Land, cash contributions boost affordable homes
165 townhouses to be added in Stapleton at less than $ 200,000.
Thrive Home Builders, Forest City Stapleton and the city of Denver are teaming up to provide a rarity within city boundaries— a newhome priced at less than $ 200,000.
Thrive, aided by land donations from Forest City Stapleton and contributions from Denver’s affordable housing fund, plans to build 165 income- qualified townhomes knownas the Elements-Collection.
The two- bedroom townhomes, at 1,213 square feet, will run $ 172,900, while the three- bedroom homes, at 1,330 square feet, will go for $ 199,900. All of them will put Forest City Stapleton closer to meeting city requirements of having 10 percent of for- sale homes permanently affordable.
Buyers must make under 80 percent of the city’s median annual income, which for a two- person household is $ 51,150. And they must agree to deed restrictions on future sales.
But for those who qualify, the admis--
sion price into Stapleton is less than half the $ 490,000 median home price that the community commands, according to Zillow.
So how is Thrive, formerly known as New Town Builders, able to build and sell at a price point so much lower than everyone else?
For starters, Denver is directing money fromits affordable housing fund that larger developers pay into in lieu of making a tenth of their new units affordable.
But that contribution isn’t enough.
Forest City is giving Thrive the land the homes will sit on, a big money- saver. Thrive also is using the expertise it has developed from building in Stapleton the past 13 years.
Thrive built 65 marketrate townhomes in Stapleton last year, and its three rowhome models range from $ 289,950 to $ 364,950, considered an entry- level price point for that community.
Foundations offer an example of how costs can be saved. They are the same for the twoand three- bedroom floor plans, making it much easier for subcontractors to pour them.
Myers emphasizes that the newtownhomes won’t suffer from the shortcuts that sometimes plague affordable projects. They will come with the 9 ½ - inch- thick walls and energy- efficient design the builder is known for.
“We have done our utmost to make sure these homes will be an asset to the neighborhood over the long haul,” Myers said.
In 2000, Forest City Stapleton agreed to dedicate one- tenth of the homes sold in the masterplanned community to affordable units, said Tom Gleason, the community’s vice president for public relations.
So far, slightly more than 300 homes built, or less than 5 percent of the total, meet that bill. Forest City Stapleton needs to play catch- up in the next five years, when it expects to reach buildout on the residential side.
The Elements Collection, the largest affordable development to date at Stapleton, is a big help in meeting the goal, and land has been set aside for the remainder.
“We will make that commitment,” Gleason said.
Although Myers said he expects strong demand, those buyers will still need to qualify for a mortgage, including having a high enough credit score and low enough debt burden.
They also must come up with the necessary down payments, a big hurdle for many firsttime buyers.
Sales of the townhomes are expected to start in late April and will be available at Thrive’s and Stapleton’s affordable homeswebsites.