OH YES, IN-DEED
Though Mammoth Lakes’ new housing manager framed it as simple administrative “streamlining,” a proposed overhaul of the Town’s deed-restricted homeownership rules could significantly shift who controls the town’s workforce housing.
The changes, scheduled for Town Council review next week, would tighten financial requirements for buyers, expand geographic eligibility, and, most importantly, transfer control of deed-restriction agreements from Eastern Sierra Community Housing (ESCH) to the Town itself.
ESCH Executive Director Patricia Robertson presented the proposal to the organization’s board on Monday.
Deed restrictions are legal provisions recorded on a property’s title that limit resale price and occupancy in order to keep homes affordable for households at specific Area Median Income (AMI) levels over time.
The proposed changes come as the Town increases its direct involvement in workforce housing. It recently completed its first deed-restricted ownership project at 60 Joaquin Street, a four-unit complex, and is preparing the third phase of the Parcel development, which will include a larger set of for-sale deed-restricted units.
Those projects give the Town greater leverage to take a more active role in a housing system that, for more than two decades, has been administered by ESCH, formerly Mammoth Lakes Housing.
Currently, ESCH is a party to resale agreements for roughly 100 deed-restricted homes. That role gives the organization authority to monitor compliance, exercise first right of refusal, and manage buy-backs using local revolving loan funds. First right of refusal allows ESCH to purchase a home before it is sold to another buyer; when it does so, it collects a 3% resale commission that is reinvested into housing programs.
Under the proposed changes, deed restrictions would instead be agreements directly between the Town and homeowners, with the Town holding first right of refusal – and the commission.
Existing homes would switch to the Town’s agreements upon resale, creating a mixed system that could last for decades.
The proposal prompted an extended discussion among ESCH board members about what the shift could mean for the organization’s long-term role. Town Housing Manager Marcus Sproll, who joined the Town in June, told the board the change is solely administrative and intended only to simplify transactions.
“I’ve been doing this for about 18 years or so, in a bunch of different settings,” he said. “Looking at other towns everywhere else I’ve worked, it’s really best practice for the government entity that is running a program or requiring the zoning to be a party to the agreement.”
Sproll said ESCH’s responsibilities would not fundamentally change, as the Town would continue to contract with the organization to administer and monitor housing programs.
But the timing is delicate. ESCH’s contract with the Town expired in June, and the organization is currently operating under a temporary extension while negotiating new terms.
“Part of our obligations and responsibilities in the Town’s contract would seemingly go away if we gave this responsibility up,” boardmember Brian D’Andrea said. “I’m not sure what the Town’s intentions are as to engaging with us going forward to manage this on their behalf.”
Robertson also cautioned that removing ESCH as a party to deed restrictions could limit the organization’s ability to enforce program rules and complicate the management of existing homes.
She said these issues have not yet been addressed in contract negotiations.
Beyond the political change, the proposal would also significantly alter who qualifies to buy and live in deed-restricted homes.
Under the new guidelines, buyers would face stricter financial requirements. The minimum down payment would increase from 1% to 3%, and, for the first time, the Town would cap maximum down payments at 50% of the purchase price.
New eligibility thresholds would include a minimum credit score of 640, a maximum back-end debt-to-income ratio of 50%, and cash reserve requirements for higher-income deed-restricted units.
Liquid assets would be capped at two-thirds of the purchase price, replacing a previous formula that converted excess assets into “imputed” income.
Prospective buyers would also be prohibited from owning any real property at the time of purchase. While current rules only bar ownership in Mono or Inyo counties, the new guidelines would require buyers to sell any property they own anywhere before completing a purchase.
At the same time, residency eligibility would expand. Instead of requiring employment within the Town of Mammoth Lakes, buyers could qualify by working anywhere in Mono County. The proposal would also allow retirees to remain in deed-restricted homes if they previously qualified and lived in the unit for at least five years before retiring.
Roommate rules would be modestly relaxed as well. While current deed restrictions prohibit renters except under hardship circumstances approved by ESCH, the proposed guidelines would allow one roommate with Town approval.
