the denver tod fund twin cities joint learning session september 15, 2011
TRANSCRIPT
The Denver TOD Fund
Twin Cities Joint Learning Session
September 15, 2011
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1. Background on the TOD Fund
2. Efforts to date
3. Alignment with Metro Vision• Metro Vision Goals• Metro Vision Policies
4. Economic Impact
5. DRCOG’s participation in the TOD Fund
2Overview
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$6.7 billion 70 new stations 45,000 HHs 344% Pop Growth
around stations 40% will earn
under 60% AMI
RTD FasTracks:
3TOD Fund: Background
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TOD Fund: Background
* http://www.enterprisecommunity.org/local_work/documents/case_for_mixedincome_tod03_07.pdf
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TOD Fund: Background
The Denver Region’s Low-Income, Minority, and Senior Community Members are at risk:
1. Degradation of existing bus lines
2. Increased housing cost from speculation
3. Tenant displacement from gentrification pressures
4. Isolation from community
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Housing Costs Only Housing & Transportation CostsYellow areas are affordable to median income,
assuming 30% of income for housing only, 45% of income for H + T combinedSource: Center for Neighborhood Technology
TOD Fund: Background6
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TOD Fund: Background
Low income families spend 60% of income on housing and transportation
They are more likely to utilize transit regularly, increasing & stabilizing ridership for RTD
Transit access improves access to education, jobs, food, healthcare and community services
TOD encourages smart/compact growth, decreases traffic congestion and enhances air quality
Increases community health through walking, bicycling, and interaction
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TOD Fund: Background
Local Challenges: State and Local affordable housing funding is minimal
Perennially ranked amongst lowest in U.S.
Denver lacks strong affordable housing mandates Weak IZO applies only to homeownership Recent rezoning/up-zoning did not include affordability
requirement
Dual affordability challenge in transit corridors Preserving existing affordability in the face of redevelopment
pressure Incorporating affordable housing into new development
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Total units 9,759
Units within a half mile of quality transit 7,300
Elderly designated units 1,329
Units with contracts expiring by 2014
4,382
Federally Assisted Housing in the Denver Region
TOD Fund: Background9
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30% Area Median Income Denver MSA:
$16,440 for individual $23,460 for family of 4 Max 1BR Rent: $440 Max 3BR Rent: $610
60% Area Median Income Denver MSA:
$32,880 for individual $46,920 for family of 4 Max 1BR Rent: $880 Max 3BR Rent: $1220
Affordable Housing Defined10
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Located less than 300 feet from future light rail station
ULC has 99 year land lease to nonprofit owner
52 of 62 apartments now permanently affordable, 12 at 30% AMI and below
62 units adjacent to Sheridan Station
NEWSED, ULC, Enterprise, City, Colorado Division of Housing
Jody Apartments (The Beginning)11
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The TOD Fund: Structure
Goal: Preserve and create over 1,000 units of
affordable housing near transit property acquisition land banking
$15 million, 10 year fund, 3.43% fixed rate to
Urban Land Conservancy Revolving Line of Credit 3-5 year sub-loans for acquisition
90% LTV on ‘as-is’ basis
Top 63% is Non-Recourse
Enterprise serves as adminstrator
ULC
First Loss:
City of Denver
Second Loss: Enterprise
Community Partners
Third Loss: C
HFA and Foun
dations
Senio
r Debt: Com
munity
Development Financia
l Institutions
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The TOD Fund: Acquisitions to Date Dahlia Apartments (36 apt homes) - Apr. 2010
Health & Safety Rehabilitation completed by ULC
Yale Commons (1.20 acres land) – July 2010 ULC working with RTD/Developers on area plan that includes housing
Mile High Vista (2.15 acres land) – March 2011 70 new apartments, 28K SF public library, 14K SF supportive retail
Evans Station (0.96 acres land) – June 2011 50 new apartments financed with 9% LIHTC
Villa TOD (16 apt homes) – Aug 2011 Includes 7,400 SF of commercial space
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TOD Fund Property Locations
Evans Station Yale Commons
Mile High VistaThe Dahlia Apts
Villa TOD
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TOD Fund: Preservation15
Dahlia Apartments
Villa TOD
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TOD Fund: Development
70 Apartments
Public Library
Retail
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Yale Commons
Mile High Vista
Evans Station
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TOD Fund Summary17
PropertyExisting
UnitsPlanned
Units Loan Amount
Dahlia Apts 36 36 $ 1,000,000
Yale Commons 68 $ 1,192,500
Mile High Vista 72 $ 2,115,000
Evans Station 2 50 $ 1,080,000
Villa TOD 16 16 $ 1,215,000
54 242 $ 6,602,500
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The TOD Fund: Future
Our goals for expanding the TOD Fund:
Increase fund to $30 million or more
Larger geographic scope Seeking ‘first-loss’ investment from our MPO/COG
Additional borrowers Can we make terms even more attractive?
Added focus on senior population
Mixed-Use/Mixed-Income properties
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