The Boulder County Housing Authority on Sept. 30 voted to support entering a special limited partnership (SLP) with the project developer to close remaining financing for the Spine Road project, a proposal to deliver 65 deed‑restricted affordable units in the Gun Barrel area.

The authority’s executive director, Susana Lopez Baker, told the board the project originally came to the housing authority in 2023, experienced funding gaps and was made viable after state funding and local support. “The state stepped in with 2,850,000.00 in Chaf A prop 123 funds,” consultant Luke Cannon said, describing the state award that he said was the missing piece to fully get the project “over the line.”

The board’s vote authorizes BCHA staff to negotiate terms for the SLP and to return a formal term sheet and resolution for the board’s consideration. The motion passed 2-1; Commissioner Salzman voted no.

Why it matters: the SLP would create a tax‑exempt vehicle that project backers say is necessary to deliver the planned 65 affordable units within a market‑rate development. The board’s action is a preliminary step that directs staff to draft a term sheet and bring a resolution back to the authority for final approval.

Project and affordability details: presentations and packet materials show the Spine Road project includes 65 affordable units with the proposed income mix unchanged since the project’s 2023 presentation: four units at 30% area median income (AMI), 50 units at 60% AMI and 11 units at 70% AMI. Susana Lopez Baker said project partners worked with SB Clark on financial analysis; consultant Luke Cannon identified the state award as “Chaf A prop 123 funds.” The board packet included an SB Clark analysis recommending the benefit of forming an SLP with the housing authority.

Lender requirement and term change: lenders’ conditions altered a previously anticipated affordability term. Counsel and the developer said Freddie Mac, as the permanent lender, requires the affordability commitment to extend at least 20 years (rather than the earlier 15‑year term noted in the project’s initial letter of intent). Susana Lopez Baker explained the longer deed restriction was requested by the lender so affordability extends “just beyond the maturity date of the perm loan.” The presenters said the longer restriction did not change the project’s pro forma or unit mix; it changes only the period during which the housing authority would maintain its tax‑exempt participation before an exit option could be exercised.

Board discussion and objections: Commissioner Salzman voiced strong objections to granting a tax‑exempt benefit to a private developer, saying the authority’s power to exempt property from taxes should be used sparingly. “I take the authority that we’re granted to exempt people from taxes very, very seriously,” Salzman said, arguing that the public subsidy and the city’s inclusionary zoning already required affordable units and that the “but‑for” justification for a tax benefit was not met. Other commissioners said the SLP is one tool among several the authority has used to preserve and expand affordable housing and praised staff and partners for financial analysis and negotiation work.

Next steps: staff said a formal resolution and term sheet will be drafted by April Gatesman, assistant county attorney, and returned to the authority for a future vote. The board’s direction authorizes staff to prepare the documentation and negotiate SLP terms; no final contract conveying tax‑exempt status was executed at the Sept. 30 meeting.

Context and related developments: the housing authority presentation also reviewed other development activity, including progress on Willoughby Corner phases and plans to pursue IDD (intellectual and developmental disabilities) housing funding for a 16–32 unit building, ongoing property disposition activity, and a leasing and operations update for existing properties. Staff noted BCHA will manage Seward Mobile Home Park in Lyons beginning Jan. 1 and described interim leadership coverage while several positions are being reorganized.

Ending: staff will return a term sheet and a resolution to the Boulder County Housing Authority board for formal approval; the SLP support vote on Sept. 30 simply authorized further negotiation and formal documentation.