September 14, 2009 – (RealEstateRama) — Colo. became one of the very first states in the nation to tap into the Tax Credit Assistance Program (TCAP) funds created for affordable housing development and preservation in the American Recovery and Reinvestment Act (ARRA).
Colorado Housing and Finance Authority (CHFA), who is administering the state’s $27.3 million TCAP fund, has awarded Community Housing Concepts, Inc. (CHC) $1.7 million in TCAP funds to purchase and renovate Denver Gardens, a 100 unit affordable senior apartment complex located in southeast Denver. The award will support CHC’s plans to upgrade the property, originally built in 1979, while still maintaining its affordability for residents. Completiton of Denver Garden’s $14 million purchase and renovation is estimated to spur $29.8 million in economic impact and support 222 jobs.
Milroy A. Alexander, CHFA’s executive director and CEO said, “CHFA has been very focused on implementing the TCAP program as fairly and quickly as possible to ensure consistency with the stimulus bill’s goals of job creation and economic investment within our community. This first TCAP award will bring a renewed quality of life for the seniors living at Denver Gardens, while still ensuring the affordability of the units is maintained.”
Additional financing for the Denver Gardens project has been obtained through Citi Community Capital and from the sale of $758,970 in Low Income Housing Tax Credits awarded to CHC by CHFA earlier this year.
Brian Dale, director for Citi Community Capital said, “Denver Gardens represents the type of necessary and worthwhile affordable housing project that has encountered difficulties obtaining financing in the current lending environment. Moving forward on the $14 million deal would not have been possible without CHFA’s TCAP award and the speed of their approval.”
The purchaser of the tax credits, WNC & Associates, is contributing $5.5 million in equity to the project. Michael Byrd, WNC’s project manager for Denver Gardens noted, “the speed with which CHFA implemented this new financing tool was breathtaking. The TCAP funds were truly the funds that leveraged all of the project financing sources and moved this $14 million investment forward.”
CHC proposes to update the property’s individual units with energy efficient windowns and appliances, as well as painting and adding bathroom amenities for residents. Among the exterior improvements panned are updating the siding, trim, painting, and concrete repairs. With the rising cost of energy and the negative effects large properties can have on the environment, improving the “green” rating on Denver Gardens is one of CHC’s primary concerns. CHC applied for and received a pledge for grant money from the Governor’s Energy Office and Energy Outreach Colorado which CHC will allocate toward components such as photovoltaic panels being placed on the building’s rooftop.
Denver’s Road Home has also pledged grant money for the project as several units will be set aside for homeless and at-risk individuals. Funding from Denver’s Road Home will be used for services to be provided for all of Denver Gardens’ residents.
Hud Karshmer, president of CHC stated, “We are very excited to partner with CHFA, the Governor’s Energy Office and Denver’s Road Home on this project. Without the award of TCAP funds from CHFA, we would not have the resources to complete the much needed rehabilitation on Denver Gardens.”
‘Thanks to their quick and efficient implementation efforts, Colorado is one of the first states in the nation to put Recovery Act funds to work to jumpstart low income housing construction, which will help jumpstart the state’s economy.” said U.S. HUD Secretary Donovan. “The TCAP program will significantly boost efforts to put the people back to work across the statw while providing quality, affordable housing options for low-income families at a time when those options are critical.”