A bold affordable housing development moved a step closer to construction with the closing of $15.8 million in federal low-income housing tax credit (LIHTC) equity financing.
The Krisana Apartments will offer 151 all-electric homes at affordable rents to low-income families in Denver. The property will feature 21 studio, 71 one-, and 59 two-bedroom units to households earning up to 60% of the area median income. Eight units will be designated as fully accessible, and 12 will be reserved for those with audio or visual impairments.
Co-developers Lexton McDermott and Kentro Group closed on the LIHTC financing with Hunt Capital Partners (HCP), the tax credit syndication division of Hunt Cos.
“Krisana Apartments will bring over 150 low-income families much-needed affordable and fully climate-controlled homes in Denver. It also serves as a model for what sustainable housing focused on clean energy can look like,” said Amy Dickerson, managing director of investor relations at HCP. “With support from the city’s forward-thinking pilot program, the development features a notable all-electric component that makes it one of the first of its kind for affordable housing nationwide.”
The total development cost for Krisana Apartments is $44 million. HCP syndicated the federal tax credits through a proprietary fund with UMB Bank. UMB Bank also provided a $22.7 million tax-exempt construction loan and a $7.9 million taxable construction loan. Citibank provided a $21.1 million forward permanent loan.
In addition, the development received an inaugural grant from the city of Denver through its New Buildings and Homes Electrification Pilot Program and serves as a leading example of the city’s effort toward phasing out fossil fuels in both homes and commercial buildings. Krisana Apartments will forego the use of equipment that utilizes traditional methods of gas and mixed fuel heating and, instead, opt for electricity as the primary source for heating and cooling. According to project officials, the community will be built to meet certifiable requirements for the 2018 International Energy Conservation Code, the 2020 National Electrical Code, 2019 Denver Building Code Amendments, and state accessibility laws. Additionally, the development will utilize LED lamps for its interior, exterior, exit, and emergency light fixtures to reduce overall power consumption.
“UMB is very proud to be a part of this transformational development that will provide much-needed high-quality, affordable housing to the area,” said UMB Bank director of affordable lending Tracy Howren.
Residents will have access to common area amenities such as communal laundry rooms on each floor, a gym, a mailroom, a trash room, storage rooms, an on-site leasing and management office, and a community room outfitted with an additional kitchen.
Krisana Apartments will offer 120 parking spaces, including seven accessible spaces, two of which are designated as van accessible. Six out of the 120 spaces will be designated as electric vehicle supply ready spaces with chargers installed and an additional 18 EV-capable spaces with infrastructure in place for installation of more charging stations in the future. A bike storage room for 26 bicycles will be provided in the parking garage. Additionally, as part of the developers’ overall master plan and long-term vision for a climate-conscious and transit-oriented community, there are future plans for the installation of electric-powered Denver B-cycle stations and the creation of bike lanes.
ComCap Management, an affiliate of McDermott Properties, will serve as property manager. Pinkard Construction is the general contractor, and Lewis Himes Associates, formerly Lewis Associates Architects, is the project architect.