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

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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.

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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.

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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.

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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.

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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.

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“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.

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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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Colorado

John Walsh wins race for Denver District Attorney

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John Walsh wins race for Denver District Attorney


John Walsh, a career federal prosecutor and private practice attorney, will be Denver’s next district attorney after winning Tuesday’s election.

Walsh won about 58% of the vote, beating Leora Joseph by about 11,000 votes, according to the Denver Elections Division.

He’ll will still need to go through the November general election, but they’d be the presumptive winner and would take office in January.

Both candidates agreed on a number of issues but split on a few. Joseph, for example, said she was completely opposed to the idea of safe injection sites, while Walsh said he was at least open to a pilot program with a single site, subject to approval by City Council, to gather more research on how it’d work in Denver.

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Walsh ran on a campaign of reforming sentencing guidelines. A career federal prosecutor, he served as assistant U.S. Attorney and was appointed U.S. Attorney for the District of Colorado by former President Barack Obama.

He worked on Obama’s clemency project and, at the time, reduced sentences for nonviolent drug offenders. In private practice, he’s worked on business litigation, securities and conducting internal investigations.

He’s also been involved in several high-profile cases, from leading a grand jury investigation into former Arizona Governor John Fife Symington to representing President Joe Biden’s administration in one of the 2020 election lawsuits in Michigan.

Walsh was endorsed by outgoing Denver District Attorney Beth McCann, former Colorado Gov. Bill Ritter and former District Attorney Mitch Morrissey.

Leora Joseph, who worked as a prosecutor in Massachusetts for 25 years, served as chief of staff for the Colorado Attorney General’s Office and led Colorado’s Behavioral Health Agency.

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You can view all of Tuesday’s primary election results on CBS News Colorado.



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New program helps feed hungry children and families in Colorado

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New program helps feed hungry children and families in Colorado


New program helps feed hungry children and families in Colorado – CBS Colorado

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Tasty Food gives out free meals through the Denver metro area to help families fill gaps this summer.

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What the nation’s top QB Julian Lewis said about official visit to Colorado

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What the nation’s top QB Julian Lewis said about official visit to Colorado


Julian “JuJu” Lewis says he enjoyed his time in Boulder. But was it enough to sway him away from his commitment to USC?

The highly sought-after Carrollton high school quarterback prospect was ushered in and welcomed by everyone around the foot of the Flatirons. This was Lewis’ third official visit to Colorado since the start of the year. However, this visit was particularly noteworthy given how the city showed the Peachtree passer nothing but love.

“It was a cool weekend,” Lewis told SI. “I met a lot of good people while I was in Boulder and definitely noticed the things they did around town.” He went on to say he was shutting down his recruitment.

The nation’s top ranked prospect, according to ESPN, had a burger named after him and had welcome signs all over the place. He garnered a great deal of attention with everyone knowing how monumental it would be for CU to land him

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As for the verbal commitment to USC? That hasn’t alter Lewis’ approach or wanting to survey his options. The elite signal-caller has taken official visits to Indiana, Auburn and Colorado as of late. While the Trojans are still in the picture, the Buffaloes and Tigers did enough to stay afloat.

The prominence of Deion Sanders has brought significant attention to Colorado’s football program, making it a prime destination for top recruits like Lewis. Upon arrival, he was greeted with a warm welcome that included a tour of the university’s state-of-the-art facilities. The facilities at Colorado have undergone significant upgrades in recent years, making them competitive with some of the best in the nation. Lewis and his family were shown around the Champion Center athletic complex, training rooms, and the newly renovated Folsom Field.

A key highlight of the visit was the opportunity for Lewis to sit down with Shedeur Sanders for a “legendary” picture. The Buffs “Grown” QB approach to mentoring is focusing on building character and leadership qualities in his teammates, which resonated deeply with Lewis. Sanders’ commitment to his personal and athletic development in noticeable this offseason as he ramps up to preparing for the 2025 NFL Draft.

Additionally, Lewis was treated to a glimpse of life in Boulder, Colorado. The university’s scenic campus, set against the backdrop of the Rocky Mountains, offers a unique environment that combines rigorous academics with a vibrant college town atmosphere. The natural beauty and recreational opportunities of Boulder were emphasized as part of the overall appeal of being at CU.

The official visit left a strong impression on Lewis and his family. Coach Prime’s dynamic leadership and the comprehensive support system at Colorado present a compelling case for why the university is an excellent choice for top-tier recruits. As Lewis continues to weigh his options, the time spent with Sanders and the Colorado football program will undoubtedly play a significant role in his decision-making process.

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