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Littleton Council approves $500,000 to help close financing gap for Montview Flats affordable housing
Summary
The City Council voted unanimously to grant $500,000 from the city's housing fund to South Metro Housing Options for the Montview Flats project, citing prior contributions and the project's role in meeting Littleton housing goals.
The Littleton City Council voted unanimously March 18 to provide $500,000 to South Metro Housing Options to help close a financing gap for the Montview Flats affordable housing project.
Council members approved a resolution directing the funds from the city's housing fund, which is financed in part by inclusionary-housing fees and prior ARPA allocations. The contribution follows an earlier $1 million city commitment used to help acquire the project site.
The funding request was presented by Corey Ritz, executive director of South Metro Housing Options (SMHO), and Kathleen Osher, deputy city manager. Ritz said the project’s capital stack relies primarily on Low-Income Housing Tax Credit equity and permanent financing and that competitive grant awards and county CDBG and HOME allocations can fluctuate, creating unpredictable gaps. “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,” Ritz told council.
Osher confirmed the $500,000 would come from the city’s housing fund and noted the fund currently has about $1.3 million available. The city manager’s office and council members emphasized that the inclusionary housing fee revenue is restricted for housing purposes and not general fund money.
Council discussion ranged from broader affordable-housing strategy to the mechanics of SMHO’s financing. Council members asked about other funding SMHO pursued; Ritz said SMHO increased its own cash contribution and had an application pending with the Colorado Division of Housing for additional funds. Councilors also asked how SMHO uses proceeds from other projects (for example, sales of previously repositioned properties) to support new development.
Council members who spoke framed the vote as consistent with Littleton’s prior policy choices to promote 100% affordable developments and to use fee-in-lieu revenue for that purpose. Council Member Reichert and others said they supported using the set-aside to advance a shovel-ready project that may otherwise stall because of changing grant awards.
The motion carried unanimously with a vote of 7 in favor. City staff and SMHO said they expect to move toward closing and breaking ground if other pending funding sources come through.
The council also discussed longer-term housing preservation topics and directed staff to revisit program criteria at an upcoming study session.
