Wheat Ridge allocates 2025 private activity bond cap to Foothills; council backs regional needs assessment and expedited-review plan

Wheat Ridge City Council agreed Monday to assign the city's 2025 private activity bond (PAB) allocation to Foothills Regional Housing for the Ridge mixed‑use affordable housing project at approximately Ridge Road and Miller Street, and expressed support for participating in the Denver Regional Council of Governments' regional housing needs assessment and for codifying an expedited review process required to remain eligible for the state’s Prop 1‑2‑3 funding.

The city’s staff said Wheat Ridge’s 2025 PAB allocation is “just over $2,000,000,” and that the city has repeatedly designated its annual allocation to Foothills in recent years for affordable projects such as Caesar Square, Lisonbee Village and the Ives project. Dana of Foothills Regional Housing told council the Ridge project is planned in three phases — senior housing, multifamily rental and a proposed homeownership component — and that current estimates put overall development costs at about $94,000,000. Dana said the PAB assignment enables access to 4% low‑income housing tax credits commonly used to finance such developments.

Councilors voiced broad support for the assignment. “This for me is a no brainer,” Councilor Hobby said, citing the quality of Caesar Square. Councilor Larson and others described site visits and asbestos‑abatement work at the Miller Ridge site; Councilor Hultein asked whether Jefferson County or neighboring Arvada were being approached to contribute additional bond allocations, and staff said they are seeking allocations from other jurisdictions and Jefferson County’s share as part of assembling enough PAB for the deal.

Why it matters: assigning the local private activity bond cap to a developer can be the decisive financing piece allowing projects to use federal 4% low‑income housing tax credits. Council members framed the decision as continuing an existing partnership while advancing the city’s adopted affordable housing strategy.

Regional housing needs assessment and compliance with state law

Council also reached consensus to participate in the regional housing needs assessment offered by DRCOG (referred to in the discussion as “Doctor Cog”) to satisfy requirements of Senate Bill 24‑174. Shannon, the city’s senior housing planner, said Wheat Ridge’s existing housing strategy predates the state law and does not meet all new statutory elements; participation in DRCOG’s regional assessment would satisfy the state’s housing needs assessment requirement without dedicating additional city staff or funds at this time.

DRCOG staff explained the assessment uses sub‑market analysis based on census and PUMS data, and that Wheat Ridge sits mostly in the region’s central submarket. The consultant estimated regional housing need “over the next 10 years” and presented distribution numbers for submarkets and municipalities as part of its methodology; under that analysis, Shannon said Wheat Ridge’s share is comparatively small. Councilors asked whether the DRCOG participation would address other statutory requirements — such as the strategic growth element and water supply planning — and DRCOG representatives and staff said the DRCOG pathway explicitly covers the housing‑needs assessment element but not all components (for instance, water supply and strategic growth elements will be addressed through the city plan updates and coordinated water‑district planning).

Expedited review and Prop 1‑2‑3 eligibility

Staff updated council on Prop 1‑2‑3 commitments and another compliance track tied to state incentives. Shannon said the city originally pledged to support delivery of 218 affordable units by 2026; the city is on track to deliver about 98 units to date, and has received roughly $3,000,000 in Prop 1‑2‑3 funds for local projects and for permitting software.

To remain eligible for the next Prop 1‑2‑3 funding cycle and for an early‑adoption grant, the city would need to codify a state‑compliant expedited review process for qualifying affordable projects. Staff described the key elements: a 90‑day decision requirement triggered by a “complete” application, applicability to projects where at least 50% of units are deed‑restricted affordable (rental units at or below 60% of area median income and ownership units at or below 100% AMI), and an early‑adoption incentive of up to $50,000 if the city codifies an expedite process by the state’s deadline. Councilors supported piloting the expedited process with Foothills’ Ives 2 project to test timing and engineering review challenges before formal code amendments.

Council direction and next steps

Council voiced consensus to: (1) assign the 2025 PAB allocation to Foothills Regional Housing for the Ridge project; (2) participate in DRCOG’s regional housing needs assessment to satisfy SB 24‑174’s housing‑needs component; and (3) pursue codifying an expedited review policy for qualifying affordable projects, with staff to return with a resolution and proposed code amendments in the coming months. Councilors also asked staff to relay additional comments to DRCOG (notably repeated requests to consider regional water‑supply coordination), and staff noted that guidance from the Colorado Department of Local Affairs will influence some compliance details.

The council’s actions were recorded as consensus on each item rather than as a roll‑call vote; staff said they will return with formal language and timelines for ordinances and resolutions in the fall and winter.

Ending note: staff emphasized that participation in the regional assessment does not remove the city’s obligation to prepare a housing action plan by the 2028 deadline; councilors said they expect further follow‑up on housing‑fund uses, ADU barriers, and coordinated water‑planning as next steps.