The Denver City Council on Monday will start debating proposed fixes to the city’s affordable-housing law, and a survey of members shows they stand a chance of passing.
But the final vote on sweeping changes to the so-called Inclusionary Housing Ordinance — possibly as soon as Aug. 25 — is likely to be close.
A committee rejected Councilwoman Robin Kniech’s proposed changes 4-3 on Aug. 5. She took the rare step of filing her bill directly with the full council to force a vote.
The law has been controversial since the council adopted it in 2002, though some developers support its aim. Condo projects of at least 30 units must have 10 percent of them marked down so that income-qualified buyers can afford them.
The Denver Post surveyed the six council members who didn’t participate in the committee vote. Three said they support the bill, making for six likely yes votes. One is committed to voting no.
Two members still are undecided, and one of them, Debbie Ortega, who helped pass the original ordinance, says she’s partial to fixing it but wants to hear the public’s comments during an hour-long hearing Monday.
That means Ortega could cast the seventh vote needed to pass the proposal when it comes up for a final vote. The other undecided member is Jeanne Robb.
“I expect a vigorous debate on Monday,” Kniech said last week, “but also thoughtful consideration from my colleagues, not only about the way they’d like the world to be, but also the tools we have, and how to make them work the very best.”
The statement is a nod to the fact that some members want varying changes but may not agree on all of the needed fixes.
Other members have doubt about the law’s purpose or are uneasy because some developers and business interests oppose the changes.
Mayor Michael Hancock has said he supports the proposal that’s on the table. But it’s possible the council could consider amendments.
He and other officials have expressed disappointment with the number of affordable condo units produced under the ordinance as Denver’s housing prices have skyrocketed.
In the last five years, as the recession and other factors slowed development, only 20 affordable for-sale units have been built under the ordinance.
But going back to 2002, more than 100 affordable for-sale units have been built, plus 1,062 built under large-scale developer agreements for Stapleton, Green Valley Ranch and Lowry.
Still, critics point to big developments whose builders have preferred to pay big opt-out fees so they could sell all units at full price.
The city is tapping those fees to pay for a combined $2.4 million in loans to support three apartment projects intended to build 447 affordable units.
Those projects will be near downtown or close to transit, with one near the 40th Avenue and Colorado Boulevard station along the under-construction East Rail Line, another next to Union Station and the last one at 23rd and Welton streets.
Ultimately, though, Kniech and others want to make it attractive for condo developers to include affordable units.
Her proposal includes an increase in the city’s flat $5,500 per-unit subsidy to $25,000 in the most expensive areas of the city, while making it much more expensive for condo developers there to opt out of the requirements. The subsidy would change to $6,500 per unit in most other areas and would fall to $2,500 per unit in low-cost neighborhoods.
Other changes would give developers a chance to come up with alternative plans to create affordable units, even off-site.
Besides Kniech, councilmen Paul Lopez and Albus Brooks voted for the proposal in the committee. Judy Montero, Susan Shepherd and Chris Nevitt confirmed their support to The Post.
In the committee, council members Chris Herndon, Jeanne Faatz, Peggy Lehmann and Mary Beth Susman voted no. Charlie Brown told The Post he also opposes the proposal.
That leaves Ortega and Robb uncommitted.
Monday’s meeting, which includes the public hearing and the proposal’s introduction, starts at 5:30 p.m. in the City and County Building.
Jon Murray: 303-954-1405, jmurray@denverpost.com or twitter.com/JonMurray
