COMMUNITY HIGHLIGHT CREDIT: ARCHWAY COMMUNITIES CREDIT: ARCHWAY COMMUNITIES ARVADA TOWNHOMES PART OF NATION’S FIRST PROFIT SHARING MODEL FOR RENTERS BY ROBERT DAVIS A NEW WEALTH-GENERATION PILOT PROGRAM called the Renter Wealth Creation Fund launched at a pair of Arvada townhome complexes in September and is one of the first attempts in the U.S. to help renters build wealth by paying rent. The idea was formulated by Enterprise Community Partners, a national housing advocacy nonprofit. The fund aims to help renters build wealth by offering a 2.5% monthly cash-back incentive for on-time rent payments and an opportunity to share in a property’s appreciation if it is sold or refinanced after four years of residency. Enterprise’s Chief Investment Officer Chris Herrmann told Denver VOICE that these benefits will be made available to both current and future residents at the Sheridan Ridge and Willow Green Townhomes—located at 275 W. 66th Ave. and 6985 Sheridan Blvd., respectively—which the organization purchased in August 2023 as part of the fund. The properties will be managed by Archway Communities, a social services nonprofit based in Lakewood. Archway offers employment support, case management, citizenship classes, and many other supportive services to more than 1,500 renters at 10 properties across the state, according to the organization’s website. The two complexes include a total of 125 homes available for renters earning between 30% and 60% of Denver’s median income, or up to $74,460 for a family of four. A news release from Archway explains that Enterprise spent approximately $1.7 million to upgrade the buildings, which included adding new floors, roof upgrades, and improvements to the security features. “Resident services and support are central to our work at Archway Communities, and this fund provides a new approach to fund these critical services and support our residents on their path to a more stable future,” Archway CEO Sebastian Corradino said in a press release. Denverite reported that investors who funded the renovations will be compensated through enterprise bonds, also known as corporate bonds, issued by Enterprise. The operation also includes a philanthropic grant from the New York Life Foundation. “The New York Life Foundation is focused on fostering generational wealth-building solutions for traditionally underserved communities,” New York Life Foundation President Heather Nesle said. “The Renter Wealth Creation Fund fits that focus as an innovative strategy that actively encourages savings and provides direct financial support to renters, thereby paving the way for increased asset accumulation over time. We’re excited to be a part of this initiative and thrilled that the first properties have been identified.” The wealth creation fund was also launched at a time when home prices and rents continued to increase across the Denver metro area. Metro Denver’s median home price stood at more than $569,000 in August, which represents a 1.2% climb over the last 12 months, data from Redfin.com shows. At this price point, a homeowner needs to earn approximately $120,000 per year to avoid paying more than the recommended 30% of their income on a mortgage, assuming a 20% down payment and a 7% interest rate on the mortgage. CREDIT: ARCHWAY COMMUNITIES Based on data from Zumper, rents have increased by even more. Over the last year, the average rent in Denver has increased by $96 up to around $1,800 per month, with rents increasing the most for studios and one-bedroom units. To avoid paying more than 30% of their income on rent, Denver renters need to earn at least $72,000 per year. However, the city’s median salary is just over $59,000, according to Gusto. ■ ANNUAL WRAPPING PAPER ISSUE VOICE vendors have been busy coming up with wrapping paper designs for our December issue. Keep your eye out next month for the 2023 creations, and use them to wrap your holiday gifts! . November 2023 DENVER VOICE 5 G 2019 ART BY VOICE VENDOR RAELENE JOHNSON T BY VOICE VENDOR RAELENE JOHNS NE JOHNSON N 2021 ART BY VOICE VENDOR PATRICK BALERIO T B TRICK BALERIO CK BALE BALE 2020 ART BY VOICE VENDOR JERRY ROSEN 20 AR
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