Hi,
Yes, VP9 supports multi-resolution encoding but there are restrictions due to the design limitations of the 8-tap scaling filters.
In particular a reference frame may only be scaled in the range (x0.5, x16).
So in your example, assuming that frame 1 specifies frame 0 as a reference frame, the required vertical scaling ratio would be 260 / 720 which is less than 0.5 and invalid in VP9. It is up to the encoder to ensure that reference frames are used in such a way that the normative scaling limits are observed.
Regards,
Adrian