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1. What should the employment criteria be to rent or purchase a restricted home?

Status Quo

A member of the household must be locally employed at least 30 hours per week (or 1,560 hours per year).

Alternatives

1.A. The status quo.

1.B. Includes 1.A, except retirees must be 62-years-old.

1.C. Includes 1.A, except one member of the household must work an average of 40 hours per week or 1,920 hours per year.

1.D. Includes 1.B + 1.C

Solution

At least one person in the household must work at least an average of 30 hours per week (1,560 hours per year). Remove the ability for retirees to qualify to purchase or rent a restricted home. Remove the requirement that at least one person in the household must be a U.S. Citizen or Lawful Permanent Resident for rental units (Alternative 1.B with changes).

2. What kind of assets should be allowed and / or counted, and how much is the limit?

Status Quo

Affordable / Attainable: Assets limits are based on income category and include cash, investments, vested life insurance policies, vehicle equity, and real estate, but do not include qualified retirement accounts. Ownership of improved residential property within 150 miles of Teton County is prohibited.

Employment-Based: No asset limit, but ownership of real estate within 150 miles of Teton County prohibited.

Alternatives

2.A. The status quo.

2.B. Includes 2.A plus remove the non-liquid business assets from the asset calculation.

2.C. Includes 2.A plus mobile homes should be included as part of the residential properties.

2.D. Includes 2.A, except allow households to qualify for affordable units and own residential property anywhere including Teton County, contingent upon verification that the asset limit is not exceeded.

2.E. Includes 2.A, except change the current asset cap of two-times a four-person household income for the income category to an amount that is based on comparable community asset caps.

2.F Includes 2.A, except allow for increases in net asset caps to allow for increases in retirement savings for households with retirees.

2.G. Some combination of B, C, D, E, and F.

Solution

Allowed assets are anything of value more than $500, funds in retirement accounts are not included, residential property must be sold, and the asset limit is twice the income limit for a four-person household. Only liquid business assets are counted. Employment-based units have no asset limit and may never own residential real estate within 150 miles of Teton County. Mobile homes are considered the same as residential property (Alternative 2.B and C).

3. How many months out of a calendar year should a household be required to occupy a restricted unit?

Status Quo

Ten months for affordable, nine months for attainable, ten months for employment-based.

Alternatives

3.A. The status quo.

3.B. Standardize all units, all restriction types: 9 months per year.

3.C. Standardize all units, all restriction types: 10 months per year.

3.D. Standardize all units, all restriction types: 11 months per year.

Solution

Standardize all units ten months out of a calendar year (Alternative 3.C).

4. What livability standards, if any, should apply to restricted units?

Status Quo

Minimum and maximum livable area, storage requirements, natural light requirements for all unit types.

Alternatives

4.A. The status quo.

4.B. Inclues 4.A, except require the same minimum square footage for rental and ownership units.

4.C. Inclues 4.A, except increase or decrease minimum square footage for rental and ownership units.

4.D. Inclues 4.A plus require all appliances be Energy Star certified or the equivalent.

4.E. Evaluate how requirements for interior spaces, interior materials, responsible building practices, and quality assurances are different from standard market unit requirements to determine if there is a straightforward way to comply through existing building and design standards that apply to market rate units.

4.F. Adopt livability requirements that provide minimums for each feature:

• Closets and storage areas
• Finish and fixture specifications
• Floor coverings
• Heating and hot water
• Including lineal feet of cabinets
• Kitchen
• Laundry
• Room sizes and shapes
• Unit size
• Windows or noise mitigation

4.G. Some combination of B, C, D, E, and F.

Solution

Minimum size requirements should be removed and livability standards should be adopted (Alternative 4.F).

5. What percentage of a household’s income should be spent on housing?

Status Quo

Pricing and income limits are set so that 30% of income is spent on housing.

Alternatives

5.A. The status quo.

5.B. Includes 5.A plus include a minimum debt to income ratio

5.C. Includes 5.A, except remove debt to income ratio limit.

5.D. Includes 5.A, except increase the percentage of gross income a household may use toward housing costs.

5.E. Some combination of B, C, and D.

Solution

Thirty precent of a household’s income should be spent on housing (Alternative 5.A).

6. When should a household have to qualify for a rental or ownership home?

Status Quo

The current status quo:

• Buyers of affordable and attainable units qualify at the purchase of the home and are not required to requalify thereafter.
• Buyers of employment-based units are required to requalify annually. The Housing Department verifies that homeowners are still employed full-time at a local business, the household is collectively earning at least 75% of its income locally, and that the household does not own any property within 150 miles of Teton County, Wyoming.
• For rental units, tenants must re-qualify annually. The income limit is 120% of area median income (“Category 3”).

Alternatives

6.A. The status quo.

6.B. Incluedes 6.A plus standardize requalification requirements for ARU, Employee, and Employment-based (rental and ownership) in the Rules and Regulations and refer to the Rules and Regulations in the deed restriction.

6.C. Includes 6.A, except requalify Affordable ownership households every two years. Use an income threshold that is higher than the original qualification. For example, a Category 2 unit will requalify using Category 4 or 5 criteria.

6.D. B plus C.

Solution

Rental units should qualify at the time of their lease renewal. Employment-based units should continue to provide employment and income verification annually. Annual check-in with households in ownership affordable units to verify employment and occupancy. Standardize annual qualifications for ARU, Employee and Employment-based units (Alternative 6.D with changes).

7. How should sale/rent price be set?

Status Quo

Sales price is based on a 30-year mortgage at 7.5% with 5% down, rent is based on 70% of median income for JTCHA owned rentals and HUD calculated Fair Market Rents for privately owned Employee Housing Rentals.

Alternatives

7.A. The status quo.

7.B. Includes 7.A, except for Employee Housing units, calculate max rents based on 30% of the household income at the low end of each category.

7.C. Includes 7.A, except allow for multi-unit developments to have an additional increase in initial sales price if certain criteria are met.

7.D. Includes 7.A, except base the mortgage interest rate on the 20-year average and recalculate each year.

7.E. Includes 7.A, except for sales price calculation use 8% instead of 5% toward HOA dues, taxes, and insurance and 22% toward mortgage.

7.F. Includes 7.A, except for JTCHA-owned rentals use the midrange for each income Category (Cat 1 = 70% AMI; Cat 2 = 90% AMI; Cat 3 = 110% AMI)

7.G. Some combination of B, C, D, E, plus F.

Solution

Base the rental rates for JTCHA owned units and Employee housing units on 30% of the low end of the category. Base maximum sales prices using 30% of a household’s income toward housing (22% toward principle and interest, 8% toward HOA dues, taxes and insurance). Use a 30-year mortgage with 5% down, 20 year rolling average interest rate, and income at middle of the income range. (Alternative 7.B, 7.D, 7.E, and 7.F)

8. How should restricted ownership homes be valued at resale?

Status Quo

All new restrictions allow 2.5% appreciation annually.

Alternatives

8.A. The status quo.

8.B. Includes 8.A plus include a depreciation factor within the calculation of resale value.

8.C. Includes 8.A plus set out a list of specific capital improvements that are allowed to be included in resale valuation calculation, and those that are not.

8.D. Includes 8.A, except base the annual appreciation to be added on the Consumer Price Index capped at 3% determined annually.

8.E. Includes 8.A, except base the annual appreciation on the actual wage increase for Teton County each year using Median Family Income as calculated by HUD, capped at 3% annually.

8.F. Some combination of B, C, D, and E.

Solution

Homes should appreciate using the Denver-Boulder-Greeley CPI capped at 3% (Alternative 8.D).

9. How should rental be handled for ownership units?

Status Quo

Generally prohibited.

Alternatives

9.A. The status quo.

9.B. Includes 9.A, except allow for the rental of units that are in the active process of being sold by the owner, particularly in situations where the homeowner has an urgent need to move.

9.C. Includes 9.A, except allow owners to rent rooms to individuals who are employed in Teton County as long as the total household income does not exceed the income limit for the Category of home, the number of individuals living in the home does not exceed Town or County occupancy requirements, and the owner of the home still occupies the unit.

9.D. B plus C.

Solution

Consensus on this issue was not reached between the Council and the Commissioners. The Town Council and County Commissioners voted on an alternative that was not presented by staff.

10. How should the buy / sell process work?

Status Quo

The current status quo includes:

• Attainable homes: owner identifies a buyer and the Housing Department qualifies the buyer.
• Affordable and Employment-based homes: Housing Department facilitates the transaction and receives a 2% fee from the seller’s proceeds; the buyer is selected through a tiered lottery.

Alternatives

10.A. The status quo.

10.B. Includes 10.A plus give preference to households who are renting restricted units.

10.C. Includes 10.A plus give preference for retirees that can verify employment for 10 or more years in Teton County immediately prior to retiring.

10.D. Includes 10.A plus give top preference for households that have repeatedly submitted for the lottery unsuccessfully for a minimum period of time.

10.E. Includes 10.A, except remove preference for qualifying households to purchase homes that are located within the neighborhood that they currently reside.

10.F. Includes 10.A, except draw lottery in a public meeting.

10.G. Includes 10.A, except use a point system lottery for all ownership units.

10.H. Includes 10.A, except remove preference for Critical Services Providers.

10.I. Includes 10.A plus include preference for Town and County employees

10.J. Includes 10.A plus require households to pay fees for the following: lottery entry, annual requalification, and review of capital improvements.

10.K. Some combination of B, C, D, E, F, G, H, I, and J.

Solution

The Council and Commissioners reached consensus on an alternative that was not presented by staff.

11. What types of relief should be allowed from the Rules and Regulations?

Status Quo

Exceptions for unique situations, appeals of Housing Manager decisions, and grievances for harm done by the Rules and Regulations.

Alternatives

11.A. The status quo.

11.B. Includes 11.A plus formalize the appeal process, including the appeal hearing, and model after the Wyoming Contested Case Rules.

11.C. Includes 11.A plus set out standards for making determinations on exceptions, appeals, and grievances.

11.D. B plus C.

Solution

Formalize the appeal process, including the appeal hearing, and model after the Wyoming Contested Case Rules. Set out standards for making determinations on exceptions, appeals, and grievances (Alternative 11.D).

12. How should new Rules and Regulations be applied to existing units?

Status Quo

New Rules and Regulations are only applied to existing units if existing restrictions defer to the Rules and Regulations.

Alternatives

12.A. The status quo.

12.B. Includes 12.A plus specify that the Rules and Regulations adopted at the time of resale will govern the sale of a restricted unit unless otherwise stated in the special restriction.

12.C. Includes 12.A plus new restrictions will be recorded at resale, unless the standard restriction is already in place. The standard restriction will refer to the Rules and Regulations where appropriate.

12.D. Includes 12.A plus for rental units, establish that the Rules and Regulations in effect at the time the rental agreement is entered will apply.

12.E. Some combination of B, C, and D.

Solution

Place new restrictions on units at resale. The standard restriction and/or lease agreement will refer to the Rules and Regulations where appropriate (Alternative 12.E).