Vail considers $100K home loans for town workers
August 6, 2008
VAIL, Colo. ” In an attempt to attract and retain employees, the town of Vail plans to offer up to $100,000 to town workers in interest-free home loans.
The “equity share loans” would have no interest and no payments for the 15-year life of the loan. However, after those 15 years, employees must pay back the loan as well as a portion of the appreciation the home sees.
With the rising prices of homes in the valley, the old program, which allows for up to $10,000 in loans, was not providing enough assistance to employees, said Krista Miller of the town’s Human Resources Department.
“I think a majority of our employees are going to be stretching to be affording, even with this (proposed) program, to buy property in this region,” Miller said.
Town Council members expressed enthusiasm for the program at a meeting Tuesday.
A nonprofit group, Funding Partners for Housing Solutions, would administer the program and assume risk of default.
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Up to $100,000 would be available to employees to buy free-market homes in Vail. Up to $50,000 would be available for free-market homes outside of Vail, but within 50 miles of town.
Loans to buy deed-restricted homes would be available for up to 5 percent of the purchase price.
Money for the program could come from various sources, including the sale of a town-owned condo in Pitkin Creek Park and revenue from rentals of town-owned homes to employees.