Ground-Up Construction in Boulder

Because Boulder's growth limits are charter-level, not cyclical. The 1959 Blue Line bars the city from extending water service above 5,750 feet of elevation, later extended to sewer, and the city has taxed itself for open space since 1967, now holding more than 46,640 acres in a greenbelt ring around town. The Boulder Valley Comprehensive Plan service area boundary further caps where the city will run water and sewer at all. A ground-up lot here is either an infill teardown inside those lines or a parcel in one of the surrounding towns; there is no undeveloped edge to build out into.

Yes, and it applies at one unit, which is unusual. Under Boulder's inclusionary housing code, a development of four or fewer dwelling units, including a single detached house, owes 20% of the units permanently affordable, or the cash-in-lieu, dedicated land, or off-site equivalent; a project of five or more owes 25%. Denver's comparable rule does not reach a project until ten units, so a one-lot Boulder build carries an obligation a same-size Denver build does not. The current cash-in-lieu dollar rate is not published by the city; confirm it with Boulder Planning before you underwrite the deal.

Only if it sits inside the city's service area and below the Blue Line. The 1959 Blue Line permanently bars the City of Boulder from extending water service above 5,750 feet of elevation, later extended to sewer by ordinance, and the joint city-county Boulder Valley Comprehensive Plan further limits where city utilities reach at all. A lot outside those boundaries is either unservable by the city or dependent on a well and septic system, which changes the build budget and the timeline before a shovel goes in the ground.

At the non-residential assessment rate, not the residential rate, until a house exists. Colorado assesses vacant land as non-residential property, 27% of actual value for tax year 2025, roughly four times the residential assessment rate applied to the same value, so carry costs on a held lot run higher than a finished house's tax bill would suggest. The non-residential rate is set by tax year and has been scheduled to move, so confirm the current one with the assessor rather than carrying 27% forward. Once construction finishes and the assessor reclassifies the parcel, the lower residential assessment applies going forward, on top of Boulder County's own certified mill levy for that tax area.

A city rental license and a SmartRegs energy inspection, both before the first tenant moves in. Every rental unit in the City of Boulder must hold a four-year rental license, verified by a privately licensed inspector on the city's list, and separately must meet the SmartRegs energy standard, either 100 efficiency points plus 2 water-conservation points on the prescriptive path or a HERS rating of 120 or less, before it can be legally leased. Build the licensing and SmartRegs inspection into your lease-up timeline, not after it; a brand-new build still has to clear both steps.

Yes, and it is unevenly finished across the three affected areas. The fire destroyed more than 1,000 homes in Louisville, Superior, and unincorporated Boulder County on December 30, 2021, and as of March 2025 about 76% of destroyed homes were rebuilt or permitted, with Louisville furthest along at roughly 90% and unincorporated Boulder County lagging because most of its rebuilds are custom rather than builder-grade. At least two-thirds of affected households carried an insurance gap averaging more than $100,000, which is the hole a ground-up or bridge loan fills on a rebuild insurance proceeds do not fully cover.

We fund new construction up to 70% of value and up to 85% of total cost (land plus build), in most states, on loans up to $5M. Experienced builders reach the higher end of leverage. We finance both the lot and the vertical construction within those caps.

Yes. Lot acquisition is funded as part of your loan-to-cost. If you already own the lot, that equity can serve as your down payment, which often lets us fund most or all of the build cost.

Construction funds are released in draws as milestones are completed and verified, not handed over at closing. You submit your budget and scope of work up front, complete a phase, request a draw, and we release that portion after inspection. You pay interest on funds as they are drawn.

Our construction pricing starts around 10%, interest-only, on terms of 12 to 24 months. Market ground-up rates generally run 9% to 12% with 1 to 3 points. Your pricing and leverage depend on your build experience and the strength of the project.

We consider builders at all levels, though a track record helps your leverage and rate. A first-time builder should expect to bring a strong general contractor, a detailed budget, and typically a larger equity contribution. A well-documented project goes a long way.

The lot cost or current value, your construction budget and scope of work, the projected after-built value, and your build experience. With those we can size the loan against both cost and completed value and send you terms.