Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: August 20, 2026 Agenda Title Consideration of a motion to approve Resolution 1385 authorizing the execution of a public approval certificate allowing the Housing Authority of the City of Boulder, d/b/a Boulder Housing Partners, to issue multifamily housing revenue bonds for the purpose of financing the Harvest34 project

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 approve Resolution 1385 authorizing the execution of a public approval certificate allowing the Housing Authority of the City of Boulder, d/b/a Boulder Housing Partners, to issue multifamily housing revenue bonds for the purpose of financing the Harvest34 project.

Executive Summary The Housing Authority of the City of Boulder, Colorado, d/b/a Boulder Housing Partners (the “Authority”), a body corporate and politic of the State of Colorado, intends to issue its Multifamily Housing Revenue Bonds (Harvest34 Project), in one or more series (the

“Bonds”), in a principal amount not to exceed $23,000,000 for the following plan of finance: (a) fund the acquisition, construction, equipping and placing in service of an approximately 44-unit multifamily housing project located at 3125 34th St. Boulder, CO 80301 known or to be known as Harvest34, or such other name as designated by the Borrower (“Harvest34”); (b) fund a reserve or capitalized interest fund, if any; and (c) pay certain costs of issuing the Bonds (collectively, the “Project”). Private Activity Bonds (PABs) are tax-exempt bonds that can be issued for specific purposes, including the financing of residential rental projects. Annually, the federal government grants allocations of bonding authority to each state. Through the Colorado PAB Program, municipalities receive an annual allocation of PAB (referred to as PAB capacity or bond cap) that can be issued to an eligible project, assigned to another issuer, carried forward for a future project or relinquished to the statewide balance. The statewide balance is available to local governments or state authorities (housing authorities) that want to borrow a large sum of money at a fixed rate repayable over a long period of time to finance a capital project. Issuance of PABs from the statewide balance requires the issuer, in this case the Authority, to hold a public hearing to provide the public with the opportunity to comment on the proposed bonds and the project being financed. The Authority published notice of a public hearing on July 25, 2026 (Attachment A) and held a public hearing on August 5, 2026. A report of this hearing is included with this memorandum (Attachment B). Following the hearing, and before bonds are issued, either the highest elected executive official or the legislative body of the jurisdiction where the project is located is required to approve the issuance of the bonds. Therefore, the Authority is requesting approval of the issuance of the bonds from City Council through its adoption of Resolution 1885 (Attachment C) and the subsequent execution of the Public Approval Certificate (Attachment D). PABs available from the statewide balance are separate from the City of Boulder’s PAB cap. With the Authority’s request to issue bonds using the Colorado PAB statewide balance, the bonds are not a direct obligation of the municipality, and no tax money or other municipal revenues are pledged for their retirement. The project sponsor pays the principal and interest on the bonds, and there is no recourse to the city in the event of default.

Council Action Options Option

Outcome

Approve resolution as drafted

Upon City Council’s approval of Resolution 1385, the Authority will execute a public approval certificate relating to the issuance of private activity bonds by the Housing Authority of the City of Boulder, d/b/a Boulder Housing Partners, for the purpose of providing multifamily residential housing benefiting persons of low income.

Modify resolution 1385

Council may approve the resolution with modifications. If substantive changes are made, additional review may be required to ensure compliance the Authority executes the public approval certificate. If Council denies the resolution, the Authority will not execute the public approval certificate. Without the required public approval, Boulder Housing Partners would be unable to satisfy the federal TEFRA requirement necessary to issue the proposed private activity bonds for the Harvest34 project, which could delay or prevent the project's financing.

Deny Resolution 1385

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 • • •

Economically Vital Environmentally Sustainable Livable

Staff Notes • Economically Vital. Issuance or delegation of PAB is not a financial obligation of the municipality, and no tax money or other municipal revenues are pledged for their retirement.

• Environmentally Sustainable. The property, supported through the use of PAB, will go through environmental review in accordance with 24 Code of Federal Regulations (CFR) Part 58 to evaluate any negative environmental impacts on the users of the properties and surrounding properties. • Livable. The use of PAB in development financing reduces borrowing costs, which allows the affordable housing developer to provide more and higher-quality affordable rental housing serving low-income residents of Boulder.

Alignment with Additional City Plans The Authority’s ability to use PAB funding will help to achieve the 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 Resolution 1303 authorizing the City of Boulder to execute a public approval certificate relating to the issuance of private activity bonds by the Housing Authority of Boulder, D/B/A Boulder Housing Partners, for the purpose of providing multifamily residential housing benefiting persons of low income was approved on Consent Agenda at City of Boulder Council Meeting on March 1, 2022. https://documents.bouldercolorado.gov/WebLink/DocView.aspx?id=178595&page=54& dbid=0&repo=LF8PROD2&searchid=7cb52a14-78d2-4658-9652-b8d86d2a94dd

Analysis Following the city’s authorization, the Authority will take the necessary action to issue the PAB cap. The bond proceeds will support the development and construction of 44 permanently affordable townhouse-style units owned and operated by the Authority. If the funds are not utilized for the intended use, then the assignment agreement with the Authority will allow them to use the bonds for an alternative city-approved project as long as it shares the same purpose of creating multifamily housing. In the event the PABs are not utilized, the bonds 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 townhome-style rentals to residents with incomes ranging from 40% to 60% of the Area Median Income(AMI).

Fiscal Note There is no direct fiscal impact to the City of Boulder’s budget with this item; this item directly assigns the State of Colorado – Division of Local Affairs (DOLA) Division of Housing’s Private Activity Bonds (PAB) to the Authority. This PAB assignment of state

allocation, once approved by City Council, will occur through a direct transfer from the State of Colorado to the Authority. 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 the City of Boulder’s allocation to the Authority. As a result, the $7,333,256 will be transferred directly from DOLA to the Authority. There will be no impact to the city’s budget; the city will neither take on the bonds nor be responsible for repayment of the debt service. As such, no fiscal impact is included in the tables below. Current Year Estimated Fiscal Impact Fund(s): Not applicable Department(s): Housing & Human Services Program(s): Community Investment

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

0.0 FTE

Item

0.0 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 Harvest34 is designed to be environmentally sustainable. This all-electric community will offer unique amenities such as a wildlife corridor, nature path, a net-zero community center, as well as community and pollinator gardens and a playground.

Community Engagement The Authority held a public hearing on at 2:30 p.m., Mountain Standard Time on August 5, 2026 (the “Public Hearing”) after a Notice of Public Hearing was published for the public hearing on July 25, 2026, in the Boulder Daily Camera, as evidenced by the affidavit of publication attached hereto as Attachment A. Officials of the Authority have represented that after a reasonable public notice was given, the public hearing was held, and t no objections were raised with respect to the plan of finance, the proposed issuance of the Bonds or the financing of the Project.

Workplan Considerations Resolution 1385 is not anticipated to materially impact city staff’s existing workplan.

Next Steps for City Council Consideration of a motion to approve Resolution 1385 authorizing the execution of a public approval certificate allowing the Housing Authority of the City of Boulder, d/b/a Boulder Housing Partners, to issue multifamily housing revenue bonds for the purpose of financing the Harvest34 project.

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Attachments A. B. C. D.

Notice of Public Hearing Report of the Public Hearing Resolution 1303 Public Approval Certificate