Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: October 15, 2026 Agenda Title Introduction, first reading, and consideration of a motion to order published by title only Ordinance 8781 amending Title 9, “Land Use Code,” B.R.C. 1981, to establish an affordable housing expedited review process; and setting forth related details.

Staff Contact • •

Brad Mueller, Director, Planning & Development Services Lisa Houde, Principal Planner, Planning & Development Services

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to introduce and order published by title only Ordinance 8781 amending Title 9, “Land Use Code,” B.R.C. 1981, to establish an affordable housing expedited review process; and setting forth related details.

Executive Summary The purpose of this item is to amend Title 9, the Land Use Code, to create a new affordable housing expedited review process. This review process will provide a final decision within 90 days of submission of a complete application. In addition to committing to increasing existing affordable housing by three percent per year, adopting this process will ensure that the city remains eligible for state affordable housing funding.

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Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved, the ordinance would be scheduled for second reading public hearing. Second reading is currently scheduled for Nov. 19, 2026.

Define and adopt a modified motion

Council would need to define any desired modifications to the ordinance and/or to the draft motion language. If the changes are not simple and clear, staff recommends discussing and considering them at a future public hearing.

Deny the motion or take no action

If this motion is denied or no action is taken, the ordinance would not proceed to second reading and no amendments would be made to Title 9. The ordinance would not be adopted in time to maintain the city’s eligibility for affordable housing funding created under Proposition 123.

Refer back to staff

If council refers this item back to staff for additional work, the ordinance would not be adopted in time to maintain the city’s eligibility for affordable housing funding created under Proposition 123. Other work plan item projects would need to be delayed to accommodate additional work on this code amendment.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area • • •

Livable Responsibly governed Economically vital

Citywide Strategic Plan Strategy #5: Support and provide holistic and accessible programs and services to enable diverse individuals and families to live in Boulder. Strategy #12: Implement organizational and financial best practices to continuously improve asset management, customer experience, and project and program performance. Strategy #15: Streamline processes for housing, parking, infrastructure, land use, and events that tie directly to priority community outcomes. 2

Staff Notes The proposed affordable housing expedited review process will improve the efficiency of the development review process to support and incentivize affordable housing and will enable funding for a variety of important affordable housing initiatives.

Alignment with Additional City Plans The major update to the Boulder Valley Comprehensive Plan was recently adopted. The expedited review process will support the development of affordable housing in our community by allowing the city to maintain eligibility for these important funds, while staff would still apply the same application standards, but in a more expeditious process. The ordinance will implement the following applicable policies from the Boulder Valley Comprehensive Plan: 55. Support for Redevelopment The city encourages redevelopment activity that advances community goals for housing, economic vitality, historic preservation, social connection, environmental sustainability and equitable access to services. The city may use a variety of tools and strategies, at its discretion, including the creation of public/ private partnerships and district financing tools 65. City Resources Management The city responsibly manages limited financial and staffing resources while balancing responsibilities for infrastructure investments, enhancements, maintenance, and project and program delivery. The city collaborates across internal departments to prioritize and sequence investments and programs appropriately. Sustainability, equity and resilience are prioritized in decision making. 80. Housing and Supportive Services The city and county encourage the development and preservation of stable, accessible and affordable housing throughout the community as well as place-based services to address the unique needs of people with disabilities or health conditions, older adults and any anyone who requires additional housing support. 82. Housing Diversity and Supply The city supports increasing the housing supply by promoting housing types and price points that are more affordable, including middle housing types and middle-income housing, throughout the city that enable people to remain in and join the community as their needs, incomes and household compositions change over time.

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84. Permanently Affordable Housing Goal The city commits to a goal of ensuring 15% of all homes will be deed-restricted, permanently affordable for low-, moderate-, and middle-income households by 2035. City resources will be directed toward maintaining existing permanent affordable housing units and increasing the stock of rental and homeownership affordable housing dispersed throughout the community. The city is committed to expanding permanently affordable housing for households below 50% AMI while also increasing housing options for middle-income households. The county supports and partners with the city to achieve regional affordable housing goals. 104. Transparent Governance The city and county commit to gathering and sharing transparent information about local government processes, engagement and decision-making. The city and county follow best practices in using plain language, providing digital accessibility, and offering highquality diverse language access for all community members. The city and county support strategic decision-making informed by timely, reliable and accurate data and analysis, to the extent practicable, balanced with community input and feedback on lived experiences

City Council History •

Sept. 3, 2026: Matters Item

Planning Board Recommendation Ordinances changing the Land Use Code require Planning Board recommendation to City Council. On Sept. 1, 2026, the Planning Board reviewed Ordinance 8781 and unanimously recommended approval of the ordinance to Council with the following motion: M. McIntyre made a motion seconded by M. Roberts that Planning Board recommends that City Council adopt Ordinance 8781, amending Title 9, “Land Use Code,” to establish an affordable housing expedited review process, and setting forth related details. Planning Board voted 6-0. Motion passed.

Housing Advisory Board Recommendation On Sept. 23, 2026, the Housing Advisory Board reviewed Ordinance 8781 and unanimously recommended approval of the ordinance to Council with the following motion: Selby made a motion seconded by Ogren that HAB supports Ordinance 8781 and also recommends City Council consider expanding the expedited review process in future versions. Approved 6-0. 4

Analysis Background State Affordable Housing Fund Colorado voters approved Proposition 123 in 2022 to create the State Affordable Housing Fund, a dedicated revenue stream for affordable housing development. Funded by 0.1% of state income tax revenue, the program supports a broad range of housing initiatives, including new construction, preservation, land banking, and rental assistance. Funding is provided by the Department of Local Affairs (DOLA) and Colorado Office of Economic Development and International Trade (OEDIT) through grants and loans to nonprofit agencies, community land trusts, nonprofit and for-profit developers, and local governments. To be eligible for the funding, affordable housing projects must be located in a jurisdiction that has completed a Proposition 123 Local Government Affordable Housing Commitment to increase existing affordable housing units by 3% a year. As part of the commitment for the next cycle (2027-2029), local governments must also demonstrate that they have implemented a fast-track review process to remain eligible for future Proposition 123 funding and commitment cycles. The fast-track review process means that final decision of a complete application must be made within 90 calendar days. (Note, however, that this “final decision” can be denial or recommendation for denial, if appropriate due to a non-compliant application.) The process is required for housing developments where 50% or more units are affordable. It is not required for every application type. A list of other communities that have already adopted a fast-track process is available here and is regularly updated by DOLA. In the first three-year funding cycle (2023-2026), the following projects within the City of Boulder received grant and loan funding through the State Affordable Housing Fund: -

$2.84 million: City of Boulder, Homeownership, Rehabilitation $2.6 million: Thistle Communities, Land Banking, Rental $2.5 million: Koelbel and Company, Concessionary Debt, LIHTC Gap $2.2 million: Various providers and agencies, Persons Experiencing Homelessness

In addition, Proposition 123 funds are distributed to regional programs that support projects within the city. For example, $14 million was awarded to the state chapter of Habitat for Humanity to fund affordable homeownership throughout the state. The local chapter of Habitat (Flatirons) has received a portion of these dollars to help fund affordable homeownership at the Ponderosa community (approximately $70,000 per 5

home). In addition, $2.1 million was awarded to the Boulder County Regional Housing Partnership for homeownership scattered-site acquisition and rehabilitation projects. Lastly, approximately $1.4 million was awarded to regional entities for programs that support homelessness. While these funds are not specific to the city, they help support a wide range of housing initiatives within the city. Applicable Projects For future cycles, funding will be available only in jurisdictions with an approved fasttrack review process for eligible projects. The process must be available for all applications where 50% or more of the units are affordable, which is defined as: • •

Rental housing units: monthly rent is less than or equal to 30% of the monthly income of a household earning at or below 60% Area Median Income (AMI). For-sale housing units: monthly mortgage payments are less than or equal to 30% of the monthly income of a household at or below 120% AMI.

Over the last six years, five projects built in Boulder would have met this affordability threshold: • • • • •

2021: Rally Sport, 2727 29th St – Site Review, Height Modification 2022: Grace Commons, 1603 Walnut St – Site Review, Height Modification 2024: Alpine Balsam, 1015 Alpine Ave – Form Based Code Review 2024: Geological Society, 3300 Penrose Place – Site Review, Height Modification 2024: 34th Street Neighborhood, 3125 34th St – Site Review

Four additional projects were approved in the last six years that did not meet the 50% threshold of affordable housing but could potentially have been included in the expedited review program if the qualification criteria were expanded beyond the state minimum. Process Streamlining Opportunities Many recent code changes have focused on simplifying and streamlining development review processes to speed up approval timelines in Boulder. For land use reviews, staff has studied the existing processes and identified two major impediments to the feasibility of reviewing projects within the 90-day timeline: call-ups and automatic public hearings for projects with certain characteristics. These represent the most significant opportunity for time savings in the overall development review process. Call-Ups Boulder’s land use code allows many application types to be decided administratively by the City Manager (delegated to staff), but then Planning Board members have the opportunity to call up the City Manager’s decision. The applications that may be called 6

up are summarized in Table 4-1. Once called up, the Planning Board holds a public hearing at a future meeting and makes a decision on the application. Similarly, Council has the authority to call up any Planning Board decision but may only call up an application on a majority vote. In addition, an applicant or any two interested people can appeal any staff decision. Call-up memos describe the application, and staff provides a full analysis of the request and ultimate staff decision. Most of the applications brought to the Planning Board are not ultimately called up. However, the call-up procedure provides an opportunity for the Planning Board to discuss and decide on an application directly. Application types that are currently subject to call-up by the Planning Board are: • • •

Expansion of Nonconforming Use Final Plat Form-Based Code Review

• • • •

Geophysical Exploration Permit Minor Amendment Minor Subdivision Site Review

• •

Site Review Amendment Use Review

Between 2018-2023, 174 applications were brought to the Planning Board for potential call-up, for an average of about 29 per year. After City Council passed Ordinance 8622 in 2024, call-up requirements were removed for floodplain permits, wetland permits, and use reviews for nonresidential uses without site changes. Additionally, the code was amended to require two Planning Board members or community members, rather than just one, to appeal or call an item up. After these changes went into effect, from July 2024 – July 2026, 31 applications were brought to Planning Board for potential call up, for an average of 16 per year. As expected, the changes in Ordinance 8622 reduced the number of call-ups reviewed by Planning Board by 45% on average annually. In 2024-2026, three applications were called up by the Planning Board, for a 9.6% call-up rate. The previous call-up rate was 3.4%. One application was appealed by neighbors. Due primarily to scheduling constraints, on average the items that were called up by Planning Board or appealed by community members did not reach final decision for 93 additional days beyond the initial potential call-up review by Planning Board. The potential for call up is often an uncertain aspect of development review for applicants. Even if not called up, the call up process can add a significant amount of time to the review of projects. In 2024, the Minor Use Review process was created which is essentially a Use Review without a call up. Since then, 18 Use Reviews have been processed instead as Minor Use Reviews. While the median time for a Use Review approval from 2018-2023 was 7

200 days, the Minor Use Reviews have been reviewed in a median of 76 days, a reduction of 62%. When accounting for time outside of the city’s control, in the first year the city’s review time was reduced by 85%. Removing the call-up option and potential public hearing for these Use Reviews has had a very significant impact on overall approval timelines. Automatic Planning Board Public Hearings Other applications always require a public hearing at Planning Board, rather than a potential call-up. Previous requirements for automatic hearings for nonresidential uses in residential zoning districts and residential uses in the Public zoning district were removed during the process simplification changes in 2024. Prior to 2025, projects requesting parking reductions over 50% were also required to be heard at Planning Board. While this is more predictable than a call-up, it adds substantial time to the review process. Currently, Use Reviews for oil and gas operations require an automatic Planning Board public hearing per 9-2-15(d)(1). In addition, per 9-2-14(g), all Site Review applications are reviewed administratively (with potential for Planning Board call-up), except for projects with the following, which are automatically referred to the Planning Board for decision: •

A reduction of open space or lot area requirements

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Height over the maximum permitted by Section 9-7-1

In the last two years, 17 Site Review or Site Review Amendment applications were reviewed at a Planning Board public hearing. 12 of these (71%) included a height modification request.

Summary of Proposed Changes in Ordinance 8781 The annotated ordinance can be found in Attachment A. Footnotes are provided in the ordinance to describe the proposed changes. •

Throughout relevant subsections of Chapter 2, notes affordable housing expedited review exemption from Planning Board call-up and referrals.

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Creates a new Section 9-2-22, which describes the purpose of affordable housing expedited review, defines the 90-day timeline, identifies eligible application types, and outlines the steps of the review process, including methods for extending the timeline.

Proposed Code Change As evidenced by the success of the Minor Use Review process in vastly decreasing review times, eliminating both call-up and automatic Planning Board public hearings 8

would allow the city to comply with the 90-day fast-track review requirement for affordable housing projects. Without these changes, it is unlikely that the city could be compliant and would lose eligibility for Proposition 123 affordable housing funds. As noted earlier, this ineligibility applies not just to city projects but partners such as Boulder Housing Partners, Thistle, Habitat, and for-profit affordable housing developers as well. DOLA staff implementing Proposition 123 legislation has interpreted that appeals are not subject to the 90-day expedited review timeline, under that interpretation, creating a process for appealing applications would remain an option. This would take an appeal out of the 90-day timeline and allow for public hearings at Planning Board and potentially City Council, providing due process. Proposed Process Changes In addition to changes to the land use code, staff proposes creation of a new process to ensure accurate tracking of the 90-day timelines, communication and expectation setting with applicants, as well as more thorough completeness checks prior to accepting applications. These would all be administrative actions taken in management of department activities.

Considerations What is the reason for the ordinance and what public purpose will be served? This ordinance establishes a new expedited review process for affordable housing projects. This maintains the city’s eligibility for important funding opportunities that support a variety of affordable housing initiatives. It also ensures the possibility of funding for the city, as well as nonprofits, developers, and community land trusts to complete projects within the city. Streamlining city processes also generally helps to support development of affordable housing. How is the ordinance consistent with the purpose of the zoning districts or code chapters being amended? This ordinance primarily modifies Chapter 2, “Review Processes,” which identifies numerous development review and administrative review procedures. The changes could apply in any zoning district where a qualifying affordable housing project is proposed. Are there consequences in not passing this ordinance? If this ordinance is not passed, as of Jan. 1, 2027, the city would not have an expedited review process in place for affordable housing projects and would no longer be eligible for funding through the State Affordable Housing Fund. In the 2023-2026 funding cycle, over $10 million was awarded from the State Affordable Housing Fund to projects within the City of Boulder, as well as additional regional funding programs that support projects 9

within the city. Without an expedited review process, the city, as well as nonprofits, developers, and community land trusts developing affordable housing projects within the city limits would lose eligibility for this funding. What adverse effects may result with the adoption of this ordinance? Adverse effects are generally not anticipated as a result of this amendment. While callup and public hearings are valuable parts of the development review process for many applications, they are very time-consuming, and eliminating these steps in the process would ensure feasibility of the 90-day review timeline that is required for affordable housing developments to be able to utilize the State Proposition 123 Affordable Housing Fund dollars within the city. While potential impacts to the department’s overall development review service have been thoughtfully considered and will be mitigated as well as possible, it is logical that review times for other projects without affordable housing may be impacted as a consequence. The same application criteria in the land use code will be applied by staff to ensure high-quality design, and all building codes will be followed to ensure life safety. Staff anticipate reviewing how the process is working over the next few years and updating code criteria if necessary, as well as exploring how to best make information about the approved projects readily available to the community on the city website. Additionally, the public notice and appeal process would both remain in place for these applications, so nearby neighbors would receive official notification and the applicant or interested persons would have the opportunity to provide input and appeal staff’s decision. In this case, a public hearing would take place before the Planning Board, and the project would no longer be in the 90-day review timeline. What factors are influencing the timing of the proposed ordinance? Why? In order to maintain the city’s eligibility for Proposition 123 funding, and to enable developers of affordable housing projects within the city to be awarded Proposition 123 funding, a fast-track review process must be in place by December 31, 2026. As ordinances typically take effect 30 days after adoption, the ordinance would need to be adopted by City Council on December 1 at the latest to comply with the state funding requirement and retain the city’s eligibility. There is significant additional administrative implementation work to be done in tandem with the code changes, so staff is bringing this ordinance forward as soon as possible this fall. How does the ordinance compare to practices in other cities? A list of other communities that have already adopted a fast-track process is available here and is regularly updated by DOLA. Many cities in Colorado already comply with the

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90-day review timeline. Those that do not and wish to be eligible for this funding have been adopting code changes, resolutions, or policy documents to comply. Other cities, like Steamboat Springs and Buena Vista, have adopted code changes that exempt affordable housing projects from call-up. Buena Vista also has established a process for major site plans to be approved administratively without a public hearing and preserves an appeal option with the Board of Trustees. Other cities have chosen to retain public hearing requirements but give priority scheduling to affordable housing projects. Scheduling a hearing with the Planning Board in Boulder is often months out, so staff does not believe this option would be feasible in Boulder and would negatively impact timelines for other projects.

Equity Analysis The affordable housing expedited review process is intended to incentivize and support development of affordable housing in Boulder. This will benefit current and future residents of the city by providing more housing options. In addition, the creation of this process allows the city and other applicants to be eligible for additional funding to further support affordable housing. While potential impacts to the department’s overall development review service have been thoughtfully considered and will be mitigated as well as possible, it is logical that review times for other projects without affordable housing may be impacted as a consequence.

Fiscal Note Review of this project is part of the P&DS team’s standard workplan and its impacts are incorporated into the annual revenue forecasting as part of the Budget office’s annual budget development. Therefore, review of the project will not have a meaningful fiscal impact past what has already been included in the approved budget. Any additional permit reviews can be accommodated by our third-party reviewers for faster turnaround with no major fiscal impact. Current Year Estimated Fiscal Impact Fund(s): 2120FD Department(s): Planning & Development Services Program(s): All P&DS programs

Item

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance Total Forecasted Revenue Total Estimated Expenses

$18,200,885 $15,179,491 $17,735,173

$0 $0 $0

$18,200,885 $15,179,491 $17,735,173

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Ending Fund Balance(s) After Reserves FTE

$12,646,701

$0

$12,646,701

122.65

0

122.65

Three-Year Estimated Fiscal Impact Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue Total Estimated Expenses Net Estimated Impact

$0 $0 $0

$0 $0 $0

$0 $0 $0

Climate, Resilience, and Sustainability Considerations These changes are expected to have a negligible climate impact.

Community Engagement Since these changes are in response to requirements for state funding eligibility, an informal level of engagement for this project has been used. Notification of the current changes has been announced in the Planning and Development Services monthly newsletter, which reaches over 5,000 people. In addition, several affordable housing developers were informed of the potential changes.

Workplan Considerations This item is included in the Planning & Development Services workplan for 2026.

Next Steps for City Council Second reading and public hearing for the proposed ordinance is scheduled for Nov. 19, 2026.

Accessibility Statement The City of Boulder is committed to digital accessibility. Some content may not be fully accessible due to technical limitations or issues. For alternate formats or accommodations, please visit Accessibility | City of Boulder or contact accessibility@bouldercolorado.gov.

Attachments Attachment A: Annotated Ordinance 8781 Attachment B: Proposed Ordinance 8781

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