Affordable Housing Nexus Study for Single Family Additions and Demolitions

The City of Boulder is working to support community housing needs, including preserving and enhancing housing choices. As part of this initiative the city has initiated a project to explore how replacement homes and substantial additions to homes contribute to the need for affordable housing. The consultant Gruen Gruen + Associates recently completed a Nexus Study to examine the causal connections, or nexus, between single-family housing teardowns (or significant alterations/expansions) in Boulder and conditions within the local economy and housing market.

The findings by the consultant indicate that significant additions to single-family homes generate additional employment (jobs) and, thus, create the demand for additional affordable housing. The city is considering adopting a new affordable housing impact fee on small residential developments that are not addressed by the city’s existing Inclusionary Housing (IH) program. Funds collected from a possible impact fee would be placed in the city’s affordable housing fund. Monies received into this fund are restricted solely for the construction, purchase, and maintenance of affordable housing and for the costs of administering programs related to affordable housing.

  1. Plan

  2. Design

  3. Implement

  4. Complete

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Current Phase
Design

Project Overview

The project will examine the causal connections, or nexus, between single-family housing teardowns (or significant alterations/expansions) in Boulder and conditions within the local economy and housing market. These types of demolitions often remove a smaller, relatively affordable home and replace it with a large expensive home. Similarly, substantial additions effectively replace more affordable smaller homes with larger more expensive homes, reducing affordability. This type of development is not subject to the city’s existing Inclusionary Housing regulations because it is not considered “new” residential development. Thus, these projects are not currently required to contribute toward affordable housing in the community. The recently completed Nexus Study finds that replacement homes and substantial additions in the community contribute to the need for affordable housing. The study can be used to establish the appropriate impact fee level and assess the potential impact of the potential impact fees for residential demolition/rebuilding projects.

Timeline

The need to examine demolitions and replacement of single-family homes and/or significant additions was identified as a priority by City Council as part of the update to the Inclusionary Housing program in late 2023. The project was included as part of the Housing and Human Services workplan for 2024.

The results of the Nexus Study were presented to the Housing Advisory Board, Planning Board, and City Council in the winter and spring of 2024. Refer to staff’s memo to City Council for more information.

The project has entered the design phase. City staff is currently soliciting feedback on a possible affordable housing impact fee from the community, homeowners, developers, and design professionals. Feedback obtained in the engagement process will lead to policy and code amendments in the summer and fall of 2024.

Presentation of the results are tentatively scheduled for the following board and commission meetings: