Agenda Date: 10/21/2025
Subject:
Title
Resolution 114-2025: Approving a funding request for Meadowood Cooperative
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Kathleen Osher, Deputy City Manager |
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Julie Latham, Housing Policy Analyst |
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Presentations: |
N/A |
PURPOSE:
Consideration of a funding request from the Meadowood Cooperative in support of the resident purchase of their manufactured home community.
LONG-TERM OUTCOME(S) SERVED:
Robust and Resilient Economy
DISCUSSION:
Meadowood Village residents successfully purchased their 92-home manufactured home park in early 2025, forming the Meadowood Cooperative to prevent a corporate buyout and preserve long-term affordability for residents. The cooperative secured over $18 million in financing through a combination of state loans, county and city contributions, mission-driven lenders, and philanthropic grants. The cooperative is now seeking funding to help cover the unanticipated interest costs incurred from a high interest loan necessitated by a delay in state fund disbursement.
BACKGROUND:
In early 2024 the city received a notice of intent to sell for Meadowood Village, pursuant to Colorado’s Mobile Home Park Oversight Program. In response to the potential sale, Meadowood residents organized to form the Meadowood Cooperative with the goal of purchasing the property collectively. The City of Littleton contributed $200k in refundable earnest money and approximately $50k for inspection and legal expenses, helping unlock additional time for Meadowood to source funding for the park purchase. Meadowood successfully secured financing and closed on the property January 2025. Their purchase of the park ensures community stability and affordable housing preservation for decades to come, as the financing includes requirements for formal affordability provisions for thirty years.
Meadowood was awarded a $3.475M low-interest loan from the Department of Local Affairs (DOLA) via programs created by Proposition 123. Due to a delay in receiving these funds, a bridge loan was required to close on the property by the January 10 deadline. The interest paid on this loan was $90,929.17 over a six-month period until state funds were received.
The Inclusionary Housing Ordinance (IHO) went into effect November 1, 2022, with a requirement that 5% of units be affordable for residential projects with 5 units and up, and that applicants could comply by either building units or paying a fee in lieu. The IHO stipulates that the funds collected from the fee in lieu be utilized by the city for the purposes of planning for, subsidizing, acquisition of properties for, or developing affordable housing in partnership with other organizations. The city established the Affordable Housing Fund to accept these payments and developed a policy on the review criteria and disbursement process for funds.
Meadowood’s request for support of the unanticipated costs to close on the resident purchase of the park meets the Affordable Housing Fund criteria as outlined below:
• The request supports 100% affordable properties that are deed, covenant, or otherwise restricted to ensure long-term (30+ years) affordability. Requests that create new formally restricted affordable units or extend the affordability of existing ones are in alignment with IHO parameters
√ Yes, funding received from both the state (Prop 123) and ROC for the resident purchase of the park include formal affordability requirements, thereby creating new restricted affordable units instead of the previously unrestricted market rate units.
• The project is located within city limits
√ Yes.
• The requested funding fills a demonstrable financing gap
√ Yes, the bridge loan and subsequent interest awaiting disbursement of state funds was an unanticipated increase in financing.
• A preference but not requirement that the funding leverages other resources, such as county, state, or federal funds.
√ Yes, funding across numerous state and local resources.
Further, supporting this request aligns directly with the city’s adopted goals and the 2027 Strategic Plan initiative to cultivate a favorable environment for housing development across all income levels. It also supports the city’s priorities related to housing diversity and accessible housing options for senior residents. In a market where most affordable options are limited to rentals, this project presents a rare opportunity to support affordable hybrid homeownership.
Prior Actions or Discussions
• May 28, 2024, council study session reviewing manufactured housing communities and options for funding support.
• March 25, 2025, council study session discussing parameters for a policy on affordable housing fund disbursements.
• September 23, 2025, council study session reviewing the draft policy for affordable housing fund disbursement and providing direction to proceed as written.
FISCAL IMPACTS:
The Affordable Housing Fund currently has approximately $1.8M available to support affordable housing projects. This funding request would reduce available funds to approximately $1.7M.
STAFF RECOMMENDATION:
Staff recommends approval of Resolution 114-2025, approving the $90,929.17 funding request in support of Meadowood Cooperative’s purchase of their community. Staff recommends authorizing the City Manager to sign the funding agreement on behalf of the city.
ALTERNATIVES:
Council could choose to deny this funding request.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 114-2025 approving a funding request for Meadowood Cooperative.