The applicant proposing to make a condominium conversion to employee housing units shall provide the following documentation with the preliminary map.
(A) Conversion report listing building conditions. A condominium conversion report from the Town Building Official on the condition of the building, listing all Building Code violations, Fire Code violations and related violations which are detrimental to the health, safety and welfare of the public, the owners and the occupants of the building.
(B) Required information. As part of the Planning and Environmental Commission’s review of a conditional use permit request for conversion to employee housing units, the following submittal information shall be required: a report of the proposed conversion that includes a summary of the proposed ownership of the units; the approximate proposed sale price of units and financing arrangements to be provided by the applicant; a written statement demonstrating compliance with the objectives outlined in the Vail Land Use Plan, with specific reference to goal statements 3.1, 3.2 and 3.3; a draft set of condominium declarations demonstrating compliance with the provisions of this title. These declarations will be reviewed again by the town during the condominium platting process.
(C) Plans and descriptions. Plans and descriptions showing how the following will be performed:
(1) All site work shall be brought up to current town standards unless a variance from those standards is granted to the applicant by the Planning and Environmental Commission in accordance with the variance procedures of Title 12 of this code. The Planning and Environmental Commission may, if it deems necessary, require additional parking facilities to meet requirements of owners and guests of the condominium units;
(2) Corrections of violations cited in the condominium conversion report by the building official; and
(3) Condominium projects shall meet current adopted building code requirements.
(D) Maximum sales price.
(1) Condominium declarations. The provisions of this subsection (D) shall be incorporated directly into the condominium declarations for any units converted pursuant to this chapter. The town shall review and administer these documents to ensure compliance with these provisions.
(2) Listing; deposit; sale. In the event that an owner desires to sell the unit, the owner shall execute a standard listing contract on forms approved by the Colorado Real Estate Commission with the town providing for a 180-day listing period, or such other time period as required by the Town of Vail affordable housing guidelines in effect at the time of listing. At this time, the owner shall deposit with the town an amount equal to 0.5% of the estimated value of the unit. The town shall promptly advertise the unit for sale by competitive bid to qualified buyers. At the time of closing, the owner shall pay to the town an additional 1.5%.
(3) Restriction.
(a) In no event shall a unit be sold for an amount (“maximum sales price”) in excess of the owner’s purchase price, plus an increase of 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 0.25% for each whole month for any part of a year).
(b) Nothing herein shall be construed to constitute a representation or guarantee by the town that on sale the owner shall obtain the maximum sales price.
(4) Determining maximum sales price.
(a) For the purpose of determining the maximum sales price in accordance with this section, the owner may add to the amount specified in subsection (D)(3) of this section, the cost of “permitted capital improvements” (as defined in this section). The amount shall not exceed 10% of the initial listed purchase price set forth in subsection (D)(3) of this section. For every ten-year period from the date of original purchase and deed restriction, up to another 10% of the purchase price may be added to the value of the property for capital improvements. In calculating such amount, only permitted capital improvements shall qualify for inclusion. All such permitted capital improvements installed or constructed over the life of the unit shall qualify.
(b) Permitted capital improvements shall not include any changes or additions to the property made by the owner during construction or thereafter, except in accordance with subsection (D)(4)(a) of this section. Permitted capital improvements shall not increase the base price, even if made or installed during original construction.
(c) In order to qualify as permitted capital improvements, the owner must furnish to the town the following information with respect to the improvements which the owner seeks to include in the calculation of maximum sales price:
1. Original or duplicate receipts to verify the actual costs expended by the owner for the permitted capital improvements;
2. Owner’s affidavit verifying that the receipts are valid and correct receipts tendered at the time of purchase; and
3. True and correct copies of any building permit or certificate of occupancy required to be issued by the Town Building Department with respect to the permitted capital improvements.
(d) For the purpose of determining the maximum sales price in accordance with this section, the owner may also add to the amount specified in subsections (D)(3) and (D)(4)(a) of this section, the cost of any permanent improvements constructed or installed as a result of any requirement imposed by any governmental agency, or homeowners’ association, provided that written certification is provided to the town of both the applicable requirement and the information required by subsections (D)(4)(c)1. through (D)(4)(c)3. of this section.
(e) In calculating the costs under subsections (D)(4)(a) and (D)(4)(d) of this section, only the owner’s actual out of pocket costs and expenses shall be eligible for inclusion. Such amount shall not include an amount attributable to owner’s “sweat equity” or to any appreciation in the value of the improvements.
(5) Permitted capital improvements.
(a) The term “permitted capital improvements” as used in this section shall only include the following:
1. Improvements or fixtures erected, installed or attached as permanent, functional, nondecorative improvements to real property, excluding repair, replacement and/or maintenance improvements;
2. Improvements for energy and water conservation;
3. Improvements for health and safety protection devices;
4. Improvements to add and/or finish permanent/fixed storage space; and/or
5. Improvements to finish unfinished space.
(b) Permitted capital improvements as used in this section shall not include the following:
1. Upgrades/replacements of appliances, plumbing and mechanical fixtures, carpets and other similar items included as part of the original construction of the unit;
2. The cost of adding decks and balconies, and any extension thereto;
3. Jacuzzis, saunas, steam showers and other similar items;
4. Improvements required to repair, replace and maintain existing fixtures, appliances, plumbing and mechanical fixtures, painting, carpeting and other similar items; and/or
5. Upgrades or addition of decorative items, including lights, window coverings and other similar items.
(c) All permitted capital improvement items and costs shall be approved by the town staff prior to being added to the maximum resale price as defined herein.
(6) Closing costs, other consideration. The owner shall not permit any prospective buyer to assume any or all of the owner’s customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the owner to sell to such prospective buyer.
(7) Procedure. In the event that one qualified bid is received equal to the maximum sales price herein established, the property shall be sold to such bidder at the maximum sales price; and in the event owner receives two or more such bids equal to the maximum sales price, the qualified buyer shall be selected according to the priority for sale units set forth in the Town of Vail employee housing guidelines; and, in the event that all such qualified bidders are of equal priority pursuant to the guidelines, the qualified buyer shall be selected by lottery among the qualified buyers, whereupon the unit shall be sold to the winner of such lottery at the maximum sales price. If the lottery winner does not proceed to contract within five business days after notification, the next in line will be notified and so on, until the unit is under contract for purchase. Backup contracts in the priority order set forth in the lottery will be accepted. Prospective purchasers must be prequalified by a lender prior to submitting a bid for a unit at the subject property/project. The seller may reject any and all bids, however, the owner is subject to the provisions in the Town of Vail employee housing guidelines pertaining to the listing fee. Bids in excess of the maximum sales price shall be rejected. If all bids are below maximum sales price, owner may accept the highest qualified bid. If all bids are below maximum sales price and two or more bids are for the same price, the qualified buyer shall be selected by lottery from among the highest qualified bidders.
(8) Nonqualified transferee. In the event that title to the unit vests by descent in individuals and/or entities who are not qualified buyers as that term is defined herein (hereinafter “nonqualified transferee(s)”), the unit shall immediately be listed for sale as provided in subsection (D)(2) of this section (including the payment of the specified fee to the town), and the highest bid by a qualified buyer, for not less than 95% of the maximum sales price or the appraised market value, whichever is less, shall be accepted; if all bids are below 95% of the maximum sales price or the appraised market value, the unit shall continue to be listed for sale until a bid in accordance with this section is made, which bid must be accepted. The cost of the appraisal shall be paid by the nonqualified transferee(s).
(a) Nonqualified transferee(s) shall join in any sale, conveyance or transfer of the unit to a qualified buyer and shall execute any and all documents necessary to do so; and
(b) Nonqualified transferee(s) agree not to:
1. Occupy the said unit;
2. Rent all or any part of the unit;
3. Engage in any other business activity on or in the unit;
4. Sell or otherwise transfer the unit except in accordance with this section and the affordable housing guidelines; or
5. Sell or otherwise transfer the unit for use in a trade or business.
(c) The town, or its respective successors, as applicable, shall have the right and option to purchase the unit, exercisable within a period of 15 calendar days after receipt of any sales offer submitted to the town by a nonqualified transferee(s), and in the event of exercising their right and option, shall purchase the unit from the nonqualified transferee(s) for a price of 95% of the maximum sales price, or the appraised market value, whichever is less. The offer to purchase shall be made by the nonqualified transferee(s) within 15 days of acquisition of the unit.
(E) Enforcement.
(1) In the event that the town has reasonable cause to believe the owner is violating the provisions of this section, the town, by its authorized representative, may inspect the unit between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the owner with no less than 24 hours’ written notice.
(2) (a) The town, in the event a violation of this chapter is discovered, shall send a notice of violation to the owner detailing the nature of the violation and allowing the owner 15 days to cure. Said notice shall state that the owner may request a hearing before the Vail Town Council within 15 days to determine the merits of the allegations. If no hearing is requested and the violation is not cured within the 15-day period, the owner shall be considered in violation of this section. If a hearing is held before the Vail Town Council, the decision of the town based on the record of such hearing shall be final for the purpose of determining if a violation has occurred.
(b) If the town determines that there has been a violation of the occupancy standards, the owner of the restricted employee housing unit shall be found to be in noncompliance. Penalties the town may assess against the owner include eliminating resale gain (see subsection (D)(3) of this section), and/or penalties found in § 1-4-1 of this code.
(3) There is hereby reserved to the parties hereto any and all remedies provided by law for breach of this section or any of its terms. In the event the parties resort to litigation with respect to any or all provisions of this section, the prevailing party shall be entitled to recover damages and costs, including reasonable attorney fees.
(4) In the event the unit is sold and/or conveyed without compliance herewith, such sale and/or conveyance shall be wholly null and void and shall confer no title whatsoever upon the purported buyer. Each and every conveyance of the unit, for all purposes, shall be deemed to include and incorporate by this reference, the covenants herein contained, even without reference therein to this section.
(5) (a) In the event that the owner fails to cure any breach, the town may resort to any and all available legal action, including, but not limited to, specific performance of the requirements of this section or a mandatory injunction requiring sale of the unit by owner.
(b) The costs of such sale shall be taxed against the proceeds of the sale with the balance being paid to the owner.
(6) In the event of a breach of any of the terms or conditions contained herein by the owner, his or her heirs, successors or assigns, the town’s initial listed purchase price of the unit as set forth in this section shall, upon the date of such breach as determined by the town, automatically cease to increase as set forth in this section, and shall remain fixed until the date of cure of said breach.
(Ord. 2(1983) § 1; Ord. 29(1983) § 1; Ord. 5(2000) § 1; Ord. 31(2001) § 13; Ord. 29(2005) § 61)