Boulder consultants recommend a square‑foot impact fee to fund affordable housing from home teardowns and large additions

City of Boulder staff and a paid consultant told the Housing Advisory Board on Feb. 26 that a legally defensible nexus exists between single‑family teardowns/large additions and the city’s need for affordable housing, and they recommended creating a per‑square‑foot impact fee to capture contributions from those projects.

The study, prepared by Bruin & Associates (presented by consultant Andrew Rochford) and introduced by Solon Walbert, the city’s Inclusionary Housing Program manager, found that replacing modest homes with much larger market‑rate houses and substantial additions increases local housing costs and demand for workforce housing. The consultant advised a square‑foot fee up to about $15 per square foot for net new above‑ground area and suggested exempting small projects and accessory dwelling units (ADUs). The presentation estimated the fee could generate roughly $1 million to $1.5 million a year for Boulder’s affordable housing fund under a $15/sq ft assumption.

The stud…