DENVER, CO - Denver Gardens, an affordable housing complex in Denver, is one of the first projects in Colorado and among the first in the country to receive financing through the Tax Credit Assistance Program (TCAP). The project was awarded $1.7 million in TCAP funds by the Colorado Housing and Finance Authority (CHFA) which helped close the gap it was facing due to the recent decline in tax credit market values. With this award, Denver Gardens was able to close the $14 million purchase and renovation transaction that will provide more than 100 low-income seniors with a place to call home.
Source: Community Capital Management
The renovation plan for Denver Gardens, totaling $3 million, includes nearly $1 million of sustainable features to lower the project's energy costs and improve livability for its residents. Green features include the installation of photovoltaic panels and energy-efficient appliances, windows and lighting.
The bond that helped fund the project was issued by Fannie Mae and purchased by the CRA Qualified Investment Fund (Ticker: CRAIX), a market-rate, community development bond fund. Bank of Oklahoma, an affiliate of Colorado State Bank and Trust, helped provide funding for Denver Gardens through its investment in the CRA Qualified Investment Fund.
"The recent economic decline has significantly impacted the ability of Low Income Housing Tax Credits (LIHTC) to fund critical affordable housing projects nationwide," said Barbara VanScoy, Senior Portfolio Manager of the CRA Qualified Investment Fund. "The TCAP has been vital in spurring the completion of high quality, affordable housing projects for low income people that otherwise would not have been finished."
The failure of LIHTC to fund affordable housing projects began in early 2008. This spurred the United States Congress to create the TCAP as part of the American Recovery and Reinvestment Act. The program was funded with $2.25 billion nationwide and enabled LIHTC allocating agencies, such as CHFA, to use the funds to provide grants or loans to affordable housing developments like Denver Gardens.
"Denver Gardens is a great example of how innovative tools help satisfy our commitment to our communities," said Greg Symons, CEO of Colorado State Bank and Trust. "We believe in giving back and the CRA Qualified Investment Fund's purchase of this bond on behalf of Colorado State Bank and Trust helps provide quality, affordable and sustainable housing for low income families when it is needed most."
Community Capital Management is a Fort Lauderdale-based SEC-registered investment advisor. The firm was founded in 1998 by Barbara VanScoy and Todd Cohen to provide fixed income investment services to institutional investors. Its clients include public funds, foundations, financial institutions, faith-based investors, and mission-related investors. The CRA Qualified Investment Fund was launched in 1999 and has grown to include investments from more than 300 banks/thrifts and other types of investors interested in its community development strategy. Community Capital Management manages over $1 billion in assets under management and offers institutional investors its investment strategy via a separate account or a mutual fund.
Colorado State Bank and Trust is a subsidiary of BOK Financial Corporation, which is a regional financial services company that provides commercial and consumer banking, investment and trust services, mortgage origination and servicing, and an electronic funds transfer network. Holdings include Bank of Albuquerque, N.A., Bank of Arizona, N.A., Bank of Arkansas, N.A., Bank of Oklahoma, N.A., Bank of Texas, N.A., Colorado State Bank & Trust, N.A., Bank of Kansas City, N.A., BOSC, Inc., Cavanal Hill Investment Management, Inc., the TransFund electronic funds network, and Southwest Trust Company, N.A. Shares of BOK Financial are traded on the NASDAQ under the symbol BOKF.