This council priority aims to increase the opportunity for middle-income households to buy market rate homes by implementing a pilot down payment assistance program available to middle income households.

Project Overview

In April 2023, Council voted to approve implementation of the Middle Income Down Payment Assistance Pilot Program. This pilot program aims to assist middle-income Boulder workers and residents in purchasing a home to preserve economic diversity in the city and reduce in-commuting.

Through this Middle Income Down Payment Assistance Pilot Program (DPA Pilot), the city will help middle-income home buyers buy a market-rate home by providing down payment assistance. In exchange, the homeowner makes that home permanently affordable through a deed restriction.

Middle Income Down Payment Assistance Pilot Program

Front of townhomes

The City of Boulder’s Middle Income Down Payment Assistance Pilot Program (DPA Pilot) offers middle-income households a zero-interest second mortgage. The loan amount is $200,000 or 30% of the home’s sale price, whichever is less. In exchange for this down payment assistance, the buyer agrees to deed restrict the home to keep it affordable to future buyers.

First Homebuyer: Rules and Limitations

  • Household Income Limit. Household income is limited to 120% Area Median Income for the first household participating in this program. Learn more about income and assest limits on the Permanently Affordable Homes Program webpage.

  • Home Selection. Home must be a market-rate home in the City of Boulder. Maximum home price is $1,375,000 for a single-family home and $544,936 for a condo or townhome.
  • Maximum Down Payment Loan Amount and Terms. The maximum loan amount is $200,000 or 30% of the sale price, whichever is less. The interest on the DPA loan is 0% and no monthly payments are made on the loan. After 15 years, the total loan amount is due back. If the title of the home transfers before 15 years, the total is due at the time of title transfer.

  • Resale Restrictions. The future resale price is restricted by the Permanently Affordable Covenant attached to the property. This covenant limits annual appreciation to between 3% and 5.5% each year.

  • Home Improvements. Capital improvements to the home may be made at any time by the owner, but only pre-approved capital improvements will result in a higher maximum resale price. Capital improvement amounts are added to the maximum resale price in a process consistent with the Permanently Affordable Homeownership Program. Learn more about capital improvements on the city’s website.

  • Other Notable Requirements. Homes must be in the City of Boulder and are required to be owner-occupied. Short-term rentals are not allowed in these homes. Buyers may have owned a home in the past or still own a home when they apply, however, buyers must sell their home before closing on a home.

Subsequent Homebuyer: Rules and Limitations

  • Household Income Limit. Subsequent homebuyers must income qualify and income limits will vary by home. The resale price of the home will incorporate between 3% - 5.5% annual appreciation and pre-approved capital improvements.

  • Maximum Down Payment Loan Amount and Terms. Subsequent homeowners will not have access to the city’s down payment assistance program.

  • Resale Restrictions. The future resale price of the home is restricted by the Permanently Affordable Covenant attached to the property. Appreciation is limited by this covenant to between 3% and 5.5% each year.

  • Home Improvements. Capital improvements to the home may be made at any time by the owner, but only pre-approved capital improvements will result in a higher maximum resale price. Capital improvement amounts are added to the maximum resale price in a process consistent with the Permanently Affordable Homeownership Program. Learn more about the city’s Permanently Affordable Homeownership Program on the city’s website.

  • Other Notable Requirements. Homes must be in the City of Boulder and are required to be owner-occupied. Short-term rentals are not allowed in these homes. Buyers may have owned a home in the past or still own a home when they apply, however, buyers must sell their home before closing on a home.

Building Equity with Down Payment Assistance Programs

Homeownership is one way people invest. The City of Boulder's down payment assistance programs allow buyers to invest and build equity or wealth. However, the programs have clear parameters on how equity can be built which can limit equity.

How to Apply for a Middle Income DPA Pilot Loan

Watch the orientation.

Orientation is the first step in the process for buyers to decide if this program is the right fit for them. This class will help buyers understand the eligibility requirements, application process, and their rights and responsibilities as an owner in the program.

There are two options for attending an orientation.

  1. View the on-demand Orientation Video at any time.
  2. Register for orientation offered live via webinar once per month.

Contact a lender and get pre-approved.

Choose a lender, submit your required documents and receive mortgage loan pre-approval. The city requires a Pre-Approval Letter and a copy of a Loan Application (also known as Form 1003) as part of the application process. Applicants may use any lender they choose. If you choose to work with a lender not familiar with the program, please direct them to the For Lenders section of the website.

Submit an application.

To receive a link to the program application, interested applicants need to be added to the Application Wait List.

Applicants will also need to complete the Boulder County Homeownership Programs Common Application. Applicants will need to attach all required supporting documentation requested in the application. If information is missing from a submitted application, this information must be provided within 30 days of when the application was originally submitted.

  • For the purpose of the selection process application deadlines, we will not consider an application complete until all documents listed in the application have been received. Staff require up to approximately 10 business days to process application documents to check for completeness.
  • The Boulder County Homeownership Programs Common Application enables applicants to apply to all of the following homeownership programs:
    • City of Boulder (including the Middle Income Down Payment Assistance Pilot Program)
    • City of Longmont
    • Elevation Community Land Trust
    • Flatirons Habitat for Humanity
    • Thistle Communities
    • Boulder County Down Payment Assistance Program

We will share an application with other programs as indicated by the applicant on the program selection tab or the application cover page.

Complete the CHFA Homebuyer Education Class.

The Colorado Housing Finance Authority (CHFA) Homebuyer Education Class must be completed by buyers prior to going under contract on a home. We recommend taking this class as soon as possible. The class will provide information about the home purchase and closing process.

You may take this class from any CHFA approved provider in the state, including Boulder County. Class options can be found on the Homebuyer Education webpage.

Applicants who are or have been a homeowner still need to take this class. The class expires after three years, so if you do not purchase a home in that timeframe, they will need to retake the class.

Shop for a home.

Households qualifying to use the Middle Income Down Payment Assistance can work with their real estate agent to look at market rate homes in the City of Boulder. Applicants can use any real estate agent they choose. If you are working with an agent not familiar with the program, they should be directed to the For Realtors section of our website.

Once an applicant has a signed contract to buy a home, the city will review the contract, loan, and other buyer documents. If these items meet program requirements, we will issue a Final Certification Letter.

After you apply.

The preliminary program certification is valid for 12 months. At the end of 12 months, applicants may recertify.

Recertification materials are due two weeks before your current certification expires. Staff require up to 10 business days to process recertification documents. The only item that can be updated during a period of certification is a change of address. Changes to income, assets and other household demographics will be adjusted at the end of the 12 months if an applicant recertifies.

Once an applicant has received final certification, they are eligible to purchase/close on a home. At closing, buyers will sign documents prepared by the City of Boulder, including the Covenant. To prepare for closing, buyers will meet with City of Boulder Homeownership staff approximately one week before closing to review these documents.

Other Applicant Requirements

  • Completion of city orientation and homebuyer education class.

  • One member of the household must work 30 hours/week unless retired or disabled.

  • Have a minimum of 5% toward down payment/closing costs.

  • Qualify for a first mortgage loan.

  • Total debt-to-income ratio should not exceed 42%.

  • May not own another home while they buy or own a permanently affordable home.

  • Minimum work history of one year within the most recent 12 months.

  • Agree to all covenant restrictions.

Buyer Resources

Frequently Asked Questions

No. Short-term rentals are never allowed.

The home must be owner-occupied. Refer to the Current Owners webpage of the Homeownership program to see the exceptions for renting.

Yes. After the first year of homeownership, you may let a single room in the home. Licensing regulations must be followed, and the house must remain owner-occupied.

You must notify us of your intent to sell your home before listing it. We will provide you with the maximum resale price and promote your home on our website. All homes go through a 30-day open marketing period followed by a fair selection process coordinated by the city. Resale homes are also subject to inspection and may require repair if they do not meet maintenance and upkeep requirements.

Maximum resale price will be based on the original sale price, plus annual appreciation of 3%-5.5%, approved eligible capital improvements, and other approved fees.

Capital improvements to the home may be made at any time by the owner, but only pre-approved capital improvements will result in a higher maximum resale price. Capital improvement amounts are added to the maximum resale price in a process consistent with the Permanently Affordable Homeownership Program. Learn more about capital improvements on the city’s website.

Since the DPA Pilot Program’s homes are still under their current owner, the homes are not listed yet.

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