Denver authority approves proposed $14.7 million financing for 120 affordable homes
The financing would help convert the downtown University Building into income-restricted homes, but City Council must still approve the property’s inclusion in the development authority and the funding agreement.
Denver’s Downtown Development Authority approved a proposed financing agreement Aug. 26 to advance up to $14.7 million for converting the University Building at 900-918 16th St. into 120 affordable homes. The financing still requires City Council approval and final legal review.
The City Council is expected to consider adding the property to the authority’s boundaries under Ordinance 26-1187 at second reading Sept. 14. Council also must approve a separate ordinance authorizing the city’s Development Project Funding Agreement with the authority. The Denver Department of Finance request says the authority board approved the funding agreement subject to final legal review.
Under the proposal, the city would transfer up to $14.7 million in loan proceeds to the authority, which would then make a project loan to 910 Associates Inc., the property owner, for the residential conversion. The authority resolution approves the University Building Residential Conversion project for $14,577,208.
The project resolution describes the homes as “100% covenanted affordable” for households earning 30% to 80% of area median income. The project resolution and exhibit say the financing would support the residential portion of the office-to-residential conversion and improvements to first-floor commercial space.
The financing would rely on tax-increment revenue generated within the authority’s boundaries. The authority’s underlying borrowing includes a fixed-rate loan of up to $160 million and a revolving line of credit of up to $50 million, both to be repaid with that revenue.