Nov 09, 2015
Initial investments from Denver’s Revolving Affordable Housing Loan Fund support development of 294 additional units
The Denver Office of Economic Development (OED) is proud to announce 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. We expect that each will make lasting contributions to our residents for generations to come.”
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 (CHFA), 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
Located 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 Company/Mile High Development.
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.
Northfield at Stapleton Apartments
Located north of I-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: