Agenda Date: 06/16/2026
Subject:
Title
Resolution 46-2026: Approving a funding request for South Metro Housing Option's Starlight affordable housing project
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Kathleen Osher, Deputy City Manager
Julie Latham, Housing Policy Manager
Presentations:
N/A
PURPOSE:
Consideration of a funding request from South Metro Housing Options (SMHO) to support the construction of Starlight, an affordable multi-family project that will create 72 new housing units in Littleton for families earning between 30-70% of the Area Median Income.
LONG-TERM OUTCOME(S) SERVED:
Robust and Resilient Economy
DISCUSSION:
As the SMHO Commission and staff shared during the annual joint study session with council on May 12, 2026, rising construction costs and uncertainty in soft funding sources have resulted in a projected funding gap of approximately $3.5M on their Starlight project. SMHO is working to close this gap through grants from the Colorado Division of Housing, Arapahoe County, deferred developer fees, and the City of Littleton. As such, SMHO is requesting $1M from the city's Affordable Housing Fund, which will help close their funding gap and leverage other funding resources.
BACKGROUND:
During the May 12th joint study session, SMHO outlined financing details for the $32M Starlight project, the numerous funding sources required, and the challenges that are creating a gap in funding. SMHO also provided an anticipated project timeline, including a Colorado Housing and Finance Authority (CHFA) application in August 2026, construction start in spring of 2027 if the CHFA application is successful, and estimated project completion in summer 2028.
Starlight redevelops property at the corner of W Littleton Blvd and Delaware to create 72 income aligned multifamily units for families earning 30-70% of the Area Median Income. The location offers walkable, bikeable access to employment centers, grocery stores, parks, schools,...
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