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Pilot aims to increase Boulder’s affordable housing stock while offering an opportunity for middle-income community members to buy market rate homes.
BOULDER, Colo. – The City of Boulder is launching a new program to help middle-income community members in Boulder purchase a market-rate home. The program is intended to help preserve economic diversity in the city and reduce the number of commutes to and from Boulder.
The Middle Income Down Payment Assistance Pilot Program (DPA) offers middle-income households a zero-interest second mortgage up to $200,000 or 30% of the home’s sale price, whichever is less. In exchange for this assistance, the home will become permanently affordable.
This pilot is one of ten current City Council priorities.
“This is an excellent way for middle-income families to purchase a home in Boulder,” said City Councilmember Bob Yates, one of the architects of the program. “We have folks who work in Boulder, but who can’t afford to have their families live here. The voters overwhelmingly approved this down payment assistance program in 2019. I’m happy that we are finally able to launch the program, so that middle-income families can enjoy the benefits of living in Boulder.”
Interested applicants must complete the city’s orientation and homebuyer education class, and:
- Income qualify. Household income is limited to 120% Area Median Income for the first household participating in this program. More information about income limits is available on the city’s website.
- Purchase a home in the City of Boulder. It must be a market-rate home within city limits. The maximum price is $1,375,000 for a single-family home and $544,936 for a condo or townhome.
- Occupy the home. Homes must be owner-occupied. Short-term rentals are not permitted.
- Agree to resale restrictions. A home purchased with a DPA loan will be deed restricted as permanently affordable, meaning resale appreciation is limited to an annual cap of 3% to 5.5%.
- Repay the loan after 15 years. The interest on the DPA loan is 0% and no monthly payments are required. After 15 years, full repayment is due. If the home is sold before 15 years, full repayment is due at the time of sale.
Future buyers of homes in this program are subject to similar rules and limitations as the initial homebuyer. More details about these requirements and answers to frequently asked questions are available on the city’s website.