DENVER — The City and County of Denver and the Denver Housing Authority on Wednesday announced a new pilot program that aims to create more affordable housing opportunities for middle-income earners.
The Partnership for Middle Income Housing Pilot Program will give property tax relief to developers who build projects that have units accessible to people making around $60,000 to $100,000 a year.
In a release, the City of Denver said, "Eligible projects must be new construction, meet the affordability requirements, and demonstrate that the development would not be financially viable without the property tax relief and exemption from the State portion of sales and use tax. DHA will enter the ownership structure as a special limited partner in order to access the exemption. HOST will underwrite each proposal to determine the appropriate length of the tax exemption, which is capped at 15 years and expected to average around 10 years."
- Watch the full announcement below
Joaquin Cintron Vega, CEO of the Denver Housing Authority, noted that middle-income renters typically include teachers, nurses and other professionals.
"They are the ones that are making our city function in many ways," he said.
Cintron Vega explained this group is often not eligible for lower-income housing options, but also does not make enough money to afford the sky-high rents found all across Denver.
Starting July 15, the city will begin considering letters of intent for development projects and intends to approve five projects by the end of 2025 or early 2026. It is up to developers to determine how many units will be dedicated to middle-class earners. However, those units will need to be dedicated for at least 30 years.
"The contractual agreements, the covenants and the restrictions that are going to be included, is part of the additional safeguards that, of course, as part of any given development deal, we make sure that are present," Cintron Vega said of how the city plans to hold developers accountable to offer affordable rents.
According to Cintron Vega, the developer with the most affordable units won't outright win the contract, adding that every development project and community benefit will likely differ.
"We are going to confirm, through an established set of criteria, that those proposals are indeed aligned with the mission," he said.
