Bank Qualified Debt

Lower interest rates may be available to Boulder County non-profit and service organizations for construction, acquisition, and refinancing through partnerships with Boulder Housing Partners (BHP) through allocation of bank-qualified debt. Our Board of Commissioners will determine annually if some or all of its bank qualified debt capacity is available to support other projects in the community.

As a public housing authority, BHP is able to issue debt at a bank qualified tax exempt rate up to a total of $10,000,000 annually. Due to tax benefits to a lender, bank qualified tax exempt debt may have a rate as much as one to two percent below market. State law makes it possible for BHP to pass through that ability creating interest savings for a non-profit service or housing provider planning or implementing a project. For example, in 2003, BHP issued debt in support of the Boulder Homeless Shelter and the Center for People with Disabilities allowing them to take advantage of a lower interest rate for the new shelter on North Broadway and refinancing an existing building.

BHP's Board of Commissioners adopted the following criteria to be used to determine if a project is eligible for use of BHP's bank qualified debt capacity:

i. Project is located in Boulder County;
ii. The project is consistent with BHP's mission, meets the housing needs of low and moderate income households; addresses the housing needs of unique or special need populations; or exceeds the minimum requirements of the City of Boulder's Inclusionary Zoning ordinance
iii. The project does not compromise the needs of BHP for use on its projects;
iv. BHP determines that the project is technically and financially feasible; and
v. Project is willing to pay BHP's standard hourly rates for staff plus any out of pocket expenses up to a maximum fee of .5% of the bond amount.