Summary of Programs

Helping More People Find a Way Home

The City of Boulder is committed to making a home in our community available to a variety of people – including those who could not otherwise purchase a home in today’s housing market. That’s where the Boulder Division of Housing comes in. We offer opportunities for homeownership to those with low and moderate incomes – from down payment assistance on market rate homes to homes that must be sold at affordable prices.

Please note: Asset limits will increase effective 1/1/2009 the information below reflects the increase

To qualify for all programs:

• Income cannot exceed the limit stated for each program or for each available property (see chart below).
• Applicant must complete City Orientation and Homebuyer Class Series.
• Applicant or partner/spouse must work at least 30 hrs/wk, unless retired or disabled.
• Applicant must have a work history of at least one year.
• Applicant must have a minimum of $2,000 for down payment/closing costs.
• Applicant must be able to secure a 1st mortgage loan.
• Total debt-to-income ratio should not exceed 42%.
• Effective 1/1/09 assets cannot exceed $55,000 for a 1-person Low/Moderate household or $140,000 for a 1-person Middle Income household, except in the case of divorce, disability or retirement. For each additional household member, the asset limit increases by $15,000. Some retirement funds are exempt from this limit depending on your age.
• Home must be owner-occupied, rental restrictions apply.
• The number of bedrooms may only exceed the number in the household by one.
• Applicant can not own another home at the time of purchase.
• All of our programs are resale-restricted, i.e. "permanently affordable" with the exception of the H20 program.
  
  Are there ever exceptions? There are no exceptions to the income limits. In special circumstances, exceptions may be granted to other program requirements. Please include any exception requests with your application.

"HomeWorks"

To make sure some homes in Boulder will always be affordable to those with low to moderate incomes, the Division of Housing has created the HomeWorks program. Many of these homes are built by developers as a requirement of Inclusionary Zoning:  Inclusionary Zoning Ordinance. Homes are sold at below market-rate prices to income-eligible buyers. Homes are permanently affordable and governed by an Affordability Covenant (see below).

Lotteries may apply to new developments and to resale properties in the HomeWorks program. Preference is given to applicants who live and or work in the City of Boulder as detailed below:

#1 - live/work/referral list *
#2 - live/work
#3 - work/referral list
#4 - work only
#5 - live/referral list
#6 - live only
* "referral list" means the applicant has been on our waitlist for 1yr.

To enter a lottery, an applicant must have already applied and been income-certified for the programs, must have visited the home or the sales office for new builds and must submit an Intent to Purchase form. Intent to Purchase forms should be submitted to the City of Boulder Housing Division, attn: Luanne Bobo, by the deadline listed for each individual unit. They can be dropped off or faxed. Our fax number is 303-441-4368. The income-certification process can take up to two weeks so applications should be submitted at least two weeks before a lottery date. The City of Boulder Orientation and Homebuyer Classes are required parts of the application process and should be completed, if possible, prior to a lottery.

HomeWorks homes are developed either in new developments, or are existing housing offered through resale or are acquired through our First Home program. HomeWorks homes are priced to be affordable to low and moderate income buyers there are also some Middle Income homes. The buyer's income cannot exceed the maximum income allowed for the home. The buyer must accept all the terms and conditions of the Covenant. Resale prices are restricted to keep these homes affordable into the future. The value of the home may increase based on the resale formula. Annual appreciation is based on the annual change of the Area Median Income or the Consumer Price Index, whichever is less, up to a maximum of 3.5% per year with a minimum of 1% effective 1/1/2008. Check out how the indexes have changed since 1986.

Each property listing describes the number of bedrooms, bathrooms and square footage of each home, maximum income to qualify for the home and a contact name and number. If you are interested in one of the homes listed, contact the seller listed for a showing or for more details. You must complete an Income Certification Application to purchase any of these homes. Check out our available properties. Please note: Availability and prices are subject to change.

Down Payment Assistance - "H20" and "First Home"

We offer 2 different down payment opportunities to first time low/moderate income homebuyers purchasing a market-rate property within the City limits of Boulder, First Home and H20. We also offer a 3% grant to assist with closing costs for the HomeWorks program. Funds are limited for these programs and are available first-come, first-serve. Please contact the City to verify the availability of funds prior to signing a contract. Some additional requirements apply to the down payment assistance programs:

• Applicant must be a first-time homebuyer. This means you have not owned a home within the past three years, unless you were divorced within that time.
• Applicant must work in the City of Boulder

First Home

This program is designed to help low to moderate income households purchase a home in Boulder by providing 20% of the purchase price of market rate homes, the maximum grant being $56,000. (For household of 3 or more purchasing a home with 3 or more bedrooms the grant can extend to 40% or a maximum grant of $150,000*.

*Household of 3 or more people buying homes with 3 or more bedrooms can receive $150,000 even if that exceeds 40% of the purchase price with the following requirements:

1. There must be at least 3 conforming bedrooms.
2. There must be an adjacent, outdoor ground level recreational space.
3. There must be at least 1000 finished sq/ft.
4. Final approval by Division of Housing staff based on individual property characteristics.

Homes become permanently affordable and governed by an Affordability Covenant (see below). The grant remains invested in the property - the starting resale price of the home is the original purchase price minus the grant amount.

 First Home Conditions & Requirements

H2O

The House to HomeOwnership project is a deferred loan; there are no payments for 15 years or until you sell or refinance the home. The loan is then due in its entirety plus 15% of the appreciation of the home since you purchased it. If you have owned the home for less than 2 years, you will owe only the amount you borrowed.  Maximum loan is $50,000. This is our only program with no resale restriction; the home may be sold at market-rate. All H2O participants are required to pay a $150 fee at closing.

2008 H2O Brochure

3% Solution

This is a grant that may be used in conjunction with our HomeWorks program or on properties purchased through Thistle Community Land Trust if within City limits. The grant is designed to be available to households who do not qualify for similar assistance programs from CHFA (Colorado Housing Finance Authority). The grant remains invested in the property - the starting resale price of the home is the original purchase price minus the grant amount. The grant is available for households who earn no more than :

1 person: $44,800
2 person: $51,200
3 person: $57,600
4 person: $64,000

To qualify for this grant you may not have more than $12,500 in assets, and must first apply for a CHFA Loan through your lender and be denied, or be otherwise ineligible for a CHFA loan. For more information about CHFA financing, go to Colorado Housing & Finance Authority .

CITY OF BOULDER HOMEOWNERSHIP PROGRAMS

(Must be income certified for all programs - same application for all programs)

HOMEWORKS

 

New Construction		Resale		Middle Income
Income Level: $51,200/1 person $58,400/2 person New homes pricedbelow market Usually offered through a developer Resale restricted		Income Level: $51,200/1 person $58,400/2 person Pre-owned homes priced below market Sale may occur through a Realtor, homeowner, or through our office -  Resale restricted		Income Level: $75,000/1 person $85,600/2 person May be newly built or pre- owned homes May be offered through a Realtor, homeowner, or through our office Resale restricted

Homeworks Owner Requirements Cannot own another home at time of purchase Must owner-occupy property Adherence to covenant Must contribute minimum of $2,000 toward purchase Self or partner must work at least 30 hours a week

 

DOWNPAYMENT ASSISTANCE

 

First Home Grant		H20 Program		3% Grant
Income Level: $51,200/1 person $58,400/2 person $65,800/3 person Market rate property usually purchased with Realtor 20% of purchase price 3+ person household may qualify for 30% or $90,000 down-payment when purchasing a 3+ bedroom home Resale restricted		Income Level: $50,000/1 person $57,100/2 person $64,300/3 person Market rate property, usually purchased through a Realtor 15% of purchase price Deferred loan payable in full at 15 years or upon sale.  No payments May sell at market rate.  NOT resale restricted		Income Level: $44,800/1 person $51,200/2 person $57,600/3 person May be used with Homeworks or Thistle 3% of purchase price to assist with downpayment or closing costs Resale restricted
First Home Owner Requirements Must be first-time homebuyer Owner-occupy Adhere to covenant Contribute $2,000 Self or partner must work 30 hours/week Must work within Boulder city limits		H2O Owner Requirements Must be first-time homebuyer Owner-occupy Contribute $2,000 Self or partner  must work 30  hours per week Must work within Boulder city limits		3% Grant Owner Requirements Must be first-time homebuyer Must first apply  for a CHFA loan and be denied Self or partner must work 30 hours per week Assets cannot exceed $12,500 Owner-occupy Must work within Boulder city limits

 

REQUIREMENTS FOR ALL PROGRAMS

Complete Homeownership Training classes prior to applying Complete Orientation prior to applying You must be able to secure a first mortgage through a lender of your choice.  Back-end ratio must not exceed 42%. Number of bedrooms cannot exceed household size by more than one. * Minimum incomes depend upon individual financial circumstances, e.g., down payment money you can bring to the deal

ASSET LIMIT: $55,000 (1-person household*) Retired (62 yrs): $85,000 Recently divorced: $85,000 Permanently disabled: $140,000 Middle-income: $140,000 Retirement funds exempt as follows: under 40 yrs: $30,000 40-55 yrs: $55,000 Over 55 yrs: $110,000 * for each additional household member, the asset limit increases by $15,000

 

 

 

Affordable Covenant Summary

 

 

• Eligible Buyer – You must sell to someone who’s income-eligible and qualified to purchase a home.
• Marketing Period - You agree to market your home for thirty days and to abide by the City's lottery process
• The City's Option to Buy - The City has the first option to buy your property or to assign that right to an eligible buyer.
• Resale Price – The resale price of the home will be determined by City of Boulder according to the terms outlined in the covenant.
• Limited Appreciation – appreciation is limited to the change in Area Median Income (AMI) or the Consumer Price Index (CPI) whichever is less; and capped at 3.5% per year. As with any property sold, the condition of the home and closing terms may result in a selling price below the maximum set by the City.
• Capital Improvement Credit – You may make any improvement that you wish, however, only eligible improvements outlined in the annual  Capital Improvement Policy will be added to your resale price. Please remember that you should contact the city before making an improvement.
• Excessive Damage charge – Excessive damage will be deducted from final resale price.
• Agree to maintain the home.
• Occupancy - You must occupy your home as your primary residence.
  
  Rental Restrictions:
  
• After the initial five-year period, you may rent your home one year out of
  every 7.
• You may rent a bedroom if you are also occupying the home, providing no City codes are violated.

BENEFITS:

• Opportunity to own rather than rent
• Tax benefits
• Control of property
• Equity in property over time
  
  

 

Last Updated on Friday, 08 January 2010 10:59