TOD Affordable Housing Preservation Policy Forum. Aaron Miripol, Urban Land Conservancy April 30, 2012

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1 TOD Affordable Housing Preservation Policy Forum Aaron Miripol, Urban Land Conservancy April 30, 2012

2 Urban Land Conservancy (ULC) was established to acquire, develop and preserve real estate assets in Metro Denver in order to address a variety of community needs Our work includes land banking, preservation and community-inspired real estate redevelopment Our assets consist of schools, affordable housing, community centers, office spaces for nonprofits and seed capital to be leveraged using public and private sources for future community real estate investment Over $25 million invested in 17 real estate transactions leverages over $150 million in redevelopment Our real estate partnerships serve over 10,000 people 400 full and part-time jobs are supported by ULC real estate investments

3 Opportunities during difficult economic times - Transit-Oriented Development (TOD) Fund Build out of FasTracks over the next decade - Over 120 miles of additional track and approximately 60 new stations - RTD (Regional Transit District) is working with the development community at transit station sites Increased demand for housing within ½ mile of light rail stations 40% of growth projected from households at or below 80% AMI Opportunity to purchase land now for land banking

4 RTD FasTracks Program

5 Denver s Transit-Oriented Development Fund 1. Tennyson Center for Children 2. 40th and Colorado 3. Habitat for Humanity ReStore 4. Phillips Nonprofit Center 5. Jody Apartments 6. Land Bank at 2500 Stout 7. St. Andrews Parking Lots 8. Holly Shopping Center 9. Dahlia Apartments - TOD 10. NEWSED Nonprofit Center 11. Yale Commons - TOD 12. Mile High Vista - TOD 13. Delaware Station - TOD 14. Villa TOD 15. Blake TOD 16. Curtis Park Community Center

6 Denver s Transit-Oriented Development Fund Structure Goal: Preserve and create over 1,000 affordable homes near high frequency transit property acquisition land banking $15 million, 10 year fund, 3.5% fixed rate to Urban Land Conservancy (sole borrower and investor) Revolving Line of Credit 3-5 year sub-loans for acquisition 90% LTV on as-is basis Top 63% is Non-Recourse Expand Fund to $30 million for Denver Metro Region Enterprise Community Partners serves as administrator

7 TOD Fund Activity Summary Project Affordable Homes Purchase Price TOD Fund ULC Investment 1. Dahlia 36 existing $1,212,750 $1,130,000 $130, Yale 100 to be developed $1,325,000 $1,325,000 $132, Mile High Vista 60 to be developed $2,140,000 $2,335,000 $220, Delaware 50 to be developed $1,197,900 $1,200,000 $122, Villa TOD 16 existing $1,350,000 $1,350,000 $135, Blake TOD 130 to be developed $1,700,000 $1,700,000 $170,000 TOTAL 392 homes $8,925,650 $9,040,000* $909,500 *Investment differs as purchase price does not include all acquisition costs or other equity in the deal ULC TOD Fund Investments: $909,500 Other TOD Fund Investors: $8,130,500 TOD Fund has been drawn down: $9,040,000 TOD Fund Acquisitions have created or preserved 392 affordable homes since start-up in April 2010: 340 new and 52 existing

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9 Model for the TOD Fund: Jody Apartments at Sheridan Station Jody Apartments are less than 300 feet from the Sheridan transit station along the West Corridor, adjacent to a 800 car park-and-ride to serve the station, and the Lakewood Gulch bike path Total acquisition and rehab: $3.25 million = $52,400 per unit/ $36 sq. ft. ULC owns 2 acres of land and has a 99-year lease with NEWSED (owns improvements) 52 of the 62 apartments are permanently affordable, with 12 of the 52 committed to households at 30% AMI and below. Four rental buildings currently serve over 100 residents. Future redevelopment will have at least 200 mixed income apartments & 25,000 sq. ft. of commercial/community space Total Redevelopment Costs: Up to $45 million

10 Mile High Vista Currently under development, ULC is serving as master developer, partnering with the City of Denver and Del Norte Housing to build: New city public library (orange) 60 units of workforce housing + 10k sq. ft. of community space (blue) 20k sq. ft. commercial building (green) Along the West Corridor, Mile High Vista will serve as a catalytic development for Denver s West Colfax neighborhood* *Colfax Ave is the longest street in the United States

11 Housing Developed by Del Norte Mile High Vista Project Costs: Land Purchase & Holding costs: $2.75 million Design & Planning: $500,000 Remediation & Infrastructure: $2 million Total: $5.25 million Denver Public Library Development Costs: Library: $10 million Housing: $15 million Commercial: $2 million Total: $27 million Jobs Created: 125 temporary (construction) 65 permanent Total Cost: $32.25 million

12 Yale Station TOD Purchased in July 2010, this 1.25 acres of land is located next to the Yale Station (below) Land Price = $1.35 million ($25 sq. ft.) Partnering with 2 private developers and RTD to create Master Transit Community plan to include multiple properties and current RTD parking lot. At least 140 apartments will be developed, half permanently affordable. Total Development Costs = $20 million

13 Blake TOD Blake TOD This 1.4 acre property at 38th Street and Walnut Street was purchased in November of Land Price = $1,700,000 = $27.02 sq.ft. This is the site of the first stop on RTD s future East Corridor Commuter Line connecting Downtown Union Station to Denver International Airport. Total Development Costs: = $20 million Delaware Station Purchased in June 2011, this one acre of vacant land sits across the street from the Evan Light Rail Station. (below) Land Price= $1,150,000 = $26.50 sq. ft. Partnering with Medici Communities (market rate developer who builds affordable housing) in the development of 50 residential workforce housing units utilizing 9% Low Income Housing Tax Credits, will be the first example of taking out the Fund in Total Development Costs = $12 million Evans Station Lofts

14 Villa TOD 1/3 acre mixed use property was purchased in August, 2011 and sits on the Santa Fe bus corridor and is 5 blocks from 10th & Osage light rail station. Property includes 16 existing affordable apartments and 7,500 sq. ft. of commercial space. ULC will partner with two local nonprofits, NEWSED and Denver Inner City Parish on the long term redevelopment with a 99 year land lease. Total Acquisition and Rehab Costs = $2.3 million Villa TOD Dahlia Apartments Dahlia Apartments Dahlia (above) was purchased out of foreclose in in early 2010 for $1.2 million. There are six buildings with thirty-six 2- bedroom apartment in northeast Denver. Dahlia was the first TOD Fund acquisition and includes NSP dollars for rehab. ULC is stabilizing the buildings and will sell the improvements to a nonprofit and continue to own the land with a 99 year lease. Total Acquisition and Rehab: $2 million

15 The Economic Impact of Affordable Housing Subsidized Home Building impact: According to the NAHB study, the one year estimated economic impacts of building and rehabbing 809 subsidized homes in the Denver MSA include: Over $89.6 million in local income Over $9.2 million in taxes and other revenue for local governments Over 1,078 local jobs The additional, annually recurring impacts of building and rehabbing 809 subsidized homes in the Denver MSA include: Over $16.4 million in local income Over $2.3 million in taxes and other revenue for local governments Over 180 local jobs

16 Aaron Miripol (303)