An affordable housing project geared toward helping young adults just got a funding boost from the Department of Housing and Stability.
City Council this week approved a $3 million loan agreement between HOST and Pennrose LLC, which is building the housing in the Five Points' RiNo Art District. The funding is being provided through Denver's Homelessness Resolution Fund.
The housing project is part of the Denargo Market development, a mixed-use planned neighborhood in RiNo, with housing, retail, commercial and open-air space along the South Platte River.
The 56-unit development will be located at 2700 Wewatta Way.
It will provide affordable and supportive housing for young adults ages 18 to 24 who are at risk of or already experiencing homelessness. It'll be a five-story building with a mix of studios and one- and two- bedroom units.
Residents will be chosen on a need basis. That need will be assessed in two parts -- a vulnerability assessment and whether that person has aged out of the foster care system. Residents will also sign a traditional lease and contribute 30% of their income toward rent, though residents aren't required to have a job to be considered for housing. Vouchers will be provided to residents to ensure they aren't paying more than 30% of their income for rent.
All units will be income-restricted for households earning up to 30% or 50% of the area median income. For a single person, 30% AMI is about $24,650.
The project is spearheaded by Rivet Development Partners, who helped oversee the construction of Raices Brewing Company, and TGTHR, a nonprofit working to end youth homelessness.
"One out of 30 adolescents will experience homelessness in a given year," Chris Nelson, the CEO of TGTHR, previously said. "One out of 10 young adults will experience homelessness in a given year. While a young person is on the street, one out of three is solicited for trafficking. We lose thousands of young people on the street because of assault, suicide and succumbing to the elements. We, collectively as a society, should not tolerate that and we have these opportunities to create solutions for these young people."
The complex will also provide supportive services like mental health and education resources through TGTHR.
Sessions for other services like life skills development, financial literacy training and career development will be appointment-based or through office hours.
HOST is also working on providing funding for the supportive services. A contract totaling $1,260,000 is awaiting City Council review and approval.
Part of HOST's five-year goal is to invest in expanding housing and create and preserve more than 7,000 affordable rentals and for sale homes.
Over the past few weeks, HOST has been hitting the investment portions through gap financing, such as this current agreement loan. Derek Woodbury, a spokesperson with HOST said, gap financing is providing developers with an additional push in funds to complete their projects.
On Monday, the Safety, Housing, Education & Homelessness Committee approved a $3.3 million loan agreement between HOST and Montbello Organizing Committee for its Montbello FreshLo Hub, a loan agreement for $4,515,000 to Northfield Flats LLC for their affordable housing develop at 4545 Xenia Street and a $3,850,000 agreement with Archway Investment Corporation Inc. for Park Hill Campus Family Housing.
If City Council approves all three, the funding would help complete construction on 380 affordable units with several at or below 30% AMI and up to 80% AMI
Correction: This story has been updated to correct the number of affordable rentals HOST is looking to create and preserve.
