{"id":1489,"date":"2021-06-25T10:00:50","date_gmt":"2021-06-25T14:00:50","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1489"},"modified":"2024-04-25T23:20:00","modified_gmt":"2024-04-26T03:20:00","slug":"creating-affordability-deed-restricted-workforce-housing","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/creating-affordability-deed-restricted-workforce-housing\/","title":{"rendered":"Creating Affordability: Deed-Restricted Workforce Housing"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/deed-restricted-workforce-housing.jpg\" alt=\"Image of furniture in a house and the view out a window to a mountainous scene.\" class=\"wp-image-1490\" width=\"468\" height=\"312\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/deed-restricted-workforce-housing.jpg 624w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2021\/06\/deed-restricted-workforce-housing-300x200.jpg 300w\" sizes=\"auto, (max-width: 468px) 100vw, 468px\" \/><\/figure><\/div>\n\n\n\n<p>Buying a home is a major challenge for a large segment of our\npopulation, and many people can\u2019t afford homes near the workplaces that need\nthem. With the travel and hospitality sectors reopening for business, the\nproblem is growing more obvious. There\u2019s a home affordability crisis calling\nfor remedies.<\/p>\n\n\n\n<p>Where there\u2019s a will, there\u2019s a way. Or several. Some counties\nand towns are addressing the issue by <a href=\"https:\/\/www.deeds.com\/articles\/solving-the-affordability-problem\/\">dropping\ntheir single-family-only zoning rules<\/a>. Another response is a flurry\nof permissions for homeowners to build accessory dwelling units (a.k.a. \u201cin-law\ncottages)\u201d on their properties.&nbsp;<\/p>\n\n\n\n<p>In this article, we\u2019ll explore yet another partial solution:\ndedicated workforce housing. Counties can create deed restrictions that\nallocate homes to employees of local businesses. A deed restriction, recorded with\nthe property deed, can limiting the ways a home can be held or conveyed to\nsomeone else.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Deed-Restricted Workforce&nbsp;Housing on the Rise<\/h2>\n\n\n\n<p>Let\u2019s look at several hotspots where counties are taking\naction to integrate local employees in their housing policies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Notoriously Pricey: Greater Sacramento,\nCalifornia<\/h3>\n\n\n\n<p>East Placer, just outside Sacramento, is home to Lake Tahoe\u2019s mountain resorts and casino jobs, as well as several corporations in the medical sectors. In early 2021, the\u00a0Placer County Board of Supervisors approved a plan to pay developers and buyers who agree to deed restrictions. Buyers can use the funds for down payments on the homes, or make upgrades once they move in.\u00a0The restrictions last 55 years, and they\u2019re automatically renewed when the home changes owners. <a href=\"https:\/\/www.placerair.org\/7130\/Workforce-Housing-Preservation-Program\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Placer County has posted an overview online<\/a>, including the income limits and other criteria.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ski Meccas: Rocky Mountain States<\/h3>\n\n\n\n<p>In May 2021, in the resort town of <strong>Breckinridge, Colorado<\/strong>, <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.summitdaily.com\/news\/local\/breckenridge-approves-permit-for-braddock-miller-workforce-housing-subdivision\/\" target=\"_blank\">Braddock Holdings<\/a> was approved to develop deed-restricted primary residences for local employees up to a certain income level. Someone in the home must be employed in Summit County, Colorado (on the job site, or as a remote worker who needs to be in the county). Retirees may keep the homes under the 2019 <a href=\"https:\/\/www.summitcountyco.gov\/DocumentCenter\/View\/27084\/2019-Summit-County-Housing-Guidelines?bidId=\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">deed restriction<\/a> guidelines. <\/p>\n\n\n\n<p>In\u00a0southwest part of the state, near the renowned Telluride Ski Resort, is the scenic town of <strong>Mountain Village, Colorado<\/strong>. The town has <a href=\"https:\/\/townofmountainvillage.com\/green-living\/incentive-programs\/deed-restricted-workforce-housing-incentive\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">cut its development fees<\/a>\u00a0for deed-restricted primary residences. The arrangement incentivizes developers to supply the homes at a deep discount. Mountain Village acted to sustain a workforce for its tourism industry, and so \u201ckey members of a complete community are able to live here.\u201d <\/p>\n\n\n\n<p><strong>Park City, Utah<\/strong> is another popular mountain resort.\nIt\u2019s known for hosting the Sundance Film Festival. It offers a dedicated\nworkforce housing plan for local workers\u2019 primary residences. Participants may\nnot convey their properties by deed, trust, or inheritance; they must go\nthrough a city process. The city reserves the first option to purchase when\nowner chooses to sell; otherwise, the property must go to a&nbsp;<a href=\"https:\/\/www.parkcity.org\/departments\/find-affordable-housing\/selection-process\/qualifications\" target=\"_blank\" rel=\"noreferrer noopener\">city-approved buyer<\/a>. Even renting part of the home\nto a housemate needs permission from the city. <\/p>\n\n\n\n<p>To preserve the affordability profile, the city caps the\nworkforce homes\u2019 annual property appreciation at 3%. Upgrades to the homes are\nlimited to alterations that add value of no more than 5% of the purchase price.<\/p>\n\n\n\n<p><strong>Jackson, Wyoming<\/strong>, is a famous ski resort town in the heart of the Jackson Hole valley. The Jackson \/ Teton County Affordable Housing Department restricts deeds for eligible workers\u2019 households. (Teton County posts its <a href=\"https:\/\/www.tetoncountywy.gov\/DocumentCenter\/View\/9006\/2020-Workforce-Ownership-Deed-Restriction-Template\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">workforce deed restriction template<\/a> here.) Home improvements must be approved in advance. Using any space in the homes for short-term rentals is off-limits. (The Affordable Housing Department may even come over and inspect a deed-restricted home as part of the bargain.)<\/p>\n\n\n\n<p><strong><em>Pro tip:<\/em><\/strong> Especially\nsince the rise of the Airbnb model, developers and homeowners\u2019 associations\noften create restrictions to limit rental use of homes and condos. Provisions\nin deeds can rule out basement apartments or the use of homes as short-term\nvacation rentals. When buying a home, ask the title company whether the deed\nhas restrictions either presently, or in the past. Past restrictions can still\nbind owners. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Does Deed Restricted Housing Differ From a Community Land Trust?<\/h2>\n\n\n\n<p>If you\u2019re a regular <em>Deeds<\/em>.<em>com <\/em>reader, you may\nrecall our discussion of <a href=\"https:\/\/www.deeds.com\/articles\/the-land-trust-approach-to-affordable-housing\/\">community\nland trusts to preserve affordability<\/a>. These trusts&nbsp;also own deed-restricted\nproperties, and keep home prices from rising along with local market\ncompetition. So, what makes a land trust different? <\/p>\n\n\n\n<p>In general, a land trust offers a more durable\naffordability. The typical land trust leases its&nbsp;home properties&nbsp;for\n99-year terms, whereas a city or county deed restriction might last 30 years or\nless.&nbsp; <\/p>\n\n\n\n<p>With the land trust model, eligible buyers get mortgages for\nunits on trust-owned land. Land trust homeowners hold <em>general warranty deeds<\/em>,\nmodified to convey&nbsp;the title to the house \u2014 not the land underneath. They make\nmonthly ground lease payments to the trust. Whenever a resident sells, the\ntrust keeps a portion of the sale proceeds. A land trust may buy the home back,\nto convey it to another qualified applicant. By these means, a land trust&nbsp;preserves\nits land and can keep a local population stable for generations. Participants\nare free&nbsp;to take pay raises and still keep their homes, even with their\nhigher incomes \u2014 a feature that promotes household wealth-building and future\nfinancial opportunities. <\/p>\n\n\n\n<p>The&nbsp;<a href=\"https:\/\/coloradoclt.org\/about-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">Colorado Community\nLand Trust<\/a>&nbsp;(Habitat for Humanity) notes: <\/p>\n\n\n\n<p><em>Lack of affordable housing\ncontinues to be a major issue in metro Denver. In recent years (2012 \u2013 2018),\nhome prices in metro Denver have increased 72%, while wages rose only\n12%.&nbsp;<\/em><\/p>\n\n\n\n<p>So, the land trust maintains a system of ownership and pays taxes\non the land, while offering the homes to qualified households who cannot (or\nshouldn\u2019t have to) compete in this runaway seller\u2019s market. Some potential\napplicants might shy away from land trusts because they think real\nhomeownership means land ownership. But land trusts can put their homeowners in\na stronger position overall. City deed restrictions are rigid and\none-size-fits-all, while ground leases can be modified to meet homeowners\u2019\nneeds and goals.<\/p>\n\n\n\n<p>We might say land trust arrangements come with a more people-friendly\nstructure. They often include options for assisting residents who find\nthemselves struggling to make their mortgage payments. Support for homeowners\nof modest means is rarely available with a city deed restriction. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Ties That Bind<\/h2>\n\n\n\n<p>Some towns are now establishing workforce-friendly policies\nin their strategic plans. The benefits of deed-restricted workforce housing,\nand community land trusts as well, have ripple effects. When people have access\nto affordable housing, they can live near their workplaces. They can and do support\nother local businesses. They develop a vested interest in their towns. They\nbecome integrated into the social networks that bind communities and make them\ngreat places to visit, live and work. <\/p>\n\n\n\n<p><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"has-small-font-size\">Lindsey Toomer\u00a0for <em>Summit Daily<\/em>:\u00a0 <a href=\"https:\/\/www.summitdaily.com\/news\/local\/breckenridge-approves-permit-for-braddock-miller-workforce-housing-subdivision\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Breckenridge Approves Permit for Braddock-Miller Workforce Housing Subdivision<\/a> (May 27, 2021). <\/p>\n\n\n\n<p class=\"has-small-font-size\">Town of Jackson \/ Teton County, Wyoming: <a href=\"https:\/\/www.tetoncountywy.gov\/DocumentCenter\/View\/9006\/2020-Workforce-Ownership-Deed-Restriction-Template\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Special Restrictions for Workforce Ownership Housing<\/a> (template created 2020). <\/p>\n\n\n\n<p class=\"has-small-font-size\">Colorado Community Land Trust\u00a0(Habitat for Humanity of Metro Denver): <a href=\"https:\/\/coloradoclt.org\/about-us\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">About Us<\/a>.<\/p>\n\n\n\n<p class=\"has-small-font-size\">Joe Rubino for the <em>Denver Post<\/em>: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.denverpost.com\/2019\/07\/08\/denver-affordable-housing-land-trusts\/\" target=\"_blank\">Denver Communities Putting More Faith in Land Trusts Amid Affordable Housing Crisis<\/a> (Jul. 8, 2019). \u00a0<\/p>\n\n\n\n<p class=\"has-small-font-size\">David Abromowitz and Kirby White, <a href=\"https:\/\/www.flhousing.org\/wp-content\/uploads\/2012\/12\/Deed-Restrictions-and-Community-Land-Trust-Ground-Leases.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Deed Restrictions and Community Land Trust Ground Leases: Protecting Long Term Affordable Homeownership<\/a> (published by the Florida Housing Coalition in Dec. 2012).<\/p>\n\n\n\n<p class=\"has-small-font-size\">Photo credits: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.pexels.com\/photo\/coffee-press-near-mug-on-table-in-countryside-house-5240582\/\" target=\"_blank\">Anete Lusina<\/a>, via Pexels. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying a home is a major challenge for a large segment of our population, and many people can\u2019t afford homes near the workplaces that need them. With the travel and hospitality sectors reopening for business, the problem is growing more obvious. There\u2019s a home affordability crisis calling for remedies. Where there\u2019s a will, there\u2019s a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[60],"tags":[],"class_list":["post-1489","post","type-post","status-publish","format-standard","hentry","category-deed-restrictions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Creating Affordability: Deed-Restricted Workforce Housing - Deeds.com<\/title>\n<meta name=\"description\" content=\"In this article, we\u2019ll explore yet another partial solution: dedicated workforce housing. 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