Funding will support office-to-residential affordable housing conversion project in DTC
The City and County of Denver has approved up to $29 million in Private Activity Bonds (PABs) to support the 4340 South Monaco Project. This adaptive reuse project will transform a 124,000-square-foot office building in the Denver Tech Center (DTC) into 143 new affordable housing units.
“This project represents an exciting step in our commitment to making Denver affordable for all,” said Mayor Mike Johnston. “This development is a cost-effective and efficient way to create more housing for people who are working in the city and who are helping to empower Denver.”
The 4340 South Monaco Project is being developed by Shea Properties and is expected to begin construction in 2025 and be completed in 2026. The development represents a vital addition to the city’s affordable housing stock, particularly in the DTC area, where affordable options are limited. It will be the first office-to-residential affordable housing conversion in the city since the pandemic.
Private Activity Bonds (PABs) are tax-exempt bonds issued by or on behalf of the city to help finance projects that serve a public purpose, such as affordable housing. Through PABs, the city can borrow at tax exempt rates for private entities to lower the borrowing costs for those entities, but the city does not pledge its credit for these bonds. The city is merely the tax-exempt bond issuer, and the underlying borrower pays the city an issuance fee.
The 4340 South Monaco Project will use these bonds to finance the acquisition, rehabilitation, and conversion of the office building into long-term affordable rental housing. The project will offer a diverse mix of studio, one-bedroom, two-bedroom, three-bedroom, and four-bedroom units, all affordable to households earning between 30 percent and 70 percent of the Area Median Income (AMI).
Source: Department of Housing Stability
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