By Margaret Jackson / NewsBreak Denver
(Denver, Colo.) After more than a year in the planning stages, Denver City Council approved a measure on Monday to increase affordable housing in the city.
Under the new Expanding Housing Affordability ordinance, all new residential developments of 10 or more units must designate 8% to 12% of the units as affordable for 99 years.
The percentage varies based on the level of affordability offered, but all homes must be affordable for households making less than the area median income (AMI). The AMI for a two-person household in Denver is about $94,000.
In more expensive neighborhoods like downtown and Cherry Creek, developers must designate a minimum of 10% to 15% of new units as affordable.
The ordinance also includes zoning and financial incentives to offset the cost of building affordable units and to increase Denver’s overall housing supply.
“We are committed to creating an inclusive city where our workforce, our first-time homebuyers and our long-time residents can afford to live,” said Laura Aldrete, Community Planning and Development executive director.
“We know inclusionary housing policies like this can be an effective tool to create, maintain and preserve housing units that are affordable for generations, and we are excited to deliver more housing choices at a wider range of price points for our communities.”
The ordinance takes effect for development applications received after June 30.