Vail council to consider housing unit purchase
VAIL — The Vail Town Council will be asked to authorize the purchase of a West Vail housing unit during its Tuesday evening meeting. Approval of Resolution No. 2 on the consent agenda will provide for the acquisition of Vail Heights Unit 7, located at 2059 Chamonix Lane.
The home is a one-bedroom, 600-square-foot unit located on the bus route. The purchase price is $200,000 with the town taking possession of the unit in the spring of 2015.
Monies from the town’s Buy-Down Fund will be used to purchase the new property. The fund, which has a current balance of $1.1 million, is partially supported from the collection of employee housing mitigation fee-in-lieu payments which began in 2007. The term “buy-down” refers to the process of purchasing a dwelling unit at the free market price and recording an employee housing unit deed restriction on the occupancy of the unit and reselling it to a qualified purchaser at a lower price — essentially “buying down” the difference between the free market value and the deed restricted price.
Once in the town’s possession, the new unit could be added to the town’s employee housing rental pool. Another option is to deed-restrict the home and resell it as a buy-down unit.
Community Development Director George Ruther says the town’s investment in the purchase of housing within Vail has multiple benefits.
“Workforce housing, like streets, schools and fire departments, is recognized as critical town infrastructure which brings balance to the community, reduces the capital costs of transportation, furthers the town’s environmental sustainability efforts, improves the year-round economy and promotes a more diverse and vibrant local community through employees living with the town,” he said.
The town has facilitated 81 owner-occupied housing units since 1995. This includes 53 at Vail Commons, 18 units at Red Sandstone Creek, two “buy-down units,” six units at North Trail Townhomes and the Arosa Duplex.