Housing + Transit Conference, AustinAaron Miripol, Urban Land Conservancy
October 21, 2011
• Our work includes land banking, preservation and community-inspired real estate redevelopment.
• Our assets consist of schools, affordable housing, and office spaces for nonprofits, and seed capital to be leveraged using public and private sources for future community real estate investment.
• Over $22 million invested in real estate, leverages over $100 million in redevelopment
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• Our real estate partnerships serve over 10,000 people
• 400 full and part-time jobs are supported by our real estate investments
Urban Land Conservancy (ULC) was established to acquire, develop and preserve community assets in the
Metro Denver area in order to address a variety of community needs
Urban Land Conservancy’s Phillips Center & Wyatt-Edison
The Phillips Center occupies a full city block and currently houses the following seven nonprofits: Byrne Urban Scholars, cityWILD, Civic Canopy, Denver Early Childhood Council, Early Excellence at Wyatt LLC, GOAL Academy and Mi Casa
Resource Center. ULC also has first right on Wyatt-Edison Charter school (insert), an 1880s historic building across the street.
Addressing the Need for Nonprofit Space
Make-Up of Denver & Metro AreaDENVER METRO DENVER
600,000 residents 1.7 million residents274,500 homes 861,000 homes23,600 restricted affordable 21,500 restricted affordable *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
• Build out of FasTracks over the next decade - Over 120 miles of additional track and 59 new stations• Increased demand for housing within ½ mile of light rail stations• 40% of growth projected from households at or below 80% AMI• Opportunity to purchase land now for land banking
Opportunities during difficult economic times - Transit-Oriented Development (TOD) Fund
RTD FasTracks Program
• 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 - 25% of Fund can be used for land banking, 75% for revenue generating properties
• Purchase and hold sites for up to 5 years
How the $15 million TOD Fund works
• Goal: Preserve and create over 1,000 units of affordable housing near high frequency transit• property acquisition• land banking
• $15 million, 10 year fund, 3.5% fixed rate to Urban Land Conservancy
• Revolving Line of Credit• 3-5 year sub-loans for acquisition
• 90% LTV on ‘as-is’ basis
• Top 63% is Non-Recourse• Expand Fund to $30 million for Denver Metro Region• Enterprise Communities serves as administrator
Denver’s Transit-Oriented Development FundStructure
1. Dahlia Apartments (36 two bdr.) w/NSP - April 2010 Preservation of six buildings 1 block from high frequency bus
2. Yale Commons (1.20 acres land) - July 2010 ULC working with Regional Transportation District (RTD) and 2 for profit developers on a
Master Community Plan including RTD’s 2 acre parking lot
3. Mile High Vista (2.15 acres land) - March 2011 Mixed use redevelopment: 70 new affordable apartments and 10k square feet of
community space; new 28k square foot Denver Public Library, and 20k square foot commercial building
4. Evans Station (1 acre of land) - June 2011 50 new affordable housing apartments to be developed, financed with 9% Low Income
Housing Tax Credits (LIHTC)
5. Villa TOD (16 apt homes) - August 2011 Includes 7,400 SF of commercial space along art district corridor
Denver’s Transit-Oriented Development FundAcquisitions to Date
Jody Apartments 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 Possible redevelopment into 200 mixed income apartments & 25,000 sq. ft. of commercial/community space Total Redevelopment Costs: $50 million
Model for the TOD Fund
TOD Fund Acquisitions Yale Commons 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 140 apartments will be developed, half permanently affordable.
Total Development Costs = $20 million Dahlia Apartments 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 Delaware Station 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
Evans Station Lofts
TOD Fund AcquisitionsVilla TOD 1/3 acre mixed use property was purchased in August, 2011 and sits on the Santa Fe bus corridor and is 5 blocks from 10th & 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 Activity to Date: In 16 months of existence, half the fund has been deployed, preserving and developing nearly 275 affordable homes
Denver’s Transit-Oriented Development FundULC Property Locations
Benefits 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 Community Development Corporations 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
Economics of Affordable Housing on the West Corridor
[1] Source: “The Economic Impact of Low Income Housing Tax Credit Development Along Transit Corridors,” NAHB Housing Policy Department, June 2010.
• There are 1,424 affordable homes within a ½ mile radius of the West Corridor light rail line today.
• The West Corridor will add roughly 15,000 total 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 an National Association of Home Builders (NAHB) model, 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.[1]
SheridanStation
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
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
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