‘Expanding Housing Affordability’ Policy Brings New Hope for Denver Housing

Paving the way for future progressive policy in protecting the affordable housing in Denver, the approval of the “Expanding Housing Affordability” policy on June 6 promises a new future for the city.

Denver has upheld its position as an up-and-coming city for the past few years, and local residents are facing the consequences of higher-end housing developments. In 2021, 303 Magazine reported that the homeless population in Denver was growing rapidly with little to no local government response. With the increase in population comes an increase in housing, so naturally the homeless population grew dramatically.

However, in years before this one, homelessness was met by police regulation and dehumanization within the city government and external media alike. This issue on top of the nationwide housing crisis has affected this issue tenfold, making it more important than ever to make a change. This year, Denver City Council vowed to pivot things in a new direction. 

Denver’s approval of the “Expanding Housing Affordability” policy ensures affordable housing will be developed alongside luxury real estate in the city. The city put out a press release on June 6 stating that all new residential developments of 10 or more units must designate a minimum of 8 to 12% of the units as affordable for a period of 99 years, regardless of whether the units are for rent or for sale. Given the difference in pricing in certain areas, the policy addresses this by further stating that regardless of average income, homes would need to be affordable for households making less than the area median income (AMI).

In 2022, the AMI for a two-person household in Denver (e.g., two adults or one adult, one child) is approximately $94,000, according to the release.

The ordinance also includes zoning and financial incentives to help offset the cost of building affordable units and to increase the overall supply of housing in Denver, which is now paramount to the sitting city council and city government. In the coming years, the policy will hopefully take hold and perhaps assist in declining the housing affordability crisis in the city.