The Off Broadway Lofts in Five Points may soon be renovated as affordable housing after the Denver City Council housing committee advanced the renovation proposal Wednesday.

The committee unanimously passed the proposal, moving it to the full council for two final votes in the coming weeks. If approved, the proposal would give a $1.25 million performance loan to the Colorado Coalition for the Homeless for the renovation.

The Off Broadway Lofts building was built in 2001 at 2135 Stout St. Of the building’s 80 units, only 20 are reserved for low-income residents.

“Now, the city will income-restrict all 80 units on that property,” said Adam Lyons with the Department of Housing Stability.

The units would be reserved for tenants making 60% or less of the area median income, which is $44,016 for one person, according to city data. That includes 31 units for up to 60%, 12 for up to 50%, 13 for up to 40% and 24 for up to 30%. At least 25 units would also be reserved for households experiencing homelessness.

The proposal would replace the building’s performance loan agreement that is set to expire in 30 years. The new 60-year agreement would guarantee the building’s affordability for an additional three decades.

The building features 15 studio apartments, 41 one-bedroom units, 22 two bedrooms and 3 three bedrooms, including one property manager unit. The proposed renovation is one of many expected to come to the City Council in the coming months.

“In the future pipeline, we have multiple properties that are reaching the end of their expected life,” said Max Lubarsky, housing developer with Colorado Coalition for the Homeless. “Coming up shortly is probably going to be Civic Center Apartments.”

Though the proposal advanced unanimously, some committee members expressed concern over renovating existing housing instead of creating new affordable housing.

Councilwoman Amanda Sawyer criticized the Department of Housing Stability’s previous decision to turn down spending $500,000 on purchasing a motel on East Colfax to make into a 60-unit affordable housing complex, questioning why the agency would prioritize a $1.25 million renovation.

“This is a good project and something that needs to continue, but I am concerned that we’re renovating properties that were built 20 years ago, but we’re not creating more affordable housing that we’re constantly being told we need,” Sawyer said.

On Wednesday, the committee also unanimously advanced a proposal that would provide a $1.26 million performance loan to Habitat for Humanity to develop 28 new affordable townhomes at 2819 W. 53rd Ave. in the Chaffee Park neighborhood.

The 28 townhomes would consist of eight two-bedroom units, nine three- bedroom units and 11 four bedrooms, all reserved for buyers who have household incomes of 80% or less of the area median income. The affordability requirement would be locked in for 99 years.