RFP20240906 Debt and Equity Sanctuary on Potomac

The Aurora Housing Authority (AHA) has issued a Request for Proposals (RFP20240906) for comprehensive financing solutions for the Sanctuary on Potomac Permanent Supportive Housing (PSH) project located in Aurora, Colorado. The procurement seeks proposals for multiple financial instruments, specifically a construction loan, permanent loan, federal Low-Income Housing Tax Credit (LIHTC) equity, and State of Colorado tax credit equity for a new 43-unit affordable housing development. The project will create one-bedroom units targeting homeless populations, with 33 units at 30% Area Median Income (AMI) and 10 units at 50% AMI, all supported by Section 8 Project-Based Voucher rental assistance. Proposals are due by October 15, 2024, at 3:00 PM MST, to be submitted via email to the Senior Director of Development. The project timeline includes closing and construction start on May 1, 2025, substantial completion by September 1, 2026, and full qualified occupancy targeted for March 1, 2027. Key evaluation criteria will likely include financial feasibility, tax credit pricing, loan terms, and alignment with affordable housing goals.

The procurement does not explicitly state set-aside designations for disadvantaged enterprises, though the project demonstrates a commitment to serving vulnerable populations through its permanent supportive housing model. The total project budget is $22,770,264, with anticipated financing sources including a $3.5 million first mortgage, $1 million from City of Aurora ARPA funds, $1.2 million from Arapahoe County ARPA funds, $600,000 from Arapahoe County HOME funds, $12,110,004 in federal LIHTC equity, and $2,940,000 in Colorado state tax credit equity. The project seeks federal LIHTC equity at an implied price of $0.86 per credit and state tax credit equity at $0.70 per credit, with a pay-in schedule structured as 20% at closing, 20% at substantial completion, 58% at permanent loan conversion, and 2% at final closeout. The development will include on-site amenities such as management offices, laundry facilities, a community room, exercise room, courtyard, and cafe/community kitchen, with an anticipated 97% occupancy rate and a projected ability to lease approximately 25 units per month.