COLORADO SPRINGS, Colo. (KOAA) — As the City of Colorado Springs continues to grapple with affordable housing, City Council is expected to vote on the next step toward two apartment complexes.
One of the items on the agenda for Tuesday's city council meeting is whether or not to approve $60,000,000 in bonds for the Royal Pine Apartments Project. The project is planned for an area near Powers Boulevard and Union Boulevard in the Briargate area on the northeast side of the city. According to slides being presented Tuesday, the complex will feature 232 units of affordable housing and is expected to be completed by July 31, 2027.
The following is a breakdown of who would qualify for the planned housing when it comes to Area Median Income or AMI:
-30% AMI: 17 units, for those earning up to $30,420 annually
-60% AMI: 164 units for those earning up to $60,840 annually
-70%AMI: 51 units for those earning up to $70,980 annually
According to slides being presented Tuesday, rents at 60% AMI are as follows:
1-bedroom: $1,229
2-bedroom: $1,466
3-bedroom: $1,689
Market rents for nearby multi-family units are about $300 to $600 higher than what is expected to be offered at the Royal Pines Apartments.
The City believes those who will benefit under the 30% AMI category include seniors and veterans on fixed incomes, residents on disability, part-time workers, retail workers and part-time students.
City Council is voting on whether or not to approve Private Activity Bonds, also known as PABs.
"[PABs] are a way for the City of Colorado Springs to help provide tax-exempt funding for affordable housing projects without using any taxpayer dollars," a spokesperson with the City of Colorado Springs wrote to News5. "They are one of the main tools the City can use to help incentivize projects to help provide housing that is affordable for residents."
For PABs, the IRS and the State of Colorado tell the City they are allowed to issue a certain amount of bonds annually, and then the developer is responsible for paying the loan back to investors. The developer benefits because the bonds are tax-exempt, while the investors earn interest. The City is not liable for the bonds, and the developer is.
When asked how critical it is to have affordable housing units in this part of the city, the City spokesperson cited a 2024 report by the Pikes Peak Housing Network.
"Average rents have increased 27% over the past 5 years in Colorado Springs," the City spokesperson wrote citing the report. "The income needed for an average affordable rental in El Paso County is also 18% above median renter income of $61,387. Housing is important to ensure that students, seniors, teachers, nurses and all residents can afford to live in Colorado Springs. And it will impact whether businesses want to invest in our community to help create new good paying jobs."
The Royal Pines Apartments aren't coming without controversy. Those living in the Pine Creek neighborhood have told News5 in the past they have concerns about increased traffic in the area and said the addition of a high-density apartment would pose grave risks in an emergency evacuation. Neighbors also argued residents of the apartment would use the private park and sidewalks that the neighborhood pays for. Other residents said the apartment complex simply doesn't fit in the area.
The City responded to those concerns this week.
"City council has already reviewed those concerns and approved the development plan for the project," the spokesperson wrote to News5. "In June 2023, the City Council also adopted an inducement resolution declaring the City’s intent to issue private activity bonds for the project once the developer completed their due diligence, which includes a market study, commitment from an investor to purchase the bonds and sufficient financing to construct the project. The discussion on Tuesday is focused on whether the City will issue PABs to help support a project that will provide affordable housing to workers in our community."
Also on the agenda Tuesday is the question of whether or not to issue $76 million in bonds for the Bradley Ridge complex on the southeast side of the City along Bradley Road. The Bradley Ridge complex is expected to be made up of 332 units of affordable housing, and maximum rents for all the units will be for 60% of the area median income.
The projected 2025 net max rents for the Bradley Ridge Complex are as follows for 60% AMI with all the units having two bathrooms:
2 BEDROOM: 168 units, 880 Sq. Ft. $1,514
3 BEDROOM: 84 units, 1,088 Sq. Ft. $1,751
4 BEDROOM: 84 units, 1,244 Sq. Ft. $1,953
The surveyed average market rent for the area along Bradley Road:
2 bedroom: $1,955, difference of $441 compared to Bradley Ridge
3 bedroom: $2,175 difference of $424 compared to Bradley Ridge
4 bedroom: $2,573 difference of $620compared to Bradley Ridge
The Bradley Ridge Complex is scheduled to be completed by March 1, 2028.
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