The NHP Foundation has acquired a 0.9-acre parcel of land in Denver’s Sloan’s Lake neighborhood, where its managing partner Zocalo Community Development will build Liora at Sloan’s Lake, a $60 million, 158-unit affordable housing community. The transaction represents the company’s third Colorado deal this year and its second construction project in the state. Construction is set to begin later this fall.
Rents at Liora will be restricted for households earning 30 percent, 50 percent and 60 percent of the Area Median Income. The land acquisition closed last month, with construction starting this fall.
Among the financing partners for the development was the Colorado Housing and Finance Authority, which provided tax-exempt bonds and 4 percent Low-Income Housing Tax Credits.
The project’s capital stack consist of a $3.85 million Proposition 123 land loan from the State of Colorado and Colorado Housing and Finance Authority, $18.5 million loan from Bellwether Enterprise, $24.5 million in LIHTC equity from a PNC Bank-managed fund comprised of a one-third party investor, $9.5 million in subordinate debt from the Colorado Division of Housing and several million dollars in deeply subordinated loans from Zocalo.
Three priorities
According to the NHP Foundation, Liora at Sloan’s Lake satisfies a trio of priorities stressed by the CHFA’s Proposition 123 Land Banking Program, which provides forgivable loans for the development of affordable housing. These are delivering transit-accessible, high-density housing within two miles of downtown Denver, serving households earning a variety of incomes and ensuring environmentally sustainable development.
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Three months ago, the NHP Foundation broke ground on Galena Apartments, a 54-unit, all-electric residential community in Frisco, Colo. The developer’s first project in the state will be earmarked for individuals in the Frisco area’s middle-market workforce; this includes teachers, first responders, medical professionals and local government officials earning 80 to 120 percent of AMI.
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