Ryan Dearth/Colorado Daily

Habitat for Humanity construction staff Terry McDaneld (left) assists Andy Edmonson (right) using the hand-saw to cut a piece of wood being put to use in the new five-plex in North Boulder. Projects like these open the door for discussions between the City of Boulder and its residents regarding plans for more affordable housing.

A fictitious young adult studied hard, earned a degree from CU, and shortly thereafter landed an entry-level job in Boulder.

The job was a great opportunity to launch a successful career path, but the pay offer was in the lower five figures – and then the graduate with college loans to pay off did a troubled double take while looking at the cost of many types of housing in the city.

In reality, the cost of housing within city limits is a perplexing problem for people from many demographic categories, but the City of Boulder and a number of partners have been attempting to craft affordable housing solutions for years.

John Pollak, Co-Director of the city’s Housing and Human Services (HHS) department, has been a major part of the affordable housing effort since 1999 – but he will leave the city organization in July. He said on Wednesday that he has worked in the public sector for 24 years, and said he’s ready to “look at a new chapter” in life.

“It feels like I’ve been through a full cycle, and it’s been very satisfying,” said Pollak. “When I came to the city in 1999, we were just developing implementation strategies and goals, and I feel like we’ve made tremendous progress. We’ve added about 1,200 affordable housing units – including emergency shelter, rental housing and a lot of home ownership.”

One of the major city goals has been to make 10 percent of its housing stock – or about 4,500 housing units – permanently affordable. As of Dec. 31, 2007, there were more than 2,800, or about 6.25 percent, according to a city document.

But Pollak said the next phase in Boulder affordable housing will include a reassessment of the various goals and programs within the city. For example, City Council and city staff will hold a study session this Thursday on an upcoming Community Process for the Review of Affordable Housing Goals and Priorities.

The process will include community forums, small group discussions, Web-based information and surveys – along with formal council and Planning Board meetings. According to Thursday’s agenda packet, the process could last until at least November, when council could approve implementation strategies.

And despite the demand for local affordable housing in general, there are issues to discuss.

For example, participants in the City of Boulder affordable homeownership program can buy a home for much less than a comparable market-rate unit, but the home will be deed-restricted, which means the home’s value appreciation is limited.

A recent CU-Boulder Leeds School of Business study, sponsored by the business-oriented citizen group Boulder Tomorrow and the Boulder Area Realtor Association, identified a couple of concerns with the homeownership program.

The study said the limited appreciation means there could be an increasing gap, over time, between the value of the deed-restricted home and the unrestricted housing market. It also said developers would need to set higher prices on market-rate units in order to make up for the lower prices on affordable units.

Pollak said the upcoming community process could include discussions on affordable housing appreciation, but also said the decision-making process will include considerations of a number of factors.

“The challenge is in balancing what will work for the individual purchaser, what is workable from the developer’s perspective, and what is workable from a long-range community perspective,” said Pollak.

He said the city currently wants to make sure, for example, that a teacher making $42,000 per year has the option of homeownership available. He also said the limitation on appreciation can help make sure that some of the city’s housing stock remains affordable into the future.

But Pollak also said the city’s affordable homeownership program is only one of several options that a potential resident of Boulder might consider.

He said a person who can afford Boulder market-rate housing should “absolutely” consider entering the market. But others might choose to look at ownership outside of city limits and commuting into Boulder for work, or entering another local homeownership program, or learning more about affordable rental programs.

Pollak said the city provides full disclosure about its affordable homeownership program during orientation, and said potential homeowners should examine their situation carefully and holistically. For example, factors could include home appreciation, as well as the possible burden of mortgage payments, and the economic or environmental factors of getting from home to work.

“We’re providing a choice, an option, and we want people to go in with their eyes open,” said Pollak.

In the coming months, the city might consider revising its goals for the construction or acquisition of affordable rentals relative to owner-occupied units. It might discuss programs for the very poor – households at less than 30 percent of Area Median Income (AMI) – or for middle-class households that make too much to qualify for certain programs.

Pollak won’t be with the city in November when the council might take action. But he said he is confident that he has provided leadership and facilitated partnerships between the city, nonprofits, for-profit developers and community leaders to get Boulder affordable housing to where it is today.

“Thousands of people can now live in the city who wouldn’t have otherwise been able to live here,” said Pollak. “I would never imply that I’m the one who’s done this, because it’s really been a collaborative effort, but I feel very good about the role I’ve played.”

FYI

Thursday’s City Council study session begins at 6 p.m. in the West Senior Center, 909 Arapahoe Ave. Study sessions are open to the public, but no time is alloted for public testimony.

For Thursday’s agenda packet, visit the City of Boulder Web site, www.bouldercolorado.gov, click “Council General Info and Agendas” on the home page, and select “Study Sessions.” Or, for more about affordable housing, visit the city site, click “Departments” and select “Housing and Human Services.”

Contact Richard Valenty about this story at (303) 443-6272 ext. 126 or valenty@coloradodaily.com