The holiday arrived early in 2009 bringing 36 apartment homes to Urban Land Conservancy (ULC)!  The Dahlia Street Apartments were acquired on December 7, 2009 making it the eighth property acquired by ULC, and one that will help preserve 36 units of affordable housing for low and moderate income families. 

The property was foreclosed in 2008 and consists of six buildings located at 33rd Avenue and Dahlia Street in northeast Denver, directly across the street from Elm Park, a multi-family property owned by Hope Communities, a local non-profit housing provider.  Hope will also manage the Dahlia Street Apartments for ULC through its property management affiliate, Road to Hope, until such time that Hope Communities is able to acquire the property from ULC. 

Through its partnership in the Neighborhood Development Collaborative (NDC), a collaborative of six non-profit organizations, ULC utilized $400,000 of City of Denver Office of Economic Development Neighborhood Stabilization Program (NSP) funds and bridge financing from Citywide Banks to complete the acquisition.  Additional NSP funds will be used to perform much needed rehab early in 2010.  NSP funds are possible through the Housing & Economic Recovery Act (HERA) which was created with the intent to stabilize and strengthen neighborhoods that have been impacted by high foreclosure rates.  Once Hope assumes ownership of the property, a portion of the NSP funds will be repaid and revolved into another multi-family acquisition opportunity, and $400,000 will remain as a permanent investment ($11,000 per apartment unit) which has been leveraged 3 to 1 with other resources, and will be further leveraged by additional resources that Hope Communities secures in the future. 

The Dahlia property acquisition is the first multi-family property acquired in Denver using NSP funds, and it helps Denver satisfy HUD requirement that 25% of the funds received by the City be used to serve housholds at or below 50% of Area Median Income.  Additionally, because of the foreclosure, the property has endured some neglect.  As a result, ULC, in partnership with Hope, plans to complete approximately $350,000 of rehab to the property using NSP funds.  The property will undergo a more extensive rehab once the apartments are transferred to Hope Communities for long-term ownership and management, but in the meantime initial rehab plans include health and safety upgrades, a new roof, weatherization, as well as minor unit upgrades.

Contact Debra Bustos, Director of Real Estate with any questions at 303-454-5369.