CREJ

Page 42 — Multifamily Properties Quarterly — November 2018 www.crej.com Affordable Housing W orkforce and mixed- income housing in rural communities can be the most difficult to develop. Without local or federal entitlement funds, assembling the capital stack of financing can be challenging to meet local housing needs for the people working in our Colorado communities. The use of low-income housing tax cred- its for smaller, rural projects with fewer than 24 units is not practi- cal due to labor and material costs that generally are higher than in urban areas, fixed transaction costs and the absence of economies of scale. So, what does a rural com- munity do to create much-needed housing for its workforce? As you will see, it literally “takes a village” to make this happen! San Juan County and the town of Silverton decided to get cre- ative to meet the dire need for workforce housing and began discussions of how to meet that need in 2004. They did a resource inventory and the county took the lead on the project and donated land it owned, which had been the site of a smelter. The county had received a Brownfields grant from the Environmental Protection Agency to clean up the site, which will be annexed into the town of Silverton upon completion of the project, to make it acceptable for use for housing. In 2015, the county and town commissioned a market study that determined there was a need for 12 units of rental housing, with eight units targeted to house- holds earning from 30 to 60 percent of the area median income and four units at market- rate rents. The town and county each pro- vided a portion of funding for devel- opment and con- struction costs and the town provided construction man- agement services. The town worked with the Depart- ment of Local Affairs division of Local Government to obtain funding to offset permit fees, water and sewer tap fees and on-site infrastructure improve- ments. DOLA’s Division of Housing provided the county with a Housing Development Grant and a Colorado Housing Investment Fund loan to support construction costs. In addi- tion, Citizens Bank of Ouray will provide a permanent loan for the project. Due to the short construction season in Silverton, the county opted to use factory-built construc- tion and contracted with Colorado Building Systems in Grand Junc- tion to manufacture the units. The result is reduced construction costs, which allows for site work to take place simultaneously with produc- tion of the units in the plant. Due to size restrictions on Highway 550 between Ouray and Silverton, the units were routed through Durango and over Molas Pass. The project consists of two buildings comprised of 10 sections, with six in the first building and four in the second building. The final sections were set in place Sept. 7. The county expects the remaining construction, elec- trical connections, roofs and stair installation, and interior finish to be completed this month. The county will contract with a nonprofit housing organization in Durango for property management services and the town will provide financial management and mainte- nance oversight once the units are occupied. Usage of state and local funds and captive resources are the way that smaller communities can utilize creative solutions to their afford- able housing needs without the use of LIHTC and other federal fund- ing, comply with Taxpayer’s Bill of Rights requirements and retain the local oversight that is important to those communities. With winter coming soon, it is heartwarming to know that 12 fam- ilies will be able to enjoy their new homes just in time for the holiday season! s Achieving mixed-income housing in rural locales Denise Selders Housing development manager, Colorado Department of Local Affairs, Division of Housing Anvil Mountain Apartments 4582 South Ulster Street, Suite 1500 Denver, Colorado 80237 Kimley-Horn.com 303.228.2300 DEVELOPMENT SERVICES O Multifamily O Retail O Single-Family O Aviation O Energy Services O Office/Campus O Stormwater O Data Centers O Traffic O Roadway O Infrastructure O Industrial O Build-to-Suit O Landscape Design O Entitlement Processing O Site Electrical O Sustainable Design O Institutional A special thanks to all of our clients on multifamily projects over the past few years. • Broe Real Estate Group – Country Club Towers and Gardens • Colrich and Steele – Multiple Locations • Continuum Partners – Market Station • East West Partners – The Coloradan • Gables Residential – 375 S. Jackson • Greystar – Watermark, Multiple Locations • Hill Companies – The Muse • Lennar – 22nd & Welton, Parkhouse, The Beacon, & Strata • Mill Creek Residential – Modera LoHi & The Casey • Novare Group – SkyHouse Denver • PAULS – Via at 8th & Lincoln, Laurel Cherry Creek • Prospect Townhomes – Perry Row at Sloans & Observatory Row on Iliff • Shorenstein – Union Station Block 4 at 17th & Chestnut • Southern Land Company – 17th & Pearl • Tessler – 2450 S. University • Trammell Crow Residential – Alexan, Multiple Locations • Wazee Partners – West End 38 FORTUNE M A G A Z I N E ’ S COMPANIES TO WORK FOR C O L O R A D O O F F I C E L O C A T I O N S Denver Colorado Springs Aspen RANKED #2 BY ENR for Multi-Unit Residential