Finance Completed and Will Begin Construction of the Innovative, First of its Kind, Stout Street Recuperative Care Facility and Renaissance Legacy Lofts for People Experiencing Homelessness
December 23, 2020
President and CEO
Colorado Coalition for the Homeless
Chief Communications and Public Policy Officer
Colorado Coalition for the Homeless
The Colorado Coalition for the Homeless Today Completed Financing and Will Begin Construction of the Innovative, First of its Kind, Stout Street Recuperative Care Facility and Renaissance Legacy Lofts for People Experiencing Homelessness
Denver, CO— The Colorado Coalition for the Homeless finalized financing and structuring today Wednesday, December 23, 2020, closed on a complex financing and ownership structure to allow it to begin construction of a “first-of-its kind” Recuperative Care Facility for people experiencing homelessness and a 98-unit Renaissance Legacy Lofts located at 2175 California Street. This mixed-use property will provide meet the immediate health care needs for 400 homeless persons annually through medical respite and recuperative care, while creating 98 permanent supportive housing apartments for people experiencing homelessness.
“We are so proud to be able to bring the Stout Street Recuperative Care Facility and Renaissance Legacy Lofts project to fruition after two years of fundraising and design,” said John Parvensky, President and CEO of the Colorado Coalition for the Homeless. “Having a safe space to call ‘home’ is such an essential part to the health and wellbeing of our community. Integrating a recuperative care facility for people experiencing homelessness will fill a huge gap in health and respite services to end homelessness in our City.”
This nine-story development is located in downtown Denver’s vibrant Arapahoe Square neighborhood adjacent to the Stout Street Health Center, operated by the Coalition, which provides integrated health services to more than 15,000 unique homeless patients per year. This location will leverage the integrated health, mental health, addictions treatment, dental, pharmacy and social services provided by the Health Center to serve highly vulnerable people with chronic health and mental health conditions who are experiencing homelessness.
The Stout Street Recuperative Care Facility will provide 75 medical respite beds on the first three floors of the building targeted to people experiencing homelessness with acute medical or behavioral health conditions who have been hospitalized and cannot safely be discharged to the streets or shelters due to their health conditions. For people experiencing homelessness, recovery “at home” is not an option, and this new facility will provide safe, dignified, and quality spaces for people to heal and stabilize while working with Coalition staff to identify long-term housing options.
“Studies across the country show that providing safe discharges from hospitals to a recuperative care facility with on-site nursing, medical, and mental health services will not only improve the health outcomes of those leaving the hospital, but will also save thousands of dollars per person through reduced avoidable hospital readmissions or emergency room care”, said Parvensky.
Medical Recuperative Care will be provided for 30 to 45 days, depending on the needs of the individual patient. During that time, housing counselors will work with these patients to arrange for post-respite supportive housing in the community, including at the new Renaissance Legacy Lofts.
The Renaissance Legacy Lofts will be targeted to people experiencing who are “high utilizers” of expensive emergency room and hospital care, with the goal of reducing avoidable health care costs through on-site supportive services and linkage to ongoing primary care at the Stout Street Health Center. Studies have shown that supportive housing, particularly for the elderly, people with chronic health conditions, and people with disabilities. According to research from the Center on Budget and Policy Priorities in 2017, supportive housing emergency room visits by 33%, reduces days in hospital by 23% and reduces days in nursing homes by 42%, generating savings to Medicaid, Medicare and other health systems.
Amenities of the Recuperative Care Facility will include a commercial kitchen and dining room, commercial laundry, medical exam suites, and “step-down” hospital beds in semi-private spaces for medical observation. Amenities of the Renaissance Legacy Lofts will include a business center; case management and counseling services; bike storage; laundry; a community room with kitchen; and a fourth floor terrace.
The development uses a unique Planned Community Association structure, which separates out “ownership” and financing for each Planned Community Unit. Each of the Owners will be a subsidiary of the Colorado Coalition for the Homeless, and the Coalition’s development subsidiary Renaissance Housing Development Corporation will manage the construction.
Architectural services for the project, which is designed to look like market rate housing in the Arapahoe Square neighborhood, was provided by Christopher Carvell Architects, and construction will be provided by Millender White Inc. Construction of the project is scheduled to be completed in June 2022, providing short term respite for 75 individuals and long term housing for 98 households.
This $46.5 million project is funded using a unique and unprecedented variety of financing sources for a development serving people experiencing homelessness. The project is receiving funds through participation in the Denver Housing Authority’s D3 bond program. The Recuperative Care Center will utilize New Markets Tax Credits (NMTC) provided by the Corporation for Supportive Housing and Colorado Growth and Revitalization Fund. The Northern Trust Company is the NMTC tax credit investor.
The City and County of Denver’s HOST department provided $4.1 million of funding for both the Recuperative Care and Legacy Lofts project. The Colorado Division of Housing also provided $3.1 million of funding for both projects. The Denver Housing Authority and Colorado Division of Housing will also provide project based Section 8 vouchers to the Legacy Lofts to assure affordability for all residents. Residents will pay 30% of their income for rent.
Private funders for this project include: Anschutz Foundation, Darrell Brown and Suzanne McNitt, The Colorado Health Foundation, Fidelity Foundation, Wag and Annalee Schorr, the Wells Fargo Foundation, Colorado ACCESS, and hundreds of individual capital donors.
The Renaissance Legacy Lofts housing also financed utilizing Low Income Housing Tax Credits (LIHTC) provided by the Colorado Housing and Finance Authority with equity being provided from The Northern Trust Company through Enterprise Housing Credit Investments. FirstBank is providing both construction financing and a small permanent loan for the supportive housing.
“Assembling funding and financing at this scale for a ‘homeless project’ is a massive undertaking, requiring great partnerships” said Parvensky. “Doing so with three different project owners, seven lenders, three investors, and two governmental partners made it the most complex financing structure we have ever been involved with”.
The Renaissance Legacy Lofts will be the 19th supportive housing completed by the Coalition over the past 30 years, providing housing to more than 2,000 households nightly.
Due to COVID-19, the Coalition will not host a traditional groundbreaking event but plans to keep the community informed as the project hits milestones in its development. A grand opening celebration is anticipated for the latter portion of 2021 should public health orders allow.
About Colorado Coalition for the Homeless
The mission of the Colorado Coalition for the Homeless is to work collaboratively toward the prevention of homelessness and the creation of lasting solutions for people experiencing and at-risk of homelessness throughout Colorado. The Coalition advocates for and provides a continuum of housing and a variety of services to improve the health, well-being and stability of those it serves. Since its founding more than 30 years ago, the organization has earned state and national recognition for its integrated healthcare, housing and service programs. The Coalition’s comprehensive approach addresses the causes of homelessness, as well as the consequences, offering critical assistance to over 20,000 individuals and families each year. Learn more at www.coloradocoalition.org.