CAPITOL RECAP
NANCY BURKE | COLORADO APARTMENT ASSOCIATION
Denver Development Fees for Affordable Housing
The Denver mayor’ s office is seeking to raise $ 155 million over the next ten years to create a permanent revenue source to support an affordable housing fund which will assist the City in obtaining and preserving affordable housing. Over the past year, the City has analyzed cities including Boston, Seattle and San Francisco to determine best options for Denver. Denver ' s goal is to create 6,000 new affordable homes in the next ten years.
Currently, the proposal is to use approximately $ 6.5 million from property taxes, supplemented by an impact fee on all new construction to meet the $ 15 million per year goal. Apartment developers, under this proposal would be required upfront to contribute $ 1.40 per square foot beginning in January 2017.
Leaders in the apartment industry oppose such impact fees for many reasons. The Apartment Association of Metro Denver says that fees could substantially slow and lessen multifamily housing development, which will have a negative impact on affordability throughout the City.
“ This fee isn’ t budgeted for and it’ s going to trickle down to the consumer, says Nancy Burke, Vice President of Government and Community
Affairs of the Colorado Apartment Association.
Multifamily developers are scrambling to create the much-needed housing supply for the market,“ Burke says. Under this proposal, several developers have stated that many of their plans to produce additional supply would be stifled if this proposal were to be adopted, defeating the purpose of the desired outcome.
The Apartment Association has separately proposed a program in which multifamily providers could voluntarily offer a portion of existing units to the City to convert into“ affordable housing” in exchange for tax breaks.
Another alternative proposal to accommodate the goal of obtaining $ 15 million each year without imposing an impact fee, was presented by a City Councilmember who would like to explore utilizing
DORI BREWER TESTIFIES TO COUNCIL
the revenue raised through Colorado’ s booming marijuana market. Last year, the City of Denver brought in $ 29 million dollars through marijuana sales tax.
The Council plans to hear the proposal on first reading on September 12th with a final reading scheduled for 5:30 P. M. on September 19th which will include public comments.
For more information, contact Nancy Burke, Vice President of Government and Community Affairs at 303-548-3193 or at nburke @ aamdhq. org.
Your Dues at Work!
OVER THE PAST TWO YEARS, YOUR ASSOCIATION GOVERNMENT AFFAIRS TEAM SAVED THE DENVER APARTMENT INDUSTRY AN ESTIMATED
$ 138 MILLION
$ 63.0 MILLION |
$ 12.5 MILLION |
$ 4.0 MILLION |
$ 4.2 MILLION |
|
SPRINKLER
RETROFIT
|
DENVER FIRE
ELEVATOR CONVEYANCE
|
STATUE OF
LIMITATION
REDUCTION
|
AIR LEAKAGE
REQUIREMENTS
|
www. aamdhq. org
$ 28.0 MILLION |
$ 7.8 MILLION |
$ 19.3 MILLION |
|
NOTICE TO QUIT /
INCREASED NOTICE
|
DEVELOPER / RENT
CONTROL
|
UTILITY SALES TAX |
SEPTEMBER 2016 • TRENDS | 37