A simple method to synthesize phosphine-stabilized gold nanoparticles (AuNPs) of narrow size dispersion using the mild reducing agent 9-borabicyclo[3.3.1]nonane (9-BBN) is described. The methodology produces particles 1.2-2.8 nm in size depending on the reaction conditions and the phosphine ligand used. The phosphine-stabilized AuNPs exhibit size dependent localized surface plasmon resonance (LSPR) behavior as measured by UV-visible spectroscopy. P-31 NMR spectroscopy analysis of triphenylphosphine-AuNPs (TPP-AuNPs) shows a peak shift to 63.0 ppm compared to pure TPP at -5.4 ppm which is attributed to adsorption or TPP on the AuNP surface. Synthesis of trioctylphosphine-stabilized AuNPs demonstrates the versatility of the 9-BBN-based method. We present initial investigations of using TPP-AuNPs as precursor materials for nanoparticles functionalized with other ligands through ligand exchange reactions with dodecanethiol (DDT) and 11-mercaploundecanoic acid (MUA).