State's Housing Authority Kicking in $8.5 Mil for the Denver Multifamily Housing Project

DENVER-The Colorado Housing and Finance Authority will kick in $8.5 million toward the purchase and rehabilitation of East Village, a low-income apartment complex, east of Denver’s CBD.

CHFA, a self-sustaining authority created by the General Assembly in 1973 to provide affordable housing for low- and moderate-income families, is backing 58.8% of the $14.5-million total cost for the Denver Housing Administration to buy and rehabilitate East Village. The DHA has agreed to pay $12.3 million for the complex to Beverly Hills, CA-based Casden Properties Inc. The $14.5-million bottom-line includes rehabilitation of the 199 apartments.

David Herlinger, CHFA executive director, says the loan would be amortized over 30 or 40 years. But, it most likely will be repaid as soon as DHA forms a partnership with a private developer to redevelop East Village into a combination of market-rate units and affordable housing. At that point, DHA will probably seek permanent financing from CHFA for the low-income portion of the project, he says.