Affordable Home Ownership Opportunities for Tahoe Truckee Workforce On The Horizon
WORKFORCE HOUSING IN THE TAHOE TRUCKEE AREA HAS BEEN A GROWING PROBLEM
The pinch for affordable housing for Tahoe Truckee’s workforce has been a legitimate problem for years. In my 17 years here I have seen drastic changes in the rental market and in the real estate market. From crazy ups to crazy downs and then up again, we all know the story to some degree of what the real estate market has been up to in the last 13+ years. The long-term rental market, which might be a little foggier to people, has grown increasingly tighter every year. There has been an very noticeable increase in demand to be in Tahoe, whether that for a vacation, for the winter months, or to be here full-time. Traffic that used to be insane just on those busy holiday weeks are now the norm on a regular weekend in April. The shoulder seasons have slowly gotten smaller. The cost of living has slowly crept higher. Wages have increased, but not on the same pace as the cost of living.
The Tahoe and Truckee workforce are suffering. It is extremely difficult to find a long-term rental, which you can now count on paying $2500+/mo for a small single-family home. For awhile I was saying it was easier to buy than it was to rent. Then 2020 happened. Many of the workforce have been in and out of work as hospitality and services have opened fully and then had to drop down again. To top that off for the workforce real estate in the area has had an absolutely neck-breaking, record breaking year. It has completely blown other years out of the water. The average single-family home in Truckee grew from $1.15 M in June to $1.54 in November! For single family homes priced under $1M the average grew from $684k to $771l in the same time period. That is a nearly $100k increase in 6 months!!!!! What?! So you can imagine that buying your first home in the area is nearly impossible just based on that without even looking at how many offers are being written on each listing and the drastically decreased winter inventory levels.
Insert Hopkins Village. Placer County has announced a new development to be built in Truckee’s Martis Valley. There will be 40 units (20 half-plexes) being built that will be sold only to the Tahoe Truckee workforce. They will all be sold for $550k with a $600/quarter HOA fee. All units are 3 bed, 2.5 bath, 1 car garage units. $550k!!!! And this is a home ownership opportunity! This is amazing! Up until this point in time all of the recent projects that are aiming to alleviate the workforce housing problem have been in the form of apartments for rent. This is the first home ownership opportunity that has been focused on meeting the workforce housing needs.To ensure that the homes will be sold to the Tahoe Truckee workforce there are eligibility requirements. They are as follows:
Household income below 180% of Area Median Income (see table below)
Work an average of at least 30 hours per week
Employment site is located within the Tahoe-Truckee Unified School District boundary
If you are interested in purchasing one of these homes in the Hopkins Village development, please fill out this interest form.
Fill out the interest form to be notified when the application process opens.
Gather all necessary information and documents to have all the application requirements ready by the time the application process opens. Applicants will be considered on a first come first serve basis.
Submit an applications once the application process opens. Interested buyers will need to submit the following documents with the application:
One month of most recent paystubs for each applicant in household
2019 (or 2020, if applicable) tax return for each applicant in household
Prequalification letter and 1008 form from a lender (Tri Counties Bank is the development’s preferred lender. Contact Lori Jayne at LoriJayne@tcbk.com)
Proof of funds (e.g. banks statements, retirement funds statements, gift letter, etc.)
Timeline for 2020-2021
Homes will be available to qualified applicants who have completed the application on a first-come, first-serve basis, beginning Feb. 15, 2021. Units will be constructed on a rolling basis beginning in 2021 until all 40 units are constructed.
Future Sale Requirements
The following requirements apply to the home during ownership:
During the first five years of ownership, the home can only be sold to another qualified owner who meets the employment and household income requirements.
After the first five years of ownership, the home can only be sold to another qualified owner who meets the employment requirements.