Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 2/14/22
Requesting Agency: HOST
Division:
Subject Matter Expert Name: Derek Woodbury
Email Address: derek.woodbury@denvergov.org
Phone Number:
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed Loan Agreement between the City and County of Denver and Mile High Ministries to construct a 61-unit affordable housing rental project known as Clara Brown Commons, serving low- to moderate income households.
Approves a performance loan agreement with Mile High Ministries for $1,825,000 and for 60 years to construct a 61-unit affordable housing rental project known as Clara Brown Commons, serving low- to moderate-income households and located at 3700 Gaylord Street in Council District 9 (HOST-202161467). The last regularly scheduled Council meeting within the 30-day review period is on 5-2-22. The Committee approved filing this item at its meeting on 2-23-22.
body
Affected Council District(s) or citywide? District 9
Contract Control Number: HOST-202161467
Vendor/Contractor Name (including any “DBA”): Mile High Ministries
Type and Scope of services to be performed:
Executive Summary
This project marks the first phase of the Clara Brown Commons redevelopment, which spans a full city block bordered by 37th Ave., 38th Ave., York St. and Gaylord St. in the Cole neighborhood. Developed by Mile High Ministries, the project features this 61-unit family LIHTC development. Future phases will include 17 Habit for Humanity homes and a non-profit business center. A Tiny Home Village for persons experiencing homelessness is currently operating on the site, as a temporary offering prior to the redevelopment.
The proposed HOST performance loan of $1,825,000 would support hard and soft costs associated with construction. The financing would not require repayment, so long as affordability is maintained over the course of a 60-year covenant to be placed on the property.
Mile High Ministries is leveraging other funds at a ratio of nearly 1:14 for the $26.6 million rental project. Other public funding sources include Low Income Housing Tax Credits (4%), State housing tax credits and private activity bond funds from the Colorado Housing and Finance Authority.
Nearly one third of the units are deeply affordable, serving households earning up to 30 percent of the area median income (AMI). The project includes an emphasis on larger, family-sized units as detailed in the unit mix as follows:
|
Unit Type |
20% AMI |
30% AMI |
50% AMI |
60% AMI |
80% AMI |
Total Units |
% of Total |
|
1BR |
1 |
4 |
3 |
3 |
3 |
14 |
23.0% |
|
2BR |
1 |
7 |
7 |
8 |
5 |
28 |
45.9% |
|
3BR |
1 |
5 |
6 |
5 |
2 |
19 |
31.1% |
|
Total |
3 |
16 |
16 |
16 |
10 |
61 |
100% |
Context: 60% AMI for a single-person household is $44,016, two-person household is $50,304
On-site resident services will be provided, including adult education and jobs services. These resident services will be different from qualified supportive housing services intended for individuals exiting chronic homelessness, and more appropriate for low-income families.
Location (if applicable): 3700 Gaylord Street
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts): N/A
Are WBE/MBE/DBE goals met (if applicable)?
Is the contract new/a renewal/extension or amendment? New
Was this contractor selected by competitive process or sole source? Loan agreement
For New contracts
Term of initial contract: 60 years
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term: $1,825,000
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
If length changing
What was the length of the term of the original contract?
What is the length of the extension/renewal?
What is the revised total term of the contract?
If cost changing
What was the original value of the entire contract prior to this proposed change?
What is the value of the proposed change?
What is the new/revised total value including change?
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)