The Off Broadway Lofts in Five Points will soon be renovated as affordable housing after the Denver City Council unanimously approved the $1.25 million renovation proposal with Colorado Coalition for the Homeless on Tuesday.

The Off Broadway Lofts building was built in 2001 at 2135 Stout St. Of the building’s 80 units, only 20 are currently 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 during a committee meeting.

The units will 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 will also be reserved for households experiencing homelessness.

This replaces the building’s previous performance loan agreement that was set to expire in 30 years. The new 60-year agreement guarantees 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.”

On Tuesday, the council also approved a grant agreement with the U.S. Department of Housing and Urban Development, agreeing to spend $10.82 million of funds from the American Rescue Plan on assisting people who are homeless or at risk of being homeless by providing housing, rental assistance, supportive services and non-congregate shelter.

The grant funds will be administered through the federal HOME Investment Partnerships Program and must be spent by September 2030.

This comes as metro Denver’s sheltered homeless population hit 5,530 people last year, according to an annual count. An additional 1,185 homeless residents were estimated to be living unsheltered in the city, according to the Denver Department of Housing Stability.