Breckenridge considers new deed-restricted housing regulations after public official sale rumors: "outrageous lies"

The town of Breckenridge has mostly let people in deed-restricted homes choose who they sell their homes to, but that could change to a lottery system after recent allegations based on a public servant's sale of their deed-restricted home and rumors that there was a side deal that led to the choice of the buyer. 

A quick explanation so everyone is on the same page; a deed-restricted home simply means there are hurdles in place that someone needs to clear before they are allowed to buy a home. Common ones are the buyer needs to work a certain number of hours in town, needs to make under a certain amount of money as a household, or cannot re-sell the home for more than a very small appreciation compared to what they bought it for. 

That's where the allegations come in. Elizabeth Lawrence, chair of the Summit County Commissioners, was thrown into the spotlight when she decided to sell her deed-restricted home in the Wellington neighborhood. Lawrence has denied any sketchy business when it comes to the sale of her home, but one frustrated woman claimed Lawrence was auctioning off her shed as a way to inflate the sale price of the home, considering you can not raise the asking price for the house. The claim was that Lawrence was getting bids for $20,000 for the shed alone. 

The claim came from a woman during the public comment section of the Breckenridge Town Council meeting on Feb. 14, (public comment starts at 2:42:50).

CBS News Colorado Reporter Spencer Wilson sat down with her and asked her questions about the sale and the rumors about her home being sold.

"We did not work out a deal on the side ahead of time," Lawrence said. "That's what's continued to happen, we didn't do that."

"We wanted to make it as fair and open for anyone that wanted to put a bid in, and that's what we did," Lawrence said, firmly. "Little did we know that that would come with such intense scrutiny, and in hindsight, had we done what most of our fellow neighbors have done when they've sold their home, which is to do it underhanded and behind closed doors."

Lawrence insinuated she would not have been thrown into the limelight for her deal. That being said, she reaffirmed she would not change how she dealt with the sale, as she said it was the right thing to do.

Lawrence said she is disappointed by what she said were "outrageous lies" coming from people she considered friends, but expected to be under a microscope considering she is a public figure, especially one who is championing the effort to create more affordable housing in Summit County. 

Still, that woman's words shook the city of Breckenridge and have leaders considering ways to change the process in which people sell deed-restricted homes when there's such a demand for them. Laurie Best, Breckenridge's housing expert, said it's partially because of a "missing middle." People used to be able to buy into deed-restricted homes, then graduate to homes without deed restrictions. Now, Best said, the average home price in town is well into the multi-millions, which means people who get deed-restricted housing stay there. That means the turnover of homes is far slower, and the desperation for people to get in is much higher, which leads to incentives for people to bend the rules to become the person chosen.

"I would say there is such desperation and need for housing, um, that people will be people," Best said. "They'll do whatever they can do to better their chances of getting into the restricted housing because if you get into the restricted housing, you've won the lottery."

Best said she's very proud of what they've been able to accomplish with deed restrictions in Breckenridge, and would rather focus on the positive benefits they have been able to produce thanks to their manipulation, keeping working-class families in town and preventing a "resort getaway ghost town" situation, or at least fighting against it. 

The consideration of a mandated lottery system has pros and cons, according to Best. She appreciates that the lottery would take away the personal choice of the seller and therefore any incentive for them to pick one person over another. But she also appreciates the thoughtful consideration that goes into making sure the person who should be in our community is the one who is chosen, which would not always happen with a lottery. 

"I'm not sure at the end of the day whether it gets the best person into that unit," Best said. "I think we really, really want to evaluate the pros and cons." 

Best said they do already have several checks in place to try to catch any shifty side-dealings like checking the deed of sale or any prices listed for furniture left behind. She said there is also jurisdiction to fine people who do not follow the rules, although they would have to be caught in order to be fined.