With the unprecedented growth in the Denver metro area over the past couple years, it was only a matter of time before home prices in the Mile High City jumped over the $500,000 mark. According to
Details Revealed For Denvers Affordable Housing Program
Recently the city of Denver released details of a plan to generate $155 million over 10 years to help pay for affordable-housing solutions across the city. The changes will be included in an ordinance that will be voted on by the Denver City Council in August.
Developers will be asked to pay between 40 cents and $1.70 per square foot and will raise property taxes by half a mill for the first year in order to create the fund, which is meant to support the development or preservation of 6,000 income-restricted homes.
Homeowners won’t likely see much an impact from the tax. The increase would amount to $12 a year — $1 a month — for the owner of a $300,000 home, which is around the median value in Denver. As federal funds for affordable housing are decreasing in Denver, city administrators developed the new fees and property tax increase to create a pool of money that can be used to combat decreasing housing affordability in Denver.
If approved, development fees will be assessed at the time a building permit is issued:
Single family homes: the proposed fee is 60 cents per square foot, and for multi-family projects, the proposed fee is $1.50 per square foot.
For commercial development including hotels, offices and retail projects: the proposed fee is $1.70, while industrial projects will be subject to a 40-cent fee.
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