Construction has begun on a unique 130-unit development that brings together affordable housing for families, permanent supportive housing for formerly homeless individuals, and a shelter for women and transgender individuals in Denver.
Arroyo Village is a joint development by nonprofit organizations Rocky Mountain Communities and The Delores Project, which combined two of their existing sites to make room for their ambitious new project.
By joining forces, they seek to maximize the site by building a development that will reach a variety of underserved residents in Denver.
“We came up with the name Arroyo Village because we do have these distinct communities,” says Richard Taft, president and CEO of Rocky Mountain Communities, a 26-year-old organization that owns more than 1,100 affordable homes statewide.
The 130 affordable apartments will include 95 one-, two-, and three-bedroom for families and individuals that earn 50% of the area median income and below and 35 permanent supportive housing units for formerly homeless individuals. The Denver Housing Authority is providing project-based vouchers for the supportive housing units.
The Delores Project, which provides shelter and services for unaccompanied women and transgender individuals, will expand into a new 12,000-square-foot space within the complex that will provide added space for programs, offices, and emergency beds during the winter. The new shelter will have about 50 to 60 beds.
It is the first new shelter to be built in Denver from the ground up since the 1980s, according to officials.
Arroyo Village is a transit-oriented development, with the property sitting adjacent to a light-rail station, making it a convenient location for residents who work downtown, according to Taft. The station is a 10-minute ride from the central hub of the city’s entire light-rail system.
The Rocky Mountain Communities property was occupied by an aging affordable housing development that was covered by a land-use restriction agreement (LURA). Working with the Colorado Housing and Finance Authority (CHFA) and other partners, Taft and his team were able to raze the old complex and continue the LURA on the new property.
The development team assembled multiple sources of funding to construct the approximately $31.8 million Arroyo Village, including federal 4% low-income housing tax credits (LIHTCs) and tax-exempt bonds and state housing credits awarded by CHFA. The federal LIHTCs generated about $13.2 million in equity from Boston Capital, and the state credits provided about $4.2 million from Sugar Creek Capital.
A $10.6 million Freddie Mac Tax-Exempt Loan was arranged by Walker & Dunlop. The team was led by Anthea Martin, vice president at Walker & Dunlop, who is based in the Denver region.
JPMorgan Chase provided the $19 million construction loan. The Colorado Division of Housing provided funding, contributing $1 million in Homeless Solution Program funds and a loan of $3 million from the Colorado Housing Investment Fund. The city of Denver contributed a $1.3 million forgivable loan. BlueLine Development served as a financial consultant.
Arroyo Village is expected to be completed in early 2019.
