Fort Collins URA approves $1 million loan for proposed 112 apartments

The Fort Collins Urban Renewal Authority board approved a $1 million loan for a proposed 112-unit income-restricted housing development between Bristlecone Drive and Red Cedar Circle. The commitment applies only to the Colorado Housing and Finance Authority’s fall 2026 award round, and the loan must close by Dec. 31, 2027.

All 112 apartments would be deed-restricted affordable housing, the project presentation says. Household incomes would average no more than 60% of area median income. The proposal sets rents at 50%, 60% and 70% of area median income for a compliance period of at least 40 years.

The developer’s representative put the funding gap at about $4.5 million, even if the project wins state tax credits, against estimated costs of about $53.7 million. The city’s staff report estimates the gap at approximately $3 million. Staff recommended a $1 million loan rather than covering the full gap, citing other potential funding and competing authority priorities. “And so strong local commitments from the city and from the URA will do an immense amount to help with our application,” the representative said.

The board chair argued that the Community Hub remained a priority but lacked a cost estimate to support a search for other funding: “We do not have a clear vision.” Residents sought the hub to meet local needs, not additional housing or development in North College, the chair said. A board member supported the loan as a chance to strengthen the housing project’s state funding bid while also paying for infrastructure. Staff estimated the loan would leave $3.33 million for the Community Hub, taking its funding share to 48%, with Vibrant Neighborhood at 32% and Infrastructure at 19%.

The development would include about 3,055 linear feet of stormwater pipe, estimated at about $2.5 million under an agreement between the developer and city stormwater staff. The city’s staff report says stormwater staff included $2.5 million in the proposed 2028 budget to reimburse the project after the work is built. Red Cedar Circle would extend north to connect with the private drive through 1636 North College and the roundabout at Willox Lane.

The project applied for the housing authority’s second funding round, which combines state affordable-housing credits, federal 4% tax credits and private activity bonds. The staff report expects preliminary city housing-fund award letters in mid-November and City Council approval in December. It lists the housing authority’s funding decision for November, groundbreaking in the fourth quarter of 2027, delivery in March 2029 and stabilization in late 2029 or early 2030.