On July 13, Denver Mayor Michael Hancock and Councilwoman Robin Kniech introduced the details of the city's plan to create funding to support affordable housing.
Pending approval by Denver City Council, the funding will be generated by way of development fees and property taxes. Over the next 10 years, the new funding stream could generate $150 million, allowing for the construction of 6,000 new homes for low- to moderate-income families in the city and catalyze thousands of jobs in the process.
"There is no more important a priority in Denver right now than affordable housing," Mayor Hancock said. "In my state of the city speech yesterday, I spoke about the thousands of people who lack the simple advantages so many of us take for granted, like a place to call home. Home ownership gives families a foundation to build equity, build wealth and build a life. This is a fair, balanced and modest approach to address one of the most pressing problems facing Denver today."
The proposal from the mayor's office are expected to cost residential property owners $1 a month and commercial property owners $145 annually for every $1 million worth of commercial valuation. It also would establish a one-time development fee on new construction projects collected when a project receives its building permit. Residential construction fees for single-family homes will carry a 60 cent per square foot fee and multi-family homes will carry a $1.50 per square foot fee. Industrial projects will pay a 40 cents per square foot fee and retail, hotel and other commercial development will pay a $1.70 per square foot fee.
"By pairing a small portion of the property tax revenue that Denver voters approved almost four years ago with what would be one of the lowest one-time fees on new residential and commercial development in the nation, our broader community will be coming together with a sector of the economy generating some of the demand to create a bold solution for affordable housing in Denver," Kniech contended.
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