Greeley City Council approves private-activity-bond allocations for three affordable housing projects

The Greeley City Council voted 7-0 Tuesday to approve private-activity-bond allocations for three affordable-housing developments. The package backs preservation and construction projects totaling 292 units, including renovations at Island Grove Apartments, a new 120-unit rental development tied to Hope Springs, and preservation work on 64 units across three High Plains Development properties.

City staff told council the bonds are tax-exempt financing for qualifying private projects, not city budget dollars, and cannot be used to address Greeley’s budget deficit or other city purposes. Greeley had about $24.6 million in retained annual allocation from the last three years available to distribute.

Staff said the Housing for All Advisory Board voted April 9 to recommend funding all three applicants. Because the total requested exceeded the available allocation, the board adjusted award amounts so each project could meet the 25% threshold needed to pair the bonds with 4% low-income housing tax-credit awards.

One project from Lincoln Avenue Communities involves preserving and renovating the 108-unit Island Grove Apartments in northeast Greeley. Staff said the 54-year-old property needs more than $30 million in renovations, and that its project-based Section 8 vouchers are expected to continue for another 20 years as part of the preservation effort.

A second project from Brickwell Development would build 120 affordable rental units as part of the broader Hope Springs development. Staff said the project is expected to cost more than $37 million, with 40 units designed to be fully ADA-accessible, and that all units would be priced for households earning below 80% of area median income.

The third proposal, from High Plains Development, would preserve 64 affordable units through a rehabilitation project spanning three properties in Greeley and Weld County. Staff said that work is expected to cost more than $18 million and would preserve four ADA-accessible units, with apartments serving households at 40% to 50% of area median income.

Presenters said the three projects together average nearly $85,000 in bond allocation per unit and about $294,000 in total development or rehabilitation cost per unit. Mayor Pro Tem Melissa McDonald made the motion to approve the allocations, and Council Member Brian Rudy seconded it. Before the vote, Council Member Craig Huddleston asked whether the city was nearing a three-year limit on the funding; staff said the city receives a new allocation each year based on population, likely around $7 million annually going forward.