Hunt Capital Partners, in collaboration with Prospect, announced the closing of $7.8 million in federal low-income housing tax credit (LIHTC) equity financing for the new construction of Alta & 15th Apartments in Longmont, Colorado.
The development will offer 88 units for low-income families who earn up to 50% and 60% of the area median income (AMI).
“Previous housing assessments have reported a shortage of 1,000 rental units affordable to Longmont households earning between 50% and 80% of the AMI,” said Dana Mayo, executive managing director at Hunt Capital Partners. “We are glad to partner with Prospect in the development of Alta & 15th to address this specific need and create more affordable housing for one of the United States’ fastest growing cities.”
The total development cost for Alta & 15th is $25 million. Hunt Capital Partners syndicated the LIHTCs through its multi-investor fund, Hunt Capital Partners Tax Credit Fund 37. Colorado Housing Finance Authority issued $12 million of tax-exempt bonds purchased by BBVA to provide construction financing. BBVA also provided an $8 million construction loan. Lument provided a $12 million tax-exempt permanent loan forward commitment and a $2.75 million taxable permanent loan forward commitment through Freddie Mac.
Additionally, Alta & 15th is one of the first affordable housing developments to be constructed under Longmont’s new Inclusionary Housing Ordinance. This ordinance provides incentives for affordable housing through development fee rebates as well as a $500,000 loan from the city’s Affordable Housing Fund, which was established with that ordinance in 2019, said officials.
Prospect’s development team includes Brinkman Construction as general contractor and Godden Sudik Architects as project architect.
Alta & 15th will feature three, three-story buildings and a pair of two-story buildings situated on 4.05 acres. There will be nine one-, 29 two-, 34 three-, and 16 four-bedroom units outfitted with modern amenities. Residents also will benefit from a business center, a community room, an exercise facility, a playground, a picnic area, central laundry, on-site management, and parking spaces.