Avon increases affordability of community housing program
The cap increase is in response to the rising prices and limited inventory of local real estate market
Reacting to the shrinking inventory and rising prices of Eagle County’s torrid real estate market, the town of Avon raised the cap for its ¡Mi Casa Avon! deed restriction purchase program. On March 23, the Town Council approved an increase in the maximum funding per deed restriction from $75,000 to $100,000.
“People want to buy a home and the lack of inventory has become very challenging,” Council member Scott Prince said.
The ¡Mi Casa Avon! deed restriction purchase program was started in spring 2020 and was designed to make home ownership more accessible for Avon residents.
Buyers can apply for up to 12% in town community housing funds to assist with the purchase of a residence in Avon. At closing, the town purchases a permanent community housing deed restriction on the property. This restriction maintains that the buyer must use the property as a primary residence for three years, after which it can be either rented or sold to an Eagle County employee. The deed restriction does not limit or restrict the resale price of the residence.
The new cap of $100,000 would enable buyers to receive a 12% match for a $833,333 purchase. This increase will extend the program’s affordability, according to Town Manager Eric Heil. He said that in the last six months, Avon has not only seen inventory dry up, but has also seen price increases within different family complexes and “higher prices per square foot than we’ve seen.”
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According to Heil, since the program was started, the Town Council has approved a total of $1.55 million toward the community housing funds. Since then, the program has closed on nine transactions, with a 10th one pending — spending approximately one-third of the $1.55 million.
“I think that Mi Casa deed restriction has really facilitated the ability of certain households to afford to purchase in Avon,” he said. “And by and large it has been very successful.”