YES Deed Restriction Program

No appreciation cap, no income cap and no household size requirement on deed restrictions!

Help the Town of Mountain Village add more deed-restricted inventory to the market and deed restrict your property.

The Your Equity Support (YES) Incentive Program, the Town’s new deed-restriction purchase program, is designed to incentivize those purchasing property in Mountain Village, as well as current homeowners, to deed restrict their property to expand the permanent pool of housing for full-time residents and promote affordability to purchase a home in Mountain Village.

How does the YES Program work?

The YES Program is a deed-restriction purchase program whereby the town will pay homeowners a portion of the home's value (15-20% of the appraised value of the property, not to exceed $200,000) in exchange for placing a deed restriction on the property. This would require that the home be occupied by people working 1,560 hours or more per year within the R-1 School District Boundary. These occupants can either be owners or long-term renters.

Frequently Asked Questions

Learn more about the details of this program below.

Learn more about our deed-restricted purchase program

What are the incentive details?

YES Incentive Program, the Town’s new deed-restriction purchase program, is created to incentivize homeowners and real estate buyers/sellers to deed restrict their property to help expand the permanent pool of housing for full-time residents and promote affordability to purchase a home in Mountain Village.

No appreciation cap, no income cap and no household size requirement on deed restrictions!

Who is eligible?

Anyone who is employed 1,560 hours or more per year within the R-1 School District boundary who owns a property in the Mountain Village
A business that owns property within Mountain Village that operates within the R-1 School District boundary and rents its property to its employees who are also employed within the school district boundary.

What are the terms of the deed restriction?

Under the deed restriction program, there is no price appreciation cap. There is no ability to short-term rent the unit. The owner may qualify to live in the unit or rent the unit to a qualified renter.

What are the deed-restriction price parameters?

The Town of Mountain Village has set the market for a deed restriction at 15-18 percent of a home’s value with a transaction cap of $200,000.

How is the value of the deed restriction determined?

After applying to the program, the applicant negotiates with the Town as to the value of the deed restriction. Once a price is determined, the applicant and the Town execute a Deed Purchase Agreement for the amount of the deed restriction as well as the deed restriction.

As an investor can I rent my property?

The owner may occupy the home or rent it to other individuals long-term so long as one or more R-1 School District employees occupy the residence. However, short-term rentals and use of the property as a second home is prohibited.

As a business owner, am I eligible to purchase a property?

Yes, as long as your business is located within the R1 School District. You may rent to your employers.

Can I sell my property once it is deed restricted?

The property may not be sold or otherwise transferred to anyone other than an employee in the Telluride R1 School District or a business located in the school district renting employees in the R1 School District. The seller must notify the Town it intends to sell its deed-restricted unit, and the Town must confirm the proposed buyer is eligible to purchase under the terms of the deed restriction. It is important to remember the deed restriction survives the transfer and remains with the property forever.

Can I apply for funding on multiple properties?

One property a year per individual or business is the current policy regarding the program. If additional properties are requested, this will go to Town Council for consideration.

What if I, as the owner, default?

An owner is in default under the deed restriction in the event the owner conveys the property to an individual not eligible to own the property under the deed restriction, transferring the property prior to obtaining the Town’s certification of the transfer, failing to rent the property in accordance with the deed restriction or failing to make applicable mortgage payments. In the event Staff finds an owner in default under the deed restriction, the owner has sixty-five (65) days to cure the default, and may appeal to Town Council. The Town may pursue specific performance and other remedies at law in the event of default, and the owner will be subject to liquidated damages of $300 for each day the owner is in violation of the deed restriction.

In the event an owner defaults on their mortgage and the lender initiates foreclosure proceedings, the Town may make payments on behalf of the owner to avoid foreclosure. In the event of foreclosure, the deed restriction will remain in place, except if the property is subject to a HUD loan, in which case, pursuant to federal rules and regulations, the deed restriction is extinguished. However, the Town will have the option to purchase the property thirty (30) days after the issuance of the public trustee’s deed.

Can I purchase raw land with the YES program funds?

You can propose to purchase raw land with YES program funds in exchange for a deed restriction on the property. However, the town feels you can leverage more funding in the circumstance when you build a free-market unit or duplex and then request YES funds to deed restrict a unit.

Can I deed restrict a property with a right of first refusal?

No. The Town cannot record a deed restriction on rights of first refusal.

I just applied for the program, what happens next?

Once the town receives an application, the YES review committee will meet. It is the committee’s goal to meet within a week of receipt of an application. Once the committee meets, the town will contact you with either a proposed offer to purchase the deed restriction, a request for additional information or an indication the committee does not believe pursuing a deed restriction on the subject property is appropriate.

YES Deed Restriction Program

No appreciation cap, no income cap and no household size requirement on deed restrictions!

How does the YES Program work?

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