Community Resources and Housing Development Corporation (CRHDC) was formed in 1971 to address the intolerable living conditions of migrants and farm workers in rural Colorado Over the last fifty years, their mission has grown as CRHDC works to provide pathways to home and asset-building opportunities for low- to moderate-income communities statewide
In Alamosa, Kiva Apartments is well known as quality, affordable housing, and when the buildings and adjacent land were listed for sale, CRHDC saw an opportunity to expand its geographic impact and keep naturally occurring affordable housing in the community.
CRHDC needed to keep rents affordable without subsidy financing, and they needed to get rents to the right level to ensure long-term success. NeighborWorks Capital offered an innovative approach with a debt service reserve by assuming that, in the next few years, CRHDC could increase its rental income while remaining affordable in the market. NeighborWorks Capital sized the loan based on the projected rents and provided a $6.3 million permanent loan for Kiva Apartments with a debt service reserve to cover DCR shortfalls in the first two years of rent transition.
“The flexibility in working with NeighborWorks Capital was very important to us. They know our organization and understand what we’re trying to accomplish.”
