The Breckenridge Town Council has authorized staff to implement a new program to help locals access affordable housing. In addition to the on-going construction of new units and the traditional buy downs, the Town is launching Housing Helps, a new deed restriction acquisition program. The goal is to incentive homeowners and real estate buyers and sellers to deed restrict their property to help maintain and sustain homes for locals in the community.
Under Housing Helps the Town will pay owners, buyers, sellers, businesses, and investors to accept a deed restriction on homes that are currently unrestricted. The amount that will be paid for a deed restriction will vary depending on the market and how well the home meets current needs in the community. Recipients may use the funds for down payment, home repairs, special assessments, or any other purpose. In return, the recipients are required to execute a deed restriction that will insure the property is used for local housing.
What is this Program?
This is a deed restriction acquisition program approved by the Breckenridge Town Council to incentivize property owners, investors, buyers and sellers to accept a use restriction on their property. The goal is to preserve the sense of community and support the local economy by insuring there is a variety of housing options for locals.
Who is Eligible?
Anyone who owns or intends to purchase a property in the Upper Blue Basin-from Farmers Corner to Hoosier Pass. This includes individuals, businesses, and investors.
Can I Deed Restrict a Property with a First Right of Refusal?
In some cases, the Town may not be able to obtain a deed restriction on these properties, so please check with Town staff to determine if a specific property is eligible for this program.
Why Should I Consider Deed Restricting My Property?
The Towns goal is to help locals stay in the community where they can live, work, play, and raise their families. The most recent Housing Needs Assessment indicates there is a significant shortage of housing to serve the needs of local families and employees. This impacts the ability of businesses to recruit and retain employees and provide the products and services needed. The lack of housing also impacts the character of our community when locals are unable to live in the community where they work. By deed restricting your property you are helping Breckenridge retain a variety of housing options for locals. You may use the proceeds that you received from the Town in return for the deed restriction for any purpose.
What is a Deed Restriction?
This deed restriction is an agreement that restricts the use of your property in perpetuity. In return for the payment from the Town, the deed restriction will be recorded in the County records. Because the deed restriction will restrict how the property may be used, it is likely that the future value of the property will be impacted by the deed restriction.
What are the Key Terms of the Deed Restriction?
The actual deed restriction is considered a light use restriction. The key terms include:
The property must be occupied as a primary residence by person (s) employed a minimum of 30 hours a week in Summit County
The property may not be used as a seasonal or vacation home or as a short term rental
Unlike some other deed restricted properties these units will not be subject to any resale cap, appreciation cap, rental restrictions, or income cap. Retirement in these properties may be permitted subject to the Towns retirement policies for deed restricted units
What Happens to the Deed Restriction When I Sell the Property?
The deed restriction will remain with the property in perpetuity and future owners will be subject to the same restricted use
Can I Use a Realtor?
Yes, you are strongly encouraged to use a Realtor to assist in the acquisition or sale of any property. Please advise your Realtor if you intend to utilize Housing Helps funds in the acquisition of a property. Many local Realtors are familiar with the Housing Helps Program and can assist with the process.
Is There a Real Estate Transfer Tax (RETT)?
All properties within the Town of Breckenridge are subject to a 1% Transfer Tax at the time of acquisition/sale. The Housing Helps Deed Restriction does not restrict or limit the sale price and therefore these properties will not be exempt from the Transfer Tax
Can I Rent My Property or Use it as an Investment?
Yes, you may rent a property that is subject to this occupancy restriction provided the occupant meets the employment requirement
Are There Tax Implications Associated With the Payment I Received?
You should check with your financial or legal advisor as the Town can not provide any financial or legal advice. Under this program the Town is acquiring a deed restriction from you and the Town will not issue a 1099 for the proceeds that you receive.
Are There Local Lenders Familiar With the Housing Helps Program?
Yes, you may use a lender of your choice but please confirm they will loan subject to the Town of Breckenridge Housing Helps Deed Restriction. We have been in communication with local lenders including 1st Bank, Wells Fargo, and Alpine Bank, and they are familiar with the program.
How Many Properties May I Restrict?
There is no limit on the number of properties that you may restrict. The goal of the Town is to obtain deed restrictions on as many properties as possible.
How Much Money Will I Receive?
Every property is different and there is no set amount that the Town will pay for a deed restriction. The value will vary depending on the size of the unit, the location of the unit, the proximity to jobs and or transit, and how well the unit meets the housing needs in the community. The Town will evaluate the property but ultimately the price paid for a deed restriction will be the price that is negotiated and is acceptable to you and also to the Town. The Town may compare other similar properties or may review appraisals or other information from real estate professionals to determine a reasonable and acceptable price. The Town estimates that the value of the deed restriction may be in the range of 10-15% of the market value of the property.
If my Application is Accepted When Will I Receive the Payment?
Once an agreement is reached, funds are generally available within 2-3 weeks
How Do I Qualify/Apply?
Please complete an application to initiate the process-Link to Housing Helps Application