The Denver TOD Fund Twin Cities Joint Learning Session September 15, 2011

2 1.Background on the TOD Fund 2.Efforts to date 3.Alignment with Metro Vision Metro Vision Goals Metro Vision Policies 4.Economic Impact 5.DRCOG’s participation in the TOD Fund 2 Overview

3  $6.7 billion  70 new stations  45,000 HHs  344% Pop Growth around stations  40% will earn under 60% AMI RTD FasTracks: 3 TOD Fund: Background

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5 TOD Fund: Background The Denver Region’s Low-Income, Minority, and Senior Community Members are at risk: 1.Degradation of existing bus lines 2.Increased housing cost from speculation 3.Tenant displacement from gentrification pressures 4.Isolation from community 5

6 Housing Costs OnlyHousing & Transportation Costs Yellow areas are affordable to median income, assuming 30% of income for housing only, 45% of income for H + T combined Source: Center for Neighborhood Technology TOD Fund: Background 6

7  Low income families spend 60% of income on housing and transportation  They are more likely to utilize transit regularly, increasing & stabilizing ridership for RTD  Transit access improves access to education, jobs, food, healthcare and community services  TOD encourages smart/compact growth, decreases traffic congestion and enhances air quality  Increases community health through walking, bicycling, and interaction 7

8 TOD Fund: Background Local Challenges:  State and Local affordable housing funding is minimal  Perennially ranked amongst lowest in U.S.  Denver lacks strong affordable housing mandates  Weak IZO applies only to homeownership  Recent rezoning/up-zoning did not include affordability requirement  Dual affordability challenge in transit corridors  Preserving existing affordability in the face of redevelopment pressure  Incorporating affordable housing into new development 8

9 Total units9,759 Units within a half mile of quality transit7,300 Elderly designated units1,329 Units with contracts expiring by ,382 Federally Assisted Housing in the Denver Region TOD Fund: Background 9

10 30% Area Median Income  Denver MSA:  $16,440 for individual  $23,460 for family of 4  Max 1BR Rent: $440  Max 3BR Rent: $610 60% Area Median Income  Denver MSA:  $32,880 for individual  $46,920 for family of 4  Max 1BR Rent: $880  Max 3BR Rent: $1220 Affordable Housing Defined 10

11  Located less than 300 feet from future light rail station  ULC has 99 year land lease to nonprofit owner  52 of 62 apartments now permanently affordable, 12 at 30% AMI and below  62 units adjacent to Sheridan Station  NEWSED, ULC, Enterprise, City, Colorado Division of Housing Jody Apartments (The Beginning) 11

12 The TOD Fund: Structure  Goal: Preserve and create over 1,000 units of affordable housing near transit  property acquisition  land banking  $15 million, 10 year fund, 3.43% fixed rate to Urban Land Conservancy  Revolving Line of Credit  3-5 year sub-loans for acquisition  90% LTV on ‘as-is’ basis  Top 63% is Non-Recourse  Enterprise serves as adminstrator ULC First Loss: City of Denver Second Loss: Enterprise Community Partners Third Loss: CHFA and Foundations Senior Debt: Community Development Financial Institutions 12

13 The TOD Fund: Acquisitions to Date  Dahlia Apartments (36 apt homes) - Apr  Health & Safety Rehabilitation completed by ULC  Yale Commons (1.20 acres land) – July 2010  ULC working with RTD/Developers on area plan that includes housing  Mile High Vista (2.15 acres land) – March 2011  70 new apartments, 28K SF public library, 14K SF supportive retail  Evans Station (0.96 acres land) – June 2011  50 new apartments financed with 9% LIHTC  Villa TOD (16 apt homes) – Aug 2011  Includes 7,400 SF of commercial space 13

14 TOD Fund Property Locations Evans StationYale Commons Mile High Vista The Dahlia Apts Villa TOD 14

15 TOD Fund: Preservation 15 Dahlia Apartments Villa TOD

16 TOD Fund: Development 70 Apartments Public Library Retail 16 Yale Commons Mile High Vista Evans Station

17 TOD Fund Summary 17

18 The TOD Fund: Future  Our goals for expanding the TOD Fund:  Increase fund to $30 million or more  Larger geographic scope  Seeking ‘first-loss’ investment from our MPO/COG  Additional borrowers  Can we make terms even more attractive?  Added focus on senior population  Mixed-Use/Mixed-Income properties 18

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