The NHP Foundation (NHPF) is expanding housing opportunities in Frisco, Colorado, with two new developments.
The organization broke ground on The Bella, an affordable housing development, and opened The Scout, a workforce housing community, in the same week.
Located just blocks apart, the two projects represent complementary approaches to one of the most pressing challenges facing Colorado’s mountain communities—creating housing that allows people across a range of incomes to live closer to where they work, according to the nonprofit.
“These developments are great examples of NHPF’s strategy and mission at work. When we partner with cities for the long term, we are able to provide quality housing to a variety of residents,” said Eric Price, president and CEO of NHPF. “The Bella and The Scout together expand affordable and workforce housing so families can live where they work, strengthening Frisco’s livability and vitality.”
The Bella marks NHPF’s first low-income housing tax credit (LIHTC) development in Colorado. It features 52 studio, one-, and two-bedroom apartments for households earning 30%, 50%, and 80% of the area median income (AMI), with average affordability of 60% AMI across the development.
The approximately $31 million development is supported by 9% federal LIHTCs and state housing tax credits allocated by the Colorado Housing and Finance Authority. The financing package also includes construction financing from U.S. Bank, permanent financing from Cedar Rapids Bank & Trust, and grants from the Colorado Division of Housing.
The town of Frisco’s support includes approximately $4.9 million in soft financing, a property tax abatement, assistance securing a state Proposition 123 land banking grant, and two state infrastructure grants, as well as funding to purchase a small commercial space within the development upon completion.
Just three days after the groundbreaking, NHPF and its partners celebrated the opening of The Scout, which provides income-restricted housing for the local workforce, with rents capped at 120% of the AMI. The 54-unit, all-electric development is intended to help teachers, healthcare professionals, service workers, and other employees live closer to the communities where they work.
The Scout is a $27.5 million development supported by an $8.1 million investment from the town in addition to the land purchase, while Summit County helped the town acquire the property. The Colorado Department of Local Affairs awarded Frisco a combined $2.8 million through its More Housing Now and Strong Communities programs to fund critical infrastructure supporting the development.
The Scout breaks new ground in how middle-income housing can be financed. The Colorado Middle-Income Housing Authority (MIHA) issued $18.6 million in 501(c)(3) bonds to help finance the development, marking MIHA’s first bond transaction. The Scout also represents a pioneering use of 501(c)(3) bonds for new-construction middle-income housing in Colorado and the first time NHPF used its S&P AA- credit rating to enhance tax-exempt bonds.