As soon as this summer, the City of Boulder could be offering 0% interest loans to middle-class homebuyers as part of a proposed program aimed at helping residents get into the city’s hot housing market.

Under the program, the city would subsidize the cost to buy a home, and in exchange, the homeowner would agree to cap its appreciation at about 4.2%, which is below the market appreciation rate, according to housing officials. That rate seeks to strike a balance between encouraging people to participate in the program while also creating more relatively affordable housing in the years ahead.

To be eligible for a city loan to help cover part of the down payment, the household’s income could be no more than 120% the area median income, which is about $105,000 for an individual and more for a family. Councilmembers requested city housing officials report back in the coming weeks on whether to require subsequent homebuyers to meet income requirements. After those details are finalized, city officials said they could launch the program within about a month. Read our previous coverage of the program.

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