The Denver TOD Fund Twin Cities Joint Learning Session September 15, 2011.

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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THANK [email protected]

(303) 376-5412