Ownership and Preservation Program

Homeownership in Ketchum IS possible.

The Ownership and Preservation program is one of several programs that make living in Ketchum possible for those who live and work in the community. Through the program, the City of Ketchum pays incentives (up to $225,000!) to qualified households looking to buy a home in Ketchum, or those who currently own but need some extra cash. In exchange, a deed restriction is placed on the property that ensures only qualified locals—those working in Blaine County or who meet qualifying exceptions—can buy and occupy the home. The result, local workers can own a home and live in Ketchum below market-rate costs.

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Questions?

Email: [email protected]
Phone: 208.727.5080

What is the Ownership and Preservation Program? How does it work?

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 Vail InDEED, Summit County/Breckenridge Housing Helps, 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 their property. A deed restriction is an agreement that restricts the use of a property in some way. For this program, the deed restriction requires that the residence must be occupied by qualified local owners—those living and working full-time 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,” the program helps ensure that existing homes are preserved for housing locals instead.

This year, $1,000,000 has been designated for use in the program through a combination of developer-paid housing in-lieu funds and city General Fund end-of-year financial commitment.

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

Property must be located within 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 adult 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/businesses 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 previously 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 there is a limit on the combined net worth of adults in the household. Assets, less debts and liabilities, must be $516,320 or less, excluding retirement accounts.
No member of the household may own other developed residential real estate while participating in the program. A household may apply for the program if a member owns other residential real estate, but that other property must be disposed of prior to program participation.

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

Light Category Local Deed Restriction

With this restriction, participants receive 15% of a home’s value (up to $125,000). Appreciation earned on a light-restricted property will not be limited, and the housing unit may be sold in the future, at any price that another qualified household is willing to offer.

Appreciation-Capped Category Local Deed Restriction

This deed restriction option pays participants 30% of a home’s value, up to $225,000. An appreciation-capped property’s appreciation is restricted to an amount equal to the original value of the property when it entered the program (minus the city’s payment for the deed restriction), plus cost-of-living increases during the participant’s ownership (not to exceed an average of 3% annually) and non-luxury improvements.

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 may only be sold to another qualified household, and a new deed restriction with a 70-year term will be recorded at closing. This ensures that participating properties remain available to Ketchum locals long-term and maximizes the city’s investment in each property.

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 into 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.
Owners may rent a room to a qualified local roommate as long as the owner continues to also occupy the unit full-time. The owner may set the rent.

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.

Click here to review complete program policies.