Denver City Council advances affordable housing projects
Photo: Adam Lyons
Off Broadway Lofts tn Five Point
By Robert Davis
City Council gave the initial thumbs up to more than $3.5 million in loans to build and preserve affordable homes in the city on December 15 during its Safety Committee meeting.
All the funds will come from Denver’s linkage fee, which is assessed alongside standard permit fees, and every unit will be reserved for households earning up to 80 percent of the city’s median income (AMI). For context, the income limit for a single individual to qualify is $55,950 and is $63,950 for a two-person household, according to the Department of Housing Stability (HOST).
The Safety Committee approved a $1.26 million performance loan with Habitat for Humanity to construct a 28-unit housing development known as the Aria Townhomes located at 2819 West 53rd Avenue in Chaffee Park.
All the units at the Aria will be able to accommodate families earning no more than 80 percent of AMI, according to a presentation Adam Lyons, HOST’s lead development officer, gave to City Council. The Aria includes eight two-bedroom units, nine three-bedroom units, and 11 four-bedroom units.
According to the ordinance request, the land deeds will be transferred to the Colorado Community Land Trust (CCLT), a legal entity that holds and manages the land, once the units are complete. CCLT will then hold the land for 99 years under a ground lease, which separates ownership of the land from ownership of any improvements and ensures future affordability.
Homeowners who qualify for housing at the Aria will be allowed to stay in their homes if their incomes grow beyond the townhome’s income restrictions, Lyons said.
Denver’s loan will come from its linkage fee and comprises approximately 14 percent of the total capital stack for the development. Habitat for Humanity has also received funding from the Colorado Division of Housing’s (DOH) Home Investment Partnership Program and the Department of Housing and Urban Development’s Self Help Opportunity Program funds from Habitat Colorado.
The Aria’s total development cost is estimated at more than $9.1 million, with Habitat putting up more than $7 million of its own money.
Councilwoman Amanda Sandoval, District 1, who represents the neighborhood where the project is being built, said the project is “a long time coming.”
“As west Denver has experienced a lot of displacement and we’ve lost a lot of affordability, this project is crucial to my district to create the social and economic diversity that it once had,” Sandoval said.
The Committee also approved an amendment to a loan with the Colorado Coalition for the Homeless to allow the organization to rehabilitate its 81-unit Off Broadway Lofts property located at 2135 Stout Street in Five Points.
According to the ordinance request, the project has “significant capital needs and deferred maintenance issues that need to be addressed in order to preserve these units.” Altogether the rehabilitation is expected to cost $17.5 million.
Denver originally supported the development of the project back in 2001 with a performance loan for $600,000 and required it to remain affordable for 50 years. The amendment ended the old agreement so that the parties could approve a new loan for $1.25 million that locks-in affordability until 2081. CCH will also expand the number of voucher units for people experiencing homelessness from 21 to 25.
Off Broadway is primarily comprised of studio and one-bedroom units, totaling 56 in all. All units are available for households making at or below 60 percent AMI, but the project is designed to provide deeper affordability. Twenty-four units are currently reserved for people making 30 percent or less of AMI with another 25 units available for households between 40 percent and 50 percent AMI.
Denver’s loan makes up approximately seven percent of the total project funding, Lyons said. More than 40 percent, or $7.2 million, will come from federal Low Income Housing Tax Credits and another $1.8 million will come from DOH.
The city previously approved $10 million in Multifamily Housing Revenue Bonds in March to support CCH’s rehabilitation of The Forum, a multifamily apartment complex in District 10.