The City of Ketchum, with administrative support from Blaine County Housing Authority, launched this pilot program on January 24, 2024 to help preserve homes in the city for local ownership and occupancy. It was inspired by similar locals-only deed restriction purchase programs used in mountain resort communities, such as the Vail InDEED, Live Park City, and Jackson/Teton County Preservation Program. Through the program, the city provides cash incentives (up to 15-30% of a home’s value) to current qualified Ketchum homeowners, or those purchasing a home in Ketchum, in exchange for recording a deed restriction on the property. A deed restriction is an agreement that restricts use of a property in some way. For this program, the deed restriction means the residence can only be occupied by qualified local owners—those living and working in Blaine County or who meet qualifying exceptions. With 60% of Ketchum’s housing stock being used as vacation homes or short-term rentals, or technically “vacant,” participation also helps ensure that more property is preserved for housing local residents instead.

The program is funded through the 0.5% for housing Local Option Tax (LOT) revenues, which was approved by Ketchum voters in May 2023. $1,000,000 has been designated for use in the pilot program over the next two years.

To participate in the program, the property and homeowner must meet the following eligibility requirements. Property owners will be required to submit an annual compliance review to Blaine County Housing Authority.

• Participants must own or purchase a property in Ketchum city limits.
• The property must be a single-family house, condominium, or townhome that is not already deed restricted or otherwise restricted for local occupancy or affordability.
• At least one non-dependent member of the household must be a qualified local, full-time employee (working a minimum of 1,500 hours a year in Blaine County for one or more organizations physically operating in the county). Current or potential Ketchum homeowners may also qualify if they are a retired Blaine County resident over the age of 65 who formerly worked full time in the county, have a disability, are a schoolteacher in Blaine County, actively serve in the military, or are self-employed and have a business that serves clients and customers in Blaine County.
• There are no household income limits to qualify, but the net worth of those in the household (assets less debts and liabilities) must be $470,000 or less, or $940,000 or less if the household includes persons 65 and above.
• No member of the household may own other residential real estate.

Program participants can choose one of two deed restriction options, which affects the incentive amount paid. Funds received can be used for any purpose, including but not limited to down payment and closing costs on the property.

A property’s value is determined by appraisal or sale price. The lesser of the two values is used for newly purchased and appraised properties. For existing homeowners, the city will order an appraisal of the property.

Duration and sales restrictions

An enrolled property’s deed restriction will last 70 years unless sold or transferred earlier. A deed-restricted property must be sold to another qualified household, and a new deed restriction and term will be recorded at closing.

Rental property and investment restrictions

• Due to limited program funds, properties used to rent to qualified locals are not eligible to participate in the program at this time. Expansion of the program to allow for rentals and investment properties may be considered in the future.
• Once a property is accepted in the program, no portion of the home may be used as a short-term or vacation rental and owners must occupy the unit full-time.
• No member of the household may own other developed residential real estate while participating in the program. One may apply for the program if a household member owns other residential real estate, but that other property must be disposed of prior to program participation.

The City of Ketchum suggests that all interested applicants consult with their financial or legal advisor about any tax or financial implications of participation in the Ownership and Preservation Program.  

The Housing Needs Assessment estimated that the City of Ketchum needs between 660-980 homes in the next 10 years to meet demand. The breakout of how demand was determined is described in the full results, available at button toward the bottom of the page. It is expected that this need could be met through a combination of new construction, preserved rentals, and converting existing homes into long-term rentals.

Additionally, for all of Blaine County (including Ketchum), approximately 4,700 to 6,400 new, preserved, or converted housing units will be needed over the next 10 years. This projection emphasizes why county-wide collaboration and housing efforts are critical to addressing the housing crisis.

Ketchum’s workforce primarily consists of low and middle-income households (under $45,355 per year or $23 per hour) that our local economy depends on. Sixty percent of local renters live in unaffordable housing, meaning they pay more than 30% of their gross/pre-tax income on housing costs. Compounding the problem, Ketchum lost 335 long-term rentals between 2010 and 2019. This is without accounting for pandemic acceleration when Ketchum’s population grew by 25% compared to the historical 1% annual growth. Low-income renters are the most impacted by the high cost of housing. Many low-income households and individuals are one emergency away from experiencing homelessness. A survey of over 1,100 participants who live or work in Blaine County found that 1% of our population is already experiencing homelessness.

Given the high housing sale and rental prices in Ketchum, market-rate housing is only affordable for upper-income households. Median (market) Ketchum rent is only affordable to households earning more than $107,000 annually ($100,000 for the County).  

Consistent themes throughout interviews, surveys, and open houses illustrate the breadth of housing crisis impacts throughout the Wood River Valley. Below are key themes of what we heard.

| Develop new and preservation pipelines

| Create ownership and preservation program

| Begin master planning on publicly owned lands

| Incentivize conversion of vacant/seasonal/short-term rentals to long-term rentals

| Increase development and occupation of Accessory Dwelling Units (ADUs)

| Continue to support Bluebird Village development

| Update code and process

| Propose tenant displacement and local discrimination ordinances

| Adopt interim ordinance to increase housing supply and require no net loss of units

| Provide displacement support

| Train case workers on fair housing and landlord-tenant law, and bring in a tenant advocate

| Create a housing navigation system

| Coordinate supportive services

| Mediation support ([email protected]; 208.314.1330)

| Create a database of philanthropic, state, and federal housing resources and write grants

| Coordinate philanthropic efforts and offer employer-sponsored options

| Update Housing Action Plan annually

| Launch county-wide coordination process with other jurisdictions and implementation partners

| Initiate bi-monthly check-ins with comparable ski area housing staff