Page 2 — Multifamily Properties Quarterly — May 2019 Letter from the Editor A s we prepared for print, Senate Bill 19-225, the “Rent Stabiliza- tion Act,”was effectively killed prior to its second reading in the Colorado State Senate April 30.The bill would have allowed local governments to set rent control policy, something that currently is ille- gal in Colorado due to a 1981 law ban- ning the practice. Unsurprisingly, many of the apart- ment associations voiced support for the outcome. “The demise of Senate Bill 225 is a tremen- dous victory for hardworking Colo- radans who deserve an abundance of affordable housing options,” said Mark Windhager, presi- dent of the Colorado Apartment Associa- tion. “Rent control policies have failed Americans from coast to coast, as they reduce rental housing supply, drive up the cost of existing rents, lead to blighted proper- ties and neighborhoods, and reduce choices and mobility for renters.” In a press release, the Colorado Apartment Association said it sup- ported four bipartisan measures, intro- duced earlier this year in the Colorado House of Representatives, that employ a variety of innovative approaches to make housing more affordable in Colo- rado.These measures would establish a fund for affordable workforce housing initiatives (HB 19-1322); create flexible funding opportunities and incentives for developers (HB 19-1319); expand the state low-income housing tax credit program (HB 19-1228); and create a pilot program to use tax credits to sup- port employer-assisted housing (HB 19-1075). Within this issue, authors explore other proposed solutions. On Page 12, KimDuty with the National Multi- family Housing Council, breaks down several rent control arguments and offers suggestions of what other cities are doing to offer holistic approaches to the issue, which is affecting many thriving U.S. cities. On Page 10,Travis Hodge with JLL highlights how growth restrictions – another method some local jurisdic- tions have enacted to keep develop- ment in check – end up inadvertently hurting the cost of living. For example, he wrote: “Metro Denver’s average monthly apartment rent as of the first quarter was $1,464, whereas Golden’s was $1,518 and Boulder’s was $1,688,” which are two cities with growth- restriction laws. When we talk about affordability, we’re not always talking just about the lowest-income renters. On Page 16, Anthea Martin discusses the “missing middle” renters, those who make more than 60 percent of the area median income, but still find market-rate rents unattainable.This workforce housing is practically nonexistent. She offers financing solutions to help developers break into the space. Along that same line, the Affordable Housing spotlight focuses on putting together a qualified team in order to tackle these projects. Michelle Z. Askeland 303-623-1148, Ext. 104 Rent control policy debate Contents 4 6 8 10 12 14 16 18 20 21 22 24 25 26 27 28 33-38 The multifamily market: Hype or the real deal? Tyler Stevens and Steve Scrivener Northern Colorado enjoys steady population growth Jake Hallauer Rising rents direct renters to lower-cost options Greg Parker How local growth restrictions impact affordability Travis Hodge Housing cost crisis warrants holistic solutions Kim Duty Evaluating risk and reward for workforce housing Brian Cason Finance options for workforce housing projects Anthea Martin Small-balance loans bring big benefits to owners Larry Wilemon Approved in 30 days: HUD expands pilot program Kevin Muesenfechter and Scott Graber Agency production caps open up alternative options Brock Yaffe and Rob Bova Promoting healthy homes in an urban environment Brian Levitt Designing residential in ‘destination neighborhoods’ Frank André Creating a sense of community in a new place Terry Willis Handling tenant requests for assistance animals Cinthia Manzano 6 ways to save money at your multifamily property Kristin May Internet options are a growing necessity to renters Lance Boehmer Affordable Housing Spotlight