Aaron-Miripol1.pptx - The University of Texas at Austin

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					Housing + Transit Conference, Austin
 Aaron Miripol, Urban Land Conservancy
              October 21, 2011
                            Urban Land Conservancy (ULC) was
                            established to acquire, develop and
                             preserve community assets in the
                               Metro Denver area in order to
                           address a variety of community needs

•   Our work includes land banking, preservation and
    community-inspired real estate redevelopment.
•   Our assets consist of schools, affordable housing, and
    office spaces for nonprofits, and seed capital to be
    leveraged using public and private sources for future
    community real estate investment.
•   Over $22 million invested in real estate, leverages over
    $100 million in redevelopment

•   Our real estate partnerships serve over 10,000 people
•   400 full and part-time jobs are supported by our real
    estate investments
              Addressing the Need for Nonprofit Space

       Urban Land Conservancy’s Phillips Center & Wyatt-Edison

  The Phillips Center occupies a full city block and currently houses the following
   seven nonprofits: Byrne Urban Scholars, cityWILD, Civic Canopy, Denver Early
   Childhood Council, Early Excellence at Wyatt LLC, GOAL Academy and Mi Casa
Resource Center. ULC also has first right on Wyatt-Edison Charter school (insert), an
                      1880s historic building across the street.
              Make-Up of Denver & Metro Area
DENVER                            METRO DENVER

600,000 residents                 1.7 million residents
274,500 homes                     861,000 homes
23,600 restricted affordable      21,500 restricted affordable
 *8.6% of all homes restricted     *2.5% of all homes restricted

Land locked                       Most cities can continue to
                                   annex county land

Denver is a City and a County     6 Counties with 54 cities

“Strong Mayor” political system   Strong City Managers
       Opportunities during difficult economic times -
        Transit-Oriented Development (TOD) Fund

• Build out of FasTracks over the next decade
   - Over 120 miles of additional track and 59 new stations
• Increased demand for housing within ½ mile of light rail stations
• 40% of growth projected from households at or below 80% AMI
• Opportunity to purchase land now for land banking
            How the $15 million TOD Fund works

• Finance land and property acquisition

• Create or preserve over 1,000 affordable homes over the next 10 years
   - 60% AMI and below for rental, 95% AMI ownership
   - Goal of 15% of all homes for extremely low-income (30% AMI)

• Provides patient, high-risk capital at low cost
   - 25% of Fund can be used for land banking, 75% for revenue
       generating properties

• Purchase and hold sites for up to 5 years
           Denver’s Transit-Oriented Development Fund
• Goal: Preserve and create over 1,000 units of
   affordable housing near high frequency transit
     • property acquisition
     • land banking

• $15 million, 10 year fund, 3.5% fixed rate to
  Urban Land Conservancy
   • Revolving Line of Credit
   • 3-5 year sub-loans for acquisition

• 90% LTV on ‘as-is’ basis

• Top 63% is Non-Recourse
• Expand Fund to $30 million for Denver
  Metro Region
• Enterprise Communities serves as administrator
         Denver’s Transit-Oriented Development Fund
                     Acquisitions to Date
1. Dahlia Apartments (36 two bdr.) w/NSP - April 2010
   § Preservation of six buildings 1 block from high frequency bus
2. Yale Commons (1.20 acres land) - July 2010
   § ULC working with Regional Transportation District (RTD) and 2 for profit developers on
     a Master Community Plan including RTD’s 2 acre parking lot
3. Mile High Vista (2.15 acres land) - March 2011
   § Mixed use redevelopment: 70 new affordable apartments and 10k square feet of
     community space; new 28k square foot Denver Public Library, and 20k square foot
     commercial building
4. Evans Station (1 acre of land) - June 2011
   § 50 new affordable housing apartments to be developed, financed with 9% Low Income
     Housing Tax Credits (LIHTC)
5. Villa TOD (16 apt homes) - August 2011
   § Includes 7,400 SF of commercial space along art district corridor
                  Model for the TOD Fund
Jody Apartments
                  § Apartments are less than 300 feet from the future
                  Sheridan transit station along the West Corridor, and
                  adjacent to a 800 car park-and-ride to serve the station
                  § ULC owns the land and has a 99-year lease with
                  NEWSED (local nonprofit) that owns the improvements.
                   - Four rental buildings serving over 100 residents.
                  § 52 of the 62 apartments are permanently affordable,
                  with 12 of the 52 committed to households at 30% AMI
                  and below
                  § Total acquisition and rehab: $3.25 million
                  § Possible redevelopment into 200 mixed income
                  apartments & 25,000 sq. ft. of commercial/community
                  § Total Redevelopment Costs: $50 million
     TOD Fund Acquisitions
                                                     Yale Commons
                                                     § Purchased in July 2010, this 1.25 acres of land
                                                     is located next to the Yale Station (below)
                                                     § Land Price = $1.35 million ($25 sq. ft.)
                                                     § Partnering with 2 private developers and RTD
                                                     to create Master Transit Community plan to
                                                     include multiple properties and current RTD
                                                     parking lot. At least 140 apartments will be
                                                     developed, half permanently affordable.
Dahlia Apartments                                    § Total Development Costs = $20 million
§ Dahlia (above) was purchased out of foreclose in
in early 2010 for $1.2 million. There are six
buildings with thirty-six 2-bedroom apartment in
northeast Denver.
§ Dahlia was the first TOD Fund acquisition and
includes NSP dollars for rehab. ULC is stabilizing
the buildings and will sell the improvements to a
nonprofit and continue to own the land with a 99
year lease .
§ Total Acquisition and Rehab: $2 million
        TOD Fund Acquisitions                           Delaware Station
                                                        § Purchased in June 2011, this one acre of vacant
                                                        land sits across the street from the Evan Light
                                                        Rail Station. (below)
                                                        § Land Price= $1,150,000 = $26.50 sq. ft.

             Mile High Vista                            § Partnering with Medici Communities in the
                                                        development of 50 residential workforce housing
                                                        units utilizing 9% Low Income Housing Tax

                                                        § Total Development Costs = $12 million
Mile High Vista
§ This 2+ acre site (above) was purchased in March,
2011 and is getting developed to include a new
Denver Library, up to 70 units of workforce housing +
10K sq. ft. of community space and a 20K sq. ft.
commercial building.
§ Land Price = $2,140,000 = $23 sq. ft.
§This development along the West Corridor will serve
as a catalytic development for West Colfax in Denver
– the nation’s longest street.
§ Total Development Costs: = $35 million                              Evans Station Lofts
                             TOD Fund Acquisitions
Villa TOD
§ 1/3 acre mixed use property was
purchased in August, 2011 and sits on the
Santa Fe bus corridor and is 5 blocks from
10th & Osage light rail station.
§Property includes 16 existing affordable
apartments and 7,500 sq. ft. of commercial
space. ULC will partner with two local
nonprofits, NEWSED and Denver Inner City
Parish on the long term redevelopment with
a 99 year land lease.
§ Total Acquisition and Rehab Costs = $2.3
TOD Fund Activity to Date: In 16 months of
existence, half the fund has been deployed,
preserving and developing nearly 275
affordable homes
Denver’s Transit-Oriented Development Fund
            ULC Property Locations
                   Benefits of TOD Fund

• Preserves land and buildings around transit corridors to
  ensure long term affordable housing & stewardship of the
• Gives affordable housing developers a financing tool to help
  mitigate real estate risk at transit sites
• Encourages partnerships with Community Development
  Corporations and other developers
• Balances redevelopment efforts along transit
• Increase residential and commercial density = smart growth
• Provides employers with access to an expanded workforce
• Increases ridership on public transit
        Economics of Affordable Housing on the West Corridor

•    There are 1,424 affordable homes within a ½ mile radius of the West Corridor light rail line
•    The West Corridor will add roughly 15,000 total homes by 2030
      – If only 10% or 1,500 of these homes are affordable, it would double the number of
          affordable homes currently within ½ mile of the West Corridor
•    According to an National Association of Home Builders (NAHB) model, the economic impact of
     building these affordable homes would be:
      – First year of construction: $140,488,000 in local income, $12,195,000 in taxes and other
          revenue for local government, and 1,785 local jobs.
      – Annual, ongoing local impacts: $40,732,000 in local income, $5,609,760 in taxes and
          other revenue for local government, and 468 local jobs.[1]
[1] Source: “The Economic Impact of Low Income Housing Tax Credit Development Along Transit Corridors,” NAHB Housing
Policy Department, June 2010.
        Future of TOD Fund

§ Expand to $30 million by 2012 (regional fund) and add over 1,500
affordable homes by 2021

§ Investments from other local municipalities besides Denver

§ New enabling legislation allows RTD to partner with for profit and nonprofit
developers at transit stations

§ Over $150 million of investments will be leveraged by the Fund and more
than 2,200 jobs created

§ Getting beyond silo solutions: Fund is more than affordable housing, as it
brings other development opportunities and economic investment to under
served transit sites
              Challenges of TOD Fund

§ Added layers of complexity
§ Loss of development control with partners
§ Stiff competition for LIHTC (key for take out)
§ Priced out of existing multi-family housing market
§ Lack of revenue generating properties
§ Glut of land banking opportunities
§ Need for longer loan term, up to 10 years
§ Need for additional equity beyond ULC’s investment
    Aaron Miripol
twitter: @urbanlandc
  (303) 377-4477

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