A Denver affordable housing plan that would raise about $150 million over the next decade to support projects providing thousands of income-restricted units has been cleared for a full City Council debate.
The proposal, in the works for more than a year and discussed for weeks by a committee, was advanced Wednesday afternoon on a 7-0 vote. The full council will introduce the measure on the floor Sept. 12 and has set a public hearing on Sept. 19, the earliest a final vote could happen.
It relies on a combination of higher property taxes (estimated to cost about $12 a year on a median home valued at $300,000) and new development impact fees. Those would be assessed at different square footage rates, depending on the type of building that’s constructed.
In Denver, where residents have struggled with soaring rents and home values, the idea of supporting the building or preservation of about 6,000 units of affordable housing has drawn wide support. But some business leaders and developers oppose the development fees.
Council members — including some who voted to advance the proposal Wednesday — hold opinions ranging from not being sold yet on the taxes or fees to believing the city needs to raise much more money for a bolder plan that would make more of a dent in the affordable housing deficit.
At several council members’ request, Mayor Michael Hancock’s deputy chief of staff Evan Dreyer on Tuesday presented revised spending goals for the first year. The plan had called for devoting about $10 million to the new program next year, but that has been increased to $15 million by drawing on reserves, including $1.5 million in proceeds from the city’s special 3.5 percent sales tax on recreational marijuana sales.
The upshot of that boost is that the city estimates it could support 653 units of affordable housing in the first year, in addition to continuing city-directed efforts, instead of 413 homes.
In the first decade, the plan projects loans and subsidies to support the building or preservation of 6,000 housing units — mostly apartments, but also including some for-sale homes.
Denver City Councilman Chris Herndon’s attempt to put the brakes on the proposal’s property tax and fees, by submitting an alternative proposal, hit a snag.
His bill would create the same affordable housing fund but wouldn’t authorize funding sources. Instead, he proposes that the city divert all of the first-year money needed from its reserves, giving the council more time to work out alternative permanent funding options.
Herndon isn’t a member of the Safety, Housing, Education and Homelessness Committee. So when Councilman Kevin Flynn made a motion to advance Herndon’s proposal, Herndon couldn’t second it. And none of the other committee members did so.
Herndon said he planned to file his proposal directly on the council floor, which would allow members to debate it alongside the main bill backed by council president Albus Brooks and Councilwoman Robin Kniech.
