The Fort Collins Urban Renewal Authority board voted 7-1 on Thursday to approve a term sheet for a $1 million loan supporting the Bristlecone Apartments, a proposed 112-unit income-restricted housing project on a 3.7-acre site between Bristlecone Drive and Red Cedar Circle in the North College urban renewal area.12
The loan would be interest-only at a 3% rate, with the full principal due as a balloon payment at the end of the 18-year term or upon a refinance or other liquidity event, whichever comes first. No money would be disbursed until the project is completed and receives its certificate of occupancy. The commitment is contingent on the project winning low-income housing tax credits from the Colorado Housing and Finance Authority, and under the board's amendments it applies only to the fall 2026 award cycle, with a loan closing deadline of Dec. 31, 2027.12
The developer had requested $2 million from the URA to help close a funding gap of roughly $4.5 million on the approximately $53 million project. Staff recommended partial funding of $1 million, noting the applicant is also seeking support from the city's Affordable Housing Capital Fund. The project, planned at 225 Bristlecone, would restrict units so that average household income across the property is at or below 60% of area median income, with a significant share of units at 50% of AMI or below. The all-electric, solar-equipped building is competing for 4% federal tax credits and state credits; staff told the board it is the only Northern Colorado application in this CHFA round, and a decision is expected in mid-November.12
The project would also complete the connection of Red Cedar Circle to Bristlecone Drive and accelerate a $2.5 million stormwater investment serving about 23 downstream acres, improvements staff said could spur further redevelopment in the district.1
The approval followed an extended debate over the authority's remaining tax-increment revenue. Staff projected about $4.33 million in additional revenue through the end of the tax-increment collection period in 2030 and cautioned that most of it is effectively committed to the planned community hub on North College Avenue. The board's finance committee had declined to endorse the loan, and several members said they were open to postponing a decision until more was known about the authority's finances and other projects in the pipeline. Supporters argued a commitment now would strengthen the project's tax-credit application. The board's chair cast the lone dissenting vote after arguing the authority should put its community-hub commitment first.1
If the project does not win credits in the fall 2026 cycle, the URA's commitment expires and the applicant would need new board action next year. Recommendations on the separate city affordable-housing fund applications are expected in early November, with a council decision by December.1