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Board schedules executive session after HUD finds HOME funding out of compliance for Spoke on Kaufman
Summary
HUD informed local jurisdictions the City of Boulder and Boulder County remain out of compliance for $1.55 million in HOME funds tied to the Spoke on Kaufman; commissioners authorized an executive session to receive legal advice and discuss negotiation strategy.
Boulder County commissioners voted May 27 to schedule an executive session to obtain legal advice and discuss negotiation strategy after HUD notified the City of Boulder and Boulder County that $1.55 million in HOME Investment Partnerships Program funds tied to the Spoke on Kaufman remain out of compliance.
Natalie Swank, commissioners deputy, and staff briefed the board that HUD originally identified compliance issues in 2021 and that the City of Boulder received a notice in 2022. County and city staff had attempted to remedy the issue in 2023; HUD’s March or April 2025 letter concluded the compliance concerns persist. The letter outlines options for repayment or corrective action. The staff packet included a HUD letter indicating the City of Boulder had options that could include repaying the $1,550,000 as an ineligible use, or repaying over future HOME allocation cycles.
Commissioner discussion focused on next steps and legal strategy. April Gatesman, assistant county attorney, participated in earlier discussions with the City of Boulder’s legal staff, and commissioners said they wanted a closed‑door legal session to discuss negotiation strategy. One commissioner asked that the full county commission consider an executive session to provide legal direction to the county administrator and housing authority executive director; another commissioner recommended scheduling the executive session at a time when Commissioner Levy could attend.
The board authorized an executive session for May 28, 2025, to receive legal advice under Colorado law (C.R.S. 24‑6‑402(4)(b)) regarding monitoring findings and corrective options for HOME funds. Staff said the HOME consortium structure means the compliance matter will require county decisions because Boulder County administered HOME allocations to the housing authority and will need to decide how to resolve HUD’s corrective action. The housing authority staff said they will return recommended options to the board for approval once legal direction is complete.
Why it matters: HUD’s finding could require repayment of $1.55 million or other corrective steps that would affect future HOME allocations and local housing projects. Commissioners directed staff to pursue legal advice and negotiation strategy in executive session before returning with a recommendation to the full board.
