TC Resolution 24-10 Approving the Employee Housing Plan SupplementA
Avon
C O L O H A D O
RESOLUTION 24-10
ADOPTING THE TOWN OF AVON
EMPLOYEE HOUSING PLAN
WHEREAS, the Avon Town Council ("Council") adopted the Avon Community Housing
Plan, which recognizes the severe shortage of affordable housing;
WHEREAS, Council finds that the availability of affordable housing is critical for recruitment
and retention of Town of Avon employees; and
WHEREAS, Council finds that the delivery of high quality public services in Avon is directly
dependent upon maintaining high staffing levels and minimizing turn -over; and
WHEREAS, Council finds it is important and appropriate to establish policies, goals and
strategies for the development of housing for Town of Avon employees; and
WHEREAS, Council finds that the adoption and implementation of a plan for Town of Avon
Employee Housing will promote the health, safety and general welfare of the Avon community.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN OF AVON that the Avon Town
Council hereby adopts the Town of Avon Employee Housing Plan, attached hereto as Exhibit A,
which shall be a supplement to the Avon Community Housing Plan.
ADOPTED MARCH 26, 2024, by the AVON TOWN COUNCIL
By:
Amy Phillips, Mayor
Attest:
Miguel Jaurejui)Casanueva, T
Resolution 24-10 Adopting the Town of Avon Employee Housing Plan
March 26, 2024
Page 1 of 1
AL.
lClerk
1-41
EM
A. INTRODUCTION. The Town of Avon ("Town") recognizes the severe need for attainable housing
for Town employees, Recruiting and retaining employees has become very challenging. Nearly
one third of employees that have resigned from the Town over the last two years moved out of
Eagle County to other areas where housing is more affordable. The Town's success rate in
recruiting any new employees who do not already live in, or near, Eagle County, is extremely low
with the high cost of housing in Eagle County presenting the primary barrier. The Town invests
significantly in new and existing employees, which creates a high cost for turnover. The Town has
also experienced long timeframes of 10 to 18 months to fill vacant positions. The Town must
provide housing for employees in order to improve recruitment and to maintain a stable, high
quality Staff that delivers excellent public services.
B. GOALS: This Town of Avon Employee Housing Plan ("Employee Housing Plan") sets forth
appropriate targets for increasing the Town's inventory of housing for Town employees and
identifies appropriate strategies for providing housing opportunities while balancing Town's
investment in employee housing with its investment in Community Housing for the general public.
Both near -term goals (5 years) and long-term goals (20 years), targets and strategies are
discussed in this Employee Housing Plan.
C. ADOPTION AND AMENDMENTS. The Employee Housing Plan should be updated every six
years to incorporate changing market conditions and employee housing needs. The Employee
Housing Plan is adopted by Avon Town Council by Resolution. Subsequent updates and
amendments shall be adopted by Resolution.
EHOP Resolution 24.10
May 14, 2024
A. DEMAND.
Current Demand: The Town currently employs 118 full-time employees and 131 part-
time/seasonal employees. Full time employees are eligible for housing programs. The Town
currently has 4% of full-time Staff housed.
Future Demand: The Town has potential to develop commercial and residential areas including:
(1) redevelopment of East and West town center areas, (2) development of Village at Avon, (3)
State Land Board annexation, and (4) other smaller annexations and infill redevelopment. As a
result, these developments could increase the total number of residential units in the Town by 50%
or more. Recognizing that growth may not result in a linear increase in the Town's Staffing needs,
it is reasonable to contemplate that the total number of employees may increase by 40% in twenty
years.
Present Employees in 2024 and in 20 Years
EMPLOYEES
2024
2045
Full time
118
165
Part time
131
183
B. HOUSING AND AFFORDABILITY
37% of Town full-time employees earn under 100% of Area Median Income ("AMI") while 63%
of full-time employees earn 100% or above AMI.
• Free Market Stats for 2023 Median & Average Sales Price, all locations in Eagle County
• Median SFH/DPX $1,760,345, TH/Condo $1,385,000
• Average SFH/DPX $2,626,367, TH/Condo $2,032,452
• Affordability for 100% AMI is $452,006 while TH/Condo Median price is $1,385,000
• Less than 10% of full-time employees at the Town can afford a Median or Average priced free
market unit in Eagle County as of January 2024.
• Currently 118 FTE at the Town with a 40% increase projected over 20 years.
There are 131 PTE at the Town however, they are not counted in the wage data because their
total income is difficult to ascertain; however, we expect the total wages for part-time
employees are likely to be under 100% AMI.
• The Town will need a variety of unit types and attributes as well as a mix of rental and
ownership opportunities to effectively support housing.
EHOP Resolution 24.10
May 14, 2024
Page 2 of 12
Housing Affordability Table
AM[
tPerson
Income
Total FTE
% FTE
Max Sales Price
Affordability
HH Size:15
Max Sales Price
Affordability
HH Size:4.5
Max Rental
Affordability
HH Size: L5
Max Rental
Affordability
HH Size: 45
Recommended
Program Target
161%+
$132,641+
10
10%
Free Market/RO
160%
$ 132,6M
7
7%
$ 522,050
$ 723,428
Free Market/RO
140%
$ 116,060
10
10%
$ 426,833
$ 632,589
RO/PC
120%
$ 99,480
26
26%
$ 391,911
$ 542,844
$ 2,664
$ 3,691
RO/PC
100%
$ 82,900
10
10%
$ 326,144
$ 452,006
$ 2,221)
$ 3,076
PC
90%
$ 74,610
20
20%
$ 273,611
$ 313,011
$ 1,9%
$ 2,768
Rental
80%
$ 66,320
10
lo%
$ 244,061
$ 361,167
$ 1,776
$ 2,461
Rental
709%
$ 58,03D
7
7%
$ 1,554
$ 2,153
Rental
60%
$ 49,740
0%
$ 1,332
$ 1,845
50°/
$ 41,450
0%
$ 1,110
$ 1,538
C. EMPLOYEE HOUSING PREFERENCES. A survey of all Town full-time employees was conducted in
October of 2023 to ask a variety of questions about housing. The response rate was very high with
113 total respondents, evidencing a strong interest in affordable housing, The Department Directors
conducted a retreat on October 25, 2023 to review the results of the employee housing survey and
discuss employee housing needs and goals. The results of the survey included the following
highlights:
• 94% of employees prefer to own a home while only 52% currently do.
• 81 % of respondents said "Price" was the #1 barrier to living in their most desired locations of:
Avon, Eagle -Vail, and Edwards.
• 59% are paying more than 30% of their gross income on housing and 40% use roommates to
offset those expenses.
• 73% said they would consider moving to Avon if an affordable housing option was offered and
64% said they would consider purchasing a price -capped deed restricted unit if it was
affordable.
• 64% of respondents said they would consider working for the Town longer if they were able to
live closer to work.
CONCLUSIONS:
• Most employees stated that they prefer to live in Avon, prefer to own their home, and
would like work longer for Avon if affordable housing was available.
There is demand for price capped for -sale housing in Avon.
• There is demand for affordably priced rental housing in Avon.
• There is a desire for Staff to have access to additional housing resources.
• The variety of housing types and traits factors heavily into location.
EHOP Resolution 24.10
May 14, 2024
Page 3 of 12
A. PERCENTAGE OF HOUSING FOR EMPLOYEES: Housing affordability is expected to present a
long-term, permanent challenge for recruitment and retention. Although Town was an affordable
housing option for Vail and Beaver Creek for many years, extreme escalation in housing prices
since 2020 have resulted in no free market affordable housing options. The escalation of free
market housing prices has consistently outpaced increases in local wages for several decades and
is expected to continue for decades to come. The City of Aspen is generally recognized as the
earliest ski resort town to develop in Colorado and is also recognized as having the oldest housing
program. No affordable free market housing opportunities existing in or near the City of Aspen
today, resulting in a very high dependency on affordable housing programs. The Town can expect
to experience a similar trajectory of increases in housing prices continuing to outpace increases in
local wages, with the result that dependency on affordable housing inventory will continue to
increase.
The goal of providing affordable housing inventory and opportunities for Town employees ranges
from a minimum of 50% to as high as 80%. It is not anticipated at this time that every employee
will need, or want, affordable housing assistance in 20 years. It is important to note that Town
employees are eligible to participate in other Community Housing efforts including Vail InDeed, iMi
Casa Avon!, Good Deeds, and Eagle County Loan Fund.
The Town Employee housing goals focus on full-time employees. Additional housing inventory for
part-time employees would serve as an effective and competitive recruitment amenity. If the Town
secures an inventory of employee housing that exceeds employee demands at any time the Town
may lease available units to other essential workers, government employees or persons who meet
the general eligibility requirements of living and working Eagle County.
B. TOWN EMPLOYEE HOUSING GOALS.
Year Goal Rental Ownership Total FTEs % FTEs
Housed
2030 5 Year 26 10 36 125 29%
2035 10 Year 15 15 30 135 49%
Total 71 55 126
C. STRATEGIES: Several strategies are identified for investment in employee housing, which are
described as follows:
Construct new housing units either directly or through public -private partnerships (e.g.,
Avondale Apartments, Wildwood Annex, Slope Side, East Avon Preserve)
2. Purchase existing housing stock for ownership by Town to add to available rental inventory
(e,g. Sherwood Meadows Unit, Old Wildridge Fire Station, Metcalf Lofts unit)
3. Purchase, buydown, and resell existing housing stock to Avon Employees through lottery
system
EHOP Resolution 24-10
May 14, 2024
Page 4 of 12
4. Continue iMi Casa Avon!
5. Offer enhanced iMi Casa Avon! program for Town employees that includes price capped
deed restrictions and Town right of repurchase on sale.
6. Purchase units in new construction in Avon (e.g., Hidden Valley Estates, State Land Board)
D. FUNDING SOURCES: Funding sources to support Town employee housing are described as
follows:
Short Term Rental Tax
10% RETT revenue
Avon Urban Renewal Authority
4. Avon Downtown Development Authority
5. General Fund reserves
6. Potential for Use Tax
7. Potential State and Federal Grant Funding sources
E. INVESTMENT PRIORITY: Staff will pursue all strategies while seeking to maximize the value on
investment as opportunities arise. The quantity of housing for Town employees is roughly
projected to be 5-10% of the overall Community Housing that the Town plans to support over the
next 20 years. Staff will pursue construction of new rental housing by the Town while monitoring
opportunities to acquire existing residential properties. Acquisition of existing residential property
can be for the purpose to resell at a reduced price to Town employees with a price -cap on resale,
offered through either a lottery or by seniority, and subject to Town's right to repurchase for future
resale to another Town employee, or can be for ownership by Town and offered for rent at
affordable prices.
The near term five year goal is to construct Avondale Apartments with at least 26 units for rent,
construct the Wildwood Annex Townhomes with 3 to 6 units, acquire at least 10 deed restricted
price -capped residentials units either through direct acquisition and resale to Town employees at a
reduced price, with a price cap, offered through a lottery or by seniority, and subject to Town's right
to repurchase, or through an enhanced iMi Casa Avon! program for employees (offering up to 24%
of purchase price with price cap). Acquisition of residential units for resale to Town employees is
expected to be in the price range of $600,000 to $1,000,000 and would be resold with a 30% price
reduction for affordability ($420,000 to $700,00), thus requiring expenditures between $180,000 to
$300,000 per unit, or $360,000 to $600,000 to acquire two units per year over the next five years.
EHOP Resolution 24.10
May 14, 2024
Page 5 of 12
A. Housing programs by local employers
Program
TOA
ECG
TOV
ERWSD
EVTA/ECO
ECPS
ECSD
VH
COA
# Full Time Employees
%of Full Time Employees in Programs
100
505
275
137
67
88
300
1468
360
5%
4%
33%
100%
42%
6%
8%
33%
22%
Owned Rental Units
Master Leased Rental Units
Housing Stipend
Down Payment Assistance
Cash Purchase/Buy Down
Employee Purchase/Lottery Program
4
13
87
48
2
44
87 (UC)
72
2
19
16
89
Y
Y
Y
22
Y
Y
Y
Y
Y
Y
3
B. Town of Avon Wages and Housing Affordability
Town of Avon Wages and Affordability
0
10% 7% 101 2 101 2j 11 7% 0% 0%
_ 1o1'<AMI 14C.- AMI 12U'i AM ILIY6 AMI 9Q'S 4Pnl KlF A"I 7;2`Ahu 6C-A:MI 5.-f AM!
iiiiiiiiiiiiiii.Max Sales Pr c Affordabiky HH Site. 1 i Max sales Pn Afton 7a Lilrty -y S.Ze 41
e:age Fr Markel M'd'an Fie= Ma: Fet P"".
EHOP Resolution 24.10
May 14, 2024
Page 6 of 12
Town of Avon Wages & Rental Affordability
$5,000
$4,500
$4,000
$3,500
$ 3, 000
$ 2, 500 7%
$2,000 0%
0%
$1, 500
$1, 000
$500
S-
161%+ AMI 160%AMI 140%AMI 120%AMI 100% AMI 90% AM I 80% AM 70°% AMI 60%AMI 509/o AM
Max Rental Affordability HH Size: 1.5 Max Rental Affordability HH Size: 4.5
-1 Bed Piedmont Apts Free Market Rate -2 Bed Piedmont Apts Free Market Rate
EHOP Resolution 24-10
May 14, 2024
Page 7 of 12
C. Mi Casa Avon Year End Data
Mi Casa Avon
1400000
$1,164,260
1200000
r
C
0 1000000
$847,222
Q 800000
c
0
600000
$464,760
r
400000
c
0
u 200000
58,095
65,171
72,7 66
0
2020
2021
2022
■ Unit Count
8
13
16
• Total Contribuion
5464,760
S847,222
S1,164,260
■ Average Contribution
558,095
S65,171
$72,766
■Total Contribuion
■Average Contribution
$199, 200
�66,400
2023
3
$199, 200
566,400
2020
8
$ 650,000
$ 464,760
$ 58,095
$ 493,500
2021
13
$ 900,000
$ 847,222
$ 65,171
$ 547,142
2022
16
$1,200,000
$1,164,260
$ 72,766
$ 615,344
2023
3
$1,500,000
$199,200
$ 66,400
$ 563,333
Total
40
$2,675,442
$ 66,886
$ 564,909
EHOP Resolution 24.10
May 14, 2024
Page 8 of 12
D. Employee Survey Results
Do you currently Rent or Own your Place of residence?
Where do you currently live?
E-
-1— 1
To. Oro —Mousing 5.—,
EHOP Resolution 24.10
May 14, 2024
Page 9 of 12
Do you prefer to Rent or Own your home?
8C-t 1-1
Y OA E Iptnee H—i g S —Y 7(o)
Do you desire to live in another area? If yes, tell us where? You may se
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F.O.
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70)
Without consideration to home or rent prices, tell us a little about WH...
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TOA Employee Housing Survey
EHOP Resolution 24.10
May 14, 2024
Page 10 of 12
TO)
Please tell us WHY you haven't chosen to live in the locations you sele...
Answered:86 Skipped:27
price
space
housing type
proxl4a
proximi�4
climatAAM
initiatives
commute times
weather
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TOA Employee Housing Survey
EHOP Resolution 24.10
May 14, 2024
Page 11 of 12
To)
Are you currently paying more than 30?s of your GROSS household inc... Do you have roommates to help offset your housing expenses?
If the Town of Avon offered more affordable housing options within th... Would you consider purchasing a Deed Restricted residence with a pri...
Do you believe you'll need a larger (or smaller) residence in the next 5... Do you know about the variety of programs available to Town of Avon .,.
EHOP Resolution 24.10
May 14, 2024
Page 12 of 12
A
Avon
Employee Home Ownership Program I Program Guidelines
These Guidelines are subject to change based on availability of funds, conditions of property and market
conditions. The Town of Avon does not discriminate on the basis of race, color, sex, religion, handicap,
familial status, sexual orientation, gender identity, or national origin.
The Town of Avon ("Town") has created the Employee Home Ownership Program ("EHOP") which will
allow the Town to make a contribution toward a Town employees' purchase price in exchange for recording
a Town of Avon deed restriction against an open market property. This EHOP program will support Town
staff to secure permanent housing and improve attraction and retention rates. The intent is to deed restrict
a property to a Town employee who meets the definition of an Eligible Household, through a Price Capped
deed restriction. By converting an existing open market home into a deed restricted home, that home will
be preserved for a local Eligible Household for the future. The EHOP program will be administered by the
Town pursuant to the guidelines set forth below.
Eligible Households Full time Town of Avon employees who have worked a minimum of 1 year
for the Town and otherwise meet the definition of Eligible Household as
defined by the most recent Avon Community Housing Policies and subject
to policies contained within.
Eligible Properties Single family homes, condominiums, townhomes, duplexes, modular homes or
manufactured homes on a permanent foundation taxed as real property within the
jurisdictional boundaries of the Town of Avon and Eagle -Vail that are not currently
encumbered by a deed restriction, right of first refusal, occupancy requirement,
Land Use Regulatory Agreement, or similar program. Buyer to complete due
diligence and confirm property eligibility at time of application.
Maximum Purchase None
Price of Property
Primary Residence Buyer is required to be an Eligible Household and use the property as a primary
residence, as defined in the Avon Community Housing Policies.
Buyer Down Minimum down payment of 3% contributed directly by the Buyer towards the
Payment purchase price of the property, excluding any down payment assistance funds,
employment assistance program, or others.
Deed Restriction Town of Avon Employee Home Ownership Program Price Capped deed
restriction will be recorded against the property with Eagle County Clerk
and Recorder's office.
Town Payment Payment of 30% of purchase price in exchange for a Price Capped
Deed Restriction, not to exceed $250,000. Funds are wired directly to
the title company at closing on the property.
Program This Program is compatible with all Down Payment Assistance Loan programs,
Compatibility subject to their program guideline limitations.
Effective 5/14/2024
Employee Home Ownership Program I Program Guidelines
Other Real Estate Buyer may not own any other residential real estate at the time of purchase or for
the period the Buyer owns the property.
Term The deed restriction is perpetual and runs with the property and any/all future
resale transactions. The property must remain the primary residence of any Buyer
and Buyer agrees to recertify their eligibility as an Eligible Household annually.
Recertification Buyers must certify their eligibility as an Eligible Household annually in
accordance with the current Avon Community Housing Policies.
Homebuyer Training All Buyers must attend a Home Buyer Class, offered by The Valley Home Store,
within 6 months of purchase.
Property Purchase Buyer or the Town may select a property for purchase.
Town Purchase The Town may directly purchase a unit for the following purposes: 1.) use the unit
as a rental property for Town employees; 2.) offer the property for resale through
the EHOP selection process; or 3.) offer the property for resale through the
Town's Price Capped resale selection process to any qualifying Eligible
Household.
Buyer Purchase Buyer shall locate the property available for sale and complete an application..
Application Applications are received on a first come, first serve basis to be time and date
stamped in order of completed applications. Applications will be approved at the
discretion of the Town or its Program Administrator, subject to available funds. A
complete application requires: fully executed purchase and sale agreement, proof
of full-time, current employment at the Town, photo id, pre qualification letter from a
local lender.
Application Review and approval within 5 business days of receipt by the Town or its
Processing Program Administrator. Upon notification of approval, the Eligible Household will
execute a deed restriction purchase agreement with the Town.
Deed Restriction In exchange for the Town payment set forth above, a Price Capped deed
restriction will be recorded against the property at the time of closing. The deed
restriction shall govern the future use and transfer of the property to an Eligible
Household in perpetuity.
Price Payment of 30% of purchase price. Appreciation is capped between 0-3%
Capped compounded annually, limits on owning other real estate, TVHS or the Town shall
be resale broker and approve all future buyers upon resale.
Future Resale The Town or its Program Administrator shall administer and facilitate the resale of
all future Price Capped deed restricted properties. Transactional brokerage sales
fee of 2% shall be paid by Seller at time of closing as outlined in Avon Community
Housing Policies. Customary closing costs will be borne by each party, no
concessions. A waitlist of Town employees who are Eligible Households will be
maintained by the Town. Preference for resale will be from Seller to Buyer directly
using the EHOP selection process and the Town's ability to exercise a Right of
First Refusal does not bypass the Seller's obligation to follow the resale
procedures set forth in the EHOP Program Guideline or ACHP .
Effective 5/14/2024
Employee Home Ownership Program I Program Guidelines
Selection Process A general waitlist will not be maintained Town employees who have worked for at
least 1 year on a full time basis will be considered eligible on a seniority ranking.
Seniority ranking will be based on the date the employee was considered full time
status with the Human Resources department.
Right of First Refusal The Town may, in its sole subjective discretion, exercise its right within 15 days of
the Owner's notice to sell the unit. The Town may purchase the unit directly from
the Owner for the following purposes: 1.) use the unit as a rental property for
Town employees; 2.) offer the property for resale through the EHOP selection
process; or 3.) offer the property for resale through the Town's Price Capped
resale selection process to any qualifying Eligible Household.
Applicability All aspects of the EHOP Program eligibility and approval are at the sole exclusive
discretion of the Town and availability of funds. These Guidelines are subject to
change and changes are binding upon the applicant. Applications may be denied
based on the physical condition of the proposed property, concerns with the
purchase agreement or a determination that the deed restriction purchase is not
in the best interest of the Town. Program is subject to market conditions.
Other In the event of policy conflict between this Program and the Avon Community
Housing Policies, the EHOP Program Guidelines shall control.
Program The Town and/or The Valley Home Store or other as assigned by the Town.
Administrator
Additional Call 970-748-4091
Information
EQUAL HOUSING Effective 5/14/2024
OPPORTUNITY