Denver approved several resolutions Monday that will make it easier for people experiencing homelessness or struggling to pay the rent to find affordable housing in Denver.
First, the city approved a program to provide free legal counsel to residents facing eviction. The residents will have to meet certain income requirements.
A recent study showed that only between 1 and 3 percent of renters facing eviction have lawyers in Denver. The landlords, meanwhile, almost always are represented.
That David and Goliath balance of power is even more unnerving as state and federal COVD-related eviction moratoriums end. Thousands of Denverites could be facing homelessness without assistance.
Several residents spoke Monday in favor of the eviction counsel program. Denver renter Carson Bryant said as rents rise in Denver, people with no representation during evictions face homelessness and unemployment. He said eviction counsel assistance works as a “preventative measure that spares the high social and economic costs of eviction.”
The city regularly allocates money for homeless services. On Monday it also served as an agent for issuing interest-free bonds. The bonds will finance so-called affordable housing to be built by private developers.
What’s more, the city accepted more than $27 million in federal rental assistance. The money will assist those who are having difficulty paying rent due to matters directly or indirectly related to COVID-19.
Bonds to fund Montbello Freshlo, Rhonda’s Place
The city agreed to allow more than $19 million in tax-free bonds for the Montbello Freshlo project. The developer, not the city, will be responsible for repaying the bonds.
The bonds are known as private activity bonds. They are a way for a private company to borrow money tax-free for projects that serve the public good, such as affordable housing.
Montbello Freshlo apartments will include one, two, and three-bedroom units. Various units will be dedicated to different income requirements. For example, seven units will be available at 30 percent AMI. That means the residents of those units can’t make more than 30 percent of Denver’s adjusted median income. That’s about $24,000 annually.
Additional units will be available for those making 50, 60 and 70 percent AMI. There will be 97 units’ total. The building will be at 12300 E. Allbrook Drive.
“Developer is Montbello Organizing Committee and its affiliates who are partnering with FLO Development Services, LLC (comprised of John Huggins, Denise Burgess and Willie Shepherd),” according to the city staff report. “The project is anticipated to include seven total stories with five floors of residential units, onsite structured parking, a two-level grocery store, several small retail spaces, a cultural hub including performing arts space and community meeting rooms.”
The city also approved $8 million in tax-free bonds to be issued to the developer of a second affordable housing building called Rhonda’s Place. Rhonda’s place will be built at 203 S. Federal Blvd. All 49 units will be built at 30 percent AMI.
Millions in contracts awarded to help homeless
Several city contracts were awarded Monday to organizations assisting people experiencing homelessness. Those include:
· Colorado Coalition for the Homeless, providing shelter activities and integrated health services at the city-owned shelter at 48th and Colorado, $932,358.
· Denver Rescue Mission, to provide emergency shelter at the city owned shelter at 48th and Colorado, $1,599,754.
· The Salvation Army, to provide rapid re-housing for 100 people, which includes temporary rental assistance and case management, $1,650,0000.
The city also accepted more than $1.7 million in federal grant money from the U.S. Department of Housing and Urban Development to house people experiencing homelessness. Denver also accepted a $1 million grant from the Anschutz Foundation. That money will help fund “bridge” housing vouchers, such as hotel rooms, as well as improvements to city shelters.
During public comment period during Monday's council meeting, a resident named Katie asked the city to end the sweeps of homeless encampments. She said she has witnessed “people with disabilities living in squalid conditions.” She noted the city does not provide them with garbage pickup or restroom facilities.
“The trauma that they go through just builds and builds,” Katie said. “They’re not bad people. They just don’t have a place to live.”