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Council signals support to use federal NOAH funds to preserve Bridal Lofts, urges Wheat Ridge Housing Authority loan forgiveness
Summary
In a special study session, councilors expressed consensus to pursue a staff recommendation to use federal Naturally Occurring Affordable Housing (NOAH) grant funds and request the Wheat Ridge Housing Authority forgive its loan to facilitate Foothills Regional Housing's proposed purchase of the Bridal (Fruitdale) Lofts.
WHEAT RIDGE, Colo. — City leaders signaled support during a special study session Monday for using federal NOAH funding to preserve affordability at the Bridal Lofts (the former Fruitdale School) by enabling Foothills Regional Housing to buy the property.
City staff presented a timeline showing the school was decommissioned in 2007, purchased by the Wheat Ridge Housing Authority in 2011 and redeveloped as 16 residential units (the Bridal Lofts) with a 2017 grand opening. Staff said the property was placed on the National and State Registers of Historic Places in 2013 and has energy-efficiency and edible landscaping features. The property’s financing history is complex and, staff said, the current owner—Hartman Eli Investments (HEI)—has informed the city it is pursuing a sale.
Foothills Regional Housing representative Dana Ashley Ohm told council Foothills would assume the remainder of a Freddie Mac loan tied to the property, pay HEI $515,000 for deferred fees, contribute $100,000 in cash, and increase long-term unit affordability through project‑based vouchers over time. The overall purchase price, staff said during Q&A, is $3.4 million.
City staff recommended three options. Council reached consensus to pursue option three: request the Wheat Ridge Housing Authority forgive its $570,000 loan contribution and have the city contribute the full $2,000,000 NOAH grant to the sale and related affordability commitments. Staff said that under option three the city would receive repayment of the remaining city loan balance at closing and Foothills would be better positioned to manage small properties within a larger affordable-housing portfolio.
Why it matters: The agreement aims to keep existing tenants in place, maintain the historic building and direct federal NOAH funds to preserve naturally occurring affordable housing in Wheat Ridge. City staff emphasized the urgency because HUD funding is reimbursable and the council and staff want to avoid losing congressional funds that are currently available.
Councilors pressed staff on risk and mechanics. Staff said the proposal would be contingent on HUD approval and grant-reimbursement mechanics; staff is discussing specific timing with HUD and plans to request a process that would allow quick transfer of funds upon closing. Council members asked whether the action would harm other projects; staff said using the NOAH funds for Bridal Lofts could free other Foothills funds for projects such as Ives 2.
Outcome: Council reached consensus to pursue option three and instruct staff to coordinate with Foothills Regional Housing, the Wheat Ridge Housing Authority and HUD toward a transaction that preserves the units and returns the city’s loan balance at closing. No formal ordinance or appropriation was voted at the study session; staff will return with formal documents and any HUD-required modifications.
Next steps: Staff and Foothills will continue negotiations; a formal purchase agreement, documentation of HUD reimbursement mechanics, and any loan-forgiveness approvals by the Wheat Ridge Housing Authority will be presented to council for formal action.
