Paragon and TWG ask URA to consent to assignment for 50‑unit affordable housing at 123 Manitou Avenue

Paragon representatives asked the Manitou Springs Urban Renewal Authority on Tuesday to consent to assigning development and financing responsibilities for a proposed 50‑unit affordable housing project at 123 Manitou Avenue to a partnership including Paragon, TWG and a tax‑credit investor.

“We have been awarded, 9% low income housing credit from CHFA, and that requires that closing occurs by year end,” Rich, a Paragon representative, told the URA, urging a timely decision. Presenters said the assignment would transfer responsibilities to an entity to be named 123 Manitou LLLP and that TWG would serve as the managing partner and guarantor for project performance.

TWG officials outlined the project’s unit mix (one‑, two‑ and three‑bedroom units) and income targeting across 30%–60% area‑median income (AMI) bands. Seth Atkinson, TWG’s Colorado development director, described market‑study capture rates the team says show strong local demand: “for a 30% AMI unit, there is 1,810 income eligible households in the market, and our 10 units at 30% AMI will only require basically a 0.6% capture rate of the market,” he said.

The developers said they have a capital stack that includes CHFA LIHTC equity, a construction loan and awards/commitments from the Colorado Department of Housing and El Paso County housing trust funds, but they also asked the URA to note a remaining funding gap tied to an additional $500,000 DOH request. They told the authority their funding awards and schedule create urgency for a decision that would allow the team to meet CHFA closing requirements.

The URA did not take a final vote on the assignment during the public presentation; following the discussion the authority moved into an executive session for legal advice about the project and related contractual matters.