Arapahoe County staff recommends up to $300,000 in CDBG funds to help close funding gap for Mount View Flats

Arapahoe County staff recommended allocating up to $300,000 in uncommitted Community Development Block Grant (CDBG) funds to South Metro Housing Options (SMHO) for the Mount View Flats affordable housing project in Littleton, staff told the Board of County Commissioners during an afternoon study session.

The recommendation, presented by Jeremy Fink of Community Resources, comes after SMHO identified a funding gap of a little over $1 million for the roughly $25 million-plus development. Littleton awarded $500,000 from its inclusionary housing program and the county previously noted a $325,000 Centennial CDBG commitment, leaving about $534,000 outstanding; the county’s proposed $300,000 would reduce that gap to roughly $200,000, Fink said.

The project is a 50-unit development located just south of downtown Littleton on Rapp Street. Staff described the initial income targeting as including units at very low incomes and said all 50 units are at or below 70% of area median income (AMI). "Before you today is a staff recommendation to allocate up to $300,000 to South Metro Housing Options or SHMO, for their Mount View Flats project," Fink said.

Why it matters: County staff said the funding is time-sensitive because the project needs to close financing to secure a 9% Low-Income Housing Tax Credit (LIHTC) allocation. The applicant recently applied for a Colorado Department of Housing (DOH) grant that was not awarded, increasing the urgency to close the remaining capital gap.

Commissioners asked how the county’s contribution would affect local goals. Commissioner Jessica Campbell asked whether the units would count toward the county’s Prop 1 23 goals; staff answered affirmatively and said details on exact counts would be coordinated with the City of Littleton since the project spans jurisdictions. Commissioners also discussed options for the remaining roughly $200,000 shortfall, including further applications to the county’s 2025 CDBG round or adjustments within SMHO’s capital stack (construction/permanent loans or developer fee deferrals), which staff said would be up to the developer to address.

Board action and next steps: After discussion, the board indicated consensus to place the item on the consent agenda for a forthcoming meeting. Fink said the recommended $300,000 would come from the county’s uncommitted CDBG balance and that the department would identify the exact funding source and finalize terms before the consent agenda action.

Community and funding context: Staff said Littleton’s use of an open spaces grant reduced the city’s CDBG need on a separate sidewalk project, which in turn left available uncommitted county CDBG funds. The county noted the applicant will be seeking final LIHTC signatures in May and that timing is a factor in considering the reallocation.

Ending: Staff said they will return any required documentation and final funding terms as the item moves to the consent agenda and will continue coordination with the City of Littleton and the project developer.