The Denver City Council on Monday approved a $10 million loan to acquire 170 existing affordable housing units in the Ruby Hill neighborhood, a move which also changes income qualifications for residents living in the fully occupied affordable housing complex.

The approved contract is for a city-provided $10 million loan for Columbine Towers at 1750 S. Federal Blvd. to renovate and maintain its 170 affordable housing units.

Denver’s approval simultaneously changes income requirements based on area median income, which the city uses to determine whether a resident is fully qualified for affordable housing.

Mayor Mike Johnston plans to preserve 3,000 affordable housing units in 2024, according to Denver’s Department of Housing Stability.

Columbine Towers was formerly restricted to residents who are 55 or older and qualified for Social Security or disability incomes.

Monday’s approval changed the qualifications for 170 units, allowing residents 55 and older and earning below 30-80% of the area median income to live in the tower.

Of the 170 units, 43 are available to those earning 30% AMI, 106 will be restricted to those earning 50% AMI and 21 will be available to those earning 80% AMI. The Ruby Hill neighborhood’s median income is just over $61,000 per year, according to point2homes.com, citing U.S. Census Bureau data.

All of Columbine Towers’ 170 units are currently occupied, according to an employee of Columbine Towers.

Denver’s Department of Housing Stability (HOST) plans to loan the $10 million via a payment plan, according to a department spokesperson.

HOST intends for Columbine Towers to use the money to preserve and expand income restricted units.

The department will lend the $10 million in gap financing and acquisition funds, according to HOST’s contract with Columbine Towers.

Of the total, $6.8 million will be repaid over a 30-year term. Columbine Towers will then pay a “balloon payment” of $750,000 upon the term’s end.

Additionally, $6.25 million will be paid back in the form of internal cash flow at a 1% interest rate.

“A HOST investment will ensure that all 170 units at Columbine Towers are designated as income-restricted units for at least 60 years,” said HOST spokesperson Derek Woodbury.

Currently, 149 of the 170 units are income restricted, “thus a HOST investment would expand affordability at this site,” Woodbury said.