Are You A Developer?
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What you need to know:
All annexed parcels with residential unit development potential, regardless of size, are subject to the requirements of inclusionary housing. Generally speaking, Inclusionary Housing requires that 20 percent of the total number of units be permanently affordable to low income households.
There are a variety of ways to meet the inclusionary requirement, including dedicating units on-site, dedicating existing units off-site, land donation and making cash-in-lieu contribution to the city's Affordable Housing Fund or any combination thereof. A minimum of half of the required affordable units should be provided on site (any fraction of a required on-site affordable unit will be rounded up to one full on-site unit).
The means for meeting the inclusionary housing requirement must be approved by city staff prior to application for a residential building permit. Developers are encouraged to meet with staff well in advance of permit application to determine how the inclusionary requirement will be met in order avoid permit application delays.
What does "permanently affordable" mean?
Permanently affordable means a given unit has an ongoing resale restriction that is designed to keep the unit affordable, in perpetuity, to low income households. The exact terms of the resale restriction are contained in the covenant which is recorded against each property. Permanently affordable units must also be owner-occupied by income eligible households.
Permanently affordable units.
Any proposed permanently affordable units must be approved in advance of a building permit application. There are minimum size and design requirements for all permanently affordable units.
Size: Floor area for permanently affordable units must average 80 percent of the average floor area of the market rate units, up to a required maximum of 1,200 square feet.
Design: For specific permanently affordable unit requirements, please see Livability Guidelines
The restrictive covenant for each permanently affordable unit needs to be signed and recorded prior to application for a residential building permit.
Allowable sale prices for permanently affordable units
Maximum allowable sale prices for permanently affordable units are set each quarter by the city. Current prices may be found on the Inclusionary Housing Price Chart
For information on how the maximum allowable sales prices for new affordable homes are determined, see:
Sales Price Calculation Methodology
Maximum allowable rents
Maximum allowable rents for permanently affordable units are based on the Colorado Housing and Financing Authority (CHFA) annual maximum rents for Boulder. Current rents maybe found here:
Maximum Allowable Rents 2013
Developments with ownership units must provide a minimum of half of the required affordable units on site. For the other half, developers have the option of making a cash contribution in-lieu of building or providing new or existing permanently affordable units off-site. Developments with rental units may meet the entire requirement though a cash-in-lieu contribution or by providing new or existing permanently affordable units off-site. The cash-in-lieu amounts are adjusted on July 1 and are applicable for 12 months.
- 2012-2013 Cash-In-Lieu amounts
-To see an overview of how Cash-In-Lieu funds are utilized by the city, click here
Off-site units or land dedication
These options are evaluated on a case-by-case basis by city staff. If a development with ownership units provides 50 percent or more of the inclusionary housing requirement via an option other than on-site permanently affordable units, additional affordable housing benefit must be included. A development with rental units is not required to provide additional affordable housing benefit for not providing units on-site. Any off-site units or land proposed to meet the requirements of inclusionary housing need to be approved in advance by city staff prior to building permit application.
Developers working to fulfill their inclusionary housing requirements should be familiar with the following documents:
Inclusionary Housing Summary and Process : a general introduction and fact sheet about Inclusionary Housing.
Preliminary Determination of Inclusionary Housing Compliance Form
Determination of Inclusionary Housing Compliance Form
Amendment to Determination of Inclusionary Housing Compliance Form
Request for Alternative Methods to Comply with Inclusionary Housing
Inclusionary Housing Administrative Regulations
* Inclusionary Housing Ordinance: a link to the full ordinance, which went into effect on March 19, 2010, contained in Chapter 9-13 of the Boulder Revised Code, 1981.
Inclusionary Housing Price Chart: The current Inclusionary Housing pricing matrix of allowable initial sales prices for permanently affordable homes (PDF file)
Maximum Allowable Rents 2012: Maximum allowable rents for permanently affordable units
Sales Price Calculation Methodology : Information on how the maximum allowable sales prices for new affordable homes are determined.
Livability Guidelines: guidelines and standards for permanently affordableunits. (PDF file)
Off Site Fact Sheet Summary: fact sheet for off-site affordable units
Off Site Location Request Process: process for location approval for development of Permanently
Affordable units off-site to meet Inclusionary Housing requirements.
Marketing Procedures for Developers: required as well as suggested procedures for the marketing of permanently affordable units. (PDF file)
Pre-purchase Upgrades: the policy governing allowable newconstruction pre-purchase upgrades for permanently affordable units.
Last Updated on Tuesday, 23 April 2013 10:59