BCHA reports near‑term lease‑ups at Willoughby Corner, debates SLP preferences and financing approach

Boulder County Housing Authority staff told the board on June 24 that Willoughby Corner is moving quickly through initial lease‑ups and that staff expect to begin move‑ins for remaining units once initial acceptance is confirmed.

"If all applications that are scheduled for lease up for multifamily 1 move forward, we will be at a 100% occupancy on that building as well by the June," Amanda Guthrie, director of housing operations, said during the update. Guthrie said multifamily 2 already has about 28 households who have selected units and that HQS inspections for voucher households have passed; BCHA reported 220 move‑ins since Nov. 1, 2024 tied to Willoughby Corner activity and said the larger portfolio (excluding Willoughby Corner) is maintaining about 93% occupancy and is expected to rise above 94% by July.

On policy and development, Molly Chang, director of development, presented a substantially final draft of the SLP policy and asked for feedback on newly added preferences. The draft adds language that would give preference in evaluations to projects that offer permanent affordability, that participate in energy‑efficiency and sustainability programs, and that provide homeownership opportunities where feasible. Commissioners requested clearer threshold language to avoid SLP‑backed projects competing directly with existing BCHA projects (for example, for LIHTC awards) and urged staff to consider stronger sustainability language—several commissioners suggested favoring net‑zero or very‑low‑carbon outcomes rather than only program participation. Chang agreed to revise language to capture competition concerns, to consider threshold criteria, and to work with counsel on fee‑scheduling language so fees can be adjusted over time instead of fixed amounts.

Commissioners and staff also discussed removing nonprofit managing partner status as an automatic scoring advantage. Chang said staff can evaluate deal‑level capital stacks and profit formulas rather than rely on nonprofit designation as a proxy for public benefit. Commissioners emphasized that projects should be evaluated case‑by‑case so that necessary public benefit is secured regardless of a developer’s tax status.

Staff reviewed private activity bond (PAB) activity and allocations: Willoughby Phase 1 used about $37 million in PAB; staff estimated roughly $18 million would be needed for Phase 2 (approximate). The county has allocations for 2024 and 2025 and staff said conversations are ongoing with Lafayette, Erie, Firestone and Louisville about assignment of local allocations; if Lafayette, Erie and Firestone assigned their allocations the county could secure an estimated $16 million with about $2 million remaining in cap.

Maintenance and capital updates included a roof replacement beginning July 1, concrete and site work in mid‑July, electrical and window upgrades and xeriscaping at Lilac to reduce water consumption, and multiple simultaneous upgrades at Casa (roofing, electrical, HVAC and playground replacement). Michelle Alexander, facilities director, said some projects are supported by multiple funding sources and noted two remaining vacant units at Casa pending upgrades.

Finance staff announced a planned migration from legacy HMS MRI software to Yardi, with consultant support and a tentative late‑summer start for the conversion; staff said the operating P&L is tracking better than budget but the authority remains in an overall deficit and that finance will add Willoughby Corner units to regular reporting once permanent financing is in place. Commissioners asked for clearer reporting of the 2013 bond group and for fee schedules that allow staff to adjust compliance/monitoring fees over time rather than fixing a fee that could lose value to inflation.

What happens next: staff will revise the SLP policy language per commissioners’ direction (competition threshold, clarified sustainability language, fee scheduling), continue outreach with jurisdictions about private activity bond allocation, proceed with capital projects beginning in July, and begin the Yardi conversion planning and consultant selection.

Notable quotes • Molly Chang (BCHA director of development): "...I added it to other project information ... permanent affordability ... energy efficiency and sustainability ... homeownership opportunities." • Amanda Guthrie (director of housing operations): "If all applications that are scheduled for lease up for multifamily 1 move forward, we will be at a 100% occupancy on that building as well by the June."