HomeMy WebLinkAboutagenda.council.worksession.20251201AGENDA
CITY COUNCIL WORK SESSION
December 1, 2025
4:00 PM, City Council Chambers
427 Rio Grande Place, Aspen
I.Work Session
I.A APCHA Capital Reserve Study and Compliance Update
II.Council discussion of the items published in the most recent information update,
as needed
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12.1.2025 Council Work Session.docx
ComplianceMemo.pdf
HOA Capital Reserves - APCHA Memo August 20.Final.pdf
Memo_Capital Reserve Discussion #2 10.1.25.pdf
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INFORMATION MEMORANDUM
TO: Aspen City Council
FROM: Matthew Gillen, Executive Director
THROUGH: Diane Foster, Deputy City Manager
MEETING DATE: December 1, 2025
SUBJECT: APCHA Informational Update Work Session
INTENDED OUTCOME & SUMMARY:
The briefing by the Aspen Pitkin County Housing Authority (APCHA) updates Council
on:
1. APCHA compliance strategy and results
2. Analysis of capital reserve studies paid for by APCHA
DISCUSSION:
This briefing supplements the regular updates given to Council by APCHA Board
members. APCHA Executive Director Matthew Gillen gave a similar briefing to the
Pitkin County Board of County Commissioners on November 12. Additionally, APCHA
welcomes every opportunity to give clear updates to the community on compliance
actions and correct misinformation.
Compliance: As stewards of taxpayer money, APCHA has a robust compliance
mechanism to ensure that the program is administered as the City of Aspen, Pitkin
County and APCHA Board intend. The main APCHA requirements are: 1. Live in your
unit as your primary residence 2. Do not own another home in the Roaring Fork Valley
owner exclusion zone 3. Work full-time in Pitkin County.
Capital Reserve Studies: In 2024 APCHA paid $170,000 for capital reserve studies for
27 APCHA HOAs. While intended as a service to the HOAs, and to encourage a
realistic assessment of their future budget requirements, APCHA also analyzed the
results for use in the policy process.
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Both of these topics have been of particular importance to the APCHA Board, as
reflected in their inclusion in the recently adopted APCHA strategic plan, and have long -
term implications for the overall health of the APCHA program.
APCHA Strategic Plan:
1. Goal 1: Compliance. Strategy: “Continue to apply regulations to ensure all
those residing in APCHA housing meet eligibility requirements.”
2. Goal 2: Quality. Strategy: “Partner with HOAs and stakeholders on maintenance
strategies.”
ATTACHMENTS:
Attachment A – APCHA Board Meeting Compliance Memo
Attachment B – APCHA Board Meeting Capital Reserves Memo 1
Attachment C – APCHA Board Meeting Capital Reserves Memo 2
CITY MANAGER NOTES:
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MEMORANDUM
TO: APCHA Board of Directors
FROM: Jackie Marinaro
DATE OF MEETING: October 1, 2025
SUBJECT: Compliance Policy Overview & Statistics
Discussion:
Staff has prepared an overview of the compliance process for educational purposes for the
Board and public. In addition, Staff will update the Board on Compliance statistics from the past
year. It is important to remember that individual cases cannot be discussed as in most cases the
Board could hear the case on appeal.
Statistical Highlights:
1. Compliance Actions Resulting in Unit Net Gain:
a. 2024 – To Date: 14 Units
2. Audit Actions:
a. 2024 - To Date: 121 Ownership Audits
i. 91% in Compliance or Brought Back into Compliance
3. Compliance Actions
a. 2024 – To Date: 452 Actions
Looking Ahead:
Staff will be conducting more site visits to ensure that individuals are occupying the unit and
continue to investigate complaints and affidavit data.
APCHA Compliance Process
1. APCHA is authorized by state statute (Intergovernmental Agreement) and led by a
Housing Board with members representing the City of Aspen, Pitkin County, and at -large
constituents. The mission of APCHA is to support affordable and durable workforce
housing for a sustainable and prosperous community.
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2. All housing in the APCHA inventory is deed-restricted and intended to offer public
housing for qualified employees who work in Pitkin County for a Pitkin County
employer, reside in their unit as their sole and exclusive residence, and do not own
other developed residential property in the Ownership Exclusion Zone.
3. The APCHA Regulations and the deed restriction specific to a unit govern the use,
occupancy, and resale of any given unit. A conflict between the Regulations and the
applicable deed restriction is resolved in favor of the deed restriction. Most units are
governed by the most recent version of the APCHA Regulations, however, some older
deed restrictions stipulate the specific version of the Regulations to be applied.
4. Compliance is an administrative process that begins with an investigation, formal notice
to the alleged violator, and an opportunity for the person to address the allegations.
Compliance decisions by APCHA Staff may be appealed to an APCHA Hearing Officer. HO
decision may be appealed to the APCHA Board. Appeal of a final agency action by the
Board is judicial review in Colorado district court (CRCP 106(a)(4) appeal).
5. APCHA enforces the APCHA Affordable Housing Regulations and deed restrictions
specific to all units in the APCHA inventory. Residents are required to verify and
maintain compliance at all times.
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I. Complaint
II. Investigation
III. Notice
IV. Appeal
STAFF
• Internal Review
• Requalification
• Affidavit
• Audit
THIRD PARTY
• Anonymous
• Online – HomeTrek
• Telephone
• Email
• Letter
• In person
TOOLS (not used in every case)
• Audit: For Cause or Random Audit
• Site Visit
• Compliance Letter/Call
• Opportunity for Resident to:
1. Resolve issue
2. Fail to comply = Notice of Violation or
Notice of Investigation
NOTICE OF INVESTIGATION
• Allegations of a violation or non-compliance
• APCHA needs additional information, and
• Opportunity for Resident to:
1. Prove compliance
2. Fail to comply = Notice of Violation
NOTICE OF VIOLATION
• APCHA found violation(s) of Regulations
and/or Deed Restriction
• Opportunity for Resident to:
1. Prove compliance (CURE)
2. SELL unit, or
3. APPEAL to Hearing Officer
END
END
APCHA Hearing Officer
• Public Hearing with exhibits and
witnesses
• Resident can explain and verify they did
not commit the violations in the NOV
• HO Decision: approve, deny or approve
with conditions the findings in the NOV
APPEAL to APCHA Board
with exhibits and witnesses based
on information already
• Explain and verify that
resident did not commit the
violations in the NOV
APCHA Housing Board
• Public Hearing with exhibits and witnesses based on information
presented to HO
• Resident can explain why believe the HO decision is wrong
• Board Decision: affirm, reverse or modify the decision of the HO
• Final Agency Action
APPEAL to Colorado District Court
District Court of Colorado
• Judicial Review based on CRCP 106(a)(4)
• Prevailing party awarded costs and attorney fees (in most cases) 6
MEMORANDUM
TO: APCHA Board of Directors
FROM: Emily Maynard, Housing Policy Analyst, APCHA
Liz Axberg, Housing Policy Analyst, City of Aspen
MEMO DATE: August 13th, 2025
MEETING DATE: August 20th, 2025
RE: HOA Capital Reserves Studies
MEETING PURPOSE:
• Share HOA capital reserve study results and key insights with the APCHA Board.
Clarify APCHA’s responsibilities. Identify core issues facing HOAs, then reframe
these challenges as opportunities for positive outcomes. Discuss sustainable
solutions in three categories, prioritize HOA support, and explore program options
that align with APCHA’s Strategic Plan.
• Discuss the APCHA board’s priorities to give staff direction on pathways forward.
SUMMARY AND BACKGROUND:
History: In 2011, APCHA partnered with HOAs to conduct capital reserve studies. Over
the subsequent years there was much discussion amongst APCHA and partners at the
city and the county on how to address deferred maintenance and inadequate HOA capital
reserves. Ultimately this effort fizzled.
Relation to mission and goals in the Strategic Plan: the APCHA Board recently completed
the next five-year Strategic Plan with updates to the mission and vision which references
affordable and durable workforce housing. The second goal, Quality, states: “Partner with
HOAs and stakeholders on maintenance strategies and approach to achieve a well -
maintained inventory by 2030.”
Defining APCHA’s roles and responsibilities: The Aspen Area Community Plan, COA
Affordable Housing Strategic Plan, County mill levy ballot language, and the APCHA
Strategic Plan all document the desire, need and commitment to long -term maintenance
strategies and a responsibility to the community to preserve the affordable housing
inventory as a public asset. Because of this, APCHA’s role is to provide support for HOA’s
in a way that is sustainable so that HOA’s are prepared to handle needed capital repairs
while units remain affordable to the workforce.
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Risks of inaction include unaffordability for current and future owners, condemned
properties and loss of deed restricted housing, loss of workforce, and compromised health
and safety of residents.
Outlining sustainable solutions: avoiding band aid fixes so that HOAs are better adapted
and more resilient. Sustainable solutions should include ongoing education and access
to resources, so HOAs institutionalize preventative maintenance and are better equipped
to handle large capital expenses in the future.
DISCUSSION:
Overview: The presentation covers capital reserve study data and root causes of capital
reserve deferred maintenance and underfunding to prepare the Board for another
discussion on potential pathways forward.
Findings from Capital Reserve Studies: Deferred maintenance and lack of preventive
maintenance are widespread, with aging infrastructure, electrical, and life safety hazards
identified. Building envelope issues constitute 68% of capital expenses, which includes
roofs, siding, and foundations. 27 of 50 eligible HOAs participated in the studies. The
projected capital burden revealed in the studies is 8.7 million dollars. Half the HOAs who
participated are projected to be in a deficit, but the other half are predicted to be in positive
balance in ten years, which is an improvement over what the 2011 studies showed.
Root Causes identified from HOA Capital Reserve Studies: Capital reserve deficits stem
from multiple causes including building age, affordability, and lack of knowledge. Causes
go beyond HOA governance and require multifaceted solutions. Additional challenges
HOAs are currently facing include rising insurance costs and wildfire mitigation concerns.
Case Studies from HOA Capital Reserve Studies: These projections from the studies are
a snapshot in time and numbers are subject to change based on alterations in
contributions and other changing circumstances. The case studies to be presented will
examine four HOAs, built between 1980 and 2000, showing varied financial situations
and capital needs: two HOAs with a projected positive balance but different
recommended expenditures, two others with projected deficits. These case studies are
presented to demonstrate the uniqueness of each situation, including variations in size
and economic situations as well as representing what HOAs are up against with aging
infrastructure, affordability challenges, and other issues listed under root causes.
Categorization of potential solution areas: Increasing education and resources, looking at
underlying policies and outlining stipulations for potential programming, and program
possibilities are three areas of support that staff identified. Staff recommend discussing
what factors influence success, what makes solutions sustainable, and defining the
Board’s intended outcomes to identify what to prioritize.
FINANCIAL IMPACTS:
There are no financial impacts at this time. As the Board discusses its priorities, it is worth
considering that the goal is to decide what makes an HOA successful and how can
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APCHA provide support that will institutionalize that success and these things might not
all have financial impacts. Any programming that involves funding would require City and
County support.
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MEMORANDUM
TO: APCHA Board of Directors
FROM: Emily Maynard, Housing Policy Analyst, APCHA
Liz Axberg, Housing Policy Analyst, City of Aspen
MEMO DATE: September 26, 2025
MEETING DATE: October 1, 2025
RE: HOA Capital Reserves
MEETING PURPOSE: The purpose of this meeting is to continue the discussion on capital
reserves for APCHA HOAs. During the meeting, staff will first review content from the
August meeting as well as update the Board on the steps staff has taken on the board’s first
solution priority: education and resources.
SUMMARY AND BACKGROUND: On August 20th, 2025, as a first step in meeting the
Board’s “Quality” goal in the Strategic Plan, staff presented data and results from the
capital reserve studies which wrapped up in May of this year. Twenty-seven HOAs of fifty
eligible for the studies participated and the onsite assessments began in the summer of
2024. HOAs are responsible for planning, paying for, and executing their own
maintenance. APCHA paid for these studies to assist them in this process; the studies are
intended to be a budgeting tool for HOAs. Secondarily, they provide data to APCHA staff
and the Board.
The goal within the strategic plan states “Partner with HOAs and stakeholders on
maintenance strategies and approach to achieve a well-maintained inventory by 2030.”
Other community planning documents and initiatives express a need and desire to address
the issue of underfunded reserves, such as the City of Aspen’s Affordable Housing
Strategic Plan and APCHA’s 2025-26 Work Plan.
Twenty-seven HOAs in total participated in the Capital Reserve Studies. The studies were
open to APCHA properties with common elements and majority deed restricted units;
HOAs that are comprised of single-family homes were not eligible. This data represents a
portion of the APCHA inventory but also shows that each HOA is in a unique situation.
Highlights of the data include:
• A total projected capital burden of $8.7 million across 27 HOAs and 387 units – this
includes deferred maintenance and routine capital maintenance.
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• Half the HOAs are predicted to be in a positive balance if they continue current
contributions as is and complete all the recommended repairs over the next 10
years.
• Building envelopes or needs such as roofs, foundations, and exterior siding make up
68% of the recommended expenses.
• Health and safety items need immediate attention and total $162,571 in repairs or
an average of about $6,000 per repair.
During the presentation, staff recommended that the Board consider solutions that
address all root causes of deferred maintenance, not just lack of governance. These main
root causes that contribute to this issue are:
• Building age
• Affordability issues
• Lack of knowledge and resources
Staff recommended that the board consider sustainable solutions that will address the
root causes. This way solutions institutionalize success or emulate strategies of successful
HOAs. Solutions fall into three main categories: education and resources, policy, and
programs. This discussion is an information update on education and resources based on
feedback from the Board on August 20th.
DISCUSSION: Any programming or policy APCHA adopts related to capital reserves will
require careful consideration and take time to build out. Due to this, staff plan to take a
phased approach to address capital reserves – starting with education and resources, the
area the Board directed staff to prioritize. The discussion will include an overview of the
education and resources work that has already begun as well as an outline for the future of
the HOA education seminar series and other events and opportunities for HOA members.
Discussion can include any other ideas the board would like for staff to include in the
education and resources solution category.
Staff is working on options under the other two solutions areas: policy and programs. These
options will be presented to the Board at a future meeting.
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