8.6% of all homes restricted 2.5% of all homes restricted
Land locked Most cities can continue to annex county land
Denver is a City and a County 6 Counties with 54 cities
“ Strong Mayor” political system Strong City Managers
Opportunities during difficult economic times; TOD Fund for Metro Denver
Build out of FasTracks over the next decade
- Currently 40 miles of light rail track and 36 stations are in operation
- Passage of FasTracks: 120 miles of track (5 new lines) and 60 new stations in Metro Denver to be built
Demand for housing within ½ mile of light rail stations will grow from 45,000 households today to 155,000 households in 2030, a 344% increase .
- 40% of this growth is projected to come from low income households, at or below 80% AMI
($57,450 for a family of four)
- Up to 44,000 additional affordable homes will be needed
Today there is an over supply of raw ground and industrial space along transit
Opportunities for the TOD Fund for Metro Denver  Source : Enterprise Community Partners, “The Case for Mixed-Income Transit-Oriented Development in the Denver Region,” March 2007.
ULC Real Estate Investments
Finance land and property acquisition
Create or preserve over 1,000 affordable homes over the next 10 years
- 60% AMI and below for rental, 95% AMI ownership
- Goal of 15% of all homes for extremely low-income (30% AMI)
Provides patient, high-risk capital at low cost
- 90% Loan to Value at 3.5%
Purchase and hold sites for up to 5 years
How the $15 million TOD Fund works
How the Fund works (cont…)
ULC: 10% investor and sole borrower
Enterprise Community Partners: Assemble loan capital; Fund manager; largest investor
City of Denver: Top loss funding of $2.5 million
MacArthur Foundation Housing Preservation Award: $2 million PRI and $250,000 grant for early warning system
Total of 9 investors in the $15 million TOD Fund
TOD Fund Waterfall Position Organization Amount/ Rate Equity Urban Land Conservancy $1.5 million /0% First Loss City of Denver $2.5 million/0% Second Loss Enterprise Community Partners $1 million/ 2% Third Loss Mac Arthur Foundation $2 million/ PRI 2% Third Loss CHFA $2 million/ 2% Third Loss Rose Community Foundation $500,000/ 2% Senior Debt Mile High Community Loan Fund $500,000/4% Senior Debt Enterprise Community Loan Fund (with Wells Fargo and US Bank) $5 million / 6.5% TOTAL $ 15 Million/ 3.5%
Economics of Affordable Housing on the West Corridor
The West Corridor will add roughly 15,000 homes by 2030
- If only 10% or 1,500 of these homes are affordable, it would double the number of affordable homes currently within ½ mile of the West Corridor
According to the National Association of Home Builders (NAHB), the economic impact of building these affordable homes would be:
First year of construction: $140,488,000 in local income , $12,195,000 in taxes and other revenue for local government, and 1,785 local jobs.
Annual, ongoing local impacts: $40,732,000 in local income, $5,609,760 in taxes and other revenue for local government, and 468 local jobs . 
 Source: “The Economic Impact of Low Income Housing Tax Credit Development Along Transit Corridors,” NAHB Housing Policy Department, June 2010. Economics of Affordable Housing on the West Corridor
The West Line Corridor
Apartments are less than 300 feet from the future Sheridan transit station along the West Corridor, and adjacent to a 800 car park-and-ride to serve the station
ULC owns the land and has a 99-year lease with NEWSED (local nonprofit) that owns the improvements.
- Four rental buildings serving over 100 residents.
52 of the 62 apartments are permanently affordable, with 12 of the 52 committed to households at 30% AMI and below
Total acquisition and rehab: $3.25 million
Redevelopment into 150 mixed income apartments & 25,000 sq. ft. of commercial/community space
Total Redevelopment Costs: $50 million
Model for the TOD Fund
TOD Fund Acquisitions
Purchased in July 2010, this 1.25 acres of land is located next to the Yale Station (below)
Land Price= $1.35 million ($25 sq. ft.)
Partnering with 2 private developers and RTD to create Master Transit Community plan to include multiple properties and current RTD parking lot. At least 70 affordable apartments
Total Development Costs = $14 million
Dahlia (above) was purchased out of foreclose in in early 2010 for $1.2 million. There are six buildings with thirty-six 2-bedroom apartment in northeast Denver.
Dahlia was the first TOD Fund acquisition and includes NSP dollars for rehab. ULC is stabilizing the buildings and will sell the improvements to a nonprofit and continue to own the land with a 99 year lease .
Total Acquisition and Rehab: $2 million
TOD Fund Acquisitions
Purchased in June 2011, this one acre of vacant land sits across the street from the Evan Light Rail Station. ( below)
Land Price= $1,150,000 = $26.50 sq. ft.
Partnering with Medici Communities in the development of 50 residential workforce housing units utilizing 9% Low Income Housing Tax Credits.
Total Development Costs = $12 million
Mile High Vista
This 2+ acre site ( above) was purchased in March, 2011 and is getting developed to include a new Denver Library, up to 70 units of workforce housing + 10K sq. ft. of community space and a 20K sq. ft. commercial building.
Land Price = $2,140,000 = $23 sq. ft.
This development along the West Corridor will serve as a catalytic development for West Colfax in Denver – the nation’s longest street.
Total Development Costs: = $35 million
Mile High Vista
TOD Fund Acquisitions
1/3 acre mixed use property was purchased in August, 2011 and sits on the Santa Fe bus corridor and is 5 blocks from 10 th & Osage light rail station.
Property includes 16 existing affordable apartments and 7,500 sq. ft. of commercial space. ULC will partner with two local nonprofits, NEWSED and Denver Inner City Parish on the long term redevelopment with a 99 year land lease.
Total Acquisition and Rehab Costs = $2.3 million
TOD Fund to Date: In 16 months of existence, half the fund has been deployed, preserving and developing nearly 250 affordable homes
Future of TOD Fund
Expand to $30 million by 2012 (regional fund) and add over 1,500 affordable homes by 2021
Investments from other local municipalities besides Denver
New enabling legislation allows RTD to partner with for profit and nonprofit developers at transit stations
Over $150 million of investments will be leveraged by the Fund and more than 2,200 jobs created
Getting beyond silo solutions: Fund is more than affordable housing, as it brings other development opportunities and economic investment to under served transit sites
Benefits and Challenges of TOD Fund
Preserves land and buildings around transit corridors to ensure long term affordable housing & stewardship of the land
Gives affordable housing developers a financing tool to help mitigate real estate risk at transit sites
Encourages partnerships with CDCs and other developers
Balances redevelopment efforts along transit
Increase residential and commercial density = smart growth
Provides employers with access to an expanded workforce
Increases ridership on public transit
Benefits of TOD Fund
Challenges of TOD Fund
Added layers of complexity
Loss of development control with partners
Stiff competition for LIHTC (key for take out)
Priced out of existing multi-family housing market
Lack of revenue generating properties
Glut of land banking opportunities
Need for longer loan term, up to 10 years
Need for additional equity beyond ULC’s investment