A resolution approving a proposed Amendatory Agreement between the City and County of Denver and The Empowerment Program to finance the development and construction of 70 income-restricted Permanent Supportive Housing units to be leased at affordable rents to qualifying households. Amends a loan amendment with The Empowerment Program, Inc. to add $294,000.00 for a new total of $3,444,000.00 to finance the demolition and new construction of a multi-family residential structure to create 70 income-restricted Permanent Supportive Housing (PSH) units to be leased at affordable rents to qualifying households. No change to loan term, in Council District 10 (HOST-202577817/HOST-202582287-01). The last regularly scheduled Council meeting within the 30-day review period is on 1-5-2026. The Committee approved filing this item at its meeting on 12-2-2025.

This resolution approves an Amendatory Agreement between the City and County of Denver and The Empowerment Program, Inc. to increase financing for the Chrysalis Apartments project by $294,000.00, bringing the total loan amount to $3,444,000.00. This additional funding is to cover the loss of federal 45L tax credits. The project will finance the demolition of an existing building and the new construction of a 7-story multi-family residential structure at 1777 Franklin St (Council District 10) to create 70 income-restricted Permanent Supportive Housing (PSH) units. These units will be leased at affordable rents to qualifying households, with a minimum 60-year affordability covenant. The loan term remains unchanged, and the project is supported by Homelessness Resolution Funds and Project Based Vouchers. The development includes studio, one-, and two-bedroom units, a community room, kitchen, and outdoor space, and is located near public transit and a protected bike path. The loan is a performance loan, and repayment is forgiven on the 60th anniversary if all terms are met. The agreement also details subordination of liens to senior lenders like CHFA and FHA, and sets a closing deadline of October 22, 2026. The committee approved this item on December 2, 2025.

This action will result in the creation of 70 new affordable housing units, specifically Permanent Supportive Housing, in Council District 10. This will provide housing opportunities for qualifying households and contribute to the city's affordable housing stock.

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