SHALL BOULDER COUNTY TAXES BE INCREASED $3.0 MILLION ANNUALLY, FOR FUNDING AFFORDABLE HOUSING PROGRAMS, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, FROM A 0.10% (ONE TENTH OF ONE PERCENT) SALES AND USE TAX TO BE SPENT AS A VOTER-APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY, SAID TAX BEGINNING JANUARY 1, 1996, AND ENDING DECEMBER 31, 2005, ALL OF THE FOREGOING AS MORE PARTICULARLY SET FORTH IN BOARD OF COUNTY COMMISSIONERS' RESOLUTION NO. 95-159?
Major Provisions: The proposed measure establishes a revenue source with funds earmarked for increasing the supply of affordable housing in the communities in Boulder county. The county-wide increase in sales and use tax of 1/10 of one percent is to be imposed for 10 years. The measure calls for the program to be administered by staff within the Boulder County Housing Authority, under guidelines set by a Policy and Proposal Review Committee with representatives from throughout the county. The County Commissioners appoints the Review Committee and gives final approval of all projects funded under this program. Eligible activities include owner and renter housing which comply with all local growth management, zoning, and building regulations. Re-sale and rent restrictions will ensure the continued affordability of this housing. Non-profit organizations, businesses, public agencies, and cities can all submit proposals for funding under this program. Those participating must have household incomes within the eligibility limits, and shall live and/or work in the county. Preference goes to families with incomes at or below 60% of the Area Median Income. Housing assisted with these funds will be distributed throughout the county on a per capita basis.
Background: Following an Affordable Housing Conference held in Longmont in May 1994, a Working Group was appointed to study the feasibility of an affordable housing trust for Boulder County. This group examined housing trusts established in other parts of the country, researched local needs, possible funding sources, and administrative structures, and took steps to gauge public support for this concept. During the summer months of 1995, the group presented their plan in communities throughout the county and used the input they received to refine the proposal, which the County Commisioners then voted to place on the ballot.
Arguments FOR the measure:
-- There is a great need. An assessment revealed that, out of about 106,000 households in the county, there are more than 27,000 low-income households with housing problems, mostly related to cost, yet only 3000 household receive housing assistance.
-- Business can better attract, hire, and keep employees if located where there is a good supply of affordable housing.
-- Those who will benefit directly from this program are families with earnings below $30,000 per year. Those with typical incomes in this range include police officers, bank tellers, assembly line workers, and carpenters.
-- Of those who work in the city of Boulder, 44% commute in from outside. If people are able to live near their work, commuting distances are shorter and there is less traffic congestion.
-- The sales tax would raise funds sufficient to create about 150 units of permanently affordable housing per year.
-- Housing trust funds will be leveraged with other sources. Housing trusts elsewhere have leveraging ratios in the range 1:3 to 1:9.
-- Everyone will benefit as more housing becomes available to those with modest incomes whose work is vital in sustaining and balancing our communities in Boulder County.
Arguments AGAINST the measure:
-- The sales tax is already high enough. Furthermore, the sales tax is regressive, putting a greater share of the burden on those who are least able to pay.
-- If sales tax goes up too much, people will choose to shop outside the county wherever they can find a lower sales tax. This will hurt retail businesses.
-- This plan represents too much additional government interference in the housing marketplace.
-- It would be better for each municipality to keep its local autonomy in deciding whether to take action on affordable housing.
-- Some new housing could result from this measure. Already the rate of residential growth in Boulder County is too high.
--Only 150 affordable units per year are expected as a result of this housing trust, thus helping a very limited number of people. Let employers or private philanthropists or developers do something about housing. The taxpayer is already committed to paying for open space and recycling efforts, which provide tangible benefits for a great many county residents.
-- The restrictions meant to keep units permanently affordable will take away from the occupant the incentive to maintain and improve the property.