Construction marches on for new low-income senior apartments in Colorado Springs – Colorado Springs Gazette

The recognizable sound of rooftop hammering is echoing in a southeast Colorado Springs neighborhood, as construction on a new apartment complex for low-income seniors moves toward completion.

The 75-unit Paloma Garden is coming to life at 920 S. Chelton Road, on land where a longtime nursing home, Laurel Manor Care Center, was demolished after 14 residents died in 2020 following a COVID-19 outbreak.

The idea to build more affordable housing for seniors crystallized in recent years for property owner Volunteers of America National Services, a nondenominational, faith-based nonprofit with headquarters in Alexandria, Va.

Weve been in Colorado Springs a long time, and senior housing is our expertise and strength, said Doug Snyder, vice president of regional real estate development for the Denver office of Volunteers of America. The nationwide nonprofit builds and manages housing for vulnerable populations and also provides health and human services.

Volunteers of America owns about 1,800 income-based units in 20 housing projects across Colorado, primarily along the Front Range and on the Western Slope, Snyder said.

Holdings include The Summit Apartments, a workforce complex off South Nevada Avenue in Colorado Springs, several projects in Denver and suburbs including Westminster, and apartments in Fort Collins, Durango, Delta and Montrose.

The Paloma Garden site also contains an existing three-story building with 50 apartments, Laurel Gardens, which is also for low-income seniors. Volunteers of America owns and is renovating that property at the same time, replacing the roof, windows, interior fixtures and heating systems, and refurbishing common areas, corridors and a community room.

Snyder, a housing developer, was brought in to assist with both facets of the project which, when combined, will offer a total of 125 affordable-housing units for seniors on the land.

They wanted to commit to stay in the community and come up with a new vision, he said.

Paloma Garden will feature one- and two-bedroom units for seniors ages 62 and above, who earn 30% to 60% or less of the area median income.

Those annual income ranges from the U.S. Department of Housing and Urban Development for last year for El Paso County were $20,500 to $40,980 or less for one person and $23,400 to $46,800 or less for two people.

The new building will include energy-efficiency features and a courtyard and outdoor recreational area, Snyder said. The architecture of both the existing and the under-construction complexes will be complementary.

In coming months, the 23-year-old Laurel Gardens, around the corner at 3140 Mallard Drive, will get new signage, landscaping, fencing, curb-and-gutter treatments and asphalt improvements to complete the refurbishment and a cohesive campus.

Not to be overlooked, Snyder said, There are pretty views of Pikes Peak for both buildings.

The $43.2 million Paloma Garden campus is using affordable-housing financing assistance, he said. That includes $1 million in state housing credits, 4% state tax credits obtained from the Colorado Housing and Finance Authority, tax-exempt bonds and Community Development Block Grants from the city of Colorado Springs, and El Paso County Housing Authority, which provided the loan.

Demand for affordable housing is greatly outpacing the availability of financing that developers need to build new below-market-rate units, Snyder said.

Costs have gone up on insurance rates, interest rates, building materials, he said. Further improvements to tax allowances at the state and federal levels would help the affordable housing market, Snyder said.

We have long wait lists and lots of applicants for all our projects, Snyder said.

Paloma Garden is scheduled to open in September. Pre-leasing will begin in the summer.

Two other affordable housing complexes for seniors are underway in Colorado Springs. Silver Key Apartments at South Murray, a $21 million, 50-unit building from Silver Key Senior Services, started construction at 1625 S. Murray Blvd. in mid-August of last year adjacent to its headquarters. The facility is expected to be completed in early fall of this year.

And the Myron Stratton Home Foundation is creating an 81-unit apartment complex for low-income seniors on its property off Colorado 115. That project is slated for completion by the end this year.

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Construction marches on for new low-income senior apartments in Colorado Springs - Colorado Springs Gazette