A Deed Restriction is a legally binding document that is recorded against a property detailing how a property may be used, owned and/or transferred. The City’s primary goal for affordable and attainable Deed Restricted properties is to ensure that members of the workforce necessary to maintain our world-class tourism destination and key members of a complete community are able to live here. Deed Restricted properties are provided at a considerable discount to current market pricing. Therefore, the purchase of a Deed Restricted property is basically entering into partnership with the City to ensure that the affordability and physical viability of the unit is preserved well into the future.
Deed Restrictions for affordability include the following:
- Owners must live in the property full-time as their primary residence.
- There is a limit on annual appreciation of 3% with no guarantee that a seller will be able to garner that amount when they sell.
- Allowed capital improvements are limited to an approved list and the maximum value that can be added to the resale value is limited to 5% of the purchase price.
- The City holds a first option to purchase when owner chooses to sell.
- If the City doesn’t exercise its option to purchase, the property must be sold to a qualified household, reviewed and approved by the City’s Housing Office. The City’s Housing Office will assist with the sale process.
- Property may not be transferred via inheritance or deed in any form.
- Property may not be incorporated into a Trust of any kind.
- Home may not be rented without prior consent of the City Housing Office which occurs in very limited circumstances.
- Owners may rent an extra bedroom to a roommate with prior approval of City Housing Office.
- Owners may not own other property while owning the Deed Restricted unit.
- Annual compliance reports are due to the City’s Housing Office in late spring of each year (forms are provided by the City’s Housing Office).