Affordable housing deals

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Highlights:

  • OED inks affordable housing deal.
  • Affordable housing deals for 294 units.
  • Affordable housing at 9th and Colorado, Westwood and Stapleton.
A rendering of the Ash Street affordable housing development.

A rendering of the Ash Street affordable housing development.

The Denver Office of Economic Development has approved the initial round of affordable housing investments made through the city’s new Revolving Affordable Housing Loan Fund.

The OED has approved letters of agreement with three separate multifamily rental developments that will provide 294 housing units in the Hale, Northfield Stapleton and Westwood neighborhoods.

“This incredible group of projects is indicative of the true power of Denver’s new Revolving Loan Fund,” said Denver Mayor Michael B. Hancock.

“These are signature housing deals that will play a critical role in keeping Denver an affordable and accessible city,” Hancock continued.

“We expect that each will make lasting contributions to our residents for generations to come,” he added.

The Revolving Affordable Housing Loan Fund is seeded with $6 million from the City and County of Denver, along with $3 million from the State of Colorado Department of Local Affairs and $1 million from the Colorado Housing and Finance Authority which also administers the fund.

Each of the following projects has been approved for 30-year gap financing loans through the fund:

  • Ash Street Apartments

Within the redevelopment district at Ninth Avenue and Colorado Boulevard, the Ash Street Apartments will provide 112 housing units to households earning up to 60 percent of the area median income (or $47,940 for a family of four). The five-story structure will offer units ranging from one to three bedrooms, with each including an individual patio. The development, located at 1126 Ash St., will receive $1 million from the Revolving Loan Fund. Project developer is Koelbel and Co./Mile High Development.

A rendering of the Westwood affordable apartments.

A rendering of the Westwood affordable apartments.

  • Westwood Crossing Apartments

McDermott Properties LLC is developing a 2.19-acre site at 3390 W. Alameda Ave. into the four-story Westwood Crossing Apartments. Project will provide 98 units (one to three bedrooms) for households earning up to 60 percent of the area median income. The mixed-use development will include commercial space on the ground floor for small business and/or retail. Revolving Loan Fund financing is $1 million.

A rendering of the Northfields Stapleton apartments.

A rendering of the Northfields Stapleton apartments.

  • Northfield at Stapleton Apartments

North of Interstate 70 at Northfield Boulevard and Spruce Way, Northfield at Stapleton Apartments will include 84 units, ranging from one to three bedrooms, for households earning from 30 to 60 percent of the area median income. Developed by Northeast Denver Housing Center, the three-story building will include private patios/balconies. The project is receiving $900,000 from the Revolving Loan Fund.

Each of the funded projects received four percent, Low Income Housing Tax Credits through CHFA, yet they each had a gap in needed financing in order to become feasible.

Once fully deployed, the Revolving Loan Fund’s initial cycle of $10 million in financing is estimated to produce approximately 600-700 affordable units.

Loan repayments will revolve back into the fund, providing a means for growth and additional housing loans in future years.

OED estimates that the fund can cumulatively produce more than 1,000 units within approximately 12 years, and upward to 1,700 units within 16 years.

“This marks the beginning of an exciting new, revolving, affordable housing tool for the City and County of Denver,” said OED Executive Director Paul Washington.

“Recognizing that federal funds used for affordable housing are declining, we sought to create a new sustainable tool that, together with our other resources, works toward ensuring Denver’s affordability.”

The launch of the RAHLF is the latest affordable housing milestone for the City and County of Denver. Other recent highlights include:

  • The Denver Office of Economic Development is currently funding a total of 12 affordable developments that are either under construction or in the planning phase. These units will deliver 1,240 affordable rental units to individuals across the income spectrum, from the homeless to residents earning up to 80 percent of the median income ($44,750 for a single-person household).
  • The Mayor’s “3×5 challenge” of producing 3,000 affordable units over five years is tracking ahead of schedule, with nearly 1,400 units developed, rehabilitated or preserved after two years.
  • Denver City Council passed revisions to the city’s Affordable Housing Preservation Ordinance in the summer, which strengthens the city’s ability to preserve long-term affordability of existing rental units.
  • A proposed construction defects reform ordinance is currently being considered by Denver City Council. The ordinance is designed to help spur the development of condominium projects in Denver.
  • And just over a year ago, the Hancock issued Housing Denver, the city’s first long-range affordable housing plan to be completed in 15 years. The 5-year plan harnesses the resources of the public and private sectors to deliver accessible housing opportunities for individuals and families of all income levels throughout the city.

 Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.

 

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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