By David Heitz/NewsBreak Denver
(Denver, Colorado) A Denver City Council committee will discuss Wednesday whether to award $4.26 million in assistance to a developer to build supportive housing for homeless youth.
A $3 million forgivable loan to Pennrose Holdings, LLC would help secure construction of the building at 2700 Wewatta, according to a Department of Housing Stability, or HOST, memo to the city council. Fifty-six supportive housing units would serve youth ages 18 to 24 who are at risk of becoming homeless, particularly as they age out of foster care.
Half of the units will be subject to deed restrictions for 60 years to be rented to people earning at least 30% of the average median income, or $22,000 or less per year. The other half will be subject to deed restrictions for 60 years to be leased to those earning up to 50% of the AMI. Of the 56 units, all but four will be one-bedroom apartments. The rest will be two bedrooms.
Half of the project’s residents are said to come from the OneHome system, which is a coordinated entry process for people experiencing homelessness. Other referrals would come from Denver Human Services.
In addition to the loan, council will discuss providing the developer with a $1.26 million grant to pay for supportive housing services. The community will be built on a half-acre site in the Five Points neighborhood. The property is also within the RiNo Arts District and the 13-acre Denargo Market redevelopment area “which is experiencing explosive growth,” according to HOST’s memo to council. “This major redevelopment will provide immediately accessible employment and housing opportunities, providing future residents of 2700 Wewatta with many opportunities for economic mobility and housing choices in one neighborhood.”
Even if the housing, safety, education and homelessness committee approves the loan and grant on Wednesday, the full city council must also approve the aid.