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Partners in Innovation:Rental Housing Preservation and
TOD – the Denver Story
September 27, 2010Denver, Colorado
• 501(c)(3) nonprofit, supporting organization to the Denver Community Foundation. Established 2003, staffed 2007
• Mission: To acquire, develop, and preserve community assets in urban areas in the Denver Metro area
• Invested over $21 million in real estate, serving over 10,000 low and moderate income people
• 400 full and part-time jobs are supported by ULC real estate investments• Promote community development; strengthen neighborhoods through preservation of key
areas of influence • Preserve community assets in existing or emerging neighborhoods to ensure their
continued public benefit• Acquire strategic sites in anticipation of market changes through land banking along
transit corridors
Urban Land Conservancy (ULC)
• $15 Million fund designed to finance land and property acquisition for affordable homes near transit - Enterprise Community Partners: Assemble loan capital; fund manager; largest investor $5 million - ULC: 10% investor ($1.5 million) and sole borrower - City of Denver: Top loss funding of $2.5 million & recipient of the MacArthur Foundation
Housing Preservation Award: $2 million PRI and $250,000 grant for early warning system
• Up to 1,200 affordable homes over the next 10 years - 60% AMI rental, 95% AMI ownership - Goal of 15% of homes targeted for 30% AMI households
• Quickly provides patient, high-risk capital at low cost: Fixed at 3.38% at 90% LTV
• Purchase and hold sites for up to 5 years
Denver Transit Oriented Development (TOD) Fund
Less than 300 feet from a future RTD light rail stop on the West Corridor.
ULC owns land and has extended a 99-year land lease to NEWSED,
NEWSED owns the improvements - 4 rental buildings serving 100+ residents.
Total acquisition and rehab: $3.25 million
Partnership with NEWSED. 99 yr ground lease Hold Period: up to 5 yrs until redevelopment (2012)Development Plan: redevelop/ increase density; 52 of the 62 apartments are permanently
affordable, with 12 of the 52 committed to households at 30% AMI
Jody Apartments (preservation & redevelopment)
Pre- TOD
Jody Apts
Sheridan Station
Parking Garage
Station Area
Dahlia Apartments (preservation & redevelopment)
TOD & NSP
Partnership with Hope Communities.Hold Period: up to 3 yrs until Development Partner secures permanent financingInitial Rehab - $360K health/safety. Hope Redevelopment- an additional $15k/unit
.First TOD Fund acquisition - $1,000,000
Leveraged with $770,000 Neighborhood Stabilization Funds (NSP) funds
Foreclosure. 36 units (2 bdrm – 6 buildings)
1 block from high frequency bus line
Total acquisition and rehab: $1.75 million
Challenge: deferred maintenance
Yale & I-25 • First TOD new construction• 1.51 acres• Adjacent to light rail station• Stabilized neighborhood - Lacks sufficient affordable housing• Hold period: 4 years
––
• Partner: Mercy Housing• Program: 70 units
workforce rental housing
• Serving 30 - 60% AMI• Hold period: 4 yrs• 9% LIHTC
The West Line Corridor
$15 million TOD Fund closed April 2010
Transactions to Date:
CLOSED - Dahlia - Preservation – 36 units (bus corridor) Price: $1,212,750 TOD Fund: $1,000,000
CLOSED - Yale – new construction – 70 units (existing light rail) Price: $1,325,000 TOD Fund: $1,192,500
UNDER CONTRAC T - Avondale – new construction – 70 units (bus corridor) TOD Fund: $1,926,000
IN NEGOTIATION – new construction – 63 units (existing light rail) - $1,078,110
Total Expected to be deployed $5,196,610 (Not including ULC investment)239 units of affordable housing near transit
TOD Fund provides:
• Ability to preserve land and buildings around transit corridors • Opportunity to preserve/create affordable housing• Benefit to low-income households that on average spend 60% of
their gross income on housing and transportation expenses combined
• Creates opportunities for wealth-building and greater access to employment and educational opportunities
• Increases ridership on public transit• Reduces gentrification pressures• Provides employers with access to an expanded workforce• Smart growth infill development (high density) helps reduce
negative environmental impact of sprawl
• Debra Bustos
• Urban Land Conservancy
• 305 Park Avenue West
• Denver, Colorado 80205
• (303) 377-4477
• www.urbanlandc.org
