Denver funds development of 62 permanently affordable condos

RTD transit-oriented development site to provide income-restricted homeownership through land trust model

A Regional Transportation District (RTD) parking lot adjacent to the L light rail line in Five Points will soon transform into 62 affordable condominiums for house-holds earning up to 80 percent of the area median income. Denver City Council yesterday approved two loan agreements providing $4,965,000 toward the project.

“Building an affordable Denver means not only creating more affordable units for rent, but expanding opportunities for homeownership, especially at transit-oriented development sites like this,” said Mayor Mike Johnston.

“By using an innovative land trust model to ensure the units remain permanently affordable, this project will serve not just current residents, but generations to come. We’re thrilled to partner with RTD, Elevation Community Land Trust and Shanahan Development to make progress toward our affordable housing goals and make homeownership a reality for individuals and families.”

Denver’s Department of Housing Stability (HOST) and RTD have worked cooperatively together for several years to spur the development of income-restricted condominiums at 2907-2915 Welton St. Shanahan Development and Elevation Community Land Trust (ECLT) won an RTD competitive solicitation to purchase the site and provide permanent affordability through a covenant.

HOST is providing $1,605,000 in American Rescue Plan Act funds to ECLT to assist with its purchase of the development site. HOST is also providing $3,360,000 from Denver’s Affordable Housing Fund to Shanahan Development to help support construction.

In a June 3 memo that updates the RTD Board of Directors about the project, General Manager and CEO Debra A. Johnson noted that affordable housing was first proposed a decade ago for the site, which has been in the agency’s possession for more than 30 years. State and Denver policy strongly support affordable housing and transit-oriented development. With the Board having approved disposition of the property in 2021, based on language that permits a discount in connection with the development of affordable housing, Johnson approved the sale of the property at a price of $1.5 million.

“The 29th and Welton project is a representative example of how working collaboratively and cooperatively with jurisdictions, associated entities and developers can bring about affordable housing projects,” Johnson wrote.

“Moreover, it provides RTD the opportunity to demonstrate its commitment to being part of the solution to the region’s affordable housing crisis.”

The six-story building will include condo units ranging from one to three bedrooms. All units will be income-restricted to households earning up to 80 percent of the area median income (up to $71,900 for a single-person household, or up to $92,400 for a three-person family). Plans call for the ECLT to lease the land and ground floor community space to the homeowner’s association on a renewable 99-year land lease.

The project adds to Denver’s inventory of income-restricted housing which encompasses approximately 7.5 percent of all housing units in the city. This inventory includes over 2,400 homeownership units and nearly 25,000 income-restricted rental units. Learn more about this inventory at the Denver Affordable Housing Dashboard.