On the front of affordable housing in Denver, the city is making noticeable strides with the recent approval of a sizeable bond measure aimed at revamping an existing structure into living spaces for those in need. According to the City and County of Denver, up to $29 million in Private Activity Bonds (PABs) will help transform a 124,000-square-foot office building in the Denver Tech Center into a new affordable housing hub with 143 units.
Mayor Mike Johnston expressed the city's dedication to keeping Denver accessible, saying, "This project represents an exciting step in our commitment to making Denver affordable for all," as obtained by the City and County of Denver. Shea Properties, the developer behind this adaptive reuse venture, is slated to commence construction in 2025, and wrap it up the following year. Amid the economic veins of the city, such as the DTC, where cheaper housing options are scarce, this project stands as the first office-to-residential conversion post-pandemic designed for affordability.
For those unfamiliar with Private Activity Bonds, they are tax-exempt bonds that local governments can issue to stimulate investments in projects benefiting the public like affordable housing. Through these bonds, developers can secure lower interest rates since the city acts as a tax-exempt conduit. The developers, not the city, carry the financial onus, with the city pocketing an issuance fee for its role.
The South Monaco endeavor will utilize its PABs to manage costs associated with buying, rehabbing, and overhauling the office building into a lasting affordable rental housing complex. It's intended to cater to a broad demographic, with units ranging from studios to four-bedrooms, earmarked for individuals making between 30% and 70% of the Area Median Income, or AMI.
