This document summarizes a discussion on preserving affordable rental housing near transit. It describes the work of four organizations: Mt. Baker Housing Association, which acquires and renovates affordable housing near transit in Seattle; Progressive Redevelopment, which developed affordable housing near a light rail expansion in Atlanta; National Housing Trust, which preserves affordable housing near transit in Washington D.C.; and Urban Land Conservancy, which acquires land along future transit corridors in Denver to preserve affordable housing. Representatives from these organizations discussed case studies of their projects and innovative funding strategies for acquiring and developing affordable housing near transit.

1. Innovations and Risks in
Preserving Affordable Rental
Housing Near Transit
September 28, 2010
Denver, Colorado

2. About Urban Land Conservancy (ULC)
• 501(c)(3) nonprofit, supporting organization to the Denver Community Foundation.
Established 2003, staffed 2007
• Mission: To acquire, develop, and preserve community assets in urban areas in the Denver
Metro area
• Invested over $21 million in real estate, serving over 10,000 low and moderate income
people
• 400 full and part-time jobs are supported by ULC real estate investments
• Promote community development; strengthen neighborhoods through preservation of key
areas of influence
• Preserve community assets in existing or emerging neighborhoods to ensure their
continued public benefit
• Acquire strategic sites in anticipation of market changes through land banking along
transit corridors
• When possible use 99 year land lease with partners to ensure permanent public benefit

3. • Over next 10 years, the Regional
Transit Department (RTD) will build
FasTracks, a $4.7 billion initiative
passed by the voters in 2004*.
• 119 miles of rail lines, 60 new
rail stations, and a network of
bus feeder routes.
• Demand for housing within ½ mile of
a light rail station will grow from
45,000 households today to 155,000
households in 2030, a 344%
increase.[1]
• 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
added/preserved near transit
• Demand for more than 700
additional affordable homes at
each station area by 2030
*Cost estimates to complete FasTracks are
now over $6.9 billion!
[1] Source: Enterprise Community Partners, “The Case for Mixed-
Income Transit-Oriented Development in the Denver Region,”
March 2007.

4. Denver Transit Oriented Development (TOD) Fund
• $15 Million fund designed to finance land and property acquisition for affordable homes near transit
- Enterprise Community Partners: Assemble loan capital; fund manager; largest investor $5 million
- ULC: 10% investor ($1.5 million) and sole borrower
- City of Denver: Top loss funding of $2.5 million & recipient of the MacArthur Foundation
Housing Preservation Award: $2 million PRI and $250,000 grant for early warning system
• Up to 1,200 affordable homes over the next 10 years
- 60% AMI rental, 95% AMI ownership
- Goal of 15% of homes targeted for 30% AMI households
• Quickly provides patient, high-risk capital at low cost: Fixed at 3.5% at 90% LTV
• Purchase and hold sites for up to 5 years

5. The West Line Corridor

6. Preservation of Affordable Housing Along Transit Corridors
Jody Apartments
 Located less than 300 feet from a future RTD
light rail stop on the West Corridor.
 ULC has extended a 99-year land lease to a
nonprofit, NEWSED, that bought the
improvements on the site: 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
Dahlia Apartments
 Foreclose of six buildings with thirty-six 2-
bedroom apartments in northeast Denver. One
block from high frequency bus line.
 Dahlia was the first TOD Fund acquisition and
includes Neighborhood Stabilization Funds (NSP)
of $450,000. TOD Fund, provided a $1,000,000
acquisition loan and ULC is partnering with Hope
Communities with the permanent take out and
land lease
 Total acquisition and rehab: $1.75 million

7. Mt. Baker Housing (MBH)
• Established 1988
• Community Based Organization
• MBH Serves Low and Moderate
Income Families
• Acquisition / Rehab - Primary
Housing Development Strategy
• TOD Since 1988

8. Southeast Seattle’s Rainier Valley
•Absentee Landlords & Blighted Buildings
•Redlined Neighborhood
•Most Diverse Zip Code in the Country (AOL news)
•Gentrification is Driving Out Long Time Residents
•10.7 Square Miles, 49,000 population

9. Partial Light Rail Route (in red)
Light Rail Route (Central Link)

10. Crestwood Place Before-After

11. Seattle Real Estate
Typical New Construction Project TDC/Unit $225,000-$250,000
Price/Unit Seattle $151,000
Average Price/Unit Rainier Valley $55,000-$80,000
Raw land/Unit $10,000-25,0000
Crestwood Place TDC (Actual)
Total Development Cost/Unit $93,846
Acquisition Price/Unit $65,384
Total Renovation Cost/Unit $24,900
Other $3,562
DCR 1.05

12. HOW CAN WE DO THIS!?
• Comprehensive Property Screening System
• Detailed Property Database
• Due Diligence System
• Innovative Funding Strategy

13. Partners in Innovation:
Preserving Affordable Rental Housing Near
Transit
The Imperial Hotel Case Study
Bruce Gunter, President
Progressive Redevelopment, Inc.
Atlanta, GA

14. Progressive Redevelopment, Inc.
•Wide range of affordable housing for low to
moderate income families; supportive
housing for individuals; seniors housing.
•22-year developer, owner and manager of
affordable rental housing
•Largest in the state; 4,200 units developed.
Current portfolio is 24 properties
•Vertically integrated org structure:
development / owner, property management,
and resident services.

15. Atlanta Urban Sprawl

16. H+T AFFORABILITY INDEX
YELLOW = 45% of income or less BLUE = more than 45% of income
Atlanta Housing Only Atlanta Housing + Transportation

17. IMPERIAL ON PEACHTREE

18. ATLANTA BELTLINE

19. National Housing Trust
National nonprofit committed to safeguarding affordable housing preservation
– REAL ESTATE DEVELOPMENT
– LENDING
– PUBLIC POLICY INITIATIVES
National Work Supporting Transit-Connected Affordable Homes
• Report on Subsidized Housing Opportunities Near Transit
and the 50+ Population with AARP & Reconnecting America
• Tracking QAP incentives and sharing best practices
• State Preservation Policy Toolkit for Smart Growth America
• Report released today: Preserving Affordable Housing Near
Transit

20. NHT in Washington, D.C.
• INSIDE D.C.
• Owner, Partner or
Development
Consultant to
Tenant
Associations and
Cooperatives
• 10 Projects
• 655 Units
• Majority are
transit-connected
• D.C. METRO AREA
• 13 Projects
• 907 Units
• GreenPATH Fund

21. R Street Apartments
• TRANSIT ACCESS
• Walking distance to 3 metro stations
• Served by 8 high-frequency bus lines
• “Walker’s Paradise” - Walk ability
score of 98 out of 100 means no car
needed
• PROJECT FACTS
• 130 units serving 30% AMI up to
Market
• $25 Million project with Tax exempt
bonds, LIHTC, Historic Tax Credits,
and Subordinate City Loan
• Green Communities Project
• Saved from Condo Conversion

22. Columbia Heights Metro
• Major • Hubbard Place
gentrification Apartments
• Huge new • Case Study in
shopping center the Report
with Target, Best • Within ½ mile
Buy, Gym, of metro.
Marshalls & • High-frequency
Staples built at bus right in front
Metro of building on
• New supermarket, 14th Street
high-priced condos • Section 8
and restaurants preserved
near by
• Tenants use
• Two current NHT rights to partner
projects within .25 for preservation
miles of metro: St.
Dennis and
Monsignor
Romero
Apartments

23. Mt. Pleasant Preservation
• ST. DENNIS APARTMENTS
• Private condo converter purchased building and tried to move existing
low-income residents out.
• The Martinez Family was the last holdout and won legal battle for
right to purchase building. At their request, NHT Enterprise
purchased the deteriorated, vacant building on their behalf using
Enterprise Community Loan Fund and DC SAFI loan as bridge.
• $10 MILLION: For two years, NHT Enterprise has been assembling
9% LIHTC, Tax Credit Exchange program, Historic Tax Credits, Soft
DC gov’t loan, and 8 project-based vouchers to fund the renovation
and permanent financing.
• Closing to happen within next few weeks.
• MONSIGNOR ROMERO APTS
• Owner unsuccessful at moving residents out for high-end
condo conversion
• Huge fire destroyed half of building. NHT Enterprise
helped residents buy unsubsidized building in July 2010
with $4.1 million loan.
• NHT Enterprise and residents plan to use 9% LIHTC,
Historic Tax Credit and City loan to rebuild and renovate as
affordable in this gentrifying neighborhood.

24. Speakers
• Mike Rooney, Executive Director, Mt. Baker Housing Association
www.mtbakerhousing.org
• Bruce Gunter, President & CEO Progressive Redevelopment, Inc.
www.prihousing.org
• Rob Richardson, Development Manager, National Housing Trust
www.nht.org
• Aaron Miripol, President & CEO, Urban Land Conservancy
www.urbanlandc.org