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Littleton council approves $500,000 from housing fund to help close financing gap for Montview Flats
Summary
The council unanimously approved a $500,000 contribution from the city's housing fund to help South Metro Housing Options complete financing for Montview Flats, a 50‑unit affordable rental project; council and staff discussed funding sources, project costs and contingencies before the vote.
The Littleton City Council voted unanimously on March 18 to approve a $500,000 contribution from the city's housing fund to help South Metro Housing Options (SMHO) finish the financing for Montview Flats, a proposed 50‑unit affordable housing development.
“Just to be clear. The request is for $500,000 to contribute to completing that capital stack and then moving to close on Montview Flats,” said Corey Ritz, executive director of South Metro Housing Options, during the council’s general business discussion. He said SMHO had increased its own cash commitment and applied to the Colorado Division of Housing for additional funds, but still faced a remaining gap.
Deputy City Manager Kathleen Osher told council the city previously contributed $1 million to help acquire the land for the project and that the city’s housing fund — supplied by fees in lieu under the inclusionary housing ordinance and other sources — currently held about $1,300,000 available for qualifying affordable projects. Osher said part of the city’s earlier contribution included American Rescue Plan Act funds and that the inclusionary fee revenue is restricted for housing uses.
Council members asked detailed questions about the project budget, alternative funding avenues and SMHO’s finances. Ritz said the overall project cost was approximately $25.2 million and that SMHO had expected larger CDBG funding awards; SMHO reported receiving substantially less CDBG/HOME support than anticipated and had increased its own cash by about $1.1 million while requesting the city contribution and a pending $500,000 state Division of Housing award.
Councilor Reichert moved to approve the resolution; Councilor Peters seconded. The vote to approve the funding request was 7‑0.
City staff and SMHO said they planned to close financing in May and begin construction in June if the remaining funding came through. Staff emphasized the city’s housing fund was intended for projects that produce 100% affordable units and said no other requests were pending against the available $1.3 million at the time of the March 18 meeting.
