Council approves 100% fee waiver and $742,842 AHF advance to close Atwood Commons gap

Atwood Commons, a 72‑unit low‑income housing tax credit (LIHTC) development three blocks east of City Hall, faced an emergent financing shortfall after project‑based vouchers previously expected for operations became unavailable. The developer and city staff told council the vouchers’ loss reduces projected operating income and therefore permanent financing proceeds by roughly $1.4 million.

Staff and the developer presented two options for council consideration: a 75% or 100% waiver of eligible development fees and, as needed, an advance from the city’s Affordable Housing Fund (AHF) to fill remaining financing gaps. Staff explained the city already administratively waived about $190,000 of fees based on unit mix and that a full waiver would eliminate the roughly $655,000 of remaining fees.

Council debated precedent, timing and whether awarding AHF dollars outside the regular cycle was appropriate. Supporters cited urgency (permitting and a planned July groundbreaking), the project’s strong affordability mix (majority 1–2 bedroom units targeted to households at 30–80% AMI), and the project’s linkage to Prop 123 affordable‑unit goals. Council member Marcin moved the 100% fee waiver and an accompanying AHF advance of $742,842 to close the remainder of the gap; council voted 6–1 in favor with Council member Christ opposed.

Staff noted the AHF award is a repayable loan that will be reinvested into the housing fund if repaid, and said staff will continue evaluating other eligible AHF requests in the annual cycle. The developer affirmed plans to provide RTD EcoPasses to households and to coordinate services with onsite partners.

Next steps: execute fee‑waiver paperwork, finalize AHF loan terms and proceed to permitting and planned July groundbreaking.