Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 4-24-2023
Requesting Agency: Department of Housing Stability
Division:
Subject Matter Expert Name: Justin Hill
Email Address: Justin.Hill@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 Rahf V Drehmoor, LLC to support the rehabilitation of 74 income-restricted units at Drehmoor Apartments, located at 215 East 19th Avenue in Council District 10.
Approves a performance loan agreement with RAHF V DREHMOOR, LLC for $752,875 and 60 years to support the rehabilitation of 74 income-restricted units at Drehmoor Apartments, located at 215 East 19th Avenue in Council District 10 (HOST-202367246). The last regularly scheduled Council meeting within the 30-day review period is on 11-20-2023. The Committee approved filing this item at its meeting on 4-26-2023.
body
Affected Council District(s) or citywide? 10
Contract Control Number: HOST-202367246
Vendor/Contractor Name (including any “DBA”): RAHF V DREHMOOR, LLC
Type and Scope of services to be performed:
Jonathan Rose Companies is requesting $752,875 in funding to complete the rehabilitation of Drehmoor Apartments. This property is subject to a project-based Section 8 Housing Assistance Payments (HAP) contract which expires in 2040. Most, if not all residents are seniors on SSI disability income, therefore, all units serve very-low income tenancy and 74 units are 30% Area Median Income (AMI).
This project also includes a social services program, which utilizes common space at the property and will be subject to physical improvements in addition to work already completed. The program has a case manager who offers programming events and connects residents to resources, benefit programs, transportation, reading mail, etc.
The rental and occumpancy covenant securing the rental and occupancy restrictions will run with the land for 60 years.
The borrower will be required to house people with low/moderate incomes as shown in the following table.
Unit Type 30%AMI Employee Unit Total Units
Studio
1BR 74 1 75
______________________________________
Total 74 1 75
Scope of work:
Originally constructed in 1926, Drehmoor Apartments is a 75-unit preservation project in an historic 4-story brick building which underwent renovations in 2007 and the first phase of another rehab in 2020, consisting of $3,974,034 in total repairs. This second phase of the rehab is being performed to ensure the long-term viability of this property as an affordable asset. This project will serve very low-income tenancy through a Housing Assistance Payments (HAP) contract expiring in 2040, with 74 units restricted at 30% Area Median Income (AMI) through the Rental & Occupancy covenant, with one Employee Unit.
Already completed during phase 1 of the rehab was a reconfiguration of the layout to accommodate accessibility requirements in four units (5.3%). Cabinets, plumbing fixtures, and electrical devices have been lowered in phase 1 of the rehab to meet Section 504 requirements. Jonathan Rose Companies will also install LED lights, low-flow plumbing fixtures, and EnergyStar rated appliances throughout the property, as well as complete repairs to the elevator, sidewalks, and install a new video surveillance system.
Location (if applicable): 215 East 19th Avenue
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?
No- gap financing.
For New contracts
Term of initial contract:
Principal and any interest accrued on the Loan shall mature and be due and payable on the sixtieth (60) anniversary of the date of the Promissory Note (the “Maturity Date”), if not sooner paid. Repayment shall be forgiven by the City on the Maturity Date so long as Borrower is in compliance with all terms and conditions of this Loan Agreement and the Covenant.
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:
$752,875
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.)