Colorado Economic Recovery and Accountability

Press Release - CHFA Awards Funding for Senior Housing

COLORADO HOUSING AND FINANCE AUTHORITY

WWW.CHFAINFO.COM

 

FOR IMMEDIATE RELEASE
September 11, 2009

 

Contacts:
Jerilynn Martinez, 303.297.7427
jmartinez@chfainfo.com
Diana Heinicke, 303.226.9123
diana@communityhousingconcepts.org

 

CHFA AWARDS $1.7 MILLION IN TCAP FUNDING TO SUPPORT $14 MILLION PURCHASE AND RENOVATION OF DENVER GARDENS SENIOR HOUSING

Colo. among First in Nation to Use Tax Credit Assistance Program (TCAP) Funding Available through Stimulus Bill

DENVER -- Today, 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. Completion 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 windows and appliances, as well as painting and adding bathroom amenities for residents. Among the exterior improvements planned are updating the exterior 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 towards 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 to 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 state while providing quality, affordable housing options for low-income families at a time when those options are critical."


For more information about the TCAP program, please visit www.chfainfo.com.


About Colorado Housing and Finance Authority (CHFA)


CHFA finances the places where people live and work. Created in 1973 by the Colorado State Legislature, CHFA strengthens communities by making loans to low- and moderate-income homebuyers, affordable multifamily rental housing developers, and small and medium sized businesses. CHFA also provides education and technical assistance about affordable housing and economic development. CHFA is a self-sustaining public enterprise funded by issuing bonds. CHFA issued bonds are not obligations of the state. For more information about CHFA, please visit www.chfainfo.com. Contact our Denver office at 1.800.877.chfa (2432), or our Western Slope office at 1.800.877.8450.


About Community Housing Concepts, Inc.


CHC is driven by its mission to increase housing opportunities available to low income families and individuals by creating, acquiring, rehabilitating and preserving affordable housing units. CHC also is committed to promoting neighborhood stabilization and revitalization efforts by improving the quality and availability of housing alternatives for people with limited means. CHC has invested almost $60 million in multi-family and senior affordable housing units, including over $12 million in rehabilitation efforts. CHC owns thirteen affordable communities around the country totaling almost 1300 units, including five tax credit projects. For more information about CHC, please visit our website at www.communityhousingconcepts.org.