Denver9/28_Noni Ramos
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Realities of Financing the Preservation of Affordable TOD
Noni Ramos
Enterprise Community Loan Fund
September 28, 2010
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Denver Model
Denver TOD Fund Metro Denver addition of five new rail lines Preservation and redevelopment of housing near transit Sites within 1/2 mile of current or future light rail and a 1/4 mile of
high frequency, high volume bus corridors
Fund structure Public-private partnership $15 million in capital Purchase and hold sites up to five years
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Denver Model
Partners City of Denver Colorado Housing and Finance Authority Enterprise Community Loan Fund Enterprise Community Partners MacArthur Foundation Mile High Community Loan Fund Rose Community Foundation Urban Land Conservancy U.S. Bank Wells Fargo
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TOD Fund Waterfall
Position Organization Amount/ Rate
Equity Urban Land Conservancy $1.5 million /0%
First Loss City of Denver $2.5 million/0%
Second Loss Enterprise Community Partners $1 million/ 2%
Third Loss Mac Arthur Foundation $2 million/ PRI 2%
Third Loss CHFA $2 million/ 2%
Third Loss Rose CommunityFoundation
$500,000/ 2%
Senior Debt Enterprise Community Loan Fund (with Wells Fargo and US Bank)
$5 million / 5%
Senior Debt Mile High Community Loan Fund $500,000/ 4%
TOTAL $ 15 Million/ 3.5%
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Denver Model
Three target property types Existing federally-assisted rental properties Existing unsubsidized, below-market rate rental properties Vacant or commercial properties to be converted to new
affordable housing Rehab and redevelopment of units
Outcomes Creation and preservation of at least 1,000 units of affordable
housing
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Importance of Affordable Housing Near Transit
Reasons for preserving and expand affordable housing near transit Ensure equitable and affordable access to transit Improve ridership for public transit Minimize the extent and cost of sprawl and reduce traffic
congestion, air pollution and emission of greenhouse gases Advance core economic development objectives
An equitable distribution of economic development benefits Job creation Improve job access
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Preservation as Priority for TOD
Preservation more economical than new development Cashflowing properties have ability to assist in
covering holding costs Strategic in relation to transit expansion
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Innovative Ways to Finance TOD
New sources of take out financing specific to TOD CHFA incentive for TOD Basis boosts in addition to points incentives Federal Sustainable Communities program and
incentives at regional level (ie MTC in Bay Area)
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Barriers to Financing Preservation Near TOD
Property valuation approach Identifying viable preservation sites near transit Coordination of funding sources Longer hold period mismatch for existing sources of
acquisition