Colorado

Can Colorado cities prevent thousands of apartments from losing affordability protections?

Published

7 months ago

April 23, 2024

Can Colorado cities prevent thousands of apartments from losing affordability protections?

Nine years ago, one of Silverthorne’s few income-restricted housing properties was sold to a private firm. The sale — at a price that was double the property’s assessed value — raised worries in the high-cost mountain community that the new owner of the Blue River Apartments might lift rent caps that had kept its 78 units affordable when the requirements lapsed.

That expiration had been set for this year, and local officials were sufficiently concerned that they struck a deal with the new Greenwood Village-based owners to extend the affordability protections through at least the end of 2025, in exchange for $650,000.

But if the town had known about the sale ahead of time back in 2015, said Ryan Hyland, Silverthorne’s town manager, then officials could have tried to cobble together the money to buy the apartment complex — or arrange its sale to someone else.

As Colorado faces a tidal wave of expiring affordability requirements in the coming years, state lawmakers hope to give local authorities the opportunity Silverthorne didn’t have. House Bill 1175, which has already passed the House, would grant municipalities a right of first refusal to buy subsidized-housing properties when they come up for sale and would also require more notice of expiring affordability covenants.

Once the owner reached a price with a private buyer, the town or city — or a group acting on its behalf — could step in and match the offer, ensuring the units wouldn’t convert to market-rate rents once affordability requirements expire.

“When those expire, (the new owner) could be charging market rents. That’s a smart business decision, if you’re purchasing a property and if you’ve got that on the horizon,” Hyland said. “As you can imagine, there’s those types of deals that happen and the local government has no idea they’re happening, so there’s no opportunity for conversation.”

In the case of Blue River Apartments, as the initial expiration date approached, the president of Tralee Capital in 2020 told the Summit Daily that he wasn’t ready to say how the rental rates would change.

The bill passed the House 38-23 earlier this month and is now headed to the state Senate. It’s the second attempt by a group of Democratic lawmakers to pass a right-of-first-refusal policy, which they say would give local governments the chance to protect renters from for-profit developers that purchase properties and hike rents.

The first swing at passing the policy was a more expansive approach that also would have applied to sales of market-rate buildings. It passed the legislature last year after extensive debate and negotiations.

But business groups successfully lobbied Gov. Jared Polis to veto it, sparking sharp criticism from the Democratic legislators who backed it.

The veto spurred supporters to narrow their approach this year. They focused on preserving the state’s existing subsidized housing stock, which is in danger of shrinking in coming years, said Rep. Andy Boesenecker, a Fort Collins Democrat.

Colorado is home to roughly 111,000 subsidized units with affordability requirements, according to Colorado Housing and Finance Authority data. It’s expensive and complicated to build subsidized housing projects, and developers lean largely on federal tax credits to make the financing work.

Those tax credits include requirements that rental rates be capped based on certain income levels.

But the requirements are time-limited, often lasting at least 30 years. In the coming decade, 15,000 affordable units here will no longer be subject to the caps that keep them within reach for lower-income Coloradans.

That doesn’t mean those properties will immediately be sold or switched to market-rate rents or prices. But the looming expirations are a warning sign for housing advocates as they scramble to protect the state’s affordable housing stock.

When subsidized properties with expiring affordability requirements are purchased by private companies, “we see quick and significant increases in rent — we see less of an investment in maintaining the property and caring for residents,” said Kinsey Hasstedt, the senior program director for state and local policy at Enterprise Community Partners. “So we are trying to disrupt that.”

AAron Ontiveroz, Denver Post file

Sherelle Slater and her daughter Charlie play outside of their apartment in Denver this 2015 file photo. They lived in income-restricted housing on 52nd Avenue near Federal Boulevard. Denver City Council later approved an expanded ordinance that aims to preserve affordable housing, including by giving the city a right of first refusal to buy expiring properties. (Photo by AAron Ontiveroz/Denver Post file)

Preserving housing or chilling markets?

Opponents and skeptics, representing business groups and property owners, have argued that the bill would hamper development in the state.

“Our biggest fear all along with this has been: Are we going to create a chilling effect on capital and the markets, and then we won’t get the results that we want, which is more housing in the marketplace?” said Ted Leighty, the CEO of the Colorado Association of Home Builders, in testimony during an initial committee hearing in February.

But supporters say preserving subsidized housing is particularly important now — not only because of the expiring affordability requirements but also because of Polis’ preferred solution to the housing crisis: more housing, built more densely, across Colorado cities.

While some of the advocates backing the right-of-first-refusal bill also support Polis’ land-use reforms, that policy approach, if successful, will take years to bear fruit. They repeatedly have stressed the need to provide help in the meantime, given the severity of the state’s housing affordability crisis.

“We have to start by preserving the existing affordable housing that we have,” Hasstedt said. “Otherwise, we’re just going to keep digging the hole deeper, and we’re never going to get out of it.”

The change in approach, along with amendments made during the bill’s journey through the House this year, has successfully neutralized some of last year’s opposition, including from groups representing bankers and title insurers.

But other old foes, including the Colorado Apartment Association and the powerful business group Colorado Concern, remain opposed. So do Republican legislators, who view the bill as an encroachment on property owners’ rights.

“If you’re thinking about investing $20 million into an affordable project in Colorado, then you’re still concerned about having this cloud on the title of what you develop, and (some may decide) to go elsewhere because of it,” said Drew Hamrick, the senior vice president of governmental affairs for the apartment association. “We still believe and worry about the stigmatizing effect it has on housing investment.”

Hamrick argued that the policy would depress prices on developments because would-be buyers wouldn’t invest as much time or money in researching and bidding on properties that may end up being owned by a local government anyway.

He said he supported another piece of the bill that would give local governments a “right of first offer” on for-sale, market-rate properties. But he was flatly opposed to the rest.

Other groups and entities seeking changes to the bill have links to high-profile developers and property owners.

The path to governor’s desk

The bill now heads to the Senate, where the broader measure passed last year after delays and negotiations. If the new version passes, the bill will enact the first statewide right of first refusal of its kind in the country.

Some cities, counties and housing organizations have a version of the policy, and lawmakers in Maryland have advanced legislation that includes a right of first refusal for tenants to buy their residences.

Denver also has a similar policy that seeks to preserve subsidized housing properties. Renee Gallegos, the deputy director of housing opportunity for the city’s Department of Housing Stability, said it had been used twice in recent years, via a nonprofit partner, to buy properties and sell them as condos with affordability requirements.

Should HB-1175 clear the Senate, the final say would again rest with Polis.

In his veto letter last June, he said he didn’t support a right of first refusal “that adds costs and time to transactions.” Sponsors this year have worked to trim the timelines in the bill, expediting sales as well as local governments’ decisions on whether to exercise their right to step in.

In a statement to The Denver Post on Friday, Polis spokeswoman Shelby Wieman said the governor “appreciates the dialogue happening with sponsors and all stakeholders” and that Polis “will continue to monitor this bill as it moves through the legislative process.”

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Seeking Revenge Against the Capitals | Colorado Avalanche

Published

6 hours ago

November 21, 2024

Press Room

Seeking Revenge Against the Capitals | Colorado Avalanche

Colorado Avalanche (10-9-0) @ Washington Capitals (13-4-1)

5 p.m. MT | Capital One Arena | Watch: Altitude, 9News, My20, Altitude+ | Listen: Altitude Sports Radio (92.5 FM)

For the second time in six days the Colorado Avalanche will faceoff against the Washington Capitals. Colorado will battle to split the season series after a 5-2 loss at Ball Arena on November 15.

Soaring Past the Flyers

The Avalanche beat the Flyers 3-2 at Wells Fargo Center on Monday. Cale Makar posted his 10th-career multi-goal game and Casey Mittlestadt added a goal. Additionally, Mikko Rantanen recorded two assists and Justus Annunen made 24 saves. Following a scoreless first period, Makar opened the scoring with a wrist shot from the slot at 8:30 of the second period after receiving Nathan MacKinnon’s set-up feed. Makar thought he had his second of the game at 10:44 of the middle frame, but the goal was taken off the board due to a successful Flyers challenge for goaltender interference. However, Makar would eventually double Colorado’s lead on the power play with his eighth tally of the season at 15:08 of the middle frame with a shot from the point that deflected off a Flyers player on its way in. The Burgundy and Blue took a 3-0 lead at 8:34 of the third period when Mittelstadt dispatched the rebound created by Rantanen’s shot into the net for his seventh goal of the season. The Flyers answered with goals from Owen Tippett at 11:48 and Tyson Foerster at 13:32 to cut their deficit to one, but the Avs held on to secure their 10th victory of the season.

Leading the Way

MacKinnon leads the NHL in points (34) and assists (27).

Makar leads NHL blueliners in goals (8), assists (19), and points (27). He’s tied for seventh among NHL skaters in points and tied for fifth in assists.

Rantanen is tied for sixth in the league in goals (12) and tied for seventh in points (27).

History

The Avalanche are 18-20-4 in 42 previous regular-season games against the Capitals. Colorado is 4-1-0 in its last five matchups against Washington dating back to the 2022-23 season.

Winning Out West

The Capitals beat the Utah Hockey Club 6-2 at the Delta Center on Monday. Alex Ovechkin scored twice, and Charlie Lindgren made 24 saves. Utah opened the scoring with a goal by Jack McBain at 3:05 of the first period but the Capitals responded with tallies from Dylan Strome at 7:46, Nic Dowd at 7:56, and Ovechkin at 11:05. Ovechkin extended Washington’s lead to three with a goal at 5:38 of the second period before Nick Bjugstad scored for Utah at 11:44 to make it 4-2 in favor of Washington entering the third period. Ovechkin did leave the game midway through the third period with a lower-body injury and has been placed on injured reserve and ruled week-to-week. The Caps added two more goals in the third period from Brandon Duhaime at 7:30 and Aliaksei Protas at 9:56 to win 6-2.

Putting Up Numbers on the Potomac

MacKinnon has posted 28 points (11g/17a) in 20-career matchups against the Capitals including 11 points (5g/6a) in 10 road matchups against them.

In eight previous meetings with Washington, Makar has recorded six points (2g/4a).

Rantanen has registered 19 points (8g/11a) in 14 previous games against Washington including eight points (4g/4a) on the road.

Capitals’ Contributors

Strome leads the Capitals in points (28) and assists (22).

Connor McMichael is second on the team in goals (12) and third in points (19).

Aliaksei Protas is fourth on the team in points (18), third in goals (7), and tied for third in assists (11).

A Numbers Game

10

Makar became the first defenseman in franchise history to record 10 multi-goal games.

3

The Avalanche have three players (MacKinnon, Makar, and Rantanen) in the top 10 in points. No other team has more than one.

165

The Avs have registered 165 high-danger shots on goal, which ranks sixth in the NHL.

Quote That Left a Mark

“Juice is great. I think he’s been great all year. [He made] some big saves, especially at the beginning there…So [it was a] heck of a job from Juice for sure.”

— Casey Mittelstadt on Justus Annunen’s performance on Monday

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Colorado

Residents rally to save Colorado Springs library on brink of closure

Published

14 hours ago

November 21, 2024

Press Room

Residents rally to save Colorado Springs library on brink of closure

COLORADO SPRINGS, Colo. (KKTV) – Hundreds of Colorado Springs residents showed up at the Pikes Peak Library District Board of Trustees meeting Wednesday night in a last-ditch effort to save the Rockrimmon Library.

The library is set to close December 1. This comes after the board voted to not renew the library’s lease due to financial issues.

In a statement posted on their website on November 8, the board called the decision to close Rockrimmon a difficult one.

“A library provides access to resources and materials to everyone in the community, so considering a closure goes against the grain of our hopes for PPLD. However, our District provides access to nearly 700,000 people across El Paso County. We must make decisions that sustain the entire District.”

More than 250 community members showed up to Wednesday’s board meeting to show their support for keeping the Rockrimmon location open with another 119 tuning in virtually.

Former Rockrimmon Library manager Steve Abbott said he was glad to see the turnout.

“It shows that the community will not give up and they are going to fight to keep this library open,” he said.

For most of the almost five-hour meeting, 43 speakers took turns pleading with board members to postpone the library’s closure, extend the lease another year, and reconsider their decision to close the library in the first place.

One of those who spoke before the board, Abbott said closing the library will leave a massive gap for the 30,000 people who live in the area.

“It leaves a big library desert in the Rockrimmon area,” he said. “For a child to use a library now, they’ll have to go over I-25, under I-25, over Academy, under Academy to get to a library, and it’s six miles away from where Rockrimmon was.”

Speaker and Rockrimmon resident Jennifer Walker said closing the library would also deprive the area of a much-needed community center.

“There is no YMCA, there’s nothing else,” she said. “This is where we meet other moms when we’re desperate to talk to another human being that’s not a toddler, this is where we go to work when we need a quiet space, this is where the elderly come to use the computer or to check out books.”

The fate of the Rockrimmon Library was not on the board’s agenda and those who left the meeting tell 11 News the meeting ended with no resolution.

Walker said residents are still exploring their legal options.

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Colorado

What’s the latest on the Colorado River negotiations?

Published

21 hours ago

November 20, 2024

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What’s the latest on the Colorado River negotiations?

The U.S. Bureau of Reclamation released a breakdown Wednesday of five potential paths forward for the fragile state-to-state negotiations surrounding Colorado River operating guidelines that must be updated by 2026.

The Colorado River, which is Southern Nevada’s primary source of water, holds a precarious future as the basin experiences historic drought and state leaders disagree on how to deal with shortages. The range of alternatives is possibly the last major announcement about negotiations to come from the Bureau of Reclamation under the Biden-Harris administration.

“We have worked tirelessly over the past several years to bring Colorado River Basin stakeholders together for a transparent and inclusive post-2026 process,” Reclamation Commissioner Camille Calimlim Touton said in a statement. “Today, we show our collective work. These alternatives represent a responsible range from which to build the best and most robust path forward for the Basin.”

What to know heading into 2025

The breakdown between two coalitions of states, the Upper and Lower Basins, centers around whether the Upper Basin — Colorado, Utah, New Mexico and Wyoming — should be required to take cuts to its water allocation past what’s known as the river’s “structural deficit,” or the 1.5 million acre-feet lost to evaporation and transport. The Upper Basin has argued that it takes too many cuts already because of its reliance on snowpack instead of big reservoirs.

The Lower Basin also has called for smaller reservoirs in the Upper Basin states to be included in discussions about cuts in water usage across the system.

Notably, one of the five alternatives is based on proposals from Native American tribes, calling for the government to account for undeveloped tribal water.

The acknowledgement of the ongoing duel between the Upper and Lower Basins is the “Basin Hybrid” alternative, which appears to fall somewhere down the middle of the two coalition’s proposals.

In a statement, Upper Basin Commissioner and Colorado negotiator Becky Mitchell said it’s too early to speak directly about the five alternatives from the Bureau of Reclamation.

“Colorado continues to stand firmly behind the Upper Division States’ Alternative, which performs best according to Reclamation’s own modeling and directly meets the purpose and need of this federal action,” she said.

The Lower Basin states of Nevada, California and Arizona didn’t immediately release a statement when the announcement was released at 1 p.m.

All seven state negotiators will convene in Las Vegas in early December at the Colorado River Water Users Association conference, where experts and officials will discuss what’s to come from negotiations under President-elect Donald Trump.

This is a developing story. Check back for updates.

Contact Alan Halaly at ahalaly@reviewjournal.com. Follow @AlanHalaly on X.

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