December 29, 2010
A suburban Denver company that develops market-rate and affordable apartments has started construction on a 70-unit building for seniors in central Colorado Springs. The building will be part of a larger complex that is slated to include nearly 240 units for low-income tenants.
Hendricks Communities LLC of Greenwood Village expects to complete its Pikes Peak Senior Apartments in October, according to the company’s website. Company officials couldn’t be reached for comment.
The building, at 907 E. Colorado Ave., is going up south of the 104-unit Homewood Point Apartments; Hendricks completed Homewood Point, a family complex, in 2005.
Pikes Peak Senior Apartments, Homewood Point and a second, 62-unit senior living apartment building that’s in the planning stages will make up a 236-unit, affordable housing campus, according to Hendricks’ website.
The $10.2 million Pikes Peak Senior Apartments is being financed by federal tax credits and a federal grant program, the website states. It will provide independent living for seniors, and amenities will include a dining room, exercise facilities, a beauty salon and computer room.
Rents weren’t known, but the units are intended to serve low-income households, said Chad Wright, assistant executive director with the Colorado Springs Housing Authority. The authority has a limited partnership role in the project, which will enable some units to be offered at an even lower rental rate than under federal tax credit guidelines, he said.
Nearly $860,000 in tax credits being used to finance Pikes Peak Senior Apartments were awarded by the Colorado Housing and Finance Authority, or CHFA, in April 2009. Developers compete for federal tax credits — offered as incentives to spur affordable housing construction — and must meet criteria established by CHFA, which administers the credits, Wright said.
Among those criteria, developers must demonstrate there’s a need for the housing they want to develop, he said.
Apartment vacancies across the Pikes Peak region have dropped sharply in the last year to 18 months and now are at their lowest levels in nine years, according to the Colorado Division of Housing. As apartments have filled up, rents have begun to rise.
“It’s a very good time for these units to come on line,” Wright said.
In addition, the Pikes Peak Senior Apartments will offer units with modern amenities, and are being developed on a so-called “infill” site, or a vacant parcel in the heart of the city, instead of adding to sprawl in high-growth parts of town.
Also, the apartments will be close to medical facilities, bus lines and downtown shopping, which will benefit seniors, Wright said.
“It’s a good thing on a lot of different levels,” he said.
More information: http://hendrickscommunities.com/
Contact the writer at 636-0228