 1500 hours per
calendar year for individuals, businesses or institutional operations located in
Pitkin County); or a retired person who has been afull-time employee in Pitkin
County a minimum of four yeazs immediately prior to his or her retirement (as
further defined in the Definition section) and who, at the time of an application
for approval as a qualified retired person, occupies deed restricted housing subject
to administration by APCHA as a qualified employee whose qualifications were
approved by APCHA prior to such occupancy; or a handicapped person residing
in Pitkin County who has been afull-time employee for a Pitkin County employer
a minimum of four yeazs immediately prior to their disability as defined in these
Guidelines; or in the event of the qualified employee's death, the spouse of any
such employee, retired person, or handicapped person; and/or a dependent living
with that qualified employee, retired person or handicapped person. In a two-
person household of two adults only (no dependents as defined in the Guidelines),
both adults must be working in Pitkin County to qualify for an additional
bedroom.
RECOMMENDATION: Staff is requesting that City Council and the BOCC approve the
following:
1. Approve the buy-out of the deed-restricted units in free-market complexes.
2. Approve a test program for the trade-down policy.
3. Approve organizing a short seminaz for homeowners covering subjects such as
developing a Capital Reserve Plan, Colorado Common Interest Ownership Act (CCIOA),
history of Aspen affordable housing, etc.
4. Approve the revised capital improvement policy.
5. Approve the ability for retirees who own deed-restricted housing to rent their home up to
six months per year to qualified renters.
6. Approve the recommended changes in the Purpose/Mission Statement as to the definition
of a qualified employee for purchasing or renting all of deed-restricted housing.
Attachments:
A Capital Improvement Policy for Condominiums
B Capital Improvement Policy for Single-Family Homes
C Section 12, Rental Policy for Qualified Retirees
D Copy of Trade-Down Survey Letter
E Copy of Trade-Down Survey
F Copy of Capital Reserve Survey
G Example of Trade-Down from One-Bedroom to Moving Out of the Program
H Example of Trade-Down from Two-Bedroom to One-Bedroom
I Example of Trade-Down from Three-Bedroom to Moving Out of the Program
Page 7
ATTACHMENT A
SECTION 10
CONDOMINIUM INTERIOR CAPITAL IMPROVEMENT POLICY
AND CONDOMINIUM MINIMUM STANDARDS
TO RECEIVE FULL VALUE AT TIME OF RESALE
Interior Capital improvements and upkeep on deed-restricted Condominiums are necessary to enhance the
longevity of the affordable housing Condominium. A maximum sales price will be affected, either higher or
lower, relating to the condition of the Condominium and whether the Condominium meets the minimum
standard criteria. Any owner wishing to utilize this capital improvement policy will be required to enter into
the deed restriction currently in place with the Aspen Pitkin County Housing Authority.
The owner of a condominium, under law, owns only the air space of that unit as well as an ownership share
of the general and limited common elements, as determined by the declarations of each condominium
association.
Condominium units built after Janu 1 2004 and Re-Sale Condominiums: An owner will be required to
maintain a minimum standazd for the Condominium purchased. See Table I, Minimum Standards for
Seller to Receive Full Value. Prior to any sale of a Condominium, the Housing Office Staff will determine
a maximum sales price. The APCHA Sales Manager shall conduct an inspection and provide a list to the
Seller of interior items to be repaired prior to closing to receive full value. The seller will provide to the
Housing Office an up-to-date financial statement from the HOA. The managing agent for the condominium
association will provide a capital reserve report and or study as to the condition of any common elements,
such as roofing, siding, heating and plumbing systems and as to any mechanisms in place for the funding of
such repairs. The Buyer also has the right to pay for a formal inspection of the Condominium during the
inspection period stated in the Sales Contract. If said inspection reflects items not met on the Minimum
Standards jor Seller to Receive Full Value table and/or other safety items, the Seller shall be required to
remedy those items. If the Condominium meets the standard criteria, the Condominium shall be sold for an
amount ("Maximum Resale Price") in excess of the lesser of the purchase price:
Plus an increase of three percent (3%) of such price per year from the date of purchase to the date of Owner's
notice of intent to sell (prorated at the rate of .25 percent for each whole month for any part of a year); OR
An amount based upon the Consumer Price Index (All Items, U.S. City Average, Urban Wage Earners and
Clerical Workers (Revised), published by the U.S. Department of Labor, Bureau of Labor Statistics)
calculated as follows: the Owner's purchase price divided by the Consumer Price Index published at the time
of Owner's purchase stated on the Settlement Statement, multiplied by the Consumer Price Index current at
the date of intent to sell;
• Plus any approved interior capital improvements.
Homeowners Reauestine the Abiliri to Use the Interior Capital Imnrovemeut Policy Defined in
Section 10: If an owner requests to utthze the new mtenor capttal Improvement policy, such owner shall be
required to enter into a new, updated deed restriction. The advantages of the new deed restriction vary
according to the cturent deed restriction. The Buyer should contact the Housing Office for a comparison of
their current deed restriction to the new deed restriction.
Approved capital improvements can be added to the maximum resale price. Capital improvements
will be allowed as follows:
• An owner will be allowed a 10% capital improvement allowance during the first 10 years of
ownership.
• From 10 to 20 years, the owner has the ability to recoup another 10% of approved capital
improvements based on the current value as long as the owner has completed the Current
va[ua8on in Determining Ct+PUallmprovement Percentage form, Exhibit A.
• During the time period from 10 to 20 yeazs, the owner can recoup an additional percent for each
year of ownership; i.e., in the 13`s yeaz of ownership, the owner can receive an additional 13% of
approved capital improvements based on the current value at that time as long as the Current
valuation in Determining Capita! Improvements Percentage form, Exhibit A, has been
completed.
• Capital improvements will be depreciated as applicable.
• Certain capital improvements will not be counted in the 10% allowance; however, each capital
improvement will depreciate according to the depreciation schedule stated in an approved
handbook. The current source is the Marshall Swift Residential Handbook. Any approved capital
improvements associated with health and safety, energy efficiency, water conservation, and green
building products will be exempt from the capital improvement cap; however, such capital
improvements shall be depreciated according to the depreciation schedule stated in an approved
handbook. Any improvement to bring the unit up to the Aspen Affordable Housing Building
Guidelines will also be allowed as part of the 10% cap. An owner should check with the Housing
Office prior to starting the improvement to verify that the cost can be recouped.
EXAMPLE: An affordable housing unit is purchased for $100,000 on July 1, 1985. During the fast 10 years of
ownership, the owner is allowed $10,000 of `permiaed capita! improvements," which the owner insta[Ls
additional storage in the kitchen. Upon reaching Juty 1, 2005, the owner is allowed another $10,000 capital
improvement allowance, but only spends half of this by fmishing a storage area and new closet area In January,
1006, the owner decides to sell the unit The owner would recoup the appreciated value of the $100,000 along
with the depreciated value of capita! improvements worth $15,000.
It will be up to the homeowner to maintain the interior of the unit in good condition. This would include,
but not be limited to, the boiler, water heater, and appliances.
Permitted Interior Capital Improvements
The term "Permitted Interior Capital Improvement" as used in the Agreement shall only include the following:
a. /mprovements associated with health and sajery, energy efficiency, water conservation, and green
building products.
b. Improvements or fixtures erected, installed or attached as permanent, functional, non-decorative
improvements to real property, excluding repair, replacement and/or maintenance improvements;
c. Improvements for the benefit of seniors and/or handicapped persons; and
d. Improvements to finish unfinished space;
2. Permitted Interior Capital Improvements, as used in this Agreement, shall N~Z' include the following:
a. Jacuzzi tubs, saunas, steam showers and other similar items;
b. Upgrades or addition of decorative items, including lights, window treatments, carpets, interior painting
and other similar items.
c. Upgrades of appliances, plumbing and mechanical fixtures and other similar items included as part of the
original construction of a Condominium and/or improvements required to repair and maintain existing
2
fixtures, appliances, plumbing and mechanical fixtures and other similar items, unless replacement is
energy efficient or for safety and health reasons.
3. All Permitted Interior Capital Improvement items and documented costs (i.e., receipts, invoices, cancelled
checks) shall be approved by the APCHA staff prior to being added to the Maximum Resale Price as defined
herein. In order to get credit for an improvement where a building permit is requred, the improvement will
not be counted unless copies of the building permits and Letter of Completion from the Building Department
aze included with the receipts. All receipts MUST contain the address of the unit in question. A site visit by
the Housing sales staffwill also be required.
Examples of Energy Efficient Cap&allmpravements:
Energy Star Refrigerator
Energy Star Dishwasher
Additional insulation ofpipes, walls, etc.
77rermal pane windows
Storm doors
Low water usage toilets
Energy Star Hot Water Heater
Adding solar panels where opowable
Programmable thermostats
Dimmer swhches
MINIMUM STANDARDS FOR SELLER TO RECEIVE FULL VALUE
• Clean Condominium
• Carpets steam-cleaned two or three days prior to closing
• All scratches, holes, burned marks repaired in hardwood floors, linoleum, tile, countertops etc.
• No broken or foggy windows
• All screens in windows and in good condition (if screens were originally provided)
• All doors will be in working order with no holes
• All locks on doors will work
• All keys will be provided; e.g., door, mail box, garage
• All mechanical systems shall be in working order
• Walls paint ready
• 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
No leaks from plumbing fixtures
• No roof leaks
• Any safety hazard remedied prior to closing
• Satisfaction of radon issue if found at time of inspection
• All Tight fixtures shall be in working order
• Functioning Carbon Monoxide Detector in Required Locations
DEFINITIONS:
Clean Condominium: All rooms will be cleaned as stated below:
Kitchen:
• Range -Inner and outer services will be cleaned.
• Range hood and Exhaust Fan
• Refrigerator and Freezer -Inner and outer surfaces of refrigerator and freezer will be
clean. Freezer will be defrosted.
• Cabinets and Countertops -Exterior and interior surfaces of cabinets and drawers will be
clean. Door and drawer handles, if provided, shall be clean and in place.
• Sink and Garbage Disposal -Sink and plumbing fixtures will be clean. If garbage
disposal provided, this must be in working order.
• Dishwasher - If provided, must be in working order and inner and outer surfaces shall be
clean.
• Blinds, Windows. Screens
• Mini-blinds, Venetian Blinds, Vertical Blinds, and Pull Shades -Will be clean.
• Windows -All window surfaces, inside and outside of the window glass, shall be clean.
• Screens -Screens will be clean and in place with no holes or tears.
• Closets: Closets, including floors, walls, hanger rod, shelves and doors, shall be clean, in
working order and in place.
• Light Fixtures: Light fixtures will be clean and shall have functioning bulbs/florescent tubes.
• Bathrooms:
• Bathtub, Shower Walls, Sinks -Bathtubs, shower walls and sinks shall be clean.
• Toilet and Water Closet -Water closets, toilet bowls and toilet seats will be clean. If the
toilet seat is broken or peeling, the seat shall be replaced.
• Tile - All the and grout will be clean.
• Mirrors and Medicine Cabinets -Mirrors and medicine cabinets shall be cleaned inside
and out.
Shelves and/or Other Cabinetry -All other shelving or cabinetry shall 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 shall be steam cleaned at least two days
prior to closing.
• Interior Stora e/Utility Rooms: Storage/utility rooms shall be cleaned. Properly cleaned
storage/utility rooms will be free from odors, removable stains, grease marks or accumulations.
• Mechanical Systems: Heating systems, hot water heaters, etc., shall be in working order. If
filters need to be replaced or repaired, this will be done prior to closing.
4
Safety Hazard: Any item that provides a safety hazard shall be fixed. This would include, but is not
limited to, exposed electrical wiring, satisfaction of any radon issue found, ventilation for gas hot water
system, etc.
Walls Paint-Readv: A[1 holes shall be patched; all posters, pictures, etc., shall be removed from all walls;
all nails, tacks, tape, etc., shall be removed from all walls; and all walls shall be clean and ready for the
new buyer to paint If wallpaper has been placed on the wall and 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
EXHIBIT "A"
Current Valuation in Determining Capital Improvement Percentage
Today's Date:
Owner's Name:
Address of Unit:
Current Valuation:
Current % of Capital Improvement:
Approved By (APCHA):
After completion, place in Owner's File
5
ATTACHMENT B
SECTION 11
SINGLE-FAMILY HOME CAPITAL IMPROVEMENT POLICY AND
MINIMUM STANDARDS TO RECEIVE FULL VALUE AT TIME OF
RESALE
Capital improvements and upkeep on deed-restricted units are necessary to enhance the longevity of the
affordable housing unit. A maximum sales price will be affected, either higher or lower, depending on the
condition of the unit and whether the unit meets the minimum standard criteria. Any owner wishing to
utilize the new capital improvement policy will be required to enter into the deed restriction that is currently
being used at the time of the request.
Units Built Afrer January 1, 2004 and Re-Sale Units: An owner will be required to maintain a minimum
standard for the unit purchased. See Table 1, Minimum Standards for Seller to Receive Full Value. Prior
to any sale of a unit, the Housing Office Staff will determine a maximum sales price. The APCHA Sales
Manager shall conduct an inspection and will provide a list to the Seller with the items that will need to be
done PRIOR to closing to receive full value. The Buyer also has the right to pay for a formal inspection of
the unit duritig the inspection period stated in the Sales Contract. If said inspection reflects items not met on
the Minimum Standards for Seller to Receive Full value table and/or other safety items, the Seller shall be
required to remedy those items. If the unit meets the standard criteria, the Property or Unit shall be sold for
an amount ("Maximum Resale Price") in excess of the lesser of the purchase price:
Plus an increase of three percent (3%) of such price per yeaz from the date of purchase to the date of Owner's
notice of intent to sel I (prorated at the rate of .25 percent for each whole month for any part of a yeaz); OR
An amount based upon the Consumer Price Index (All Items, U.S. City Average, Urban Wage Earners and
Clerical Workers (Revised), published by the U.S. Department of Labor, Bureau of Labor Statistics)
calculated as follows: the Owner's purchase price divided by the Consumer Price Index published at the time
of Owner's purchase stated on the Settlement Statement, multiplied by the Consumer Price Index current at
the date of intent to sell;
Plus any approved capital improvements.
Homeowners Reuuestine the Ability to Use this Capital Improvement Policv: If an owner requests to
utiltze the new capttal Improvement policy, such owner shall be required to enter into a new, updated deed
restriction.
Approved capital improvements can be added to the maximum resale price. Capital improvements
will be allowed as follows:
• An owner will be allowed a ]0% capital improvement allowance during the first 10 years of
ownership.
From 10 to 20 years, the owner has the ability to recoup another 10% of approved capital
improvements based on the current value as long as the owner has completed the Current
Valuation in Determining Capital Improvement Percentage form, Exhibit B.
• During the time period from 10 to 20 years, the owner can recoup an additional percent for each
year of ownership; i.e., in the 13`s year of ownership, the owner can receive an additional 13%
6
capital improvements based on the cttrrent value at that time as long as the Current Valuation in
Determining Capital Improvements Percentage form, Exhibit B, has been completed.
• Capital improvements will be depreciated as applicable.
• Certain capital improvements will not be counted in the 10% allowance; however, each capital
improvement will depreciate according to the depreciation schedule stated in an approved
handbook. The current source is the Mazshall Swift Residential Handbook. Any approved capital
improvements associated with health and safety, energy efficiency, water conservation, and green
building products will be exempt from the capital improvement cap; however, such capital
improvements shall be depreciated according to the depreciation schedule stated in an approved
handbook. Any improvement to bring the unit up to the Aspen AJ,rordable Housing Building
Gtudelines will also be allowed as part of the 10% cap. An owner should check with the Housing
Office prior to starting the improvement to verify that the cost can be recouped.
It will be up to the homeowner to maintain the unit in good condition. This would include, but not be
limited to, the condition of the roof, boiler and water heater, and appliances.
Permitted Capital Improvements
The term "Permitted Capital Improvement" as used in the Agreement shall only include the following:
a. Improvements or fixtures erected, installed or attached as permanent, functional, non-decorative
improvements to real property, excluding repair, replacement and/or maintenance improvements;
b. Improvements for energy and water conservation;
c. Improvements for the benefit of seniors and/or handicapped persons;
d. Improvements for health and safety protection devices (including radon);
e. Improvements to add and/or finish permanenUfixed storage space;
f Improvements to finish unfinished space;
g. Landscaping;
h. The cost of adding decks and balconies, and any extension thereto; and/or
i. Improvements associated with health and safety, energy efficiency, water conservation, and green
budding products.
2. Permitted Capital Improvements as used in this Ageement shall NAT include the following:
a. Jacuuis, saunas, steam showers and other similar items;
b. Upgrades or addition of decorative items, including lights, window treatments and other similar
items.
c. Upgrades of appliances, plumbing and mechanical fixtures, carpets and other similar items included
as part of the original construction of a unit and/or improvements required to repair and maintain
existing fixtures, appliances, plumbing and mechanical fixtures, painting, and other similar items,
unless replacement is energy efficient or for safety and health reasons.
3. All Permitted Capital Improvement items and costs shall be approved by the APCHA staff prior to being
added to the Maximum Resale Price as defined herein. In order to get credit for an improvement where a
building permit is requved, the improvement will not be counted unless copies of the building permits and
Letter of Completion from the Building Department are included with the receipts. All receipts MUST
contain the address of the unit in question. A site visit by the Housing sales staff will also be required.
EXAMPLE: An affordable housing unit is purchased jor 5100,000 on July 1, 1985. During the first 10 years of
ownership, the owner Is allowed 510,000 of "permhted capital improvements," which the owner installs
additional storage !n the kitchen. Upon reaching July 1, 2005, the owner is allowed another $]0,000 capital
improvement allowance, but only spends haljof this by Jlnishing a storage area and new closet area /n January,
2006, the owner decides to sell the unit The owner would recoup the appreciated value ojthe $100,000 along
with the depreciated value of capital improvements worth $15,000.
MINIMUM STANDARDS FOR SELLER TO RECEIVE FULL YAL UE
• Clean unit
• Carpets steam-cleaned two or three days prior to closing
• All scratches, holes, burned marks repaired in hardwood floors, linoleum, tile, counter tops etc.
• No broken or foggy windows
• All screens in windows and in good condition (if screens were originally provided)
• All doors will be in working order with no holes
• All locks on doors will work
• All keys will be provided; e.g., door, mail box, garage
• All mechanical systems shall be in working order
• Walls paint ready
• Normal wear and tear on carpet; if carpet has holes, stains, etc., the carpet and padding shall be replaced or
escrow funds at current mazket value per square foot for a comparable product shall be held at the time of
closing to be used by the new buyer
• No leaks from plumbing fixtures
• No roof leaks
• Any safety hazard remedied prior to closing
• Satisfaction of radon issue if found at time of inspection
• All light fixtures shall be in working order
• Functioning Carbon Monoxide Detector in Required Locations
DEFINITIONS:
Clean Unit: All rooms will be cleaned as stated below
Kitchen:
• Range -Inner and outer services will be cleaned.
• Range hood and Exhaust Fan
• Refrigerator and Freezer -Inner and outer surfaces of refrigerator and freezer will be
clean. Freezer will be defrosted.
• Cabinets and Countertops -Exterior and interior surfaces of cabinets and drawers will be
clean. Door and drawer handles, if provided, shall be clean and in place.
• Sink and Garbage Disposal -Sink and plumbing fixtures will be clean. If garbage
disposal provided when owner purchased the unit, this must be in working order.
• Dishwasher - If provided when owner purchased the unit, must be in working order and
inner and outer surfaces shall be clean.
Blinds, Windows Screens•
• Mini-blinds, Venetian Blinds, Vertical Blinds, and Pull Shades -Will be clean.
• Windows -All window surfaces, inside and outside of the window glass, shall be clean.
• Screens -Screens will be clean and in place with no holes or tears.
• Closets: Closets, including floors, walls, hanger rod, shelves and doors, shall be clean.
Licht Fixtures: Light fixtures will be clean and shall have functioning bulbs/florescent tubes.
Bathrooms:
Bathtub, Shower Walls, Sinks -Bathtubs, shower walls and sinks shall be clean.
Toilet and Water Closet -Water closets, toilet bowls and toilet seats will be clean. ]f the toilet
seat is broken or peeling, the seat shall be replaced.
Tile -All the and gout will be clean.
Mirrors and Medicine Cabinets -Mirrors and medicine cabinets shall be cleaned inside and out.
Shelves and/or Other Cabinetry -All other shelving or cabinetry shall 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 shall be steam cleaned at least two days
prior to closing.
Interior Stora¢e/Utility Rooms: Storage/utility rooms shall be cleaned. Properly cleaned
storage/utility rooms will be free from odors, removable stains, grease marks or accumulations.
Doorbel : If existing, shall be in working order.
Exterior Walls: Repair of any peeling paint, cracked or loose mortar joints, oxidized sheet metal, frame
lines out ojplumb, loose or decaying wood siding, loose ornamentation, exposed reinforcing bar at joints
or in footings, unprotected or deteriorating steel framing, brick that needs painting or pointing, inoperable
windows or clerestory sashes, broken or rusted screens, sticking doors, inoperable hardware.
Fences: If existing, must be in good shape.
Garage Doors/Garaee Door Openers: Where existing, mast be in working order; garage door must be in
good condition.
Gutters: Where existing, gutters to be working properly and in good condition.
Roof.• There shall be no evidence of leakage, oxidized roof metal, shingles or tiles missing or split,
punctures, tears, shrinkage, splitting, blistering or embrittlement of coating, missing flashing, stained
interior ceilings, sagging or decaying roof structure, cracked laminated trusses, tie rods to strengthen
bottom chords of timber trusses, damaged truss bracing, plugged roof drains, evidence ojstanding water,
vibration from mechanical equipment, damaged insuhrtion.
Safety Hazard: Any item that provides a safety hazazd shall be fixed. This would include, but is not
limited to, exposed electrical wiring, satisfaction of any radon issue found, ventilation for gas hot water
system, etc.
Septic System: Where existing, must in viable condition.
Walls Paint-Ready: All holes shall be patched; all posters, pictures, etc., shall be removed from all walls;
all nails, tacks, tape, etc, shall be removed from all wa[is; and all walls shall be clean and ready for the
9
new buyer to paint If wallpaper has been placed on the wall and in good condUion, the wallpaper can
remain; ifthe wallpaper is peeling off, the wallpaper must be removed
Walkwavs/Drivewa~: Repair ofmajor cracks in walkways and driveways.
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
EXHIBIT `B"
Current Valuation in Determining Capital improvement Percentage
Today's Date:
Owner's Name:
Address of Unit:
Current !~a/uation:
Current % of Capitallmprovement:
Approved By (APCHA):
After completion, place in Owner's File
10
ATTACHMENT C
SECTION 12
RENTAL POLICY FOR QUALIFIED RETIItEES
An owner of adeed-restricted unit who has retired consistent with the definition of retirement in
the Guidelines, may apply at the APCHA to rent their unit for up to six months, with three-
month minimums (less one day in order to maintain the unit as their principal residence) out of
each calendar year. To obtain the benefits of this APCHA program the owner and prospective
tenant must complete the following:
The owner must complete a leave of absence form at the APCHA.
The owner and tenant must complete and sign a lease agreement to the satisfaction of the
APCHA.
The owners Homeowner Association (if applicable) shall be notified of the rental and
tenant information.
The owner must continue to list the APCHA deed restricted unit as their primary place of
residence as evidenced by filing a Colorado Income Tax Return at that address.
The owner shall provide proof of adequate owners insurance covering the period of the
lease.
The owner must designate a responsible person or entity to act on the owners behalf
should that become necessary.
The owner has the right to choose the qualified tenant; however, if the owner works
through an employer, the employer shall pay an additional surcharge to the owner of
$_ per month, which cannot be passed on to the tenant.
The tenant must work for 750 hours during the six month lease period.
The tenant must complete a rental application at the APCHA.
For the purpose of this program neither the minimum occupancy nor the category requirements
in the APCHA Guidelines will apply. The permitted rental rate, and security deposit will be
determined by the APCHA and recorded in the lease. This procedure must be followed for each
new six month lease.
11
ATTACHMENT D
September 25, 2008
Dear Fellow Employee Housing Owners and Residents:
The Aspen/Pitkin County Housing Authority has asked us to serve on a task force
to review various aspects of the employee housing program. Four members of the
committee own employee housing units in various projects and in various
categories and are intimately aware of the importance of the housing program,
while others are interested citizens with innovative concepts.
In order to obtain a better perspective of needed improvements in the housing
program, we would ask your support in participating in several short surveys. The
surveys will be brief and to the point, we hope, and can be filled out on line or
returned by mail, should you wish anonymity.
The first survey concerns the concept of "Trade Down", i.e. an owner of a three- or
four-bedroom employee unit moving to a one- or two-bedroom employee unit.
There are four survey questions and a space for open ideas.
We thank you for your participation and look forward to your ideas so the
recommendations we submit to the City Council and Board of County
Commissioners will have as much value as possible.
Please complete the survey on the backside of this letter and return by
October 15, 2008 to the Housing Office, 530 East Main, Lower Level, Aspen,
Colorado 81611, by mail or by dropping it by.
Committee Members
Pamela Cunningham
Sara Garton
Jackie Kasabach
Andrew Kole
Peter Louras
Phylis Mattice
Tum Page Over for Survey
12
ATTACHMENT E
SURVEY #1-Affordable Housing Trade Down Ideas
This survey has been developed by the Housing Frontier Group and assembled for the specific purpose of
developing new affordable housing opportunities.
1. Do you currently live in an affordable housing:
Studio 3-Bedroom
1-Bedroom Single-Family Home
2-Bedroom
2. Would you be willing to move to a smaller unit if there were no restrictions; i.e., income, assets, no
lottery?
Yes No
a. If yes, what size would you consider:
Studio 2-Bedroom
1-Bedroom 2-Bedroom
b. If yes, when would you consider the move
As soon as possible
1 to 3 years
3 + yeazs
c.
If no, would you consider if (check all that would apply) ...
Incentives -cash Location
New unit Parking
Fully upgraded unit Extra Storage
Single-Family Home Still No
Certain amenities (please list):
3. Would you be willing to sell your unit outright at its existing value plus a cash bonus:
Yes _ No
If yes, when would you consider the move:
Within l year
_ Within 2 years
More than 3 years
4. If you were a qualified retiree and the time required for you to be in your unit was reduced from nine
months to six months, would you rent your unit out the remaining time to a qualified employee?
Yes No
Any other thoughts you would like to express about the affordable housing program in this survey?
If you would prefer to take surveys on the Internet or through a-mail? [f yes, please provide a-mail address.
YOUR RESPONSE IS NEEDED!
Please respona oy vctuoer ~~,
2008
Please Return to APCHA, 530 East Main, Lower Level, Aspen, CO 81611
by mail or drop it by our office
Single-Family Home
Same Project
_ Pets allowed
13
ATTACHMENT F
To: Owners of Affordable Housing Units
From: Housing Frontier Group
Pam Cunningham Andrew Kole
Sara Garton Peter Louras
Jackie Kasabach Phylis Mattice
Date: February 24, 2009
Re: SURVEY #2 -Capital Reserves
We would like to thank those of you who responded to the recent survey on "Trade Downs". The
information you provided was well received by APCHA and is being used to create atrade-down program
to be presented to the APCHA Board.
We ask you to respond to our second survey relating to Capital Reserves. A Capital Reserve Plan/Study
is abudget-planning tool for condominium associations that gives owners and prospective buyers
fundamental information on current and future funding obligations for the common elements of the
condominium association. (Most interior items, sometimes referred to as Capital Improvements, are the
responsibility of the individual owner and not included in reserve studies.) Reserve Studies are only
guides in anticipating future needs and are not static information. Thank you in advance for your help.
1. Does your Condominium Association have a written Capital Reserve Plan?
Yes No I don't know
2. Has your Association provided you with written copies of your Capital Reserve Plan?
Yes No I don't know
3. Is your Capital Reserve Plan updated annually? Yes No I don't know
4. If there is no written Capital Reserve Plan, are you aware of any upcoming large deferred
maintenance expenditures (such as roofing, siding, windows)? Yes No
5. If the Capital Reserve Plan is not funded, how does the Association anticipate paying for a major
expense?
6. Would an APCHA-sponsored seminar on Capital Reserve programs be beneficial to you?
Yes No I don't know
7. If yes, would an early April weekday be an appropriate time? Yes _ No _ Better Time
8. Would noon or after work be better for you? Noon After 5:00 p.m.
OPTIONAL: Name of your
Please return to APC13A, 530 East Main, Aspen, Colorado 81611, by March 9, 2009.
Thank you for your help in making our housing program stronger and more viable.
14
ATTACHMENT G -- EXAMPLE 1
Value of Bonus Fora $100,000 1-bedroom Unit
CRITERIA: Current Going to Years Bonus
Value ? Bdrm. Owned Cap Cap
Amount
$ 100,000 0 15 50% $ 50,000
- ~,
Number of Bedrooms Amenities TOTAL
Pets Outside Parking In- $ 100,000
1 2 3 Cats C&D Storage Garage Covered Town $ 50,000
1 2 $ 40,000
$ 50,000 $ 50,000 $ 25,000 $ 2,500 $ 5,000 $ 3,000 $ 15,000 $ 10,000 $ 5,000 $ 7,000
50,000
Years-Owned Converted to Percentage
_~ _ - 3,000.
-
15%
~ 7,000 $ 60,000
15,000
75,000
Notes: 1. Adding value of years owned in unit:
a. Bonus added within cap = 60% for 3
b. Bonus added outside cap = 50% for
55% for 2-Bedroom; 50% for 1-bedroom.
45% for 2-Bedroom; 40% for 1-Bedroom.
Page 1
ATTACHMENT H -- EXAMPLE 2
Value of Bonus Fora $200,000 2-bedroom Unit
CRITERIA: Current Going to Years Bonus
Value ? Bdrm. Owned Cap Cap
Amount
$ 200,000 1 25 55% $ 110,000
i ~ ~ i ~
Number of Bedrooms Ameni
Pets Outside
1 2 3 Cats C&D Storage ~
1
$ 50,000 $ 50,000 $ 25,000 $ 2,500 $ 5,000 $ 3,000 $ 15,0
50,000 5,000 3,000
Years-Owned Converted to Percentage 2
~ ~ i
~ ~
Notes: 1. Adding value of years owned in unit:
a. Bonus added within cap = 60% for 3
b. Bonus added outside cap = 50% for
55% for 2
45% for
2
TOTAL
In- $ 200,000
-own $ 110,000
$ 80,000
7,000
7,000 $ 70,000
50% for 1-bedroom.
40% for 1-Bedroom.
Page 2
CRITERIA: Current Going
Value ? Bdrm. Owned Cap
Amount
$ 400,000 0 30 60% $ 240,000
I
Number of Bedrooms Amenities TOTAL
Pets Outside Parking In- $ 400,000
1 2 3 Cats C&D Storage Garage Covered Town $ 240,000
1 2 $ 160,000
$ 50,000 $ 50,000 $ 25,000 $ 2,500 $ 5,000 $ 3,000 $ 15,000 $ 10,000 $ 5,000 $ 7,000
50,000 50,000. 25,000 5,000
Years-Owned Converted to Percentage 3,000 10,000
30% ~ i
i 7,000 $ 150,000
120,000
270,000
1. Adding value of years owned in unit:
a. Bonus added within cap = 60% for 3-Bedroom; 55% for 2-Bedroom; 50% for 1-bedroom.
b. Bonus added outside cap = 50% for 3-Bedroom; 45% for 2-Bedroom; 40% for 1-Bedroom.
Value of Bonus Fora $400,000 3-bedroom Unit
to Years Bonus Cap
Page 3