A team of investors, lenders and housing advocates has leveraged tax credits and other investments, resulting in a $46.5 million project to provide a new facility for the homeless.
The Colorado Coalition for the Homeless (CCH), Denver Mayor Michael Hancock and U.S. Rep. Diana DeGette celebrated the grand opening of the Renaissance Legacy Lofts, a nine-story building that provides homeless individuals with multiple services and opens 98 affordable residences for those transitioning to more permanent housing.
The project received funding from multiple sources that could become a jingle for affordable housing projects: Eight foundations, four ownership groups, four separate investors, four different lenders and three different types of tax credits.
Metro Denver is struggling to address homelessness, which jumped by 12.8% – from 6,104 to 6,888 – between January 2020 and January this year. Significant resources have been poured into tackling homelessness in the last few years.
John Parvensky, president and CEO of the Colorado Coalition for the Homeless, said it "truly does take a village to do a project like this.”
“It will provide the wraparound care that is so critical to meet the needs of people with these high vulnerabilities: Extreme medical conditions, co-occurring mental health and addictions,” he said.
Parvensky said the name of the lofts was no mistake – Renaissance, meaning the revival of something. Other projects the Colorado Coalition for the Homeless completed bear the same name, such as the 76-unit Renaissance at Loretto Heights in Englewood.
“We thought Renaissance was fitting because it provided a renaissance not only to a vacant lot in a community but also a renaissance or rebirth for the families that were moved out there from the street to the shelters,” Parvensky said. “It really conveys that change and that second chance people have after they leave homelessness.”
In addition to the mix of one-bedroom and studio apartments, the Stout Street Recuperative Care Center occupies the first three floors of the building. The center features 75 medical respite beds, which target homeless people with acute medical conditions.
Depending on a resident’s needs, the center will provide 30-45 days of care. The center's clients must be referred to recuperative care by a medical facility, according to an informational flier.
The breadth of care at this facility is critical to the long-term support of those who come through, Hancock said, adding the “secret sauce” to helping the homeless is the comprehensive approach taken at the new building.
“We found 250 people experiencing homelessness who were housing insecure and they had an amazingly expensive cycle,” Hancock said, referencing a 2012-2013 study. “Those 250 people accounted for 2,400 visits to the emergency room, 2,600 visits to detox, and some 1,400 nights in jail for a year.”
Those thousands of visits to medical facilities and jails cost the taxpayers of Denver $11 million, he said. Judges, paramedics and sheriffs came to know them by their first name, the mayor added.
The Renaissance Lofts and recuperative center are part of Denver’s efforts to break that cycle, Hancock said, adding the city was proud to invest $4.1 million from the Department of Housing Stability’s budget into the project.
The significance of comprehensive care offered at the location and the work done by Parvensky to complete the building prompted Hancock to proclaim Oct. 6 as "John Parvensky Day."
“John will be the first to say this is not about him, but for 30 seconds, let’s make it about John,” Hancock said.
Parvensky received a standing ovation.
DeGette, who attended the grand opening, talked about how the federal government could help fund future projects. DeGette had secured $13.3 million in funding for Denver area projects in March of this year. Of that, $2.2 million went towards the Renaissance Legacy Lofts project.
“It’s really hard to imagine what it would be like to be homeless every day and then have to deal with what it means to be injured or recovering from a major sickness,” she said. “This project is a critical safety net for those experiencing homelessness, but it’s also a critical resource for our hospitals and emergency rooms.”
Studies show supportive housing – an approach that combines housing with social services – can reduce homelessness by 33%, days spent in hospital by 23%, and cut the amount of time someone spends in a nursing home by half, according to DeGette.
DeGette, who hailed the city’s approach as being unique and nationally recognized, said she has applied for millions of dollars more.
DeGette said the dollars she is seeking are not at risk – regardless of the the outcome of the elections in November.
“I don’t think (midterms) will affect it at all,” she said. “A lot of the new programs focused on homelessness for this year were in the House appropriations bill that was passed by Congress. We expect we’ll have a final bill by mid-December just like last year, and I expect that will get bipartisan support.”
While medical and behavioral healthcare occupy the first three floors, the fourth through ninth floors provide housing that will cost future residents 30% of their income. The approach hews to federal guidelines on affordable housing and provides flexibility for the residents, who will still pay rent.
“Every unit in this building is supported by a project-based housing voucher,” Cathy Alderman, CCH’s chief of communications, said. “Rent is set at HUD fair marking values because of those vouchers.”
Parvensky believes the future of affordable housing is bright, noting future projects are materializing. While he is retiring after 36 years with the coalition, he reaffirmed his commitment to the effort until a successor can be found.
“We’re not slowing down,” he said. “We’re buying new buildings, and I’m going to do whatever I can while I’m still here and make sure the staff has the ability to house as many people in the future as possible.”
