How We Keep Homes Affordable - What That Means To You

The City of Boulder makes homes affordable through regulations and subsidies.  When you purchase a home through the City's programs, you receive the benefit of those community investments in the form of a below-market price.  The program requires that you pass those benefits on to the next buyer when you sell. 

The resale forumla that sets the maximum price when you sell strikes a balance between keeping the price affordable and allowing you to receive some return on your investment in the property.  The formula works as follows:

• Start with your purchase price;
• Add appreciation of up to 3.5% per year (the lesser of 3.5%, inflation, or the change in area median income);
• Add the cost of any approved capital improvements you make to the home;
• Add your costs of sale (marketing and closing);
• Subtact the cost of any excessive damage to your home.

The resulting price should remain affordable to people with approximately the same income you have.  Note that this formula focuses on keeping the homes affordable, and is not tied to the performance of the real estate market.

Please attend our orientation for specific examples and to ask questions.

Last Updated on Friday, 09 November 2007 07:48