Denver leaders on Friday celebrated the grand opening of 56 housing units in the Five Points neighborhood geared toward helping at-risk young people.

The development is designed to help Denver’s homeless young adults ages 18 to 24 and those who are transitioning out of the foster care system, according to a news release from the Department of Housing Stability.

Located at 2700 Wewatta Way, the development features one- and two-bedroom apartments that will be available at 0-50% of the area median income (AMI). This means that to be eligible, a household would have to make under $45,650 per year, according to the department.

The housing development, called Nest56, comes at a time when Denver officials signaled the city is attempting to transition away from simply sheltering people and getting them into permanent housing. Denver Mayor Mike Johnston has made both addressing homelessness and housing people priorities for his first year in office. He vowed to facilitating the building of 3,000 affordable units in his first year.

So far, across 11 projects, there have only been 478 units opened since his inauguration in July of last year.

“Housing that is safe, stable, and accessible is the solution to not only resolving homelessness but preventing it from happening,” he said in a news release. “With this project, we will make progress toward our goal of creating 3,000 units of affordable housing this year, while helping young people at risk find their feet and follow their passions to build a thriving life.”

Nest56 cost roughly $27 million to build and leveraged about $4.3 million in HOST funding. The department provided a $3 million performance loan for construction and offered $1.26 million “to fund onsite services.” Additional money came from the Colorado Division of Housing, Denver Housing Authority, Red Stone Equity Partners, American Express, and BMO. Furthermore, the Colorado Housing and Financing Authority gave the project low-income housing tax credits.

The building was developed by Pennrose with Rivet Development Partners and TGTHR, an organization dedicating itself to ending youth homelessness.

A Colorado-based non-profit, TGTHR will provide behavioral and mental health care and life skills support, plus substance abuse counseling, family services, employment, and education assistance, according to the city’s housing department.

“It’s profoundly moving to be the service provider partner at Nest56, accompanying young people as they navigate life’s challenges and find stability,” Annie Bacci, chief executive officer at TGTHR, said in the release. “Witnessing their achievements — from securing jobs and completing education, to accessing behavioral health services and finding security in their own homes — is deeply moving.”

Of the 56 units on offer, three have mobility features for physically disabled people and 12 have features for people with vision or hearing impairments. These include visible alarms and other “communication features.” Additionally, Nest56 has energy efficient design and its architecture employs natural light, open stairwells 24/7 staffing and security cameras, according to the housing agency.

“As communities across Colorado and the country grapple with the affordable housing crisis, Nest56 at Denargo Market is a testament to the innovative and wholistic solutions that can be achieved through cross-sector partnerships,” Shannon Cox Baker, regional vice president at Pennrose, said. “Through safe, quality housing and wrap-around supportive services, we hope to provide youth with a steppingstone to a thriving, independent life with economic mobility.”