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Page 22 — Multifamily Properties Quarterly — May 2017
Affordable Housing
W ith both Colorado and
Denver’s unemployment
rate at 2.9 percent (as of
February), the state’s eco-
nomic growth is strong,
especially compared to the national
unemployment rate of 4.7 percent.
While this statistic is worth celebrat-
ing, the state’s housing market tells a
slightly different story.
According to the Denver Office of
Economic Development, half of Den-
ver’s renters pay more than 30 percent
of their income for housing; nearly a
quarter of those households pay more
than 50 percent for housing. The high
living costs can make it difficult for
these households to save or invest in
the future, potentially affecting the
long-term economic vitality of the
city. Denver Housing Authority has
reported that the city needs about
21,000 more affordable units in order
to meet demand – significantly more
than are in the pipeline.
Once regarded as something that
only affected the very poorest resi-
dents, affordable housing is affecting
people with full-time jobs that would
traditionally allow them to live com-
fortably – if not lavishly.
Take teachers, for example. A report
fromTrulia recently ranked Denver
as the seventh-least affordable metro
area in the U.S. for people trying to
buy a home on a teacher’s salary (a
median of $53,400 a year). Less than
13 percent of homes on the market in
late 2016 were affordable to someone
earning that wage.
Recognizing the
need to address
affordability from
all angles, the public
and the private sec-
tors are committed
to finding solutions.
As architecture and
design profession-
als, we approached
our recent afford-
able housing proj-
ects – The Ashley
at Union Station,
Tapiz at Mariposa
and Acoma Lofts –
with an eye toward creating quality
designs that promote equity, mobility
and deep community connections.
We also are watching closely how the
city, nonprofits and developers are
responding to this issue to partner
where we can.
• Public support. Last year, the Den-
ver City Council approved an afford-
able housing proposal aimed at rais-
ing more than $150 million over the
next 10 years from property taxes
and new development impact fees.
The plan has the potential to preserve
and/or create about 6,000 affordable
housing units – far short of the 21,000
we need, but still a step in the right
direction.
This came after Denver Mayor
Michael Hancock announced the
creation of a $10 million Revolving
Affordable Housing Loan Fund. This
financing tool is designed to support
the development of multifamily rental
units serving individuals and families
earning up to 60 percent of the area
median income, or $46,020 for a fam-
ily of four.
According to the Denver Office of
Economic Development, the fund will
target housing projects that receive
4 percent Low-Income Housing Tax
Credits through the Colorado Housing
and Finance Authority. This fund will
help bridge the gap because many
affordable developments were unable
to use the 4 percent credits because
of a lack of soft funds and gap financ-
ing.
• Private investment. On the devel-
opment side, there are a number of
recently completed projects and sev-
eral projects in the works, which aim
to put a dent in the affordable hous-
ing issue.
Last October,Welton Park affordable
housing apartments started moving
tenants into 223 units that are all
income-restricted to people mak-
ing 60 percent of the area median
income. Likewise, Habitat for Human-
ity of Metro Denver recently com-
pleted a 51-unit, for-sale townhome
development called Sable Ridge in
Montbello.
In the red-hot River North area,
Denver-based developer Zeppelin is
building Redacted on the Taxi campus,
a multifamily building with 314 apart-
ments for renters who earn less than
60 percent of area median income.
According to Zeppelin, adding afford-
able units toTaxi was appealing to
many of the 150 businesses located
there, and businesses wanted to align
with them because of it.
In the heart of the Union Station
neighborhood, we recently completed
work onThe Ashley, a 107-unit, mixed-
income apartment complex. A truly
mixed-income property, the property
not only reserves 34 units for residents
earning 60 percent of area median
household income, but also it reserves
another 34 units at 50 percent of area
median household income and seven
more for residents earning just 30 per-
cent of area median income – a rarity,
especially for a highly desirable area
such as Union Station. Its proximity to
the region’s public transit hub further
aids in the crucial area of mobility for
residents.
For this project, our architecture,
interior design, lighting and land-
scape design teams worked together
to deliver a design that met the strict
budget requirements typical of afford-
able housing projects, while also pro-
viding amenities residents would find
in a higher-end complex – a rooftop
deck, beautiful light-filled common
areas and exterior architecture fitting
of the area. The goal for the design
was to create a space any resident
would be proud to live in, regardless of
income.
As Denver continues to grow, afford-
able housing will become more of an
imperative. Between the public and
private sectors as well as changing cul-
tural attitudes, there is much we can
do to address the problem and create
a city that is livable for everyone.s
Cindy Harvey,
AIA, NCARB
Associate principal,
commercial market
lead, RNL Design,
Denver