The Department of Housing and Stability is starting the year off with one of its largest loan proposals for an affordable housing project.
The Safety, Housing, Education and Homelessness Committee approved a proposed loan agreement for $8,139,000 between HOST and the Delwest Development Corporation, through Holly LLLP, to provide gap financing for a 253-unit affordable housing complex in Northeast Park Hill.
The proposal will move to a City Council vote in the upcoming weeks and, if passed, the loan would be "the largest affordable housing gap financing amount to be brought forward for City Council approval since the formation of the Department of Housing Stability in late 2019," according to HOST spokesperson Derek Woodbury.
Though it is the largest, it's still in line with smaller projects HOST has worked with in terms of dollars per unit.
The project itself is also "the largest affordable housing project for HOST in terms of total income-restricted units."
The 253-unit complex, located at 38th Avenue and Holly Street, will be income-restricted for those making 30% to 80% of the area median income. For a family of three, 30% AMI is $31,650 and 80% is $80,500.
About 15% of the units or 38 units will be reserved for those making 30% AMI or less and about 25 units will be for those making 50% AMI or less.
There will be 84 one-bedroom, 104 two-bedroom, 36 three-bedroom. There will also be 29 four-bedroom which will be located in three-story townhomes that come with attached garages.
Though the project isn't supportive housing, with the lower AMI levels Councilmember Robin Kniech asked HOST and the developer whether they would provide social services to residents such as food access support or service navigation. A member of the development team said there will be some programs for children. The group is currently working on a supportive housing project and they have a partnership with The Empowerment Group. A partnership with the nonprofit may also go into effect with this project.
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.
In the last weeks of 2022, HOST was working on those goals through gap financing. City Council approved several loan agreements for affordable housing, including $3 million for a 56-unit development at 2700 Wewatta Way that will provide housing for young adults ages 18 to 24 who are at risk of or already experiencing homelessness. They also approved a $3.3 million loan agreement between HOST and Montbello Organizing Committee for its Montbello FreshLo Hub.
This proposed loan is also considered gap financing, which provides an extra push in funds to complete projects. The loan will have a 30-year term and there will be a 60-year rental and occupancy covenant placed on the site.
