Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: August 20, 2026 Agenda Title Consideration of a motion to adopt Resolution 1382 authorizing the city to execute an assignment of the 2026 City of Boulder Private Activity Bonds in the amount of $7,333,256 to be used by the Housing Authority of the City of Boulder, d/b/a Boulder Housing Partners (BHP), to finance the construction of permanently affordable rental housing in Boulder; and authorizing the city manager to execute and deliver the assignment and other documents in connection therewith

Staff Contact • • •

Kurt Firnhaber, Director Housing and Human Services Elizabeth Crowe, Deputy Director, Housing and Human Services Meghan Sandt, Housing Investments Manager, Housing and Human Services

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to adopt Resolution 1382 authorizing the city to execute an assignment of the 2026 City of Boulder Private Activity Bonds in the amount of $7,333,256 to be used by the Housing Authority of the City of Boulder, d/b/a Boulder Housing Partners (BHP), to finance the construction of permanently affordable rental housing in Boulder; and authorizing the city manager to execute and deliver the assignment and other documents in connection therewith.

Executive Summary The City of Boulder receives an annual allocation from the state through the Colorado Private Activity Bond (PAB) Program. A PAB provides a tax-exempt financing tool that can be used to fund affordable housing activities for privately developed projects. The city’s 2026 PAB allocation is $7,333,256. The city’s PAB authority includes issuing bonds to an eligible project (the project must be closed by 12/22/2026), carrying forward the allocation for a future project, or assigning the allocation to another issuer for an eligible purpose. Boulder Housing Partners (BHP) has independent authority to issue PABs while other affordable housing developers do not. Developers in Boulder other than BHP who desire to use a PAB must go through the Colorado Housing and Finance Authority (CHFA), which serves as the bond issuer on their behalf. Because CHFA's issuance costs are higher than BHP's, projects financed through BHP have lower bond issuance costs on a per-unit basis. As a result, the city can maximize the value of its limited bond allocation by awarding City of Boulder PABs to BHP projects.

Council Action Options Option

Outcome

Approve motion language as drafted

Upon City Council’s adoption of Resolution 1382, BHP will take the necessary action to carry forward the allocation until it issues the PAB. The bond proceeds will support BHP’s predevelopment and construction of two distinct permanently affordable housing projects: a 55-unit rental project serving older adults and an 89-unit rental project without age restrictions. Both projects will serve households earning 60% of Area Median Income (AMI) or less

Approve resolution with amendments

Council would need to define any modifications or amendments to the draft motion language. Any amendments would need to be consistent with applicable PAB requirements and may require additional coordination with BHP and the bond team.

Deny the motion or take no action

If this motion is denied, BHP will not be authorized to proceed with carrying forward the PAB allocation under the proposed structure.

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

Environmentally Sustainable Livable

Staff Notes Environmentally sustainable: Alpine-Balsam is designed to be ultra sustainable. The project has enacted 17 of the state’s priority land uses strategies. Below is a list of the land use strategies that will be utilized for this specific redevelopment project. • • • • • • • •

Higher density mixed use development in core areas Inclusionary Zoning Ordinance Reduced affordable housing development fees Minimum parking standards Multi-modal road standards Water conservation Energy efficiency codes High risk and environmentally sensitive areas

Transportation & Accessibility: the Alpine-Balsam project is located in a highly accessible area with multiple transit options. • • • •

Walkable and bike-friendly neighborhood Multiple bus lines along Broadway providing north-south connectivity Access to the SKIP bus line with frequent service to downtown Boulder Established bicycle commuter routes along 9th and 13th Streets

Sustainability & Energy Efficiency: The site was redeveloped using a sustainable deconstruction process, which resulted in approximately 94% of building materials being reused or recycled. Planned building features include: •

All-electric construction

•

Onsite renewable energy (solar)

•

Compliance with current City of Boulder energy code

•

Electric vehicle chargers for some residential parking units

Livable: The affordable developments will provide 144 rental homes, 55 for older adults and 89 for households without age restrictions, with all units serving households earning 60% of the Area Median Income (AMI) or below. The development will maximize the number of affordable homes while delivering energy-efficient and transit-oriented communities that align with the city’s sustainability goals.

Alignment with Additional City Plans The Alpine-Balsam project aligns with City of Boulder’s goal for 15% of all homes to be affordable for low-, moderate-, and middle-income households by 2035. This goal is also part of the Boulder Valley Comprehensive Plan.

City Council History 100% of the City of Boulder’s 2025 PAB allocation was awarded to Harvest34 (formerly 34th Street), also a BHP project. Please see consent agenda item C in the link provided. •

https://documents.bouldercolorado.gov/WebLink/DocView.aspx?id=186946&dbid =0&re po=LF8PROD2

Analysis BHP’s request meets the established PAB priorities of the City: (1) Readiness to Proceed; (2) Deepest Affordability; and (3) Number of Units to be Preserved/Created. After a thorough review of the request, it was found that the project met the city’s established requirements, including affordability and number of units. Staff proposes to assign PAB volume cap to the project. Assignment of the city’s PAB volume cap allocation to BHP requires approval by either the highest elected executive official or the legislative body of the jurisdiction where the project is located. The option to carry forward the bond cap for eligible purposes is permissible under the Colorado Private Activity Bond Ceiling Allocation Act if used for an eligible project set to close within 3 years. BHP is requesting this action to support construction of permanently affordable housing, the Alpine-Balsam project in Boulder.

Boulder Housing Partners is advancing the redevelopment of the site through two permanently affordable rental housing communities and two market-rate ownership parcels. The affordable developments will provide 144 rental homes, 55 for older adults and 89 for households without age restrictions, with all units serving households earning 60% of the Area Median Income (AMI) or below. The remaining parcels are planned for market-rate development, including a fully entitled 22-unit townhome site and a 51-unit development. The development will maximize the number of affordable homes while delivering energy-efficient and transit-oriented communities that align with the site's sustainability goals. Approval of Resolution 1382 will enable the creation of affordable rental housing units, thereby advancing the city affordability goals and helping meet needs for low-income community members. The city’s authority to issue or assign its PAB volume cap allocation does not commit any municipal revenues or create a direct obligation for the city to repay investors buying the bonds. The project benefiting from the purchase of the bonds pays back the loan to investors with interest, and there is no recourse to the city in the event of default. If the funds are not utilized for the intended use, the assignment agreement with BHP will allow them to use the bonds for an alternative city-approved project as long as it shares the same purpose of creating or preserving affordable multifamily housing. If in the event the PABs are not utilized, the PABs will expire within three years of being carried forward with no penalty to the municipality or its partners.

Equity Analysis This project will provide one-, two-, and three-bedroom rentals to residents with AMI below 60%. Parcel B Affordable to households/families Number of Units Bedroom 53

1 Bedroom

30

2 Bedrooms

6

3 Bedrooms Income Limits: Mix Total: 89 Units between 30-60% AMI Parcel D Senior Affordable Number of Units Bedroom 51

1 Bedroom

4

2 Bedrooms

Total: 55 Units

Income Limits: Mix between 30-60% AMI

Fiscal Note Estimated Fiscal Impact Narrative Current Year Estimated Fiscal Impact There is no direct fiscal impact to the City of Boulder’s budget with this item; this item assigns the State of Colorado – Division of Local Affairs (DOLA) Division of Housing’s Private Activity Bonds (PAB) to Boulder Housing Partners directly. This PAB assignment of state allocation, once approved by City Council, will occur through a direct transfer from the State of Colorado to Boulder Housing Partners. State PAB allocations are distributed through designated local issuers. Those issuers (e.g. City of Boulder) may 1) use their allocation, 2) assign to another issuer, or 3) let it revert to the statewide pool. In this case, staff recommends assigning 100% of City of Boulder’s allocation to Boulder Housing Partners. As a result, the $7,333,256 will be transferred directly from DOLA to Boulder Housing Partners. There will be no impact to the city’s budget, the city will not take on the bonds, nor will be responsible for repayment of the debt service. As such, no fiscal impact is included in the tables below. Fund(s): Not applicable Department(s): Housing & Human Services Program(s): Community Investments

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$0

$0

$0

Total Forecasted Revenue

$0

$0

$0

Total Estimated Expenses

$0

$0

$0

Ending Fund Balance(s) After Reserves

$0

$0

$0

FTE

0.00 FTE

Item

0.00 FTE

Three-Year Estimated Fiscal Impact

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0

$0

$0

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$0

$0

$0

Climate, Resilience, and Sustainability Considerations Alpine-Balsam was designed with maximum sustainability in mind. The project promotes environmental sustainability through higher-density mixed-use development in an established urban area, water conservation measures, compliance with the City of Boulder’s advanced energy efficiency standards, and all-electric buildings powered in part by onsite solar energy. The redevelopment also prioritized resource conservation by using a sustainable deconstruction process that diverted approximately 94% of building materials from landfills through reuse or recycling. Alpine-Balsam is located in a highly walkable and bike-friendly neighborhood with convenient access to multiple bus routes.

Community Engagement Community engagement for Alpine-Balsam has spanned multiple years and includes public open houses, online feedback, and collaborations with local organizations.

Workplan Considerations BHP’s PAB award is not anticipated to materially impact city staff’s existing workplan.

Next Steps for City Council Upon City Council’s adoption of Resolution 1382, BHP will take the necessary action to carry forward the allocation until it issues the PAB.

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Attachments Resolution 1382