Why is Broomfield considering this?

Housing costs are making it increasingly difficult for many people who live and work in Broomfield to afford to stay here. Teachers, healthcare workers, first responders, service workers, young families, older adults, veterans, and people with disabilities are all affected.

A dedicated, sustainable local funding source will help preserve existing housing, expand housing opportunities, and support a strong community for current and future residents.

What is being proposed?

The proposal will increase Broomfield’s existing lodging tax from 1.6% to 6% if approved by voters and dedicate the revenue to affordable housing purposes.
The increase is 4.4% of the lodging charge and will be paid primarily by visitors staying in Broomfield.

Revenue generated by the lodging tax will be dedicated to the Broomfield Housing Alliance (BHA), which will administer and invest the funding to advance solutions to address Broomfield’s housing needs and priorities.

Why a lodging tax?

A lodging tax allows visitors to help invest in Broomfield.

Unlike a property tax or general sales tax, it applies to taxable short-term stays at hotels and other lodging. It does not increase property taxes, Broomfield’s general sales tax, or taxes on everyday purchases.

Visitors pay. Dollars stay local. Broomfield benefits.

Who is the Broomfield Housing Alliance (BHA)?

The Broomfield Housing Alliance (BHA) is the independent Housing Authority of the City and County of Broomfield. BHA was established with an independent Board of Commissioners in 2022 to focus specifically on addressing Broomfield’s housing needs.

BHA serves as a housing developer, owner, investor, partner, and program administrator. It works with the City and County, private developers, lenders, nonprofit organizations, and state and federal partners to create and preserve affordable housing, leverage public and private investment, administer housing programs, and connect residents with housing resources.

BHA is governed by an appointed Board of Commissioners, which establishes the organization’s strategic and program direction.

Simply put, BHA is Broomfield’s local housing authority and the community’s vehicle for turning housing resources into housing solutions.

Will Broomfield residents pay the tax?

The tax is paid by people who stay in Broomfield hotels and short-term lodging—primarily visitors.

It does not apply simply because someone lives, owns property, works, shops, or eats in Broomfield.

What will the increased cost be?

For a one-night hotel stay, the additional 4.4% will equal:

• $150 room → $6.60 more

• $200 room → $8.80 more

• $250 room → $11.00 more

How will Broomfield compare with neighboring communities?

Broomfield’s current lodging tax is 1.6% and has not been adjusted since 1997. At the proposed 6%, the rate will remain below several nearby communities.

Community Lodging Tax Rates
Broomfield — Current: 1.6%
Broomfield — Proposed: 6.0%
Thornton: 7.0%
Westminster: 7.0%
Boulder: 7.5%
Aurora: 8.0%
Wheat Ridge: 10.0%

The proposed rate is consistent with regional lodging tax practices while keeping Broomfield competitive for visitors, business travel, conventions, tourism, and economic development.

Why now?

Housing costs continue to put pressure on residents and workers, while competition for state and federal housing resources is increasing. At the same time, Broomfield’s role as a regional destination continues to evolve, creating new opportunities to capture visitor activity for long-term community benefit.

Broomfield’s lodging tax has remained at 1.6% since voters established it in 1997. A sustainable, dedicated funding source will give Broomfield greater ability to plan for the long term and compete for outside housing investment.

Why dedicate local funding to housing?

Housing affordability has consistently ranked among Broomfield residents’ top concerns. Dedicated funding provides a sustainable, predictable resource for long-term housing planning and investment.

Just as importantly, local housing dollars can unlock significantly more investment than they provide on their own. Affordable housing is typically financed through multiple sources, including state and federal programs, tax credits, grants, private investment, and debt. Many of these resources are competitive, restricted in how they can be used, or require local participation, matching funds, committed equity, or other evidence of community investment.

A sustainable, dedicated local fund gives Broomfield flexible capital to address Broomfield’s specific housing needs and priorities—helping fill financing gaps, position projects to compete for outside funding, and pursue opportunities that may not fit neatly within state or federal programs. That flexibility can be the critical piece that moves a viable housing opportunity from concept to reality.

The result is that local dollars can work far beyond their face value. Based on BHA’s financial track record, approximately $1 of dedicated local revenue can leverage $7 in additional housing investment. The goal is to use Broomfield’s investment strategically to attract significantly more state, federal, philanthropic, private, tax-credit, and debt capital into the community.

That leverage will become even more powerful over time. As BHA builds its housing portfolio, strengthens its financial position, strengthens its track record, and develops deeper public and private partnerships, its capacity to attract and deploy outside capital will grow. Investments made today will create assets, capacity, and financial strength that position Broomfield to pursue larger opportunities in the future.

In that sense, dedicated funding is not simply money to spend each year—it is investment capital that can build on itself over time, creating a stronger platform for leverage, attracting additional resources, and magnifying the long-term impact of Broomfield’s investment.

Why is housing considered infrastructure?

Housing supports the people who make a community work. Just as roads connect people to jobs and utilities make development possible, housing provides the foundation that allows a local economy and essential community services to function.

When housing is out of reach, schools, healthcare providers, first responders, local businesses, and other employers can struggle to attract and retain workers. Longer commutes can add pressure to transportation systems and make workforce recruitment even more difficult. Housing also gives older adults, families, and longtime residents greater opportunity to remain connected to their community.

Housing is also an economic development tool. Businesses considering where to locate or expand need access to a reliable workforce, and that workforce needs housing at a range of price points.

Like roads, utilities, public safety, and other essential infrastructure, housing is a long-term investment in Broomfield’s economic strength, workforce, and quality of life. A community cannot fully thrive if the people who make it work cannot afford to live there.

Why not rely on grants, donations, and other outside funding?

Outside resources are important, but they are often competitive, unpredictable, restricted to particular purposes, or dependent on local matching funds. A sustainable, dedicated local resource provides greater flexibility to respond to Broomfield’s specific housing needs and priorities while strengthening Broomfield’s ability to attract additional state, federal, philanthropic, and private investment.

Why shouldn’t the private market solve the problem?

The private market is an essential part of affordable housing development. Private developers, lenders, and investors already participate extensively, including through tools such as Low-Income Housing Tax Credits (LIHTC), private debt, and equity investment. In fact, affordable housing development is often fundamentally a public-private partnership, combining public resources with private capital and expertise.

The challenge is the economics. Affordable housing intentionally limits rents to keep homes within reach of lower income households. Those rents often cannot support the full cost of acquiring, building, financing, and preserving housing, creating a financing gap even when a project is otherwise financially sound.

Local investment helps close that gap and, in doing so, unlocks significantly greater public and private investment. Rather than replacing the private market, local funding helps make projects financially feasible so developers, lenders, investors, and other partners can participate.

The model is partnership: public investment helps make affordable housing possible, while private capital and expertise help extend the reach and impact of every public dollar.

How will local dollars leverage additional investment?

BHA has access to specialized financing tools including tax credits, bonds, grants, private investment, and debt. A dedicated local funding source gives BHA the flexible capital needed to combine these resources strategically and compete for funding that often requires a demonstrated local commitment.

Based on BHA’s financial track record, approximately $1 of dedicated local revenue can leverage $7 in additional housing investment. That leverage will become even more powerful over time.

Investments made today help build housing assets, financial strength, a stronger track record, and partnerships that increase BHA’s capacity to attract and deploy additional capital in the future. In this way, the impact of Broomfield’s investment is not limited to a single year or project—it helps build a stronger housing investment platform for the community over time.

The goal is to make each local dollar work harder, bring more outside investment into Broomfield, and magnify the community’s investment over time.

What is BHA’s role?

Housing is BHA’s mission: Driving affordable housing solutions in Broomfield through service, innovation, and partnership.
As Broomfield’s independent housing authority, BHA is structured under Colorado law to create, preserve, acquire, finance, own, and manage housing.

How is BHA different from older housing authorities?

Many long-established housing authorities—including Denver Housing Authority, Boulder Housing Partners, and others—were created when the federal government was actively building and funding public housing.

Over decades, those organizations accumulated housing portfolios and, in many cases, federal Housing Choice Voucher allocations and other HUD-funded programs. Those resources provide rental income, federal subsidies, administrative fees, assets, and borrowing capacity.

BHA was created in 2022, in a very different environment. It did not receive a federal public housing portfolio or an allocation of Housing Choice Vouchers when it was formed.

What has Broomfield’s local support accomplished so far?

Since 2022, local support has allowed BHA to build the organizational and financial foundation necessary to advance affordable housing in Broomfield. BHA has:

• Maintained a lean operation;

• Built organizational capacity and credibility;

• Begun building a housing portfolio and asset base;

• Positioned itself to attract outside investment; and

• Developed the financial capacity to use debt and other financing tools strategically.

Most importantly, since 2022, BHA has helped facilitate the creation of more than 500 affordable rental homes in Broomfield.

These results demonstrate that local dollars do more than support operations. They build the capacity, assets, partnerships, and financial foundation needed to turn local investment into housing—and to attract and leverage significantly larger public and private investments over time.

Simply put, BHA is turning local investment into housing—and building the foundation to do even more in the future.

Won’t BHA eventually become self-sustaining?

BHA will become increasingly financially sustainable as its housing portfolio grows. Rental and other portfolio revenues will increasingly help support the organization and its existing properties.

But organizational sustainability is different from having sufficient resources to meet Broomfield’s broader housing needs.

Affordable housing intentionally charges below-market rents, and property income must also support operations, maintenance, reserves, rehabilitation, debt service, and long-term preservation.

Even mature housing authorities generally continue to combine federal, state, local, and private resources to create and preserve affordable housing.

How will the role of local funding change as BHA grows?

As BHA matures, local funding will increasingly shift from helping establish organizational capacity to serving as investment and leveraging capital.

BHA will use local resources strategically to attract state, federal, private, philanthropic, tax-credit, and debt investment and expand the community impact of each local dollar.

How will the funding be used?

Housing-related uses will include investments such as:

• Creating and preserving affordable and workforce housing;

• Acquiring housing and property to preserve affordability;

• Rehabilitating existing housing;

• Promoting long-term housing stability;

• Helping older adults remain in the community;

• Supporting housing programs and partnerships;

• Leveraging local funding to attract additional public, private, and philanthropic investment; and

• Supporting appropriate administration and operations to ensure effectiveness, efficiency, transparency, and accountability.

Does the funding only pay for new housing?

No. The funding is intentionally flexible so BHA can respond to Broomfield’s housing needs and opportunities over time.

In addition to creating new housing, funding may be used to preserve existing affordable housing, acquire properties, rehabilitate housing, promote housing stability, provide gap financing, support workforce housing, and leverage additional outside investment.

Will the funding serve lower-income households?

Yes. The ballot language does not establish a specific Area Median Income limitation.

The funding will provide BHA with the ability to support households earning 0–60% of Area Median Income (AMI), including households with the greatest housing needs.

Will the lodging tax support the Severe Weather Activation Program (SWAP)?

If the ballot measure passes and responsibility for SWAP transitions to the Broomfield Housing Authority (BHA), Human Services will work closely with BHA to support a thoughtful and seamless transition. Our priority will be continuity of services and ensuring that individuals and families currently accessing SWAP continue to have appropriate support throughout the transition. A transition would be carefully coordinated. Human Services and BHA would work together to minimize disruption and ensure continuity of support and services.

If the ballot measure does not pass, SWAP would continue operating under its current structure and capacity. Human Services has an allocated SWAP budget for 2027, so the program would continue to operate within Human Services and maintain the current service model. No immediate change to SWAP. The program would continue under its existing structure, funding, and capacity.

Regardless of the ballot outcome, CCOBs priority is continuity of support for individuals and families who rely on SWAP. If the measure does not pass, SWAP will continue operating within Human Services under its existing structure and 2027 budget. If the measure passes and responsibility transitions to BHA, Human Services will partner closely with BHA to ensure a smooth, coordinated transition and continued access to appropriate services.

To learn about SWAP and its programming in Broomfield, visit: https://www.almosthomeonline.org/swap

Will BHA provide affordable housing gap financing?

Yes. Additional revenue will position BHA to respond to high-leverage affordable housing development opportunities by providing gap financing when needed.

Historically, this type of financing has come from the City and County of Broomfield (CCOB) Housing Development Fund and has averaged approximately $1–2 million per project. Shifting this role to BHA will provide a dedicated source of local housing investment while giving the City and County greater flexibility to use Housing Development Fund resources for other housing-supportive purposes.

Gap financing can also help BHA leverage significantly larger state, federal, philanthropic, and private investments—allowing local dollars to go further.

Who oversees BHA?

BHA is governed by a five-member Board appointed by Broomfield City Council. Commissioners are Broomfield residents serving four-year terms and bring experience in areas including affordable housing finance, housing authority leadership, real estate, contracting, banking, and human services.

BHA operates under Colorado Housing Authorities Law and is subject to Colorado Open Meetings and Open Records requirements, annual independent financial audits, and annual reporting to City Council regarding expenditures and activities.

How will success be measured?

The principle is straightforward:
Residents will be able to see where the money goes and what it accomplishes.
Annual reporting will include measures such as:

• Homes created, acquired, or preserved;

• Households served;

• Income levels or populations reached;

• Outside dollars leveraged;

• Local investment per housing outcome;

• Administrative expenditures; and

• Other measurable community impacts.

Will there be limits on administration and overhead?

The ballot question itself does not establish an administrative expense cap or detailed spending requirements. However, BHA is committed to maintaining a lean and efficient operating budget and organizational structure. Administrative limitations, including any applicable caps or spending requirements, will be detailed in the ordinance.

The goal is to maximize the amount of funding that directly advances Broomfield’s housing priorities while maintaining the professional capacity necessary to effectively manage investments, leverage outside resources, administer programs, and steward public funds.

Council also retains the ability to establish additional guardrails through the intergovernmental agreement between Broomfield and BHA.

Will the Fund be independently audited?

BHA currently undergoes an annual independent financial audit. These are available to be reviewed on BHAs website.

Will there be an annual performance review?

BHA currently provides an Annual Report to City Council and will continue to do so. Annual reporting will include financial information, housing outcomes, administrative expenses, outside dollars leveraged, and progress toward established goals.

This reporting will provide City Council and the community with a regular opportunity to evaluate where the funding is going, what it is accomplishing, and how effectively BHA is leveraging the community’s investment.

How will Broomfield know whether ongoing funding is still needed?

Ongoing funding does not mean its effectiveness will go unquestioned.

BHA and Broomfield’s broader housing efforts will continue to demonstrate:

• Measurable community impact;

• Efficient operations;

• Successful leveraging of outside funding;

• Increasing financial sustainability; and

• Clear value from the community’s investment.

The long-term measure of success is not simply whether BHA can support its own operations, but whether local housing resources continue to help Broomfield address community housing needs effectively.

How much revenue is projected?

The full 6% lodging tax is projected to generate approximately $3.3 million annually, based on current occupancy trends.

What happens to the existing 1.6% lodging tax?

Under the proposal, the existing 1.6% lodging tax—currently generating approximately $900,000 annually—will be redirected from gateway corridor and roadway landscaping if voters approve the measure.

Future landscape enhancements will instead be considered through Broomfield’s normal Capital Improvement Program process and prioritized alongside other capital needs.

How will the proposal affect Broomfield’s General Fund?

Broomfield currently provides approximately $500,000 annually from the General Fund to support BHA operations.

With lodging tax revenue dedicated to BHA, that annual General Fund contribution will no longer be needed to provide BHA's current level of operating support.

Will Council still have oversight?

Yes. The existing IGA establishes responsibilities for BHA, including submission of an annual Work Plan and provisions regarding financial support and use of funds.

Council also appoints BHA’s Board of Commissioners, providing an additional connection between BHA’s governance and the community.

What will voters establish through the ballot measure?

If voters approve the measure, the tax rate and dedication of the revenue to BHA for affordable housing purposes will be fixed and can only be changed by returning to voters.

Operational and accountability requirements established through ordinance or the IGA can be modified by Council as housing needs and BHA’s operations evolve.

Will affordable housing reduce nearby property values?

Well-designed affordable housing is professionally developed, managed, and strictly regulated. Research generally finds little evidence that thoughtfully designed affordable housing negatively affects surrounding property values.

Will this encourage more growth?

Growth is occurring regardless of this measure. The proposal will give Broomfield additional resources to preserve housing opportunities, support existing residents, and respond to growth over time.

What happens if tourism declines?

Lodging tax revenue will fluctuate with visitor activity, which is why it will be one funding tool rather than the only source of housing investment.

Long-term planning, reserves, multiple funding sources, and leveraging outside investment will help manage fluctuations in lodging tax revenue over time.

Do other Colorado communities have dedicated housing funding?

Yes. Dedicated local funding is not universal and structures vary, but communities including Denver, Estes Park, and Boulder County have established dedicated revenue sources for housing.

What’s the bottom line?

BHA began without the federal housing assets and voucher programs that many established housing authorities have had decades to build upon. Local support has helped establish a lean organization and begin building the financial foundation necessary to attract outside capital.

As BHA matures, it will become increasingly financially sustainable. At the same time, Broomfield will continue to have broader housing needs that extend beyond BHA’s organizational operations.

A dedicated local resource will provide the flexibility and local commitment needed to leverage outside investment, preserve and create housing opportunities, and make strategic long-term investments in Broomfield’s housing needs.