City of Boulder allocates $8.25M toward affordable-housing conversions

BOULDER — The city of Boulder on Thursday said it has allocated $8.25 million to Element Properties and Allison Management to acquire 203 apartment units that will be added to the city’s affordable-housing stock.

The buildings that will be acquired are the 52-unit Osage 100 Apartments at 4990 Osage Drive, 4825 Thunderbird Circle and 4927 Thunderbird Circle, and the 151-unit Thunderbird Apartments at 4917 Thunderbird Drive. Both properties offer a mix of one-, two- and three-bedroom apartments.

The total cost of development for the two properties is estimated to be $48 million. The city’s participation will cover 17 percent of the acquisition and development costs. Element Properties, headed by Scott Holton, and Allison Management plan to leverage other funding sources including 4 percent low-income housing tax credits equity, tax-exempt private activity bonds and HUD financing programs.

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Both properties will undergo interior and exterior renovations. Each unit will receive more than $27,000 in improvements, including energy-efficiency and cosmetic upgrades, according to a city press release.

“There are currently no permanently affordable apartment units in south central Boulder, which has been a concern,” said the city’s interim housing director, David Driskell, in a prepared statement.

This project will convert these 203 market-rate units to affordable units permanently, benefitting Boulder’s workforce and families for years to come,”

The project will bring the city closer to its goal of preserving at least 10 percent of housing for low- to moderate-income residents and families. The project will increase the percent of affordable housing from 7 percent to 8 percent.

“The subsidy is the largest individual affordable-housing program investment the city has made in terms of amount of funding and number of units preserved, said Driskell, adding that it is a “very cost-effective use of funds.”

The per-unit investment is $40,640, as compared with the city’s current per-unit investment average of $68,000.

Twenty-eight percent of the units will be offered to tenants who make 50 percent of the area median income, and 72 percent of the units will be offered to people making 60 percent of the area median income, which is $67,956 in Boulder County, according to the U.S. Census Bureau.

For people making 50 percent of the AMI, income limits are $34,800 for one person; $39,800 for two; $44,750 for three; and $49,700 for four people. Rent for these tenants will be $932 for a one-bedroom apartment; $1,118 for a two-bedroom and $1,292 for a three-bedroom unit.

For people making 60 percent, income limits are $41,760 for one person; $47,760 for two; $53,700 for three; and $59,640 for four people. Rent for these tenants will be $1,119 for a one-bedroom apartment; $1,342 for a two-bedroom; and $1,551 for a three-bedroom unit.

The subsidy was awarded via the city’s Division Affordable Housing Opportunity Fund. The fund is made up of unanticipated and/or unallocated funds, returned funding awards and other funds identified by the city after establishing the competitive award budget each year.