Wheat Ridge moves to preserve Fruitvale School Lofts as long-term affordable housing; council approves agreements

WHEAT RIDGE, Colo. — The Wheat Ridge City Council approved a termination agreement and a funding agreement related to the planned sale of Fruitvale School Lofts to Foothills Regional Housing, a step staff says will secure long-term affordability for the building’s 16 dwelling units.

Why it matters: The sale, as presented to council, is intended to preserve the existing affordable units and place previously market-rate units under affordability controls. The plan relies on multiple funding pieces — including a $2,000,000 HUD allocation and loan forgiveness by the Wheat Ridge Housing Authority — and requires coordination and HUD closing procedures before funds are received.

Details from staff presentation: Community Development Director Lauren Mikkelak told council that HUD has approved the project approach and that the Wheat Ridge Housing Authority had agreed to forgive its loan to support the sale. City staff said the HUD funds are not yet in the city’s bank account and will come at closing. The termination agreement unwinds the prior development agreement; the funding agreement sets financial terms and affordability commitments between the city, the Wheat Ridge Housing Authority and Foothills Regional Housing.

Council discussion: Councilors and the Wheat Ridge appointee to the housing authority described robust discussions at the housing authority and at prior council briefings. Council members pressed staff on remaining logistical steps — tenant notifications, HUD environmental review and due diligence — and whether any unexpected issues could undo the deal. Staff and counsel said the agreements are designed so that if a substantive change arises they would return to council, and they recommended authorizing city officials to sign related documents required to close.

Vote and next steps: Council approved the motion to authorize the agreements and to permit the mayor, city clerk and city manager to execute additional documents as necessary, provided they are in forms approved by the city attorney. Staff said closing timing is not finalized and HUD disbursement will occur at closing.

Clarifying note: Staff described the $2,000,000 as being from a HUD grant allocation intended for naturally occurring affordable housing (NOAH) preservation; after those funds are spent the city’s NOAH program would pause pending staff return to council on a broader housing fund strategy.

Sources: Community Development Director Lauren Mikkelak, Senior Housing Planner Shannon Terrell, and development representatives present at the May council meeting.