​

Good Deeds: Regional Deed Restriction Purchase Program 

Program Guidelines 

 

The West Mountain Regional Housing Coalition’s (WMRHC) deed restriction purchase program, Good Deeds, provides a mechanism to convert free-market housing into deed-restricted housing, safeguarding affordable housing for working locals in perpetuity.  The program essentially bridges the gap for a qualified buyer between what is available on the market and what is affordable by contributing funds at closing towards the purchase of a deed restriction on the property.    

 

The primary goal of the program is to increase the inventory of affordable housing for home ownership without building new units.  By working within the open-market, the Program will make existing housing attainable by subsidizing the sale, adding and deed restriction, thus removing it from the free-market and creating a sub-market for local workforce to afford home ownership.  This will increase home ownership opportunities, community and workforce stability, long-term housing stability, and decrease pressure on rentals currently occupied by those that could afford and desire home ownership.  Because eligibility for this program does not specify type of work, employer, or employment location (other than within the boundaries of the WMRHC region) it will increase mobility and resiliency of local workforce and offers opportunity for those that have worked in the area for many years to maintain home ownership through retirement.   

 

The Good Deeds Program will be administered by the West Mountain Regional Housing Coalition pursuant to the guidelines set forth below.  

 

Purpose of Program  

This program is intended to provide a mechanism for the WMRHC to make a payment towards the purchase price of a residential property in exchange for the recording of a price-capped deed restriction on the property in perpetuity. The payment will be applied at closing to reduce the principal on the first mortgage loan. 

​

Service Area 

Available for use on properties located anywhere in Pitkin and Garfield Counties. Those located in West Eagle County can participate in a similar program offered by Eagle County Housing Authority called Good Deeds.  

​

Eligible Households  

Applicants must show proof of employment within the WMRHC service area for an average of 1400 hours per year. Applicants must show at least 75% of these hours are worked for a business that has a physical location and principal place of business in Pitkin, West Eagle, or Garfield Counties. Those working more than 25% of time remotely for out-of-region employers are not eligible. Self-employed applicants must also show proof of a business license attached to a principal business location that is within the service area and that a majority of clients are located in the service area.  

 

After purchase, a household can remain eligible through retirement for those individuals that show proof of employment, as described above, for at least 10 years immediately prior to federal retirement age.   

 

After purchase, a household can remain eligible following a disability for those individuals that show proof of employment, as described above, for at least 4 years immediately prior to disability. 

​

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 Pitkin County, Garfield County and western Eagle County that are not currently encumbered by a deed restriction, right of first refusal, occupancy requirement, Land Use Regulatory Agreement, or similar program. 

​

Maximum Purchase Price of Property  

$1,500,00 in Pitkin County, including or up valley of Basalt (e.g. not in Redstone or Thomasville) 

 

$1,200,000 in Garfield County, including and up valley of Glenwood Springs 

 

$800,000 in remainder of Garfield County 

​

Maximum Contribution Amount 

The WMRHC will contribute 30% of the contracted purchase price to the purchase of a price-capped deed restriction on that property.  The payment will be applied at closing to reduce the principal on the first mortgage loan.   

​

Buyer Down Payment  

A minimum down payment of 3% contributed by the Buyer towards the purchase price of the property is required. Buyers are permitted to access down payment assistance programs from other entities or sources.  

​

Deed Restriction  

In exchange for the payment set forth above, a price-capped deed restriction will be recorded against the property at the time of closing with the County Clerk and Recorder's office. The deed restriction shall govern the future use and transfer of the property to an Eligible Household in perpetuity. 

​

Price Capped  

Appreciation is 3% simple interest annually (not compounding).  

​

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 no less than every other year. Those deemed ineligible will be required to sell. 

​

Primary Residence  

Buyer is required to use the property as a primary residence, as defined by overnight occupancy no less than 9 months out of the year. Short-term rentals are not allowed.   

​

Other Real Estate  

Buyer may not own any other residential real estate or residential property at the time of purchase or for the period the Buyer owns the deed restricted property, regardless of the location of the other property.  

​

Recertification  

Buyers must certify their eligibility as an Eligible Household no less than biannually.   

​

Pre-qualification 

Potential buyers must receive a pre-qualification letter from WMRHC prior to applying for funds.  Pre-qualification requires proof as an eligible household.  The pre-qualification letter will be considered valid for the calendar year.  Pre-qualification letters can be used by buyers as indicators of WMRHC interest in purchasing a deed restriction at 30% of the contract price on an eligible home.  

​

Application  

Buyer shall find and locate an eligible property available for purchase, enter into contract on proposed property, and submit an application.  Applications require a fully executed Contract to Buy and Sell Real Estate and are received on a first come, first served basis to be time and date stamped in order of completed applications. Applications will be approved at the discretion of the Program Administrator, subject to program guidelines and available funds. A complete application must include: a fully executed Contract to Buy and Sell Real Estate, proof of eligible household (see pre-qualification), proof of current employment at a business located in Pitkin, Garfield or Western Eagle County, photo ID, tax return, loan application, other income and asset documentation, pre-qualification letter from a lender, and/or other financial documents as listed on the application at time of applying.   

​

Applicability  

All aspects of the Program eligibility and approval are at the sole exclusive discretion of the WMRHC Board of Directors and subject to these Guidelines and availability of funds. These Guidelines may be amended from time to time to effectuate the intent and goals of the Program, and, except for the provisions of prior recorded Deed Restrictions or other documents, shall be binding upon Program participants.   

 

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 WMRHC.  

​

Future Resale  

Neither the Program Administrator or WMRHC shall facilitate the resale of any price-capped deed restricted units, but shall approve all future buyers for lottery consideration.  No transactional brokerage sales fee will be due to WMRHC. Customary closing costs will be borne by each party. WMRHC reserves right of first refusal to purchase the property.  

​

Program Administrator  

The WMRHC or other as assigned by WMRHC.  

​

More information  

A more detailed document will be developed to support these guidelines.  www.wmrhousing.org  

​

Equal Housing Opportunity: These Guidelines are subject to change based on availability of funds, conditions of property and market conditions. WMRHC does not discriminate based on race, color, sex, religion, handicap, familial status, sexual orientation, gender identity, or national origin.  

​​

For more information, contact April Long, Program Director.

april@wmrhousing.org

970-901-6082