The City of Boulder requires all mortgages on permanently affordable homes to meet several requirements. The intent of these requirements is to reduce the risk of default and foreclosure in order to protect the future of the limited resources of the Permanently Affordable Homes Program.
In the event of foreclosure, the resale restrictions terminate unless the city intervenes. As such intervention typically requires a significant public investment, the city has instituted a number of precautions. For example, all buyers are required to attend homebuyer training and make a monetary investment in the home.
The Mortgage Policy has been developed to protect the community’s interest in the homes in this program while attempting to preserve adequate borrowing options for program participants.