CREJ

Page 38 — Multifamily Properties Quarterly — February 2021 www.crej.com Affordable Housing I believe that housing is at the core of community. By having a diversity of housing options, at different price points, we can meet the needs of our community. When people live in the communities where they work, com- munity is stronger, more resilient and sustainable. When kids grow up in communities of choice, with ade- quate, safe and decent housing, they have a strong foundation in which to learn, grow and become the next stewards of our communities. Our firm is a vertically integrated mission-aligned for-profit developer. We work closely with local govern- ments and community groups to help communities meet their devel- opment, planning, economic and social goals. As a socially conscious developer, our firm works to build important community assets that focus on delivering a social impact. Our communities improve people’s lives and help make communities stronger and more sustainable. We have had the incredible opportunity to work in urban neighborhoods and resort communities to provide hous- ing that is needed to support those working in the community. While we could focus on market-rate devel- opments, we find that delivering affordable and workforce housing is a unique and rewarding space for us to work. For example, we recently started construction on a new develop- ment in Steamboat Springs. Our project simply could have delivered free-market rental housing. Instead, we saw a desperate need for local housing at affordable prices. As such, we partnered with the Yampa Valley Housing Authority to tailor our unit mix to respond to the need for housing. Our Sunlight Crossing project will ensure that local workers can afford to live in the community they serve (instead of commuting 30-45 minutes to distant towns that offer more affordable housing stock – and dealing with the dangers of snow-packed and icy roads in the winter), with high-quality hous- ing that is affordable within their budgets. But for our commitment to serving the Steamboat community, Sunlight Crossing would not offer affordably priced housing, in unit configurations and with amenities that renters desire. By reducing com- mute times and supporting multi- modal transportation options (access to the community bus, covered and secure bike storage and proximity to the Core River Pathway), the proj- ect will help reduce environmental impacts and bolster sustainable liv- ing options. In another example, we recently completed the renovation of The Colburn Hotel in the Capitol Hill neighborhood of central Denver. The Colburn began its life as a hotel in 1925. It was once home to the Beat Generation poet Allen Ginsburg, Jack Kerouac used to drink in the bar of the legendary Charlie Brown’s Bar and Grill, and Neal Cassidy, Ker- ouac’s companion of “On the Road” fame, also lived there. Over time, The Colburn transitioned to a single- room occupancy affordable apart- ment community with Section 8 rental subsidies in the late 1980s. Its affordability covenants were set to expire two years ago, and the prop- erty was at risk of being converted to a market-rate complex and being lost from the inventory of affordable units with rental assistance. Seeing the threat of losing critical housing in central Denver, we acquired the property. We then layered in mul- tiple funding sources to rehabilitate the property, modernize the units and retain the existing tenants. The resyndication consisted of a conversion of the SRO vouchers to project-based vouchers under U.S. Department of Housing and Urban Development’s Mod Rehab Rental Assistance Demonstration, as well as the infusion of 4% federal low- income housing tax credits, state of Colorado affordable housing tax credits, federal and state historic tax credits, city of Denver funds and state of Colorado HOME funds. We also were able to formally list the project on the National Register of Historic Places to honor the historic- ity of the building. Whether an affordable project is in the inner city or a resort commu- nity, people are people are people. Regardless of income, color of skin, employment – people want stable and safe housing. They want a com- munity where they and their kids are safe to walk or bike. They want amenities nearby like parks and trees that grow in the tree lawn. They want to be near schools, shop- ping, employment opportunities and other services. I am so lucky to have a job where I get to work with communities to help them reach their visions for housing. I get to piece together the gigantic puzzle of the how-to of entitlements and capital stacks and regulations to create a real, liv- ing place that people will soon call home. We get to create housing communities that are healthy and become a foundation for the every- day lives of so many households and families. It is unbelievable that I get to do this every day. s Workforce & affordable projects offer many rewards Kimball Crangle Colorado market president, Gorman & Company Inc., kcrangle@gorman usa.com T he Michaels Organization has long believed that the world is a better place to live wher- ever we build and manage it. From its beginning in 1973 as a four-man operation develop- ing subsidized housing to becoming the nation’s largest privately held owner of affordable housing, our goals and aspirations always have remained consistent: To create com- munities that lift lives. While we are a for-profit develop- ment company, we have established a business that is about the people who need a place to call home, regardless of income. This philoso- phy has enabled us to work in many of the nation’s largest and fastest- growing cities and transform local neighborhoods – and as our founder Michael Levitt always says, “Isn’t that a terrific way to make a living?” The company is committed to long-term solutions that will sup- port a community’s lasting success. In fact, that is one of the greatest differences between developing affordable and market-rate hous- ing. The community, and the impact a development has on meeting its needs, comes first. More impor- tantly, these communities cannot just address the needs of today; they have to be designed and devel- oped to stand the test of time and meet the needs of the community for decades. Even as communities evolve over time, one thing remains constant: the need for high-quality, affordable units. Throughout Colo- rado we have seen the cost of living, and especially housing costs, skyrocket over the last 10 years. The city of Boul- der acknowledged that housing costs were becoming an issue for their residents 10 years ago. Their focus and support led to rehab of The Nest Communities. In 2017, our company recognized an opportunity there to implement a unique proposition. In partner- ship with local development part- ners, we were able to acquire three market-rate properties that were then operating as “naturally afford- able housing” but were in danger of undergoing substantial rehabilita- tion that would have reduced the inventory of affordable housing. The acquisition and subsequent reha- bilitation of these three market-rate properties resulted in long-term, affordable units for working fami- lies in Boulder. Known collectively as The Nest Communities, this proj- ect includes The Nest on Osage, The Nest on Thunderbird and The Nest on 30th, communities that are in desirable neighborhoods and near public transportation, shopping and employment opportunities. Work- ing with Element Properties, Allison Management and local officials, we were able to help combat the city’s housing challenges. Our involve- ment ensured that the properties are preserved for long-term afford- ability in an area where rents are growing rapidly. All apartments are available to families and individu- als earning 60% or less of the area median income. Revitalizing these properties included modernizing them from the inside and out. All 238 homes now are equipped with beautifully updated kitchens and bathrooms, new flooring and new energy- efficient building systems. Fresh upgrades to the exteriors also pro- vide great outdoor space for resi- dents to savor breathtaking views of the Flatirons. These sustainable updates will ensure future genera- tions of Boulder residents are pro- vided high-quality and affordable housing that will allow them to embrace the next chapter in their lives. This was just one example of how the firm is helping to end the stigma around what people typi- cally think about affordable hous- ing. People have long feared that public housing will be built in their neighborhoods and, in return, lower the appeal of the area, but Creating homes for people, regardless of income Ryan Zent Vice president, The Michaels Organization, rzent@tmo.com Sunlight Crossing is a new development in Steamboat Springs that will provide much- needed workforce housing to the community. The Nest Communities in Boulder feature 57 units for residents making 50% area median income and 181 units for those making 60% AMI. The project was financed using 4% low-income housing tax credits and private activity bonds. Please see Zent, Page 40