Denver Continues To Question How It Will Create Affordable Housing

Dated: 08/23/2016

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A week before a Denver City Council committee is set to consider advancing an affordable housing plan, some council members still have concerns about how to pay for it.

Councilman Chris Herndon said during the committee’s meeting Wednesday that he planned to submit a competing proposal for a vote Aug. 24 in a bid to give council members more time to consider different funding options. That is the day the main proposal, which aims to raise about $150 million in the first decade for affordable housing subsidies and programs, is up for consideration after several discussion sessions.

The proposal 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. The fees have met with protest from some developers and business advocates.

Herndon’s aim is to draw up to $15 million from the city’s flush reserves next year while the council mulls more permanent options. He and other members, including Kendra Black, say the city shouldn’t dismiss marijuana tax money as an alternative.


“I absolutely agree we need to move forward with this, but this is another hit,” Herndon said about the affordable housing plan. “We are nickel-and-diming this community. … Can we, as a city, fund this out of our own coffers for the first or second year?”
But for now, Herndon and colleague Stacie Gilmore say they have concerns about increasing the city’s property tax rate by a half a mill in 2017 because they’ve heard concern from older constituents, in particular, about recent double-digit hikes approved by the council for storm drainage and sewer rate fees. Denver Public Schools also has bond measures on the Nov. 8 ballot, and council members are talking about ways to address the city’s sidewalk problems.

Councilwoman Robin Kniech and president Albus Brooks are spearheading the proposal with Mayor Michael Hancock’s deputy chief of staff Evan Dreyer. All three pushed back against dipping further into reserves and delaying action on their proposals to create dedicated sources for the affordable housing fund. But they said they would take the feedback into consideration.

According to Dreyer, discussions about the 2017 budget, which will be proposed in mid-September, don’t include much leftover reserve money on the scale mentioned by Herndon.

Herndon, though, pointed out that the city dedicated $8 million from reserves to housing this year and could set a priority to increase that amount next year.

Denver Colorado Real Estate Professional -Michael Steffen

Michael is a motivated realtor specializing with investors and new home buyers located in the following areas; DenverArvada,Aurora and surrounding areas. Michael Steffen uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone! For help with buying or selling a property call 303-981-2750!

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Michael Steffen

My name is Michael Ross Steffen. I’m an Exit Realty Cherry Creek Agent in the Denver metro area. I specialize in advanced marketing, buying, selling and investing for seasoned, as well as first time....

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