Littleton, CO | South Metro Housing Options (SMHO) has been granted federal approval from the U.S. Department of Housing and Urban Development (HUD) to move forward with the Streamlined Voluntary Conversion plan (Section 22).

The plan approval encompasses a 71-unit public housing portfolio currently owned and operated by SMHO. Upon conversion, the portfolio will be part of two initiatives; affordable for-sale homes for the public, and rental homes serving the city’s vulnerable population. Both initiatives serve a growing need in Littleton to decrease the current housing gap that currently stands in the thousands, further supports at-risk community members, and provides affordable homeownership opportunities.

SMHO is currently analyzing the conversion portfolio to identify homes that can be updated and prepared for sale to public buyers earning up to 80% of the area median income. The sale of updated homes will be done in partnership with Habitat for Humanity of Metro Denver (Habitat). Habitat will manage the updates and repairs, mortgage the homes, and manage long-term affordability requirements mandated by HUD. Proceeds from the sale of the homes will be reinvested by SMHO and its affiliates to create new affordable options, and preserve existing affordable homes and apartments in Littleton.

“It’s been a long wait, but the time has finally arrived where we can move forward with this initiative and provide more affordable living solutions to the City of Littleton,” said Corey Reitz, Executive Director of South Metro Housing Options. “We have been hard at work on this initiative; putting all of the resources in place to make this transition as smooth as possible for our current residents living in these homes. They are our top priority in this process.”

SMHO has procured a relocation assistance service whose sole focus will be to serve all current residents in the portfolio. SMHO’s strategy provides current residents with multiple options; including the option to purchase a home or permanently relocate through choice mobility Tenant Protection Vouchers (TPV), which can be used anywhere in the country because it is attached to the person instead of a unit.

Another benefit from this initiative is the partnership between SMHO and Habitat for Humanity of Metro Denver. Habitat for Humanity sees the partnership with SMHO as a unique opportunity to add permanent, affordable homeownership opportunities to the Littleton market. In a sought-after community like Littleton, it has historically been a challenge for non-profits to expand affordable housing options due to the high demand for land and homes in the area, resulting in high sale prices.

“Habitat for Humanity of Metro Denver is a great partner choice for us, and we couldn’t be happier to be working with them,” Corey shared. “Our organizations have aligned goals and strategic ways we can benefit each other, which will ultimately result in more benefits for the community. This is a win-win opportunity for the people of Littleton.”

The partnership also gives Habitat for Humanity a unique opportunity to participate in the expansion of affordable homeownership opportunities in a new part of the metro Denver area. “In our 41 years of existence, we had never built or renovated a single home in Littleton,” shares Kate Hilberg, Director of Real Estate of Habitat for Humanity. “Many Littleton residents are long-time Habitat supporters who like to volunteer with us. I think they’ll be excited to see us making a difference right here in their community,” she said.

Habitat for Humanity will be the mortgage holder for the sale of the homes financed from Habitat for Humanity loans, offering below-market interest rates, no PMI, and no down payment required. Habitat will also manage the continued affordability restrictions associated with each home. SMHO will continue to manage and operate the portfolio prior to the sale and transfer of each home.

SMHO and Habitat for Humanity expect the first few homes to be available for sale as soon as spring 2021. To learn more about purchasing one of these homes applicants can find Habitat’s qualification requirements at www.habitatmetrodenver.org/littleton.

About Habitat for Humanity of Metro Denver Habitat for Humanity of Metro Denver is part of a global, nonprofit housing organization that seeks to build strength, stability, and self-reliance through affordable housing. Habitat is dedicated to eliminating substandard housing through building and preserving homes; advocating for fair and just housing policies; and providing training resources to help families improve their housing. Habitat believes that everyone deserves to live in dignity and safety, and that strong and stable homes help create strong and stable communities. Habitat for Humanity of Metro Denver has served more than 1,200 families throughout its 41-year history in Denver. For more information, please visit www.habitatmetrodenver.org.