Boulder analyzes funding gaps for affordable housing amid rising market prices

The Boulder City Housing Advisory Board convened on February 26, 2025, to address pressing issues surrounding affordable housing in the community. As housing demands continue to rise, the board focused on the financial gaps that exist in providing affordable units for various income levels, particularly for worker households earning around 50% of the area median income (AMI).

A key discussion point was the estimated cost to create affordable housing units. The board highlighted a significant gap of approximately $140,000 per unit when comparing market-rate housing to affordable options. This gap underscores the financial challenges faced by the city in its efforts to provide housing that meets the needs of lower-income residents. The board proposed that the city could potentially acquire existing units, apply a deed restriction, and rent them at rates that would be considered affordable for these households.

The analysis presented during the meeting indicated that, on average, the city would need to subsidize around $100,000 per affordable unit to bridge the financial gap. This figure was derived from various housing types, including a mix of one- and two-bedroom units, reflecting a realistic approach to the community's housing needs.

In addition to the financial analysis, the board discussed potential fees associated with new housing projects. The proposed fees would vary based on the size and scope of the projects, with estimates ranging from $14,000 for smaller home additions to $45,000 for larger developments. This fee structure aims to generate funds that could be reinvested into affordable housing initiatives.

The board acknowledged the complexity of the housing market in Boulder, noting that traditional single-family homes are not a sustainable model for achieving affordability. They emphasized the need for innovative solutions and collaboration with state and federal resources to effectively address the housing crisis.

As the meeting concluded, the board recognized the importance of ongoing discussions and the need for community input as they refine their recommendations. The challenges of affordable housing in Boulder remain significant, but the board's commitment to exploring viable solutions reflects a proactive approach to ensuring that all residents have access to safe and affordable housing options.