Kathleen Smith, director of Community Resources, asked the Board of County Commissioners to consider a $4 million initial investment and a $1 million annual allocation to an Affordable Housing Expansion program, and to fund a 10-year strategic housing plan to guide development and preservation priorities.

Smith said the county previously used an ARPA allocation of $10 million and about $3 million in HUD recovery funding to assist gap financing for more than 750 affordable units. Staff recommends administering the new expansion program through the Arapahoe County Housing Authority and using the first-year $4 million largely for land acquisition/site preparation, construction and rehabilitation, and infrastructure improvements.

The nut graf: Staff framed the fund as gap financing to attract and complete projects by joining other capital sources and to preserve affordability via deed restrictions and negotiated unit reservations for county residents.

Smith proposed the initial $4 million be allocated as follows: $1,400,000 for land acquisition and site preparation, $2,000,000 for construction and rehabilitation of residential units, and $600,000 for infrastructure and utility improvements. For ongoing annual funding of $1,000,000, staff proposed $200,000 for land/site work, $600,000 for construction/rehab and $200,000 for infrastructure. Smith said the board would make final allocation decisions for specific projects.

Staff emphasized program design elements: target households at or below 80 percent AMI; require deed restrictions or other affordability controls (typical 20-year affordability period cited); partner with developers and local housing authorities; pursue program-income options and limited liability partnerships to sustain the fund; and explore land banking and cash-in-lieu policies to build the capital stack.

Commissioners asked for more detail on how the county would exercise oversight and ensure units remained in good condition. Smith said the county would not propose to perform routine property management but could require contractual remedies for noncompliance tied to award agreements, and could use Housing Quality Standards (HQS) inspections where appropriate. Staff also discussed reference checks and the ability to withhold future payments/partners based on contractual terms.

Commissioners and staff discussed site constraints such as floodplain issues, radon testing and mitigation requirements, and the capacity limits of the county’s development team. Smith noted that typical new construction costs can be $25 million to $30 million for substantial projects and that the $4 million is intended as gap financing to help leverage other capital.

Ending: No formal vote was taken; staff asked the board to consider the recommended program design and the funding request through the 2026 budget process. Commissioners expressed appreciation and general support and asked for further details on AMI thresholds and potential project selection processes.