Project Name: Renaissance Downtown Lofts. Project Address: 2075 Broadway, Denver CO, OVERVIEW

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1 Project Name: Renaissance Downtown Lofts Project Address: 2075 Broadway, Denver CO, OVERVIEW The Colorado Coalition for the Homeless, and its subsidiaries Renaissance Housing Development Corporation and Downtown Lofts Housing Corporation, propose to construct 101 units permanent supportive housing on a prime TOD site at Broadway and Stout Street in downtown Denver s vibrant Arapahoe Square neighborhood. This project is targeted to meet the needs of Denver s homeless population in conjunction with The Mayor s Housing Plan and 3 x 5 Housing Initiative as well as the Denver s proposed Social Impact Bond (SIB) program. This new construction development will include 96 one bedroom units, 4 two bedroom units and 1 two bedroom live in manager s unit. The project is also requesting funding through the Colorado Division of Housing Permanent Supportive Housing Pilot Program. The project ownership will be divided into two condominium ownerships, with a LIHTC (9%) condo consisting of 65 residential units located on floors 2 through 4 (LIHTC condo); and a PAB (4%) condo consisting of 36 residential units located on floors 5 and 6 (PAB condo). The 1 st floor and all project amenities; parking, offices, etc. will be common elements to both condominium owners and land and infrastructure costs will be allocated to each owner in accordance with the benefit to each. The management and operational costs of each component will be proportionally allocated to each condo and coordinated to maximize efficiency and reduce costs. This competitive 9% LIHTC application is in support of the LIHTC Condo, consisting of 65 residential units located on floors 2 through 4. We believe that it should be selected for an award of Low Income Housing Tax Credits because the combined project will provide critically needed Permanent Supportive Housing for up to 100 chronically homeless individuals. The project will also leverage significant supportive services funding through the Social Impact Bond program to allow further targeting to chronically homeless individuals who are frequent utilizers of high cost taxpayer funded services, including courts, jail, detox, and health services. This population is currently critically underserved in the City and County of Denver. The combination of LIHTC financing, Project Based Section 8 vouchers provided by the Denver

2 Housing Authority and Colorado Division of Housing, and the SIB funding will allow the project to serve the most vulnerable, chronically homeless individuals in our community. While the intent of the combined development is to serve 100 chronically homeless individuals, the project is being structured such that it will be financially feasible in the event that the SIB funding or all of the Section 8 vouchers are not available. If the SIB is not funded, or the SIB financing is not sustained after the initial project period, the proposed development will serve a minimum of 50 homeless individuals through the DHA PBV vouchers and the Colorado Coalition for the Homeless health care and residential services programs, with the balance of units serving households at 40%, 50% and 60% of AMI. One unit will be for a Live in property Manager. With the SIB funding and Section 8 vouchers from both DHA and CDOH in place, all of the housing units (64 in the 9% LIHTC condo and 36 in the 4% PAB condo) will be dedicated to serving chronically homeless individuals. The LIHTC award will also leverage over $22,000,000 of funding to complete the combined development of 101 units through a combination of public and private sources. PROJECT DESCRIPTION The development site is a 21,377 square foot trapezoid shaped parcel with a small vacated building. The new development will be structured in accordance with our Renaissance Housing model that has proven successful in many of our developments, including Renaissance Uptown Lofts at East Colfax Avenue and Pearl Street which opened in 2011, Renaissance West End Flats at West Colfax Avenue and Zenobia Street which opened in 2012, Renaissance Stout Street 2

3 Lofts at 21 st and Stout Street which opened in 2014 and Renaissance North Colorado Station at 40 th and Colorado Blvd. which is currently under construction. The development site is being acquired from a bank at a discounted price $1 million below market value, with the balance being a donation to the Colorado Coalition for the Homeless. This reduces the overall development cost for the project. The development will be developed in two simultaneous phases and separated into two condominium units with separate ownership and financing, and shared common element amenities. One condo unit will be for the 9% LIHTC partnership and the second condo unit will be 4% PAB tax credit partnership. This unique financing structure will allow the competitive 9% credits to leverage more affordable and deeply targeted housing units that could otherwise be achieved with the 9% credits alone. We anticipate that both condos will have the same general and limited partners. The 9% LIHTC condo unit will contain 65 units, consisting of 60 onebedroom and 5 two bedroom units. One two bedroom unit will serve as the live in property manager s apartment. The 4% PAB condo unit will contain 36 one bedroom units. This unique structure is very similar to the condominium structure used by CCH for the development of the Renaissance North Colorado Station project and the development of Stout Streets Lofts and Stout Street Health Center to meet tax code requirements for separation of LIHTC and 4% PAB / New Market tax credits utilized in those developments. Consequently, our legal and accounting documentation has already been created to support this creative approach, further leveraging precious resources. TYPE OF CONSRUCTION AND AMENITIES The existing vacant building, formally a bank drive thru building, will be razed to make way for the new construction. The new six story structure will be consistent with the D AS (Downtown Arapahoe Square) zoning for the parcel. The first floor will house the property management, case management offices and maintenance space together with 31 tuck under parking spaces. A large community room is located on the second floor with a full kitchen and a large private outdoor deck that will provide both indoor and outdoor amenities for our residents. Other common amenity space will include a central laundry room with energy efficient stacked washers and dryers, a computer lab area and a flex space which use will be determined with feedback from the residents upon occupancy. The project construction will consist of a one story structural concrete podium with 5 stories of Prescient light gauge structure steel on top of the podium combining to form a 6 story superstructure. Prescient is a Denver based company that utilizes an integrated Design, Engineering, Construction platform and a patented light gauge steel system rated for up to a 12 story building. The structure will be pre fabricated and erected in a similar manner as panelized wood construction reducing construction duration. 3

4 The building exterior will be similar to our recent Urban Design projects with a mixture of colored steel panels, stucco and brick siding with storefront glass features and architectural highlights. All of the units will have standard amenities including kitchens with garbage disposals and dishwashers, bathrooms, closets, energy efficient heating and air conditioning, CAT 5 and coax cabling for communications and high speed internet service. Rooms and common areas will have tall ceilings. In addition to the community room and other common amenities, the project will include a video surveillance system, secured single point building access, and two elevators for residents to use. ENERGY EFFICIENCIES The project will be designed and constructed to meet or exceed Enterprise Green Communities guidelines. Green features in the development include: Insulation values for the building will exceed ASHRAE and IBC minimums Common area Indoor, Residential Unit and Outdoor lighting will be Energy Star rated and outdoor lighting will have daylight sensors and fixtures designed to minimize light pollution. Common Area lighting will include occupancy sensors to further reduce building energy consumption. Green Label Certified flooring will be used throughout the project and only very low tono VOC paints, adhesives and sealants will be used. Energy Star rated appliances and water conserving fixtures. The project will be Solar Photovoltaic ready to the roof to generate electricity to lower operating costs of the building. Energy efficient and right sized heating and cooling systems for the common areas, offices and residential units, including healthy fresh air exchange rates. Energy efficient e coated glass window systems with dual pane e coated and soundrated glass in residential units. Landscaping native to Colorado Efficient drip irrigation system Utilize materials containing recycled content No engineered wood product will contain urea formaldehyde compounds. Regionally available materials brick and gypsum board This Transit Oriented Development is located two blocks (less than ¼ mile) from two RTD Light Rail stations at 18 th and Stout Street and 20 th and Welton Street. The property is also served by frequent bus service along Broadway and Champa St. and the property is well connected with sidewalks linking the site with downtown businesses, transportation and recreational sites. Consequently, the property will target those individuals who use public transportation, reducing the need for extensive on site parking. 4

5 POLULATION SERVICED AND SUPPORTIVE SERVICES The project is being developed as part of an important new collaboration with the City and County of Denver for providing Housing and Case Management Services for individuals identified in the City s first Housing to Health Social Impact Bond (SIB). This SIB will target 300 to 500 Homeless individuals who represent the top users of Denver s Jail and Denver Health Detox and Emergency Services. When established, the SIB will provide gap funding for extensive case management for the project s homeless resident population. Under the SIB program the project will operate as a 100% Permanent Supportive Housing with all units having Project Based vouchers provided by Denver Housing Authority and Colorado Division of Housing. If the CDOH vouchers are funded, the development will provide Permanent Supportive Housing for 100 residents through the LIHTC and PAB condos. In the event that the CDOH vouchers are not awarded, the projects will serve 50 homeless individuals through the Colorado Coalition for the Homeless health care and residential services programs, with the balance of units serving households at 40%, 50% and 60% of AMI. In the event that the SIB is not funded, or the SIB financing is not sustained after the initial project period, the project will still meet the objectives of the Mayor s new Housing Plan and the Mayor s 3 x 5 housing initiative. Our development has been carefully structured to function either as a project meeting the SIB collaborative or as our standard model Renaissance Housing project with 50% of the units dedicated as permanent supportive housing for the homeless housing and 50% of the units as low income affordable units ranging from 40% AMI to 60% AMI. Under both possible configurations, the Colorado Coalition for the Homeless will provide a range of health and supportive services to homeless and special needs individuals residing in the development. The services are designed to assist homeless individuals to obtain and maintain their permanent housing. A housing first approach ensures a direct link to housing. Housing and services will be seamlessly coordinated across multiple services systems through the multi disciplinary Assertive Community Treatment (ACT) team. Each participant will be assigned to a primary case manager who is part of the ACT team. The ACT team will provide, or arrange for assistance meeting each individual s clinical, rehabilitation and recovery needs. Additional integrated health, mental health, dental, vision, pharmacy, and social services will be provided by the Colorado Coalition for the Homeless through its Stout Street Health Center, which is located one block from the development site. The case managers and counselors will help residents to maximize their self sufficiency by addressing the underlying illness and causes of their homelessness and increasing their life skills. The program uses a strength based approach which identifies and builds upon the skills 5

6 and strengths the participants brings with them and helps them achieve their own determined goals. Intensive case management will assist the participants in developing realistic goals and action steps necessary for maintaining independent living, and help them access the other services needed to allow them to accomplish those goals. LOCATION Renaissance Downtown Lofts is a Transit Oriented Development site, only 2 blocks from the 20 th and Welton Street Light Rail Station and.22 miles from the 18 th & Stout Street Light Rail Station. The development site is located at the southwest corner of Broadway and Stout Street and is also ideally located along and near multiple RTD bus routes. The 8, 30L, 36L, 38, 44, 47, and 48 bus routes, all within two blocks of the project site, provide in total 178 trips a day. The surrounding neighborhood is mixed Downtown development with the vibrant Five Points and Arapahoe Square neighborhoods over lapping the site. The site is ideally located to allow the Renaissance Downtown Lofts formally homeless residents to access our Stout Street Health Center and nearby Homeless Supportive Programs. FINANCING AND SUBSIDIES The project financing for the 9% LIHTC residential condominium is based upon our proven Renaissance Development Model that we have successfully utilized in the development of thirteen multi family projects, plus one new project currently under construction. In order to serve the largest possible number of special needs and formally homeless individuals and families, together with the lowest income segment of the community, our financing is structured to cover the costs of developing the project with limited long term debt. In order to accomplish this, we utilize multiple sources of financing including Federal Low Income Housing Tax Credits, State low interest rate CHIF Loan funds and CCH equity as needed to meet all expenses. USBank is selling the property to CCH for $1,000,000 less than its listed selling price representing a Private Subsidy contribution to the development. CCH has secured a letter of interest for the tax credit equity from US Bancorp CDC. We have received a letter of interest for the construction loan and permanent loan from US Bank. Financing for the 4% PAB Tax Credit Condominium will include CHFA issued and privately placed Private Activity Bond, Tax Credit Equity, Colorado Housing Investment Funds and Federal, State and City grants to fully fund the development costs. USBank will provide Construction Loan Funds. The Denver Housing Authority has committed 50 Section 8 Project Based Vouchers for the project, conditioned on the successful award of tax credits from CHFA from the % 6

7 allocation round. In addition, we are requesting that the Colorado Division of Housing provide 50 additional project based vouchers in support of the project. These vouchers will provide contract rents for the property while the tenant pays only 30% of their adjusted income for rent, ensuring that chronically homeless individuals with no income or extremely low income can be housed. As noted above, this supportive housing development is critical to leveraging the $8 million SIB funding to allow enhanced supportive services to chronically homeless participants. Financial considerations specific to this Development project is more fully described in Section 3.c Overall financial feasibility and viability (below). In addition, the narrative should address the following: 1. Identify which guiding principles in Section 2 of the Qualified Allocation Plan (QAP) the project meets and why it meets them: The Renaissance Downtown Lofts project meets many of the Guiding Principals of the 2015 QAP as outlined below: To support rental housing projects serving the lowest income tenants for the longest period of time: The 9% LIHTC condo will provide 64 affordable rental apartments targeted to a variety of very low income levels. Provided the Denver SIB program and PBV vouchers from DHA and CDOH are in place, all 64 units will house Chronically Homeless Households regardless of income. Otherwise, we will provide 32 housing units for homeless and atrisk individuals, with 29 of these at 30% AMI or less and 3 units at 40% AMI. The balance of 9 units will be targeted to households at 40% of AMI, 16 units for households at 50% of AMI and 7 units for households up to 60% of AMI. The homeless units will be targeted to chronically homeless persons with incomes from 0 to 30% of AMI. The average incomes of chronically homeless individuals served by CCH in other LIHTC properties ranges from 0% to 14% of AMI. CCH will comply with this affordability for the initial 15 years and an additional 25 years. As a mission driven developer, CCH will ensure that the property continues to serve the needs of the lowest income households well beyond this 40 year period. As noted above, the project will also leverage at least 18 additional units and up to 36 units targeted to homeless individuals financed through the companion PAB structure. 7

8 To support projects in a QCT, the development of which contributes to a concerted community revitalization plan as defined in Section 5.A 4, Primary Selection Criteria: The project is located within the City and County of Denver Census Tract 16 which is listed as a Qualified Census Tract. The development design and use follows current urban design practices for TOD sites and maximizes site density. The project meets the Priority 4 development goals of Mayor s Housing Plan to increase Critical Needs and Homeless Housing. Renaissance Downtown Lofts also supports the Mayor s 3x5 Housing initiative goal of adding 3,000 affordable housing units in Denver within 5 years and it supports the goal of the City s Ten Year Plan to End Homelessness. To distribute housing credits to assist a diversity of populations in need of affordable housing, including homeless persons, persons in need of supportive housing, senior citizens, and families: Renaissance Downtown Lofts 9% condo will serve at least 32 and potentially up to 64 Homeless households in Permanent Supportive Housing. In addition, the project will target chronically individuals with mental illness, elderly individuals, and persons with chronic health conditions. The range is dependent upon the City implementing the SIB program and/or additional housing vouchers being made available to the project by the Colorado Division of Housing. In addition, the project will leverage between 18 to 36 additional units of housing for homeless individuals through the 4% PAB development. Upon the funding of the Social Impact Bond, the project will further demonstrate that Permanent Supportive Housing reduces the cost burden of Jail, Detox and Emergency Services to the City and County of Denver. To support new construction of affordable rental housing projects as well as acquisition and/or rehabilitation of existing affordable housing projects, particularly those at risk of converting to market rate housing: The proposed development is new construction of high quality affordable rental housing. In recent years, much of the existing stock of lower end housing in the area has been subject to gentrification in which older homes and apartments are being purchased and redeveloped to serve market rate middle and upper middle class income 8

9 levels. This development is located in Downtown Denver, within both the Five Points and Arapahoe Square Neighborhoods. Both neighborhoods are already experiencing gentrification. In the Five Points Neighborhood older homes are being purchased by young professionals attracted to Light Rail stations and emerging new retail catering to higher income levels. With the redevelopment of the River North (RiNo) district, the pending improvements along the 1 70 corridor and new expansion of Downtown office and high end residential developments into the Arapahoe Square Neighborhood; our Renaissance Downtown Lofts development will help preserve very low income affordability in an area experiencing significant loss of housing that serves this population. To provide opportunities for affordable housing within a half mile walking distance of Public transportation such as bus, rail and light rail: Renaissance Downtown Lofts is located on a qualified TOD site served by high frequency bus lines and a two Light Rail Stations located at 18 th & Stout Street, and 20 th and Welton Street, both less than ¼ mile of the site. The development site is located at the southwest corner of Broadway and Stout Street and is also ideally located along and near multiple RTD bus routes. The 8, 30L, 36L, 38, 44, 47, and 48 bus routes, all within two blocks of the project site, provide in total 178 trips a day. The surrounding neighborhood is mixed downtown development with the Five Points and Arapahoe Square neighborhoods over lapping the site. To reserve only the amount of credit that CHFA determines to be necessary for the financial feasibility of a project and its viability as a qualified low income housing project throughout the credit period: The project s unique financial structure of layering multiple sources with a combination of 9% LIHTC and 4% PAB Tax Credits allows the development of a greater number of units that target the lowest income segment of the community within a single development. This financing structure maximizes the benefits of the 9% credits. In addition, as a mission based organization, CCH will maintain the affordability levels of the project and services to homeless and at risk families and individuals well beyond the credit period. 2. Identify which housing priority in Section 2 of the QAP the project qualifies for: 9

10 (A) Projects Serving Homeless persons: Renaissance Downtown Lofts will serve between 32 to 64 Homeless households in Permanent Supportive Housing in the 9% LIHTC component and between 18 to 36 Homeless household in the 4% PAB component. Of these, approximately 50% of the Homeless population will also qualify as having special needs, including disabilities, physical and mental health issues. The City of Denver s Social Impact Bond program will allow us to reach the maximum level of dedicating all 100 units in both phases to serving Homeless households. Renaissance Downtown Lofts will provide permanent supportive housing for its homeless households in both components. It also provides integrated health and supportive services to help maintain and increase their independence. Through the combination of this affordable housing and supportive services provided by the Colorado Coalition for the Homeless, residents will receive comprehensive health, mental health, addictions treatment, employment counseling and social services to help them increase their self sufficiency. Using a Housing First approach, the project will target chronically homeless individuals most in need of housing and services. Residents will also have access to the new Stout Street Health Center to provide additional supports. (B) Projects serving persons with special needs: Approximately half of the Homeless households outlined in 2(A) above will have special needs including seniors, persons with mental health or physical disabilities and persons with addictions. Our project design includes at least 4 Type A fully compliant ADA units and the balance of the residential units is Type B ADA units that can easily be converted for special needs use. In addition, the project will target chronically homeless individuals with special needs. On site mental health and social services will be provided to meet the special needs of these residents with other CCH supportive services such as the Stout Street Health Center located just one block from the project. 3. Describe how the project meets the criteria for approval in Section 2 of the QAP: 10

11 Renaissance Downtown Lofts meets the CHFA 2015 QAP Criteria for Approval. In the paragraphs below we have outline how the project addresses all of the Criteria on an item by item basis. a. Market conditions: The market demand for housing within the homeless and very low income and special needs populations our projects serve is far greater than the existing supply. This is evidenced by our consistently high occupancy rates of 99% within the Coalition s housing portfolio and by the very short lease up period of 1 to 2 months to reach full occupancy on new projects. Our Renaissance West End Flats leased up 101 units in 60 days and our most recent project Renaissance Stout Street Lofts leased all 78 units in 21 days in mid It is important to note that our actual market demand exceeds conventional market underwriting and it needs to be noted that the PMA of our projects, as required by CHFA and defined in the Market Study underwriting criteria, is considerably more limited in its area than the actual market area for the housing being developed. Our experience in similar housing developed in the Denver Metro Area is that that our housing attracts families and individuals throughout the Greater Denver Metro Area and not just from within the limited Market Study PMA. The proximity to public transportation, shopping, employment and social service providers combined with our lower than average rental rates attract renters who would prefer to live in desirable Downtown locations, but cannot afford the high rental rates in this area. This issue is discussed in more detail under narrative comments number 5 (below). The attached Market Study documents the strong market and projected lease up success of the project. During the past year the Denver Metro Area has experienced increasing rental rates with new Market Rate apartments leasing at upwards to $2 per square foot per month and existing Market Rate apartments moving their price points upward. Since the demand for Affordable Housing exceeds production, new Affordable housing units will be easily absorbed as evidenced by our long term high occupancy at all of our projects and the rapid lease up of rate of our new projects. The Market Study notes that the project needs a capture rate of 24.5% to fulfill the SIB program 100% homeless occupancy based on 3,245 suitable Homeless Households per the 2014 Homeless Point In Time survey and 1,012 units that can potentially be constructed during this period. The Market Study indicates 11

12 that the project will be successful in capturing this population and projects stabilized occupancy of 95% in approximately 40 days. The Market Study also notes that should the project operate as a mixed use Homeless and Affordable Housing project then the PMA would consist of the Five Points, Uptown, Cole, Lower Downtown (LoDo) and River North (RiNo) neighborhoods, along with parts of Capitol Hill and City Park West. According to the Market Study there are 9,708 size and income eligible households in the PMA and 3,420 units either under construction or planned, the capture rate for Renaissance Downtown Development would be 35.2 %. The Market Study projects that the project will be successful in capturing this population due to superior location, amenities and quality and projects stabilized occupancy of 95% in approximately 90 days. This absorption rate does not take into consideration that we have 50 Project Based Vouchers from DHA that we will allow us to house more 30% AMI residents. In addition, resident data from our existing properties confirms that our projects draw residents from outside of the PMA. Recent and ongoing increases in non restricted apartment rental rates will likely push some lower income households who are currently housed in older non restricted units into seeking income qualified housing. In addition, CCH administers more than 800 tenant based vouchers for homeless individuals and families, and many of these vouchers are being under utilized due to the tight rental market and the inability of homeless individuals to find landlords willing to lease to them. In the event the requested 100 PBV s for this project are not awarded, we anticipate that a number of homeless individuals will chose to use their tenant based vouchers at this property due to the location and the availability of services in the area surrounding the development. We cannot speak to the viability of projects under development by other Homeless housing and Affordable Housing providers that have not yet started construction. We do note that CCH has a 25 year proven record in the development of Housing for the Homeless and Supportive Services, owns and operates, a large portion of the Supportive Housing market in the Denver Metro Area and maintains a 98% occupancy rate in its projects. b. Readiness to proceed: 12

13 The proposed development meets and exceeds the readiness to proceed threshold requirements. We have site control of the property through our longterm business partnerships with USBank and the property is properly zoned for its intended use. City of Denver site approval is underway. We have completed a Phase I Environmental Studies which show no further action required. Architectural Conceptual Design has been completed and Schematic design and engineering are underway. We have completed the initial green charrette and cost estimates by FCI Constructors and its primary subcontractors are complete and incorporated into this application. Our funding sources, including LIHTC and 4% PAB equity investors have expressed strong interest to participate in the project. The project has been submitted to the City and County for Zoning and Site approval. CCH will be able to meet all the carryover requirements and secure tax credit commitments and financing well within 12 months of a Tax Credit reservation for both condo units. c. Overall financial feasibility and viability: The project is requesting the minimum amount of credit needed for the financial feasibility of the project. The project financing for the 9% LIHTC residential condominium is based upon our proven Renaissance Development Model that we have successfully utilized in the development of thirteen multi family projects, plus one new project currently under construction. In order to serve the largest possible number of special needs and formally homeless individuals and families, together with the lowest income segment of the community, our financing is structured to cover the costs of developing the project with limited long term debt. In order to accomplish this, we utilize multiple sources of financing including Federal Low Income Housing Tax Credits, State low interest rate CHIF Loan funds and CCH equity as needed to meet all expenses. USBank is selling the property to CCH for $1,000,000 less than its listed selling price further leveraging the development of this precious resource. Financing for the 4% PAB Tax Credit Condominium will include CHFA issued and privately placed Private Activity Bond, Tax Credit Equity, Colorado Housing Investment Funds and Federal, State and City grants to fully fund the development costs. USBank will provide Construction Loan Funds. The Denver Housing Authority has committed 50 Section 8 Project Based Vouchers for the project, conditioned on the successful award of tax credits from 13

14 CHFA from the % allocation round. In addition, we are requesting that the Colorado Division of Housing provide 50 additional project based vouchers in support of the project. These vouchers will provide contract rents for the property while the tenant pays only 30% of their adjusted income for rent, supporting our operational costs and ensuring that chronically homeless individuals with no income or extremely low income can be housed. CCH is requesting $1 million of funding from the City and County of Denver through their HOME program. CCH is also requesting $1 million of HOME funding from the Colorado Division of Housing. Both the City and CDOH have provided funding for each of CCH s LIHTC developments over the past 19 years. The City of Denver and CDOH support the City of Denver s first Social Impact Bond (SIB) program and both support Renaissance Downtown Lofts for meeting the goals of the Mayor s Housing Plan and 3x5 Housing Initiative. We have also applied to CDOH for $3,500,000 in Colorado Housing Investment Fund 17 year permanent loan $1,700,000 for the LIHTC condo and $1,800,000 for the PAB condo. We have applied for $750,000 from the FHLB Affordable Housing Program of Topeka with Mercy Loan Fund as the member bank in its April 2015 round. CCH has been successful in obtaining FHLB funding for each of its previous 12 tax credit developments. Several local financial institutions have expressed a strong interest to partner with CCH in providing tax credit equity and construction financing, and we have received favorable letters of interest for both. Our experience in our supportive housing programs for chronically homeless individuals demonstrates that moving individuals from the streets to supportive housing not only ends their homelessness (95% retain their housing for more than 2 years), but it also reduces taxpayer funded emergency services from detox, hospitals, emergency rooms, police, and shelter services by 81%. The commitment of these sources of financing and equity ensures the lowest possible debt to ensure our ability to set rents as low as possible to meet the needs of extremely low income households, while ensuring sufficient revenue to cover the costs of operations, management and maintenance. The 15 year proforma demonstrates a high degree of financial feasibility for this project. 14

15 d. Experience and track record of the development and management team: CCH is a leading developer of mixed use, supportive housing and service facilities in both Colorado and nationally. CCH maintains a skilled, in house, 4 FTE, real estate development team, which oversees all CCH construction projects including community facilities, LIHTC developments, and mixed income, affordable housing developments. In over 25 years of service, the Colorado Coalition for the Homeless has developed more than 1,600 units of supportive affordable housing through 15 developments. Our integrated housing approach integrates high quality housing for homeless individuals and families with affordable housing for lower income families and individuals. Services such as counseling, life skills training, financial literacy and employment assistance contribute to housing stability for those who once were homeless. Our quality architectural designs and environmental standards add significant value to existing neighborhoods and cultivate pride and well being among residents and the larger community. The following listings showcase our experience in developing properties: Renaissance North Colorado Station (103 units) 3999 Colorado Blvd: Currently under construction Stout Street Health Center and Renaissance Stout Street Lofts (55,000 SF health clinic & 78 housing units) 2160 & 2180 Stout Street: Opened 2014 Renaissance West End Flats (101 units) 1490 Zenobia: Opened 2012 Renaissance Uptown Lofts (98 units) 571 East Colfax: Opened 2010 Renaissance Riverfront Lofts (100 units) 3400 Park Ave. West: Opened 2009 Renaissance 88 Apartments (180 units) 388 E. 88 th Ave., Thornton: Opened 2008 Renaissance at Xenia Village (77 units)1420, 1425, 1440 and 1460 Xenia St: Renovated in 2006 Renaissance at Civic Center Apartments (216 units)25 East 16 th Ave: Opened in 2004 Renaissance Blue Spruce Townhomes (92 units) 7300 East Severn Place: Opened in

16 Renaissance at Lowry Boulevard (120 units) 550 Alton Way: Opened in 2003 Renaissance Off Broadway Lofts (81 units) 2135 Stout St: Opened in 2001 Renaissance at Concord Plaza (78 units) 1793 Kendall St: Opened in 1998 Renaissance at Loretto Heights (76 units) 3151 West Girard Ave: Opened in 1997 Forum Apartments (100 units) 250 West 14 th Ave: Opened in 1996 Also, please find attached a resume and list of team members and their experience, entitled Housing Team Experience The Renaissance Property Management Corporation, a subsidiary of CCH, manages over 1500 units in Denver, Englewood, Lakewood, Thornton and Aurora, Colorado. RPMC employees have been involved in all aspects of CCH s LIHTC properties in the Denver area. Their involvement includes conceptual planning, construction, and asset management. RPMC has successfully leased up 10 CCH LIHTC properties in less than 90 days, and maintains 99% occupancy in these properties. CCH and RPMC ensure compliance with LIHTC and other affordable housing financings requirements through audits, reporting and inspections. Christopher Carvel Architects is providing Design and Architectural services. They have been in business as an Architectural firm since 1995 and have extensive experience in the design of Multi family and Mid Rise buildings through the State. Christopher Carvel Architects are know for their attention to details and hands on management of the principal Chris Carvel during all phases of design, municipal approvals and construction. In addition Renaissance Downtown Lofts, Chris Carvel Architects were the Architect of Record for CCH s Renaissance Lowry Apartments and Renaissance Riverfront Lofts. FCI Constructors is providing Estimating and Pre Construction services for the project. FCI has been in business since 1978; with offices in Longmont, Grand Junction, Durango (Colorado), Phoenix (Arizona), Cheyenne (Wyoming), Aztec (New Mexico), and Williston (North Dakota). They have extensive experience in Multi Family and Mid Rise construction and were the General Contractor for CCH in the construction of Renaissance Lowry Apartments, Renaissance Riverfront Lofts and Renaissance West End Flats. 16

17 e. Cost reasonableness: CCH is utilizing its experience gained from developing 15 successful LIHTC projects in the past to control costs upfront in the design stage as well as though construction. CCH has realized efficiencies in design by utilizing similar floor plan layouts of units and specifying similar materials, finishes and fixtures that have been successfully used in the past. An economy of scale is also anticipated for this project as CCH s development team has extensive experience monitoring the construction closely by constantly tracking the schedule and keeping on top of contractor s / architect s responsibilities throughout the construction process. With the ability to retrospectively review past development projects, CCH can proactively recommend alternative solutions to any problems that occur, and make sure that the contractor maintains a level of quality at a reasonable cost. Furthermore, the innovative addition of the 36 units in the 4% PAB Condo will lower the per unit construction and development costs, as the cost of land, sitework and infrastructure are amortized over additional units, and the fifth and sixth floor framing will be at a lower per square foot construction cost. Recent escalation of construction costs in the Denver market due to new market rate multi family development create pressure to meet previously established cost per unit and per square foot targets for affordable housing developments. Consequently, we have worked closely with our architect and general contractor to value engineer the building, and use cost effective construction methods to contain costs, including the Prescient light gauge structure steel construction method to save time minimize the need for more expensive concrete structure to achieve the six story building height. f. Proximity to existing tax credit developments: The market study defines the Primary Market Area as the Five Points, Uptown, Cole, Lower Downtown (LoDo) and River North (RiNo) neighborhoods, along with parts of Capitol Hill and City Park West. As CCH has demonstrated through its other developments, our targeting of extremely low income homeless and at risk households ensures that it is not in competition with other conventional tax credit developments. 17

18 Because the actual PMA of our projects extends through the entire City and County of Denver and beyond we constantly outperform every market Study projection for all of out projects. It is also important to consider that increasing rents in existing non restricted properties are likely to drive existing renters in older properties to seek housing in income restricted properties. We believe our superior new construction, location and energy efficiency will allow the Renaissance Downtown Lofts to successfully capture residents g. Site suitability: The project site is within the boundaries of both the Five Points and Arapahoe Square neighborhoods and both are highly desirable residential locations currently undergoing growth and revitalization. Until recently, the immediate area of the site contained mostly parking lots and abandoned older buildings. CCH s new construction of the Renaissances Off Broadway Lofts, Stout Street Health Center and Renaissance Stout Street Lofts has contributed to revitalization of the immediate area and inspired new development by other developers and owners helping the area achieve its full development potential. The project is proximate to numerous RTD bus routes and two light rail stations. Commercial retail, restaurants, offices and other commercial uses are all within easy walking distance. As the Five Points and Arapahoe Square neighborhoods continue to experience economic and development growth, the development of Renaissance Downtown Lofts will help to preserve the availability of very low income housing in the area. The site is also ideally located to allow the Renaissance Downtown Lofts residents to access our Stout Street Health Center and nearby Homeless Service Programs. 4. Provide the following information as applicable: a. Justification for waiver of any underwriting criteria (minimum operating reserve, minimum PUPA or high PUPA, first year debt coverage ratio below 1.15 or above 1.30, minimum replacement reserve, vacancy rate below CHFA s minimum): The financial model of the project has been very carefully developed and includes contingency and back up options that are not visible in the application. The PUPA for the LIHTC condo and the PAB condo is higher than the range suggested by CHFA. This number is higher due to the fact that all utilities are included in the rent and due to the higher maintenance, security, and management costs required 18

19 to house a chronically homeless population moving directly from the street. These costs are similar to the PUPA experienced by recently completed Permanent Supportive Housing development by CCH at West End Flats, Uptown Lofts, and Stout Street Lofts. The initial DSCR is higher in the initial years due to the downward trending of NOI based on the rent and expense escalators required by CHFA. The DSCR drops to just above 1.20 in year 15. b. Justification of the financial need for CHFA s DDA credit up to 130 percent of qualified basis: N/A 5. Address any issues raised by the market analyst in the market study submitted with your application: While the market study favorably supports the development, we do see a problem in its underwriting definition of the Primary Market Area and market share capture. The higher capture rates in the market study are skewed by the limited size of the Primary Market Area. CCH s experience with other properties it owns and manages documents thjat there is significant draw to its properties from zip codes outside the designated PMA. This in migration is mentioned in the market study but not enough emphasis is given. The market study does not address the increasing real estate values and increasing rental rates within the PMA and the entire Denver metro area. We believe that a substantial number of lower income households who are currently in older nonrestricted properties will be shut out of housing as those properties are either redeveloped, sold as investment or their rental rates become too high for low income households to afford. These displaced households will add to the market demand for Affordable Housing. The Market Study notes two weakness points: o The subject s smaller than average unit sizes may provide a competitive disadvantage if it lost its project based rental assistance and no longer had units restricted to formerly homeless households. The One bedroom Units at Renaissance Downtown Lofts range in size from 440 square feet to 624 square feet with over 78% of the units being 480 square feet and larger. This is similar in size to our one bedroom units at our Renaissance Uptown Lofts project which have excellent market acceptance 19

20 from our residents. In addition The Mayor s Housing plan encourages the development of smaller units for higher density to meet the pent up demand for 30% AMI households. Many Cities are beginning to explore micro units as a solution to producing more affordable housing. o Some of the site s surrounding land uses are in below average condition. Our experience in the area is that our developments encourage revitalization. We are already seeing new development of housing, offices restaurants and retail in the vicinity of our new Stout Street Health Center and Renaissance Stout Street Lofts. We believe that the Renaissance Downtown Lofts will further generate redevelopment interest in the area. 6. Address any issues raised in the environmental report(s) submitted with your application and describe how these issues will be or have been mitigated: N/A 7. In your own words describe the outreach that you have conducted within the proposed community and demonstrate local support for the project (including financial support): The Colorado Coalition for the Homeless conducted initial outreach to the neighborhood when we developed the Renaissance Off Broadway Lofts and Renaissance Stout Street Lofts. We have an on going good relationship with the community. We have discussed Renaissance Downtown Lofts with Council Albus Brooks, the Mayor, Colorado Division of housing and the Office of Economic Development. We have presented our plans to the City of Denver s planning department. We will continue to meet with neighborhood groups and will establish an Advisory Group of interested Neighbors should there be interest to do so. On other projects, the Advisory Group provides us feed back on our design and works as a forum for regular project updates through to construction. We expect to receive financial support from the Denver SIB project, as well as capital funding through OED. 8. For acquisition/rehab or rehab projects N/A 20

21 You may also provide additional documentation that supports your narrative by attaching it to the narrative or submitting it on a CD. Each supporting document should briefly describe what is contained in the attachment. Example 1: Additional documentation to support the Market Conditions Criteria could be labeled to as follows: Attachment Market Conditions or Market Conditions.pdf, etc. Example 2: Soft funds documentation to support that amount of soft funds listed in the Application can be secured could be labeled as follows: Attachment Overall Financial Feasibility and Viability or Overall Financial Feasibility and Viability.pdf, etc. 21