Tamarin Square in Durango moved one step closer to 30 more years of guaranteed low-income housing for seniors Tuesday.
La Plata County commissioners voted to transfer about $2 million in bonds to renovate the 68-unit property. The funding for the renovation deal will be finalized at the end of March and renovations will start in May. The funding does not come from the county budget; rather, it is part of a federal, below-market-rate financing program that supports low- to moderate-income housing.
“This is the first (project) ... in 13 years that we’ve been able to use this really valuable resource – a private activity bond allocation – for local projects for housing,” said Jenn Lopez, housing consultant to GHC Housing Partners, which owns Tamarin Square.
The apartment complex, located at 1401 East Third Ave., serves low-income residents 62 and older.
Remodeling the complex with specific forms of financing set aside for affordable housing, including La Plata County’s private activity bonds, will ensure the complex cannot transition to market-rate housing.
The Internal Revenue Service issues tax-exempt private activity bonds to states for specific purposes, like low-income housing and economic development.
Colorado then splits the bond allocation between state departments and local governments.
The bond allocation also allows property owners to access tax credits that help them keep rents low and ensure additional affordability periods.
“This is the last piece of financing we need,” Lopez said. “When we’re done with the project, that property will have another (30 years of affordability), which is fantastic.”
Tamarin Square has not been renovated since 2002, and the project is expected to cost about $15 million, Lopez said. With $1,980,000 in bond funding, the building rehabilitation will include about $25,000 in upgrades per unit.
Tamarin Square also received the city of Durango’s full private activity bond allocation, $1 million on March 2. No other local entities reported having eligible projects for the city or county bond funding.
In 2019, La Plata County transferred its $2,961,000 bond allocation to the Colorado Housing and Finance Authority to benefit Tamarin Square. In 2017 and 2018, the county gave the allocation back to the state because no local projects were eligible to receive the funding.
“We need to work on low-income housing countywide, regionwide,” said county Commissioner Clyde Church. “This is a great opportunity for the county and the city to team together with Housing Solutions to build and meet a real significant need.”
GHC Housing Partners will do an in-place renovation, expected to finish in December, so residents will not be displaced. If someone has a serious health issue, the owners will provide alternative lodging.
“I am so proud of our community right now because I don’t think we can do much more than we’re doing,” Lopez said. “We are maxing out the resources at the state, so well done.”
smullane@durangoherald.com
