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Show ; , . B-10 Housing dilemmas in Eagle County Continued from B-9 for a long time," Carter said. "The challenge is that the need is so great that it has been difficult to satisfy." Exodus of children The Eagle commissioners have made housing their top priority, saying say-ing all people who work in Eagle County should he able to live here. But more than that, it's because of personal experience. Commissioner Michael Gallagher, said his children cant afford to live in their home town, Minturn. Gallagher said if he had to buy a home on his $53,(KK) commissioner's commis-sioner's salary, he couldn't do it either. Gallagher is not alone by any means. According to the Colorado Demographer's Office: The rate of home ownership in Eagle is one of the lowest in the state. Out of 63 counties in Colorado, Eagle ranks 57th. Housing prices are 64 percent higher in Eagle than in the state as a whole, and 70 percent higher than the national average. Housing prices are rising much more rapidly than wages. From 1990 to 1999, the median price of a single-family single-family home rose 227 percent while wages increased only by one-fourth. A household needs five average-wage average-wage jobs to purchase the median-priced median-priced single-family home. Residents are living as roommates at twice the state and national levels. Currently, 44 percent of permanent resident non-family households consist con-sist of roommates. Vail, Colo.'s by Randy Wyrick THE VAIL DAILY Deed restrictions are good as they ensure a consistent supply of entry-level housing in a straitjacket-tight straitjacket-tight market. Deed restrictions are bad as they prevent home buyers from creating wealth with their home's increasing value. Sally Jackie, a real estate attorney attor-ney who works with clients ranging from Habitat for Humanity to high-end high-end developers, sees both ends of the equation, and made both statements. state-ments. In the fight for affordable housing, hous-ing, deed restrictions are a favorite weapon, offered by developers and demanded by government officials. Traditionally, they limit increases in a home's value to 3 percent a year. In Eagle County, the Eagle County M 1S A About 2300 households are paying pay-ing more than 30 percent of their income for housing. Fully 12 percent of the permanent work force commutes from other counties. Those who hold those lower wage jobs tend to commute, sometimes from long distances. The Demographer's Office found that in 1991, a total of 1,537 commuters com-muters traveled into the county every day to work. Through the 1990s, the number of people commuting com-muting into the county soared 600 percent, and 10,800 people now make the trek daily. While home prices are part of the equation, the problem is compounded compound-ed by below-average wages. Eagle workers make about 85 percent of the state and federal average wage, according to county statistics. Household income tends to be higher high-er because people work more than one job. Economies of cities For Dr. Steve Medema, chairman of the University of Colorado at Denver economics department, it's freshman economics the knee bone connected to the thigh bone; the housing market connected to the work force. Medema said bedroom communities commu-nities end up generating demands connected to their growing populations. popula-tions. Businesses spring up to meet demands, creating jobs and growing economies in those outlying areas. The people who moved to outlying areas for the affordable housing no longer have to commute, because there are now jobs available where ongoing deed restriction debate: problems or Assessor's Office found that home values increased 30 percent since the last appraisal period two years ago. "For most people, your single greatest source of wealth is your home," said Jackie. "Not enough is being done to educate people on how much wealth is being created by just sitting in your home." Equity hard to build Deed restrictions are an important impor-tant piece of the puzzle, but they need to be examined more closely. "It's not a good deal for the majority of people buying homes," said Jackie. "It prevents you from developing significant equity in your home. It's good for young people, who stand to inherit money and dont need to build wealth." But even with all their warts, deed restrictions are certainly better 1 ; Full Color Rack Cards ! 000 Cards for $169.00 plus typs & layout (12 PTC IS) Full Color Business Cards 500 Cards for $89.00 (100 Cover) Full Color Post Cards 500 Cards for $179.00 ; plus type & layout (12PTC1S) Full Color Brochures Call for Best Price! IEE Pick-up & Delivery in Park City Us" , The Park Record they live. Sprawl ensues as workers look farther and farther out in their quest for affordability. Regions and cities have fallen into the pattern of growth and expansion since civilization arrived in the Fertile Crescent. "It's no different dif-ferent in Denver," said Medema. "People move to the 'burbs because housing in Denver is at a premium. There are spillovers, both positive and negative." "I don't know a ski town that handles this perfectly," said Medema. To explain the pattern, follow the money, Medema said. Resources gravitate toward their highest valued uses, he explained. "If you have a plot of land and can build tract of affordable housing for little profit, or trophy homes for a bunch of profit, which would you choose?" said Medema. "Let's say you have $5,000 and two banks where you can invest it. One banks pays 2 percent and the other pays 10 percent. It's a no-brainer." Simple, but not easy Solutions to the housing equation equa-tion are simple, but not easy, Medema said, and require a philanthropic philan-thropic land owner or government-forced government-forced zoning. He sees some parallels paral-lels with pollution problems. "It's the principle of negative externality private interests versus social interests," said Medema. "It's in a manufacturing company's interest inter-est to dump that crap in the river. But it's not in society's interest. The most certain way to deal with it is through government intervention." than renting. Buyers get mortgage interest tax breaks and can start building some equity. "You have to make a conscious decision to buy a deed-restricted unit," said Will Lewis, a Realtor with Remax. "If you're making 3 percent a year and stay for seven years, that's 21 percent. That isnt bad." Vail Commons, a project in West Vail, is owned by the Town of Vail. On the rare occasions that town-houses town-houses become available, dozens of prospective buyers enter a lottery, then start to spend an extra special long time in church, promising to live good and pure lives if their names are drawn. "Anyone who buys into a Vail Commons townhome understands that they're deed restricted," said Suzanne Silverthorn, public infor 1 1 iiiLiiir. , ....... ..J iiirt Of mm , ' ! L - - t o v ifj , v r- - , J M if STEPHEN ZUSYRARf RECORD New officers named by The Park City Board of Realtors. Their 2001-2002 officers, pictured here L to R: Mike Sloan, President-Elect of Utah Association of Realtors; Rick Hovey, Director of Park City Board of Realtors; Maire Rosol, President-Elect of Park City Board of Realtors; Rich Fine, Director; Brad Jensen, President; JUIike Beck, SecretaryTreasurer. Directors Seaton Prince, and Kathy Penrose were not in attendance at time the photo was taken. mation officer for the Town of Vail. "Some are pleasantly surprised by the amount of equity they're able to create." High-priced haystack If you're willing to burn a little shoe leather, there are affordable needles in the high-priced haystack. Jackie is working with a client who just found a two-bedroom condo in East Vail for $165,000. Jackie said that conservative estimates put that condo 's value well above $200,000 in a few short years. A deed restriction won't allow that to happen. "Deed-restricted homes tend to be bigger and nicer, but they arent building that kind of equity," said Jackie. "With deed restrictions you keep an inventory of low-priced housing, but for the people who buy them, it's not a great deal at all." Another aspect to the equation, 1 8. I -: V . - , i .'G( . Have (, ' v edUCationparkrecord.com bUSineSSparkrecord.com SpOrtSparkrecord.com f ) SCeneparkrecord.com phOtOparkrecord.com katparkrecord.com said Jackie, is the limitation that deed restrictions place on the homeowner's home-owner's ability to borrow money, and the limits on mortgage interest deductions on income taxes. "Home equity loans are one of most advantageous ways to borrow money at an extremely low rate, and it's tax deductible," said Jackie. "It's the biggest subsidy the government gives anyone." Jackie said while working at the Vail Cleanup Day, she talked to a young man who couldnt wait to get into one of the Vail Commons units. She explained long-term effects of deed restrictions on building wealth and borrowing money. The bottom line The young man replied that the deed-restricted units were nicer and newer. "The bottom line is if you're willing to trade ultimate economic . : . t a Beef? a Question? I Shai e a Hot email us editorparkrecord.com CitynewSparkrecord.com COUntynewSparkrecord.com publisherparkrecord.com CirCUlationparkrecord.com prodUCtionparkrecord.com realestateparkrecord.com ClasSifiedSparkrecord.com 4 1 i i jwifcifcllSn S.ftt 9bk 1n it Kl H jPi. J Jtf Wednesday, October 3, 2001 i "'-in panaceas? well-being for a nicer place now, then it's fine," said Jackie. Jackie said regardless of how much people love to pound on real estate agents, home buying is their world and they know the landscape. She also said that when it comes time to prequalify for a loan, start with a professional from the beginning. begin-ning. "It's a greater help to young people peo-ple to provide them with ways to break into the housing market with programs like Down Payment Assistance and Mortgage Credit Certificate," said Jackie. She added that you shouldn't believe everything you' read. "Buyers need to get professional advice so they know the ads dont represent the broader market," she said. t - Tip .iWfc.. H.lNiJB.'ni'B.aBs Record 1 |