The Mile High Transit-Oriented Development Fund will create and preserve at least 1,000 affordable homes along current and future transit corridors in the City of Denver. The Fund makes $15 million in capital available to purchase and hold sites for up to five years, in anticipation of the opening of new transit stations, and will purchase sites within:
- One-half mile of fixed-rail transit stations
- One-quarter mile of high-frequency bus stops
Why is the Fund Needed?
- Metro Denver is undergoing the nation’s largest public transit expansion, including the addition of five light rail lines to the existing three lines that already serve Denver and its south suburbs.
- In most urban areas including Denver, transportation is the second highest household expense after housing.
- In Denver, working families who earn between $20,000 and $55,000 spend on average of 59 percent of their gross household income on housing and transportation.
- Locating affordable housing in transit corridors allows households to reduce expenses, while increasing access to employment, educational opportunities and services.
- It’s essential that affordable housing in Denver be preserved or redeveloped to ensure its long-term affordability.
The TOD Fund requires the partnership of:
- Quasi-governmental organizations
The Urban Land Conservancy (ULC), made the initial equity commitment of $1.5 million to the Fund and is leading real estate acquisition, management and disposition of assets. Enterprise assembled the initial capital and the Fund began operations in early 2010. Investors in the Fund include:
- City of Denver
- MacArthur Foundation
- Colorado Housing and Finance Authority
- Rose Community Foundation
- Mile High Community Loan Fund
- Wells Fargo
- U.S. Bank
- Enterprise, both through grant funding and our Enterprise Community Loan Fund
- Single borrower, ULC creates disposition agreement with partner developer
- Three to five year hold
- Approximately 3.5% interest
- Preservation defined as existing multifamily properties, restricted and not, with plans for rehab or redevelopment
- Primarily rental, 60% AMI and below, limited homeownership allowed when/if market warrants