Denver, CO

Denver considers lending $2 million for affordable apartments to developer

David Heitz

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Argonaut-El Tovar Apartments.Photo byCity and County of Denver

By David Heitz / NewsBreak Denver

(Denver, Colo.) Denver is considering loaning a developer about $2 million to preserve affordable housing in the city.

If approved by the City Council, RAHF V. Argonaut LLC will receive $1.1 million and RAHF V. Drehmoor LLC will receive $752,875. Both are subsidiaries of a New York developer with experience rehabilitating affordable apartment communities, Jonathan Rose Companies.

The council discussed the projects on Wednesday during its Safety, Housing, Education and Homelessness Committee meeting.

Both buildings will host social service agencies that will provide services to residents such as transportation and case management. Residents cannot make more than 30 percent of the average median income to qualify for one of the units. That amounts to $24,650 annually for one person or $28,150 for two people.

The buildings already are “affordable,” according to city staff, but the performance loans will require them to remain affordable for 60 years. Renovation of the brick buildings will not result in the displacement of any residents, according to Justin Hill, housing development officer for the Department of Housing Stability.

Argonaut-El Tovar and Drehmoor apartments

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Photo byDrehmoor Apartments

Argonaut-El Tovar Apartments includes 75 units, with one for an employee. Drehmoor Apartments boasts 108 units, including 57 studios and 51 one-bedrooms.

Hill said the renovations will make the buildings "sustainable for the long term.” Countertops, cabinets and accessibility to common areas all will be improved.

“It’s good to see the buildings preserved,” said council member Kevin Flynn. Both projects are expected to be completed by the end of 2023.

The properties “shall have rents not exceeding the lesser of fair market rent for comparable units in the area as established by the HUD or a rent that does not exceed 30% of the adjusted income of a family whose annual income equals 30% of the median income for the Denver area, as determined by HUD,” according to council documents.

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I've been in the news business 35 years, spending much of my career in editing roles at community newspapers in Southern California and the Quad-Cities of Illinois and Iowa. Upon moving to Denver in 2018, I began experiencing severe mental illness due to several traumatic experiences. I became homeless on the street for about a year before spending time in the state mental hospital. I am proof that people can rebound from even severe mental illness with proper treatment. I consider myself a lucky guy to live in a great place like Denver. I hope my writing reflects the passion I have for living in the Mile High City. You can email me news releases and story ideas at NewsBreakDave@gmail.com

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