Real-Life Impact: Housing the Vail Workforce

CAR and Vail REALTOR® Donations are Boosting Organizations that Help

The Colorado Association of REALTORS® Foundation continues to show its commitment to supporting workforce solutions in the Vail Valley by granting $10,000 to the Eagle County Housing and Development Authority’s Eagle County Loan Fund (ECLF).

The ECLF, a down payment assistance program, has provided vital support for new homebuyers looking for homes they can afford in the Vail Valley.

Tex Asanti of Title Company of the Rockies was faced with the classic workforce housing problem - the search for a new rental. She found a condo listed for sale and was going to ask the owner to consider renting. However, a few friends encouraged her to buy versus rent.

“It was near the start of ski season, a tough time to find a rental,” remembers Asanti. “And here I am, trying to figure out the funds for a down payment. Honestly, to put it into perspective, coming up with a down payment is very similar to coming up with first, last, and deposit to rent." Asanti’s original plan was to refinance as quickly as possible. Her lender presented a different option: With at least $7,500, she could qualify for a Down Payment Assistance program. Asanti was guided to the Eagle County Loan program, which alleviated some of her stress about scraping together funds for a full down payment. She closed on her condo in November 2019 - never having to worry about losing her rental unit again.

“We know that locals and workers in mountain communities, including the Vail Valley, struggle to find long-term housing they can afford, and REALTORS® want to help. Our grant, which was funded by REALTORS® across the state, will specifically fund down payment assistance,” said CAR Foundation Executive Director Amy McDermott.

The CAR Foundation’s grant joins a generous $75,000 grant to ECLF from the Vail Board of REALTORS® and the Vail Multi-List Service. The ECLF program provides a loan to help with down payment and/or closing costs. The terms are unique in that there is no monthly repayment.

The loan is simply repaid when the home is resold, refinanced, or at the end of a 15-year term with minimal interest based on the equity appreciation gain of the home. For those who repay the loan within 24 months, there is no interest, only principal due. Eligible applicants can apply through their mortgage lender.

Creative Solutions Spurred by a Challenging Market

The COVID-19 pandemic spurred migration to mountain communities, straining inventory and driving real estate prices to record highs. Pricing in Eagle County increased approximately 30% during 2020 and 2021, a punishing increase to an already impacted community.

“Many local wages are lower than the actual cost of living in Eagle County,” according to Kimberly Williams, Executive Director of ECHDA. “Most households earn less than the median income needed to live comfortably. And our real estate market is driven by forces beyond our local economy.”

ECLF is one of several programs available to Eagle County workforce residents and is part of a comprehensive and growing plan to help locals overcome economic and housing market challenges beyond their control. According to the Eagle County Housing and Development Authority, over $7 million in down payment assistance loans have been issued since 1998, benefiting approximately 700 families and individuals.

REALTORS® Are Invested in Long-Term Workforce Housing Solutions

Vail REALTORS® take great pride and joy in finding locals their homes and appreciate and utilize the innovative programs available through Eagle County and towns like Vail and Avon. Association members understand that having a stable workforce, who can set down roots in the community, is vital to the local economy.

“I see these donations as both philanthropy and advocacy,” says Alex Griffin, Vail Board of REALTORS® Chair. “Philanthropy in donations and advocacy as a duty to take care of our workforce. This problem has been here for decades, and we continue to answer the need for workforce housing. Prices have gone up 30% in less than three years but there is still attainable housing. The VBR is a member community that wants to support and advocate for the local workforce. Investing in our community through the ECLF supports the quality of people who, in turn, comprise a quality community,” reflects Griffin. “If we want a quality experience for our resort guests, we need to invest in our quality of life for our workforce.”