HUD Regional Administrator Joined Officials and Residents of The Residences at Franklin Park for Multi-Million Dollar Groundbreaking

Left to right back row: HUD Region VIII Multifamily Director Marcie LaPorte; Dave Zwickey, President & CEO, American Baptist Homes of the Midwest; John Foley Managing Member, Denver Apartment Partners, LLC; and Linda Hilton Property Administrator ABHM. Left to right front row: Bob Monroe, Multifamily Loan Production Manager CHFA and HUD Region VIII Regional Administrator Rick M. Garcia

On April 29, 2011 U.S Housing and Urban Development (HUD) Regional Administrator Rick M. Garcia along with HUD staff joined American Baptist Homes of the Midwest (ABHM), and the Colorado Housing and Finance Authority (CHFA) and Central States Development, LLC at the 38-year-old campus The Residences at Franklin Park. They were there to break ground on a HUD insured multi-million dollar project in Denver. In addition, sustainable improvements plans for the low and modest-income seniors and mobility impaired adults were shared. The plans are to be completed in six to eight week intervals with two floors being renovated during each interval.

Mr. Garcia recognized the funding for the rehabilitation is made possible through approximately $7 million in tax credit funding and $3 million in a HUD-insured loan. This funding will preserve the affordable subsidized housing for the residents and provide much needed improvements at the property. Mr. Garcia commended the negotiating and persistent collaboration of HUD partners, John Foley at Denver Apartment Partners, LLC; Dave Zwickey at the ABHM; Property Administrator at the ABHM Linda Hilton, and Bob Munroe at CHFA for their work. Together with HUD's Multifamily Asset Management and Development staff, their efforts exemplify the Administration's goals for energy efficiencies.

Regional Administrator's remarks:

Remarks for Regional Administrator Rick M. Garcia
Ground Breaking at The Residences at Franklin Park
1535 Franklin Street, Denver, Colo.
April 29, 2011 at 2:00 p.m.

Thank you Mr. Foley for your kind introduction. I appreciate your comments very much.

Good afternoon everyone. It is wonderful to join you at today's Ground breaking event at The Residences at Franklin Park.

Before I came today, I looked at the photos of your 10-story concrete structure that was constructed in 1974, now and then I saw the artist's rendering for your future beautiful building. We are enthused to see your exciting plans for renovations and green retrofit projects.

I need to clearly point that to get to the approval points and signatures on the dotted line, I need to commend the negotiating and persistent collaboration of our partners, John Foley at Central States Development, LLC; Dave Zwickey at the American Baptist Homes , Linda Hilton, Executive Director, and Bob Munroe at the Colorado Housing and Finance Authority for their work with our own HUD Multifamily Asset Management and Development staff. A key factor includes approximately $7 million in tax credit funding and $3 million in an insured loan, subsidized rents for the residents. All the partners were diligently working together to preserve and extend the useful life of this property to provide an improved living environment for the residents. HUD closed the 221d4 (substantial rehabilitation) loan on April 8, 2011 in the amount of $3,200,000, with an interest rate of 5.5%, for 40 years. Will all our partners and our HUD Multifamily staff stand or raise their hand, so we can give you a round of applause for your excellent work to plan for this significant multimillion dollar rehabilitation project?

HUD is proud to be working with you at Franklin Park because you are providing financially assisted housing for low and modest income seniors, ages 62 or older, and mobility impaired adults for over 38 years in downtown Denver. We are please to help ensure the renovations of your campus and assist to enhance the lives of its community members.

Your efforts exemplify the Administration's goals for energy efficiencies with your many "green" features, such as Energy Star appliances, an energy efficient white roof, energy efficient windows as well as balconies that afford some beautiful mountain and city-scape views."

Our HUD Development staff explained the process of the rehabilitation and that the renovations to the project are to be completed in six to eight week intervals with two floors being renovated during each interval. While the renovations are being completed, the residents will temporarily relocate to another floor within the building or to another nearby facility.

Our Asset Management staff gave us their historical perspective. The Residence at Franklin Park (aka Rocky Mountain Residences) was originally insured under Section 236 of the National Housing Act (the "Act") on May 20, 1971. The original HUD-insured mortgage was in the amount of $1,733,300.00, as well as a supplemental mortgage in the amount of $14,100.00.

The Project now receives project-based Section 8 assistance for 89 of the 92 total residential units. Residence at Franklin Park, Inc (prior owner) is managing member of new owner, Denver Apartment Partners, LLC.

Through the Interest Reduction Payment Decoupling process, the Project will be maintained as a long-term, low-income housing resource through 2020.

I appreciate that HUD's Section 221d4 financing of approximately $3 million, and approximately $7 million in TCEP funds, are being used to finance acquisition and substantial rehabilitation of the Project.

Your Rehab will include a project-wide utility conversion. I am admiring your long list of upgrades featuring each apartment having

• air conditioning through the use of Packaged Terminal Air Conditioners;
• upgraded HVAC system;
• rebuilt elevators,
• fire sprinkler system in each unit and in common areas;
• emergency generator;
• new exterior energy-efficient siding;
• new roof covering;
• new decorative balcony for each unit;
• new energy-efficient windows;
• water shut-off valves for each floor so repairs can be done floor by floor without shutting off water to the entire project;
• upgraded security system; accessibility modifications to the public restroom;
• expansion of office; repairs to drywall;
• newly painted common area and unit walls;
• new common area and unit floor coverings; new energy-efficient lighting;
• remodeled bathrooms and kitchens with new appliances in all units;
• new parking lot;
• repaired sidewalks; and
• enhanced landscaping.

After reading that long list, I'll need to bring my hammer next time I visit so I can help. Seriously, we are proud to be called your partner and look forward to coming back after all your work and transformations to help cut the ribbons in your grand new re-opening.

Congratulations to you all.

Content Archived: October 24, 2013