Second Effort Succeeds for Colorado Workforce Housing

If at first you don’t succeed, try again.

That’s the lesson Evergreen Real Estate Group learned the first time it applied for Low Income Housing Tax Credits for its Rifle Apartments project in Rifle, CO – the first family LIHTC project in Rifle, CO, in 20 Years.

“We failed last year in the nine percent LIHTC round and there is no doubt in my mind that “Rifle Apartments 2.0” is a much more impactful project now, than if we had been successful last year,” says Javonni Butler, vice president of development for Evergreen’s Denver office (the firm’s headquartered in Chicago).

Butler wrote in a 2023 LinkedIn post, “This project is providing more affordable units, green space, amenities, parking and better access – all while developing the largest vacant site in Downtown Rifle. Rifle Apartments will be the first family LIHTC project built in Rifle in 20 years.”

Rifle is in Garfield County, on Colorado’s Western Slope, about two hours away from Aspen. The Rifle Apartments will include 60 units of one-, two-, and three-bedroom rentals going to residents at between 30 and 80 percent of area median income.

Butler says a nine percent LIHTC allocation that netted $12.3 million (the total development cost is $29.2 million) is a substantial part of the funding sources for the Rifle Apartments.

Other funding includes a $3 million permanent loan from Colorado Housing and Finance Authority (CHFA), a $3.75 million loan from the Colorado Clean Energy Fund, $3 million in gap financing from the State Division of Housing, $5 million in Transformational Housing Loan Funds from the State Division of Housing, $1 million from the Impact Development Fund, a community development financial institution (CDFI), and $134,00 in 45L Credits.

KeyBank Community Development Lending & Investment provided a $12.5 million construction loan for the Rifle Apartments.

Butler feels the project is an effort to allow workers to live in the same resort area where they work.

All-Electric Project
Another key element is that Rifle Apartments are fully electric.

“This all-electric project is the first in Rifle,” says Butler. “The idea is how can we leverage more sustainable sources of energy? Here in Colorado, there’s a big push to get away from gas.”

Rifle Apartments, which are being built on a 4.7-acre site at the intersection of U.S. Highway 6 and Park Avenue, are located along Rifle Creek near the Colorado River and businesses in downtown Rifle.

The development is an infill project, and Butler says, “There is approximately an acre of green space on site. That is meaningful.”

That open space will make it a good place for kids to play. “It’s a family property, it’s got a jungle gym for kids, and a bunch of three bedrooms. Of the 60 units, ten are three-bedroom.” The other unit sizes are 30 one-bedrooms and 20 two-bedrooms. Fourteen will be reserved for households with project-based vouchers.

AMIs are 30, 50, 70, and 80 percent, Butler says, in the workforce range. He sees potential residents as “working-class folks that work in the ski industry, in oil and gas, service workers, construction workers, government workers, and folks that work locally in Rifle and throughout the Roaring Fork Valley. At this point you can make $20, $25 an hour and qualify for housing, for an affordable unit.”

High AMIs help. “Here in Denver, 100 percent AMI is $95,000. In Rife, it’s $71,000.” And, he says, AMIs are expected to go up.

Construction began last year and is underway “on time and budget. We should be done here in the fall.” Shaw Construction is the builder, and EJ Architecture is the designer. The project will comprise three buildings, each a three-story walkup.

Open-Layout Apartments
Homes will feature open layouts with market-comparable finishes, including vinyl plank flooring, LED lighting, full kitchens with Energy Star appliances, baths with step-in showers, and low-flow plumbing fixtures and in-unit laundry.

According to Evergreen, the exterior cladding is a mix of brick, metal, stone, wood, and fiber cement, which was inspired by the materials and tones of the surrounding natural environment.

Tax credits were awarded in June 2023, and the closing was held in July 2024.

Rifle Apartments has a transit-oriented development (TOD) element, unusual for a rural project, as it is across the street from a Colorado Department of Transportation Park and Ride. The Park and Ride comes with “millions of funded dollars for planned improvements and expansion, providing folks access to jobs and amenities throughout the Roaring Fork Valley,” according to Butler.

“Additionally, we’re extending the Rifle Creek Trail on the north side of the project site,” says Butler. Evergreen is working to extend a local street, Park Avenue.

“We wanted to leverage competitive community development dollars from the State of Colorado to do more than the project,” he says.

“Our team worked closely with city officials to integrate the development into Rifle’s existing infrastructure, and the result will be a modern, highly functional residential community that provides the amenities, beautiful mountain views, and green space renters are looking for in this area. With hundreds of individuals and families on the local housing authority’s waiting list, we are pleased to help provide homes for those most in need in this community.”

Amenities include “a fitness center, a community room, free onsite parking, storage lockers, access control and security, and on-site management and maintenance personnel,” Butler says.

Mixed-Use with Library
Evergreen is also actively working now on a 170 mixed-use project in Denver, called 4965 Washington St., Butler says. An unusual element here is that the first floor is a Denver Public Library Branch, with the housing on the upper floors – the first co-located library-housing project in Colorado. There will also be a commercial café owned by Tierra Colectiva, a Globeville-based community land trust.

This project is “a beautiful reflection of the history and culture of the Globeville neighborhood,” Butler says. “4965 Washington has truly been a community-driven process that will result in a visually striking building that will have community-serving amenities and serve hundreds of individuals and families.”

At Evergreen, “we’re unique in that we truly like high-level design,” he says.

What has attracted Evergreen to Colorado? “The high need here,” says Butler. “A good thing about Colorado is there are smart and creative people, and resources here to create housing, including state tax credits. There has been a progressive approach in Colorado to take on the affordable housing challenge because it is truly a state-wide issue.”

Founded in 2001, Evergreen Real Estate Group is an integrated multifamily company that develops, acquires, and manages affordable and market-rate apartments for both seniors and families across 14 states and the District of Columbia.

From the adaptive reuse of historic buildings to ground-up development in cities and towns facing a shortage of affordable housing, Evergreen employs housing solutions shaped by a cross-disciplinary team of developers, architects, urban planners and attorneys who have come together to create high-quality apartment communities, often in collaboration with local municipalities and financial partners who share their vision of investing, not just in real estate, but also the people who call the firm’s communities home, the firm says. Evergreen currently owns and manages more than 13,400 units of multifamily housing.