To: Board of County Commissioners
Through: Katherine Smith, Director, Community Resources Department
Prepared By:
prepared
Jeremy Fink, Community Development Administrator, Community Resources Department
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Subject:
title
CDBG Allocation to South Metro Housing Options - Montview Flats
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Purpose and Request:
recommended action
The Board of County Commissioners is requested to adopt a resolution authorizing the approval of the recommended allocation of County Community Development Block Grant (CDBG) funds to South Metro Housing Options (SMHO) for the Montview Flats project up to $300,000 and to authorize the submittal of a substantial amendment for the 2024 Annual Action Plan to the U.S. Department of Housing and Urban Development (HUD) for their review and approval.
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Background and Discussion: The Board of County Commissioners (BOCC) heard a funding recommendation for County CDBG funds to SMHO for the Montview Flats project up to $300,000 on April 14, 2025. The BOCC reviewed the funding recommendation and instructed staff to schedule the item for consent agenda during a business meeting. The narrative below is a copy of the background and discussion portion of the Board Summary Report (BSR) presented to the BOCC during the aforementioned study session, without any changes.
During the July 2, 2024, study session, the BOCC reviewed funding recommendations for the 2024 CDBG allocations, which were subsequently approved during the August 6, 2024 BOCC Business Meeting. The 2024 allocations included an award from the City of Centennial CDBG program (administered by Arapahoe County) in the amount of the $325,000 for the SMHO-Montview Flats project. At the time, County staff anticipated a future CDBG and/or HOME request depending on SMHO’s ability to secure all necessary funding and absorb any potential anticipatory cost increases.
The Montview Flats project is a 50-unit affordable housing development just south of downtown Littleton on Rapp Street. The project will exclusively serve residents earning between 30-70% AMI and currently has a total development budget of $25,504,842.
The current funding gap for Montview Flats was reduced from $1,034,184 to $534,184 after an additional $500,000 award from the City of Littleton’s Inclusionary Housing Ordinance program was approved by Littleton Council on March 18, 2025.
Based on the development budget, current secured project funding, and available County funds, CDHHS staff is recommending an award of up to $300,000 in County CDBG funds utilizing program income ($46,327.49) and unspent/uncommitted program funds (up to $253,672.51) to address the funding gap and ensure the project feasibility.
Ultimately, the County award amount is contingent upon the approval of the BOCC, as well as successful environmental clearance, and the allocation of funds by the U.S. Department of Housing and Urban Development (HUD) and may be subject to adjustment accordingly.
Alternatives: The BOCC may recommend an alternative funding allocation for SMHO-Monvtiew Flats or forego funding altogether.
Fiscal Impact: The CDBG program is an entitlement program awarded and distributed by HUD. Therefore, the allocation of these funds will not impact Arapahoe County general funds.
Alignment with Strategic Plan:
☒Be fiscally sustainable
☒Provide essential and mandated service
☒Be community focused
Concurrence: N/A
Resolution: A draft resolution is attached for reference.