After three years of planning the redevelopment of South Lincoln Homes, the Denver Housing Authority is submitting an application for a $22 million grant to help fund the $92 million project south of downtown.
DHA officials say they think they have a good shot at getting the HOPE VI grant because of the U.S. Housing and Urban Development’s new focus on encouraging smart growth adjacent to transit stops.
“South Lincoln will be a model TOD (transit-oriented development) community that can be replicated at other stations,” said Ismael Guerrero, DHA’s executive director who expects to hear in April whether the agency has received the grant.
The agency expects to start construction on the project in 2012. The project will be completed in phases.
The sale of low-income housing tax credits will generate nearly $40 million in equity for the project. Another $20 million will be financed through debt.
“This project is a very good project for us because of the potential to leverage several million of federal funding and bringing those dollars into Colorado,” said Jaime Gomez, director of the Colorado Housing Finance Authority’s commercial lending division, which is setting aside the tax credits for the project. “What you’re ending up with is multi-family affordable rental housing that’s leveraged with both public and private dollars.”
DHA is planning to redevelop the 17.5 acres near the light-rail stop at West 10th Avenue and Osage Street with 457 residences, including 200 public housing units, 104 workforce units and 147 market-rate units. Another six units will be affordable.
Public and affordable housing is available to households earning less than 80 percent of the area median income of $75,900 for a family of four. Those earning 50 percent to 60 percent of the area median income are eligible for workforce housing.
The authority already has started construction of its 100-unit senior housing facility adjacent to the light-rail stop. That project, expected to be completed in December 2011, received $10 million in funding under the American Reinvestment & Recovery Act.
“That (South Lincoln Homes) project exemplifies the experience that HUD wants to continue to promote,” said Rick Garcia, HUD regional administrator. “It’s a more comprehensive approach, as opposed to just building housing.
“Part of HUD’s national movement in helping communities more broadly is looking at locations that have access to bus, rapid transit or other transportation. We want to make sure we are making investments in areas where people won’t have to use their vehicle for every trip they make.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
