Dec 11, 2019
Denver’s near-new Department of Housing Stability looking to extend fund to 2029
Denver’s Department of Housing Stability (HOST) is looking to extend the highly successful Denver Regional Transit Oriented Development (TOD) Fund to the year 2029. Denver’s original investment of $2,500,000 into the fund is currently set to expire on December 31, 2019. A request to extend a master credit agreement with Enterprise Community Loan Fund Inc., who manages the fund, was passed by a Denver City Council committee earlier today. The proposed extension will be put before the full City Council later this month.
“When the city expanded this fund to make it a regional fund in 2014, Mayor Michael B. Hancock said that the TOD Fund has proven itself to be a successful tool in ensuring that low- and moderate-income families benefit from the buildout of our mass transit,” said Britta Fisher, HOST Executive Director. “That is even truer today and is why it makes sense to extend. The Denver Regional TOD Fund is a critical tool in our toolbox for solving Denver’s and the region’s housing challenges.”
The Denver Regional TOD Fund—the first such fund of its kind in the nation—was launched in 2010, with Enterprise Community Partners serving as administrative agent and the Urban Land Conservancy designated as the sole borrower. The fund was designed to assist in the acquisition of land or property needed to create or preserve affordable housing located near mass transit. The City and County of Denver initially invested $2.5 million of federal Community Development Block Grant dollars into the fund, which has been leveraged with additional capital from private and philanthropic sources. In 2014, the fund was expanded regionwide, grew to $24 million, and was opened to qualified affordable housing developers in the metro area.
“Whether getting to work, school or just picking up groceries at the store, reliable transportation is important to the success of Denver’s families and communities. However, access to public transportation depends on where someone lives,” said Jennie Rodgers, Enterprise Community Partners VP and Denver market leader. “Enterprise is proud to continue partnering with the City of Denver, Colorado Housing Finance Authority, Colorado Division of Housing and our private and foundational investors to ensure even more families in the metro Denver area have an affordable place to live near transit.”
Since its inception, 17 loans have been made through the Denver Regional TOD Fund providing a total of $34 million in financing for property acquisitions near public transit in the Denver metro area. As a result, more than 1,450 affordable homes near public transit has been created or preserved.
Fourteen of the loans closed are in the City and County of Denver. Acquisitions have resulted in new affordable housing established along several corridors of the RTD’s FasTracks expansion, including at Yale Station, Evans Station, 38th & Blake Station, 40th and Colorado Station, Denver Union Station, and future housing at 48th and Race St.
The proposed extension calls for an additional 10 years of Denver’s participation in the fund, including a five-year period of loan activity followed by a five-year period for loan maturation and repayment.