Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: October 9, 2025 Agenda Title Consideration of a motion authorizing the City Manager to convey 12 permanently affordable homes at 4475 North Broadway. This disposition includes the first modular homes produced through a Flatirons Habitat for Humanity partnership in support of the Ponderosa Community Stabilization Project.

Staff Contact • •

Molly Tayer, Housing Policy Senior Project Manager, Housing & Human Services Kurt Firnhaber, Director, Housing & Human Services

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to authorize the City Manager to dispose of 12 permanently affordable homes at: 4451 11th Court Unit A, 4451 11th Court Unit B, 4461 11th Court Unit A, 4461 11th Court Unit B, 4441, Esperanza Court Unit A, 4441 Esperanza Court Unit B, 4451 Esperanza Court Unit A, 4451 Esperanza Court Unit B, 4461 Esperanza Court Unit A, 4461 Esperanza Court Unit B, 4471 Esperanza Court Unit A, and, 4471 Esperanza Court Unit B.

Executive Summary Approval from City Council is required to dispose of City property. The purpose of this request is to allow for the sale of six duplexes, providing the first 12 modular homes in the Phase 2 housing development of the Ponderosa Stabilization project. An additional

49 homes are planned for the full-build out of the stabilization and redevelopment of the property. The City purchased the Ponderosa Mobile Home Park in 2017 to stabilize the community and redevelop the property as a permanently affordable neighborhood. The City annexed the Ponderosa Mobile Home Park in 2019 and replaced all streets and utility infrastructure while adding increased flood protection. City staff is working with Flatirons Habitat for Humanity (Habitat) to build new housing on vacant lots within the Ponderosa Mobile Home Park and to replace aging mobile homes with net-zero modular homes on a fixed foundation. The redevelopment will be completed in separate phases. Phase 1 includes the construction of 12 stick-built homes that are targeted for sale to current Ponderosa residents and are coupled with very low-interest mortgages. Phase 2 will complete the stabilization process through continued infill development of the property with modular homes produced at the BoulderMOD factory. BoulderMOD opened in late 2024 and is now producing 3-bedroom duplexes for Ponderosa. The project is informed by a City Council Resolution (Resolution 1217) signed in October 2017 that ensures Ponderosa residents, who were present at the time of acquisition, would have the first opportunity to enjoy the benefits of stabilizing investments and secure foundation-built homes. The Resolution also states that the redevelopment will proceed in a manner that limits displacement of residents and allows long-time resident mobile homeowners to remain in their mobile homes.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved the homes can be sold to qualified buyers and become a part of the affordable Homeownership program.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language. This will likely require staff to bring back an amended version later and delay the sale of these homes.

Deny the motion or take no action

If this motion is denied the homes cannot be sold to qualified buyers and the city would continue to accrue holding costs.

Refer back to staff

If council refers this item back to staff it would delay the sale of these homes.

Alignment with City Plans and City Council History Sustainability, Equity, and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Healthy and Socially Thriving Livable Citywide Strategic Plan Strategy 5: Support and provide holistic and accessible programs and services to enable diverse individuals and families to live in Boulder. Priority Action 5c: Collaboratively implement and fund local and regional strategies to increase affordable housing stock and other potential innovative strategies that could provide increased housing options for our unsheltered community. Staff Notes Expanding affordable homeownership opportunities aligns with current city plans and policies.

Alignment with Additional City Plans Expanding affordable homeownership opportunities aligns with the department of Housing & Human Services’ mission and strategy.

City Council History The Ponderosa Stabilization Project has been reviewed and acted upon by City Council throughout the project, including: •

• • •

2017: Council approves the Ponderosa acquisition and stabilization project and adopted Resolution 1217 to guide the City’s commitment to preserve affordability and access to housing for current residents 2018: Site plan for Ponderosa stabilization approved by Planning Board 2019: Ponderosa mobile home park annexed into the city 2024: First request for disposition of 12 newly constructed Habitat homes on West Court, approved by City Council.

Analysis The newly created Ponderosa homes will be part of the City’s Permanently Affordable Homeownership Program when sold. This program is committed to making homes in our community available to a variety of people. We offer opportunities for homeownership to those with low-, moderate-, and middle-incomes throughout the city.

Authorizing the City Manager to sell the properties will provide opportunities for permanently affordable homeownership to families in Boulder. The table below summarizes the purchase and sale financials for the newly created Ponderosa homes. The construction cost total minus the sales prices represents the subsidy necessary to create a new home that is permanently affordable. This subsidy reduces the sales price for each home, keeping the prices affordable in perpetuity. This represents only a partial accounting of the subsidy since it does not include the cost of the land and the replacement of the Ponderosa infrastructure. Table A – Construction Cost and Sales Price for 12 Modular Homes Address 4451 11th Court Unit A 4451 11th Court Unit B 4461 11th Court Unit A 4461 11th Court Unit B 4441 Esperanza Court Unit A 4441 Esperanza Court Unit B 4451 Esperanza Court Unit A 4451 Esperanza Court Unit B 4461 Esperanza Court Unit A 4461 Esperanza Court Unit B 4471 Esperanza Court Unit A 4471 Esperanza Court Unit B TOTAL

Unit Size 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF 3BR/1.5BA 1158 SF

Construction Cost ~ $330,000

Sale Price $274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $330,000

$274,600

~ $3,960,000

$3,295,200

Equity Analysis Staff performed an equity analysis for the Ponderosa Stabilization project during planning efforts in 2020 and 2021 which informed how to direct project investments to benefit the property’s long-time residents. Over 90% of the residents of the Ponderosa

mobile home park are very low- to moderate-income, and just under 40% of the households are Spanish-speaking. Twenty eight percent of the households are headed by seniors on fixed incomes. The sale of these homes will give income-qualified applicants the opportunity to purchase an affordable home in Boulder while increasing overall socio-economic diversity. The City’s permanently affordable housing program is an important tool to help preserve and potentially increase racial and socioeconomic diversity.

Fiscal Note Estimated Fiscal Impact Narrative The purchase cost of these homes is budgeted within the Affordable Housing Fund, and additional appropriation is not needed. Fund(s): Affordable Housing Fund Department(s): Housing and Human Services Program(s): Community Investments

FY 2025 Budget

FY 2025 Estimated Impact

FY 2025 Net Change

Beginning Fund Balance

$12.0M

$0

$12.00M

Total Forecasted Revenue

$21.66M

$0

$21.66M

Total Estimated Expenses

$24.45M

$0

$24.45M

Ending Fund Balance(s) After Reserves

$8.96M

$0

$8.96M

FTE

9.59 FTE

Item

9.59 FTE

Three-Year Estimated Fiscal Impact

Item

FY 2025

FY 2026

FY 2027

Total Forecasted Revenue

$0.0M

$0.0M

$0.0M

Total Estimated Expenses

$0.0M

$0.0M

$0.0M

Net Estimated Impact

$0.0M

$0.0M

$0.0M

Climate, Resilience, and Sustainability Considerations The Ponderosa Stabilization project will provide permanently affordable foundation-built homes for Ponderosa community residents and qualifying families in Boulder. All the homes are net zero energy and the property benefits from a dedicated solar-garden. Providing a safe, energy efficient, all electric home will keep housing costs low for future generations.

Community Engagement The Ponderosa Stabilization project performed extensive community engagement between 2016 and 2022, including a series of design workshops with residents.

Workplan Considerations The Ponderosa Stabilization project is a central work project in the Housing and Human Services department as it supports the City’s Affordable Housing goals by producing seventy-three units of permanently affordable housing. The project further stabilizes the community by providing homeownership opportunities to long-time mobile home residents and providing their families an opportunity to build intergenerational wealth.

Next Steps for City Council None.

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Attachments None.