Eagle County Acquires Fox Hollow Development to Boost Affordable Housing

In a strategic bid to bolster the region's stock of affordable housing, Eagle County has taken the initial step towards acquiring the 87-unit Fox Hollow development in Edwards. This ambitious move has the potential to significantly impact the local housing landscape, providing a much-needed boost to the area's community housing options. By exploring the purchase of this development, the county is demonstrating its commitment to addressing the pressing issue of housing affordability, which has long been a challenge for residents and employers alike.

At the heart of this proposal is the desire to increase the number of deed-restricted units in the development, which currently stands at 44 out of 87 condominium units. If the county succeeds in purchasing the entire property, it plans to impose deed restrictions on the remaining 43 units, thereby ensuring that they remain affordable for local residents. This move would not only benefit individual homeowners but also contribute to the overall health and stability of the community. By preserving these units as community housing, the county aims to prevent them from being snapped up by outside investors or converted into short-term rentals, which has been a growing concern in recent years.

The Eagle County Board of Commissioners, acting in their capacity as the Eagle County Housing and Development Authority, has approved a non-binding letter of intent with the sellers of the property. This marks the beginning of a complex and multifaceted process, one that will require careful negotiation and planning. As Tori Franks, the county's resiliency director, noted, "We are at the beginning of this journey," and the path ahead will undoubtedly be fraught with challenges. However, the potential rewards are well worth the effort, as this acquisition could provide a significant injection of affordable housing options into the local market.

One of the key aspects of this proposal is the planned partnership between the county and Vail Health, one of the region's largest employers. Under the terms of the proposed agreement, the county would purchase the 87 units and then master lease them back to Vail Health for a period of 30 years. Vail Health would, in turn, pay predetermined monthly rents to the county, which would be used to cover the annual bond payments. This innovative approach would not only help to preserve the existing tenant mix but also provide a stable source of revenue for the county. As Commissioner Tom Boyd observed, the purchase of the property is a "complicated" undertaking, but one that offers significant benefits for both the county and Vail Health.

The financial details of the proposal are equally impressive, with the county estimating the purchase price of the property to be around $69 million, plus additional transactional costs. To finance this acquisition, the county plans to issue bonds, which would be repaid over a period of 30 years using the rent paid by Vail Health. This approach would allow the county to leverage its housing authority tools without requiring any out-of-pocket expenses. As Franks noted, "We are looking at this as deploying a lot of the housing authority's tools, but no out of pocket dollars." This creative financing solution would enable the county to achieve its housing goals while minimizing the financial burden on taxpayers.

As the county moves forward with this proposal, it is clear that the acquisition of the Fox Hollow development has the potential to be a game-changer for the local housing market. By preserving these units as community housing, the county can help to ensure that the region remains an attractive and affordable place to live, work, and raise a family. As the bigger picture comes into focus, it is evident that this move is not just about providing housing; it is about building a stronger, more resilient community that benefits everyone. With its bold move to acquire the Fox Hollow development, Eagle County is taking a significant step towards addressing the housing affordability crisis and creating a brighter future for its residents.