Boulder County Housing Authority to keep payment standards largely at 2024 levels amid HUD funding uncertainty

Boulder County Housing Authority Executive Director Susanna Lopez Baker told the board Oct. 28 that Housing Assistance Payments from the U.S. Department of Housing and Urban Development (HUD) are expected Nov. 1 and Dec. 1, and that recent HUD funding changes do not, in staff’s view, affect BCHA’s HAP payments.

"HAP payments are expected November 1, which is normal for the housing authority," Susanna Lopez Baker said. She added HUD staffing is limited but staff expect payments to be released.

Kelly Keefe, BCHA’s Housing Choice Voucher Program manager, reported the authority received funding obligation notices obligating about $695,000 for the remainder of November and roughly $1,392,000 for December. Keefe said BCHA’s current budget authority is for 11,308 unit months and staff anticipates using approximately 10,507 unit months this year, leaving reserves to cover near-term needs.

Keefe recommended adopting 2026 payment standards that largely retain BCHA’s 2024 benchmarks — an average around 102–105% of fair market rents (FMRs) — and to continue allowing the Veterans Affairs Supportive Housing (VASH) program to use up to 120% of FMR. Staff explained that payment standards must remain within HUD rules (typically 90–110% of FMR, with an allowed exception for VASH) and that utility costs factor into the calculations.

"We actually received our funding notices last week of the obligated funds for the rest of November, which was $695,000. And then we also received our obligation notice for December, which was $1,392,000," Keefe said.

Commissioners pressed staff on tenant impacts and the assumptions behind the CHFA/AMI-based rent schedule. Commissioner Levy questioned whether the payment-standard increase could increase rent burden for residents, noting AMI-based formulas are population-level assumptions that do not guarantee individual households’ incomes rise in step with higher payment standards.

"We don't actually know whether this rent increase will impose a rent burden on our residents because it's all based on assumptions," Commissioner Levy said.

BCHA staff acknowledged uncertainty at the individual household level — some BCHA-owned units are not recertified annually — but said the CHFA/AMI methodology is the standard for affordable-housing rent schedules and that operating costs and investor expectations for new developments (including future phases of Willoughby Corner) inform the recommendation.

Susanna Lopez Baker asked the board whether it wanted staff to stop the proposed increases given statutory noticing timelines for residents. The chair indicated no explicit direction to change course. "I'm not hearing any asks to do something different with the rent scheduling at this time," the presiding official said, and staff said they would proceed unless directed otherwise.

BCHA also reported near-term operational items: disposition of two Lafayette properties to the city of Boulder, payoff of a bond group that frees 85 units from debt obligations, and ongoing implementation of an enterprise management system (Yardi) expected to modernize finance and reporting.

The board scheduled a BCHA work session for Nov. 10 to continue discussion and will consider the final BCHA budget at a combined November/December meeting where staff will present the final numbers and the formal resolution to adopt payment standards.

What happens next: BCHA staff will proceed with required resident notice for payment-standard changes unless the board gives explicit direction to delay; commissioners will revisit the topic at the Nov. 10 work session and in the December budget meeting.