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Vail City Zoning Code

CHAPTER 13

EMPLOYEE HOUSING

§ 12-13-1 PURPOSE.

   The town’s economy is largely tourist based and the health of this economy is premised on exemplary service for Vail’s guests. Vail’s ability to provide such service is dependent upon a strong, high quality and consistently available work force. To achieve such a work force, the community must work to provide quality living and working conditions. Availability and affordability of housing plays a critical role in creating quality living and working conditions for the community’s work force. The town recognizes a permanent, year round population plays an important role in sustaining a healthy, viable community. Further, the town recognizes its role in conjunction with the private sector in ensuring housing is available.
(Ord. 9(2007) § 1)

§ 12-13-2 APPLICABILITY.

   (A)   The requirements of this chapter shall be in addition to the requirements set forth in each zone district where employee housing units (EHUs) are permitted or required, subject to subsection (C) of this section.
   (B)   Where the provisions of this chapter conflict with the provisions of any other chapter, the provisions of this chapter shall control, subject to subsection (C) of this section.
   (C)   This chapter shall not apply to any EHU constructed on or after May 1, 2007, in any zone district that is subject to the requirements of Chapter 23 or 24 of this title.
(Ord. 9(2007) § 1)

§ 12-13-3 GENERAL REQUIREMENTS.

   (A)   Deed restriction, occupancy limitations and reporting requirements - Types I, II, III and V.
      (1)   No EHU shall be subdivided or divided into any form of timeshare, interval ownerships or fractional fee.
      (2)   For EHUs which are required to be leased, they shall only be leased to and occupied by tenants who are full-time employees who work in Eagle County. An EHU shall not be leased for a period less than 30 consecutive days. An EHU shall be continuously rented and shall not remain vacant for a period to exceed three consecutive months.
      (3)   Thirty days prior to the transfer of a deed for an EHU, the prospective purchaser shall submit an application to the Administrator documenting that the prospective purchaser meets the criteria set forth herein and shall include an affidavit affirming that he or she meets these criteria.
      (4)   No later than February 1 of each year, the owner of an EHU shall submit a sworn affidavit on a form provided by the town to the Community Development Department containing the following information:
         (a)   Evidence to establish that the EHU has been occupied throughout the year by an employee;
         (b)   The rental rate;
         (c)   The employer; and
         (d)   Evidence to demonstrate that at least one tenant residing in the EHU is an employee.
      (5)   The deed restriction setting forth the provisions of this subsection (A) shall be provided by the town. Said deed restriction shall run with the land and shall not be amended or terminated without the written approval of the Vail Town Council. Said restriction shall be recorded by the town at the Eagle County Clerk and Recorder’s office prior to the issuance of a certificate of occupancy.
   (B)   Development standards.
      (1)   No structure containing an EHU shall exceed the maximum GRFA permitted in this title except as specifically provided herein.
      (2)   All trash facilities shall be enclosed.
      (3)   All surface parking shall comply with Chapter 11 of this title.
      (4)   Each EHU shall have its own entrance. There shall be no interior access from any EHU to any dwelling unit it may be attached to.
      (5)   An EHU may be located in, or attached to, an existing garage (existing on or before April 18, 2000, and whether located in a required setback or not), provided that no existing parking required by this code is reduced or eliminated. A Type I EHU of 500 square feet or less of GRFA may be considered for physical separation from the primary unit, if it is constructed in conjunction with a two car garage and is otherwise compatible with the surrounding properties, does not have an adverse impact on vegetation and does not dominate the street. The Design Review Board shall review such requests for separation.
      (6)   All EHUs must contain a kitchen or kitchenette and a bathroom.
      (7)   Occupancy of an EHU shall be limited to the maximum of two persons per bedroom.
   (C)   Application requirements.
      (1)   Applicants for a conditional use permit for the purpose of constructing EHUs shall not be required to pay a conditional use permit application fee or design review application fee.
      (2)   A development review application for a conditional use permit for the purpose of constructing EHUs is subject to review and approval by the Planning and Environmental Commission as provided in Chapter 16 of this title.
      (3)   EHU applications which do not require a conditional use permit shall be reviewed by the Department of Community Development subject to a design review application.
      (4)   A development review application for a Type II EHU shall include the signatures of all owners of the property (i.e., both sides of a duplex) or there shall be a letter accompanying the application from all owners agreeing to the addition of an EHU. Applications will not be accepted unless this provision is met.
      (5)   Any existing legal nonconforming dwelling unit in the town may be converted to an EHU administratively by the town without obtaining a conditional use permit. Dwelling units and lock off units which exist as of the date hereof but which are nonconforming with respect to density and GRFA may be converted to a conforming EHU administratively by the town, as long as they otherwise comply with the development standards and parking requirements found herein and comply with the town’s Building Code requirements. Upon being converted to an EHU per this section, such dwelling unit shall be considered a legally conforming EHU and shall be governed by all requirements of this chapter.
   (D)   Enforcement. All EHUs governed by this chapter shall be operated and maintained in accordance with this title. Failure to do so may result in enforcement proceedings in a court of competent jurisdiction and in accordance with Chapter 3 of this title.
(Ord. 9(2007) § 1; Ord. 6(2024) § 6)

§ 12-13-4 REQUIREMENTS BY EMPLOYEE HOUSING UNIT (EHU) TYPE.

EHU
Zoning Districts Permitted By Right
Ownership/
Transference
Additional GRFA
Additional Site Coverage/
Reduced Landscape Area
Garage Credit/Storage Requirement
Parking
Minimum/
Maximum GRFA of an EHU
Density
EHU
Zoning Districts Permitted By Right
Ownership/
Transference
Additional GRFA
Additional Site Coverage/
Reduced Landscape Area
Garage Credit/Storage Requirement
Parking
Minimum/
Maximum GRFA of an EHU
Density
Type I
Primary/
secondary
residential,
Two-family residential
 
(Only on lots less than 14,000 sq. ft. in size)
The EHU may be sold or transferred separately
The EHU is entitled to an additional 550 sq. ft. GRFA deduction
Site coverage: The site is entitled to an additional 5% of site coverage for the EHU
 
Landscape area: The site is entitled to a reduction of landscape area by 5% (reduced to 55% of site area) for the EHU
Allowed 300 sq. ft. of garage area per enclosed vehicle space at a maximum of 2 parking spaces (600 sq. ft.)
 
All units not constructed with a garage shall be required a minimum 75 sq. ft. of storage area in addition to normal closet space. This 75 sq. ft. shall be a credit for storage only
Per Chapter 10 of this title as a dwelling unit
N/A
The EHU is allowed as a second unit on the property
Type II
Single-family residential,
Two-family residential,
Primary/
secondary residential
 
Agriculture and open space
The EHU shall not be sold or transferred separately from the unit it is associated with
The EHU is entitled to an additional 550 sq. ft. GRFA deduction
N/A
Allowed 300 sq. ft. of additional garage area for the EHU
 
All units not constructed with a garage shall be required a minimum 75 sq. ft. of storage area in addition to normal closet space. This 75 sq. ft. shall be a credit for storage only
Per Chapter 10 of this title as a dwelling unit
300 sq. ft. minimum and 1,200 sq. ft. maximum
The EHU is allowed as a third unit on property
Type III
Residential
cluster
Low density
multiple-family
Medium density
multiple-family
High density
multiple-family
Vail village
townhouse
Public
accommodation
Commercial core 1
Commercial core 2
Commercial core 3
Commercial
service center
Arterial business
Heavy service
Lionshead Mixed
Use 1
Lionshead Mixed
Use 2
Public
accommodation 2
Ski base/recreation
Ski base/recreation
2
Special
development
district
Parking district
General use
The EHU may be sold or transferred separately
The EHU is excluded from the calculation of GRFA
N/A
N/A
Per Chapter 10 of this title as a dwelling unit
A. Dwelling unit: 300 sq. ft. minimum and 1,200 sq. ft. maximum
 
B. Dormitory unit: 200 sq. ft. minimum for each person occupying the EHU
The EHU is excluded from the calculation of density
Type IV
Any dwelling unit may be designated and deed restricted as a Type IV EHU, unless already designated as an EHU
The EHU may be sold or transferred separately
N/A
N/A
N/A
Per Chapter 10 of this title as a dwelling unit
N/A
The EHU is calculated as density
Type IV-CL (commercial linkage mitigation unit)
Any dwelling unit may be designated and deed restricted as a Type IV-CL EHU, unless already designated as an EHU
The EHU may be sold or transferred separately; the EHU shall be linked to a specific commercial linkage employee housing mitigation requirement
N/A
N/A
N/A
Per Chapter 10 of this title as a dwelling unit
Per Chapter 23, “Commercial Linkage”, of this title
The EHU is calculated as density
Type IV-IZ (inclusionary zoning mitigation unit)
Any dwelling unit may be designated and deed restricted as a Type IV-IZ EHU, unless already designated as an EHU
The EHU may be sold or transferred separately; the EHU shall be linked to a specific inclusionary zoning employee housing mitigation requirement
N/A
N/A
N/A
Per Chapter 10 of this title as a dwelling unit
Per Chapter 24, “Inclusionary Zoning”, of this title
The EHU is calculated as density
Type V
Hillside residential
The EHU shall not be sold or transferred separately from the unit it is associated with
N/A
N/A
N/A
Per Chapter 10 of this title as a dwelling unit
1,200 sq. ft. maximum
The EHU is allowed as a second unit on the property
Type VI
Community Housing-1, Community Housing-2, Community Housing-3
Shall not be subdivided or divided into any form of timeshare, interval ownership or fractional fee unit
N/A
N/A
N/A
As permitted by the zone district
N/A
N/A
Type VII-CL (commercial linkage mitigation unit)
High density
multiple-family
Community Housing-1, Community Housing-2, Community Housing-3
Public
accommodation
Commercial core 1
Commercial core 2
Commercial core 3
Commercial
service center
Arterial business
Lionshead mixed
use 1
Lionshead mixed
use 2
Public
accommodation 2
Ski base/recreation
Ski base/recreation
2
Special
development
districts
Parking district
General use
The EHU may be sold or transferred separately. The EHU shall be linked to a specific commercial linkage employee housing mitigation requirement
The EHU is excluded from the calculation of GRFA
N/A
N/A
Per Chapter 10 of this title as a dwelling unit or a parking management plan per Chapter 23, “Commercial Linkage”, of this title
Per Chapter 23, “Commercial Linkage”, of this title
The EHU is excluded from the calculation of density
Type VII-IZ (inclusionary zoning mitigation unit)
High density
multiple-family
Community Housing-1, Community Housing-2, Community Housing-3
Vail Village
townhouse
Public
accommodation
Commercial core 1
Commercial core 2
Commercial core 3
Commercial
service center
Arterial business
Lionshead mixed
use 1
Lionshead mixed
use 2
Public
accommodation 2
Ski base/recreation
Ski base/recreation
2
Special
development
districts
Parking district
General use
The EHU may be sold or transferred separately The EHU shall be linked to a specific inclusionary zoning employee housing mitigation requirement
The EHU is excluded from the calculation of GRFA
N/A
N/A
Per Chapter 10 of this title as a dwelling unit or a parking management plan Per Chapter 24, “Inclusionary Zoning”, of this title
Per chapter 24, “Inclusionary Zoning”, of this title
The EHU is excluded from the calculation of density
 
(Ord. 12(2008) § 25; Ord. 2(2012) § 6; Ord. 19(2023) § 2; Ord. 6(2024) § 7)

§ 12-13-5 EMPLOYEE HOUSING UNIT DEED RESTRICTION EXCHANGE PROGRAM.

   (A)   Purpose. The purpose of this section is to provide occupied livable, affordable employee housing units within the Town of Vail through the establishment of an employee housing unit deed restriction exchange program. The exchange program allows the Town Council to release a deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction on another dwelling unit and/or a fee in lieu payment made to the Town of Vail.
   (B)   Applicability. The program established under this section applies to existing employee housing units. This shall not apply to any existing employee housing unit that is already price appreciation capped or any employee housing unit established to meet the on site employee mitigation requirements of Chapter 23, “Commercial Linkage”, or Chapter 24, “Inclusionary Zoning”, of this title or as part of an approved development plan.
   (C)   Definitions. For the purpose of this section:
      COMMERCIAL JOB CORE. Those areas located south of Interstate 70, east of the intersection of Forest Road and South Frontage Road, north of Vail Mountain, and west of the Town of Vail soccer fields on Vail Valley Road, as further defined by exhibit A of this section.
 
      EXCHANGE EHU. The existing nonprice appreciation capped employee housing unit or other unit with an employee housing deed restriction that is being proposed to have the deed restriction released as part of this program.
      PROPOSED EHU. The existing, non-deed restricted dwelling unit that is being proposed to receive an employee housing deed restriction as part of this program.
   (D)   General requirements. The Town Council may approve the removal of an employee housing deed restriction from an existing employee housing unit in exchange for the placement of an employee housing deed restriction, and/or the payment of a fee in lieu, as described in subsection (D)(5) of this section.
      (1)   Exchange EHU requirements.
         (a)   The exchange EHU shall not be part of any employee housing project developed or deed restricted (in part or in whole) by the Town of Vail.
         (b)   The exchange EHU shall not be part of any on site employee housing mitigation required by inclusionary zoning, commercial linkage or as part of an approved development plan.
         (c)   The property that includes the exchange EHU shall comply with the prescribed development standards (density controls including GRFA and number of units, site coverage, landscaping and parking requirements and the like), as outlined in the applicable zone district section of this title, upon exchange of the deed restrictions.
      (2)   Proposed EHU requirements.
         (a)   The proposed EHU(s) shall be located within the Town of Vail.
         (b)   The proposed EHU(s) shall be within a homeowners’ association that does not preclude deed restricted units, does not have a right of first refusal, does not have right to approve the sale or the sale contract, or have any other requirements deemed to be similarly restrictive by the Administrator.
         (c)   The proposed EHU shall comply with the minimum size requirements shown in Table 13-2 of this section.
 
Table 13-2
Minimum Size of Proposed EHUs
Type Of Unit
Minimum Size (GRFA)
Studio
438 square feet
1 bedroom
613 square feet
2 bedroom
788 square feet
3+ bedrooms
1,225 square feet
 
         (d)   The proposed EHU shall contain a kitchen facility or kitchenette and a bathroom.
         (e)   The property on which the proposed EHU is located shall comply with Chapter 10, “Off-Street Parking And Loading”, of this title.
         (f)   The proposed EHU shall have its own entrance. There shall be no interior access from the proposed EHU to any dwelling unit to which it may be attached.
      (3)   Exchange rate for proposed EHUs.
         (a)   If the exchange EHU(s) is within the commercial job core and the proposed EHU(s) is also within the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two times the gross residential floor area (GRFA) of the exchange EHU.
         (b)   If the exchange EHU is within the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of three times the gross residential floor area (GRFA) of the exchange EHU.
         (c)   If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is inside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of one and one-half times the gross residential floor area (GRFA) of the exchange EHU.
         (d)   If the exchange EHU is outside of the commercial job core and the proposed EHU(s) is outside of the commercial job core, the gross residential floor area (GRFA) of the proposed EHU(s) shall be a minimum of two times the gross residential floor area (GRFA) of the exchange EHU.
      (4)   No credit given. If the gross residential floor area (GRFA) of the proposed EHU(s) is in excess of the minimum required gross residential floor area (GRFA) as set forth in subsection (D)(3) of this section, the additional gross residential floor area (GRFA) shall not be eligible for use as any form of future credit or for the commercial linkage or inclusionary zoning employee housing mitigation banks established by §§ 12-23-7 and 12-24-7 of this title.
      (5)   Fee in lieu. The applicant may provide a fee in lieu payment to the Town of Vail for any fractional portion of the required square footage less than 438 square feet not provided by a proposed EHU, if the proposed EHU does not fulfill the required amount of calculated square footage.
         (a)   The Town Council at its sole discretion may accept fee in lieu payment for the full required square footage only if the exchange EHU was approved prior to July 22, 1994, and has a deed restriction that includes the language stating “if the unit is rented, it shall be rented only to tenants who are full-time employees...”.
         (b)   The fee in lieu calculated amount shall be paid after approval of the application by the Town Council, but prior to recording of the deed restriction release. The fee shall be based upon the current fee structure in place at the time of approval. Early payment of the fee in lieu shall not be accepted prior to approval. The approval for deed restriction release shall sunset one year from the date of approval and any fees paid are nonrefundable.
         (c)   The town shall use monies collected from fees in lieu to provide incremental new employee housing units.
 
Existing EHU square feet x inclusionary zoning fee = fee in lieu payment
 
   (E)   Fees. The Town Council shall set an application fee schedule sufficient to cover the cost of town staff time and other expenses incidental to the review of the application. The fee shall be paid at the time of the application, and shall not be refundable.
   (F)   Review process.
      (1)   Submittal requirements. The Administrator shall establish the submittal requirements for an employee housing deed restriction exchange application. A complete list of the submittal requirements shall be maintained by the Administrator and filed in the Community Development Department. Certain submittal requirements may be waived and/or modified by the Administrator and/or the reviewing body if it is demonstrated by the applicant that the information and materials required are not relevant to the proposed exchange. The Administrator and/or the reviewing body may require the submission of additional materials if deemed necessary to properly evaluate the application.
      (2)   Review procedures.
         (a)   Administrator review. The Administrator shall review the application for completeness and compliance with this section, and shall make a determination of completeness and compliance with this section within 14 days of application submittal. Should the Administrator deem that the application is incomplete or not in compliance with this section, the Administrator shall deny the application. Should the Administrator deem the application is both complete and in compliance with this section, the Administrator shall forward the application for review by the Vail Local Housing Authority.
         (b)   Vail Local Housing Authority review. The review of a proposed employee housing deed restriction exchange application shall be held by the Vail Local Housing Authority at a regularly scheduled meeting. A report of the Community Development Department staff’s findings and recommendations shall be made at the formal hearing before the Vail Local Housing Authority. Within 20 days of the closing of a public hearing on a proposed amendment, the Vail Local Housing Authority shall act on the application. The Vail Local Housing Authority may recommend approval of the application as initiated, may recommend approval with such modifications as it deems necessary to accomplish the purposes of this title, or may recommend denial of the application. The Vail Local Housing Authority shall transmit its recommendation, together with a report on the public hearing and its deliberations and findings, to the Town Council.
         (c)   Town Council review. Upon receipt of the report and recommendation of the Vail Local Housing Authority, the Town Council shall set a date for hearing within the following 30 days. Within 20 days of the closing of a public hearing on the application, the Town Council shall act on the application. The Town Council shall consider but shall not be bound by the recommendation of the Vail Local Housing Authority. The Town Council may approve, either in accordance with the recommendation of the Vail Local Housing Authority or in modified form, or the Town Council may deny the application.
         (d)   Appeal. Administrator and Town Council decisions may be appealed in accordance with the provisions in § 12-3-3, “Appeals”, of this title.
      (3)   Criteria and findings.
         (a)   Criteria. Before acting on an employee housing deed restriction exchange application, the Vail Local Housing Authority and Vail Town Council shall consider the following criteria with respect to the application:
            1.   The proximity and accessibility of the proposed EHU(s) to the commercial job core and public transportation;
            2.   The size of the proposed EHU(s) in relation to the minimum employee housing unit sizes established for commercial linkage mitigation in § 12-23-3 of this title;
            3.   The effect of any homeowners’ association dues or maintenance fees imposed upon the proposed EHU(s) on the affordability of the proposed unit for an employee;
            4.   The correlation between any homeowners’ association fees imposed upon the proposed EHU(s) and the services and amenities provided by the homeowners’ association;
            5.   The extent to which the exchange is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town;
            6.   The extent to which the exchange presents a harmonious, convenient, workable relationship among land uses consistent with municipal development objectives; and
            7.   The extent to which the exchange provides for the growth of an orderly viable community and serves the best interests of the community as a whole.
         (b)   Necessary findings. Before recommending and/or granting an approval of an employee housing deed restriction exchange application, the Vail Local Housing Authority and the Vail Town Council shall make the following findings with respect to the application:
            1.   The application meets the general requirements of subsection (D) of this section;
            2.   The application is consistent with the applicable elements of the adopted goals, objectives and policies outlined in the Vail Comprehensive Plan and is compatible with the development objectives of the town;
            3.   The application furthers the general and specific purposes of the zoning regulations, § 12-1-2 of this title, and the employee housing regulations, § 12-13-1 of this chapter; and
            4.   The application promotes the health, safety, morals and general welfare of the town and promotes the coordinated and harmonious development of the town in a manner that conserves and enhances its natural environment and its established character as a resort and residential community of the highest quality.
(Ord. 31(2008) § 1; Ord. 10(2011) §§ 1, 2, 3, 4; Ord. 23(2016) § 1)