Boulder County Civic Forum

Boulder County Civic Forum and
Boulder County Consortium of Cities
Regional Affordable Housing Initiative

Background: Why is Affordable Housing a Regional Issue?

Having a home is a fundamental human need. A home represents shelter, safety and security. It's the place where we gather with family and friends and retreat from outside cares. For homeowners, it can be the major financial asset.

A home can be found in many types of structures. While the traditional single-family home with a back yard comes to mind for many, other types of housing also meet the economic and lifestyle needs of Boulder County's diverse population. Attached townhomes, condos, manufactured housing, apartments, cohousing, and live/work units can all be found here. Many residents live in special purpose housing such as retirement communities or units designed for people with disabilities.

For most people, the cost of housing is a major consideration in the selection of a home-often more so than location. Many factors affect cost, including market demand, land values, size and condition, neighborhood amenities, economic vitality of the county, and availability of housing by type within various price ranges. Some of these factors are primarily influenced by the market or private sector and others are affected by affordable housing programs and public policies such as zoning, land use regulations, building codes, development fees, and growth management programs.

Since the 1980's, demand for housing in Boulder County has been strong due in large part to a strong Colorado economy and the attractiveness of our quality of life. Because of the economy, jobs increased and the population in the Denver metro area grew rapidly. Sometimes jobs are located in jurisdictions that have limited affordable housing options or where housing types do not match employee needs. Households then spend an increased portion of time and income getting to and from work. A workforce with suitable, affordable housing in proximity to employment reduces business costs by making recruitment and retention easier thus reducing costs of turnover, and increasing productivity of workers with shorter commutes.

Additionally the number of people in each household has been shrinking in the last twenty years as children leave home, the population ages, and more single households are created, thus increasing the number of housing units needed for the same number of people. Because of limited housing affordable to the range of worker incomes, some people have no housing and many are purchasing or renting homes that are more expensive than they can afford or that require long commutes to work or school. The US Department of Housing and Urban Development found that 80% of the problem of housing is lack of adequate income, not supply.

Mature, livable communities accommodate people of all ages, physical conditions and incomes. A variety of housing choices throughout the county enhances livability by providing family and neighborhood stability. Examples include providing children with secure homes in which to study and play, and providing the elderly, people with disabilities, and young adults the ability to stay in the communities with which they are familiar. A diversity of housing types would give Boulder County residents the confidence and choice to transition from one housing type to another-for example from a single family home to a condo on retirement, from a townhouse to a single family home when children are added to a household, from one home to a more expensive one as careers advance, or from a parent's home to an apartment after college. This personal stability translates directly into neighborhood, community and regional stability.

Boulder County functions as one single housing market. People may live in one part, work in another and shop in yet another part of the county. Child care and schools may be in a different place than the neighborhood where children live. In some areas there are not enough affordable housing options for the people who work there. This means employers must increasingly find workers who live outside Boulder County to drive here for their jobs, using time and fuel while increasing congestion and pollution. A population that can rely on access to adequate housing choices near employment centers and services will be less mobile and more aware of their community.

Affordable housing is difficult to address locally in a regional housing market. The efforts of one city or town to provide housing for lower wage residents or special populations may seem futile if neighboring communities do not make similar efforts. There are frequent misinterpretations about who needs affordable housing. The shortage of housing affects a wide variety of residents in our region-particularly households earning less than the county's annual median household income ($61,500 in 2002). The businesses that fuel Boulder County's economy and quality of life depend on workers in a range of occupations and incomes.

The federal government is a key player in the availability of housing. The main agency involved is the Department of Housing and Urban Development. Federal funding is largely funneled through state and local governments. HOME is the $2 billion federal block grant program to build, purchase, and/or rehab affordable housing for low income households to own or rent, and to provide tenant-based assistance. Community Development Block Grants support local governments' housing efforts and also non-profit housing and human service agencies. Section 8 vouchers are issued directly to qualified tenants to make up the difference between market rent and 30% of household income. The Federal Housing Administration (FHA) provides loan assistance for middle income home purchasers and the federal mortgage interest deduction subsidizes home ownership through the tax code.

Currently, only the Cities of Boulder and Longmont receive federal Community Development Block Grant funds directly. Boulder County, Broomfield and other Boulder County cities and towns compete for an allocation from the State of Colorado. Boulder is the only jurisdiction that receives federal HOME dollars directly. The combined population of Boulder County and Broomfield is now over 300,000 which is the threshold for Boulder to request expansion of its designation as a regional "participating jurisdiction" for direct receipt of federal HOME funds. If the Boulder County/Broomfield local governments develop a cooperative housing strategy that meets HUD guidelines, the funds could flow directly to the Boulder County/Broomfield region. While the exact amount is determined on a year-by-year basis, using 2004 formulas the regional would qualify for about $2.4 million. This would also result in use of these funds being guided by a local plan rather than state regulations. Jurisdictions and non-profit housing organizations could still apply to the State for augmented funding. The first step toward a cooperative regional strategy is a joint needs assessment.

The cities of Longmont, Boulder, Broomfield and Lafayette have conducted housing needs assessments for their jurisdictions in the last five years. While some of the data are compiled at a county level, there has not been a county-wide needs assessment. The Boulder County Commissioners, following a recent reorganization of County housing programs, has recognized the value of conducting a needs assessment and developing a housing strategy. This provides the opportunity for other jurisdictions to participate so data can be collected and analyzed for the county as a whole as well as for each jurisdiction.

The goal of the Regional Affordable Housing Initiative is to enhance the affordability of housing in Boulder County and Broomfield for its resident and workers through regional cooperation. The Initiative will jointly conduct an assessment of housing needs, supply & demand and programs; hold a regional affordable housing summit with broad participation to review the research and analysis and discuss opportunities and constraints; convene a regional affordable housing task force; and determine the feasibility of Boulder County/Broomfield becoming a "participating jurisdiction" for federal Housing and Urban Development housing funds. The local governments will work together and with other housing interests toward a Cooperative Regional Affordable Housing Strategy for Boulder County and Broomfield.

Program Description

Boulder County Consortium of Cities
Boulder County Civic Forum
Regional Affordable Housing Initiative
Adopted April 2004

Local Government Partners: Boulder County, City and County of Broomfield, Boulder, Erie, Jamestown, Lafayette, Longmont, Louisville, Lyons, Superior and their housing authorities.

Task 1. Community Profiles
August 2004 – January 2005

Community Profiles were prepared by a leading housing consulting firm The Housing Collaborative. The demographic characteristics section includes race, ethnicity, age, income, and special needs populations. The housing supply and market conditions section includes housing types, occupancies, age, price/cost, and affordability. The inventory of assisted and affordable housing includes an itemization of assisted and affordable units by the types of residents, analysis of wait lists, funding sources and tools, and other types of housing programs such as inclusionary zoning or density bonuses. A separate analysis was done of Section 8 clients and properties. The land use, comprehensive plans and zoning section will enumerate publicly-owned housing sites, housing plans and policies that affect housing. The housing availability and gaps analysis will match populations to incomes to housing units. Finally, the local economy, employment and commuting section will present the number of residents who hold jobs, commuting patters into and out of each jurisdiction and unemployment rates. These will be presented in table format for the year 2000, plus 2005 estimates. See Reports.

Task 2. Regional Housing Assessment
October 2004 – January 2005

For the entirety of Boulder and Broomfield Counties, this report uses maps and graphs to illustrate the relationships, similarities and differences among the communities in the region. The report will help define regional issues and opportunities for joint action. It includes median rents and sales prices, unit availability, number of units that can be built in the future, job estimates, incomes and commuting. It was presented at the Regional Affordable Housing Summit in February and will be widely distributed. It is also being prepared by The Housing Collaborative. See Reports.

Task 3. Affordable Housing Summit
February 25, 2005

This summit brought together 200 participants with a range of interests and expertise about housing in the region: local governments, nonprofit housing agencies, realtors, homebuilders, residents, advocates for special populations, financial institutions, academics, human service providers, urban planners and others. Participants heard the results of the Regional Housing Analysis, met with others in their interest groups as well as those whose perspectives may differ, heard success stories from other places, learned about affordable housing efforts locally, and worked together to develop ideas for improved regional cooperation and strategies. See Summit.

Task 4. Boulder County Consortium of Cities Affordable Housing Task Force
April 2005 – September 2005

Following the Summit, the Consortium of Cities will appoint a broad-based task force of knowledgeable members representing the diversity of roles and perspectives about housing in the region. This task force will meet intensively for six months to take the ideas generated at the Summit and develop the outline of a regional housing strategy. The task force will also seek broad participation from the public and interested and affected groups and individuals.

Task 5. Regional Housing Strategy
September 2005 – December 2005

The work of the Task Force will be considered by each local government and other partners. As elements are agreed upon, they will be incorporated into a Regional Housing Strategy that lays out implementation of ideas generated in the course of the Regional Affordable Housing Initiative. Depending on the nature of the strategy, we anticipate that each local government will formally adopt the Strategy.

Task 6. Potential Application for HOME Participating Jurisdiction designation from HUD
March 2006

Currently only the City of Boulder received federal HOME funds directly. All other jurisdictions apply from the State of Colorado Division of Housing. Boulder's allocation, calculated by the federal government annually, is about $850,000. If all jurisdictions in Boulder and Broomfield Counties were included in a single "participating jurisdiction," the total HOME funding would be in excess of $2 million. The benefits of consolidating this process include more certainty, more flexibility, and greater opportunities for cooperation. A preliminary decision would be made by local governments in 2005, with final details submitted to HUD by March 2006.