Denver proposes up to $14.7 million for 120 affordable homes in University Building
The proposed financing would help convert the downtown building into at least 120 affordable homes, with city funds flowing through the Downtown Denver Development Authority as a long-term project loan.
Denver is proposing up to $14.7 million in financing to help convert the University Building at 900–918 16th St. into at least 120 affordable homes, a city Finance request says.
The arrangement would send city funds to the Downtown Denver Development Authority (DDDA), which would make a loan to the project. The DDDA board approved the proposed agreement Aug. 26, subject to final legal review. The agreement would not bind Denver until City Council approval and execution by the required city officials, the agreement says.
The agreement requires at least 120 affordable units. A project summary attached to it describes rents affordable to households earning 30% to 80% of area median income. The city’s contribution would depend on available appropriations, receipt of lender-loan proceeds, required approvals and closing conditions.
The proposed project loan would carry 2% annual interest, compounded, over a 40-year term. Repayment would come primarily from project cash flow and refinancing proceeds, and the loan would be secured by the property behind specified senior debt.
City Council passed and the mayor signed a separate ordinance to add the property to the DDDA boundary. The proposed city financing is also contingent on the property’s inclusion in the boundary, the ordinance says.