All homes in the program have restrictions that impact owners. Owners need pre-approval to make capital improvements or rent any portion of the home.
In order to receive resale credit for major home improvements, owners must comply with the capital improvement policy and be pre-approved by the program before the work starts.
Owners must notify the program of their intent to sell their home before listing it. The program will provide the maximum resale price and promote the home on our website. All homes go through a 30-day open marketing period followed by a fair selection process coordinated by the program. Resale homes are also subject to inspection and may require repair if they do not meet maintenance and upkeep requirements.
The covenant recorded for your home lets you refinance for up to 93 percent of the home's maximum resale value. Please notify us of your intention to refinance and we will provide you with the maximum resale value of your home and a letter to share with your lender. Before closing we will review loan documents to confirm that the refinance complies with our mortgage policy and your covenant.
Boulder Regional Affordable Homeownership Program homes must be owner occupied, and, in most cases, they cannot be rented. There are some limited times when an owner can rent.
Rentals are limited by the covenant and local rental rules.
Need your current home value for other reasons than the above? Home values can be provided upon request at any time.
The City's Solar Grant Program provides financial support for the installation of solar electric and solar thermal (hot water) systems on individual residences that are part of an affordable housing program. Visit the Solar Grant page to learn more and apply.
Owners can use the Current Value Request Form for a current value.
When a home enters the program, a maximum resale price is set. The maximum resale price of each home is based on the formula in the home’s Permanently Affordable Covenant.
Each year, the value of homes in the program can increase a small amount. This is called appreciation. The amount added is 1% to 3.5% of the home’s purchase price. The allowable appreciation changes each year and is based on the general economy.
Example:
| Transaction | Price |
|---|---|
| Purchase Price | $200,000 |
| Year 1 Appreciation (1%) | $2,000 |
| Year 2 Appreciation (2%) | $4,000 |
| Year 3 Appreciation (1.5%) | $3,000 |
| Home Value After 3 Years | $209,000 |
Sometimes owners make improvements to their homes. For example, they may replace carpet with hardwood floors. The program calls these capital improvements and some of the cost for these improvements can be added to the home’s value with pre-approval. The Capital Improvement Policy describes the process for pre-approval and lists improvements that are eligible.
Example:
| Transaction | Price |
|---|---|
| Purchase Price | $200,000 |
| Year 1 Appreciation (1%) | $2,000 |
| Year 2 Appreciation (2%) | $4,000 |
| Approved capital improvement for replacing carpet with hardwood floors. | $6,000 |
| Year 3 Appreciation (1.5%) | $3,000 |
| Home Value After 3 Years | $215,000 |
Finally, as explained above, some money is added to the home’s maximum resale value to help cover a portion of marketing and closing costs.
Example:
| Transaction | Price |
|---|---|
| Purchase Price | $200,000 |
| Year 1 Appreciation (1%) | $2,000 |
| Year 2 Appreciation (2%) | $4,000 |
| Approved capital improvement for replacing carpet with hardwood floors. | $6,000 |
| Year 3 Appreciation (1.5%) | $3,000 |
| Real Estate Compensation (2.5%) | $5,375 |
| Closing Cost Allowance | $650 |
| Maximum Resale Price | $221,025 |
Property taxes are based on the affordable value – not the market rate value. The program sends home values to the county assessor and the county uses this to determine taxes. Each year, the assessor sends owners information on taxes due. If an owner thinks the wrong information was used, they can call or email the program.
Owners need to make repairs to their home; the program does not maintain homes. In some cases, a Homeowners Association (HOA) may make some repairs. The HOA usually only makes repairs to the building’s exterior. Owners in a building with an HOA should check with the HOA. If it is not covered by the HOA, the owner needs to make the repair.
The program does not have a list of people for making repairs.
The program also does not have money to help people pay for repairs. There may be some other local programs that can help; households usually need to be lower-income and meet other requirements to receive this assistance.
Yes, but it is difficult. The owner first needs to qualify again for the program and sell their home. The program does not allow people to own another home when they purchase a home in the program.
Example:
If the children of the owner, spouse or domestic partner are living in the home, they can keep living in the home. This is true even if they were not originally an owner (listed on title to the home). In all other cases, the home will need to be sold. The program will work with the person handling the deceased's affairs to get the home sold. The money from the sale will go to the deceased's heirs.
The city's program is now part of the Boulder Regional Affordable Homeownership Program. Current owners will continue to work with the same city staff and follow the same processes as they previously did.
Homes in the program are limited in how much they increase in value which can make moving into a market rate home challenging. Owners wanting to move to market rate may buy a home with the help of a down payment assistance program.
