Aspen, Colorado – May 11, 2023 – The Aspen-Pitkin County Housing Authority is launching a home Rightsizing Pilot Program for those living in deed-restricted housing who want to swap units based on need.
It allows for the purchase and sale of deed-restricted properties between two owners as co-applicants to increase the number of bedrooms available to a qualified owner of a smaller property and decrease the number of bedrooms available to the owner of a larger property.
The APCHA Board decided that it is in the best interests of the affordable housing program to authorize a Rightsizing Program to determine if it would improve maximum utilization of deed-restricted ownership units by matching household sizes and bedroom numbers to reflect the changes that occur in family size over time.
“Based on a survey conducted in 2022 of owners in the APCHA program, we believe there is interest,” said Matthew Gillen, Executive Director of APCHA. “The goal of rightsizing is to maximize all of the bedrooms in APCHA’s deed-restricted units. We hope it’s successful, because if it is we are housing more people and utilizing a taxpayer-based program at greater efficiency.”
“Rightsizing” means the voluntary purchase and sale of deed restricted properties between two owners as co-applicants for the purpose of increasing the number of bedrooms available to a qualified owner of a smaller property and decreasing the number of bedrooms available to the owner of a larger property.
APCHA will not identify or match co-applicants. APCHA will review applications for rightsizing on a first come, first serve basis. Applications that are within the Aspen Village Subdivision or the Lazy Glen Subdivision are exempt from this limitation.
To submit an application for righsizing, complete the form at https://forms.gle/MyEoAJMckZFKAiEx9
Rightsizing Pilot Program:
Under this pilot program, the following criteria must be met:
a. Applications for Rightsizing. Owners of deed restricted properties in APCHA’s inventory may apply to APCHA for the approval of an exchange of ownerships for the purpose of “rightsizing” the use and occupancy of their properties outside the bid process in accordance with the following requirements.
b. “Rightsizing” means the voluntary purchase and sale of deed restricted properties between two owners as co-applicants for the purpose of increasing the number of bedrooms available to a qualified owner of a smaller property and decreasing the number of bedrooms available to the owner of a larger property.
c. Co-applicants. Owners wishing to right size their properties are responsible for locating and obtaining the agreement of co-applicants. APCHA is not responsible for identifying matching co-applicants.
d. Review and Approval. APCHA will review and approve (or disapprove) applications for rightsizing on a first come first serve basis. No more than five will be approved without further Board approval. Applications that are wholly within the Aspen Village Subdivision and wholly within the Lazy Glen Subdivision are exempt from this limitation.
e. Colorado law. All approved exchanges must comply with all applicable requirements of Colorado law for the purchase and sale of residentials real estate, including without limitation purchase and sale contracts and warranty deeds.
f. Information requirements. Applications for the approval of a right sizing trade shall be submitted to APCHA on forms as determined by APCHA staff. Coapplicants shall submit all information reasonably required by APCHA staff.
g. Eligibility and qualification requirements. Except as modified by this Resolution, all co-applicants must meet the eligibility and qualification requirements of Part III of the APCHA Regulations.
h. Purchase and sale policies. All transactions which are approved in accordance with these provisions are exempt from the requirements for listing a property for sale, bid submissions, and the lottery process. All other requirements of Part V of the APCHA Regulations shall apply, including without limitation, requirements applicable to inspections.
i. Maximum sales price. The maximum sales prices identified in an applicable purchase and sales contract shall be determined as of the date of such contract. The final sales price shall be modified in accordance with Part V Section 5 of the APCHA Regulations and the negotiations of the parties.
j. Deed Restrictions. At the time of closing, all parties must execute new affordable housing deed restrictions on forms approved by APCHA.
k. Unit Categories. An applicant may qualify for a new unit that is the same as the currently owned unit or one category above or below such unit. (Example: the owner of a category 3 unit may qualify for an exchange to obtain a category 2, 3, or 4 unit.)
l. Asset determination. For the purposes of determining assets in accordance with Part III, Section 2.B.4.c, retirement funds (401K, 457, IRA, etc.), shall not be included for an applicant who is downsizing.
m. Asset determination relating to existing residence. If the household downsizing has satisfied their mortgage, the net of the current value of said property minus the unit that is being purchased will determine the asset in determining the household’s category.
n. Occupancy – dependents. For the purpose of determining occupancy, a buyer who is upsizing shall include all dependents who are age 16 or less as of the date of closing. A buyer who is downsizing shall include all dependents who are 19 or less as of the date of closing.