The Denver City Council gave final approval to the “Affordable Denver” tax proposal Monday night moving it to the Denver ballot. The proposal, which if passed would increase the city sales tax rate by 0.5 percent, or 5 cents on a $10 purchase. The fund is projected to collect $100 million annually for affordable housing options in Denver. Essential items like food, fuel, and personal hygiene products would be exempt from the sales tax increase.

Mayor Johnston praised the City Council calling this “an important step forward to ensuring all Denverites can live and thrive in our city.”

Earlier this month , community members in northeast Denver listened to in-person pitches for the plan from Mayor Mike Johnston and City Councilwoman Shontel Lewis.

Both are strong supporters of the housing proposal. The residents who filled a room at the Hiawatha Davis Jr. Recreation Center, for what was billed as the “Affordable Denver Community Conversation,” had questions and opinions about the city’s housing situation and where and how any new money should be spent.

Many of the residents were seniors on fixed incomes who said they want to hold on to their longtime Denver homes or be able to afford the cost of rising rent. They said they can’t afford higher property taxes and home insurance rates.

The seniors were interested in conversations around preservation and the acquisition of homes for land trusts or down payment assistance programs.

“A lot of community groups are very active in acquiring multi-family buildings for the sake of preservation, keeping rents affordable in the long run, making improvements to the building,” Johnston said, while asking the community members whether they envision the model as part of a housing solution.

Meeting attendees asked for further clarification on other things like property taxes, maintenance, and what happens to homes that are not up to code.

“The second thing, a little bit more ambitious but nonetheless important, is public development, making the city a developer and an owner of housing. Some might call this social housing. It’s an ambitious project,” Johnston added.

He emphasized the model would give the city control over raising rents on city-owned properties.

Lewis said she supports city investment in affordable housing as crucial for maintaining affordability and community control.

Some residents raised concerns about the infrastructure of the City being able to support large scale real estate deals.

During table discussions, other concerns were raised about rental licensing for people who want to rent out rooms, as well as how area median income would impact rents. Participants also suggested modification of zoning regulations to increase the number of affordable homes in an existing neighborhood.

“You’ve seen a lot of investors come in and buy starter homes for pennies on the dollar, and then they … sell for over $1 million, so that makes that starter home permanently unaffordable,” one resident said.

While acknowledging the widespread issues facing the area, Johnston and Lewis also highlighted the need for shared resources and coordinated policies across cities, saying people who work in Denver need to be able to afford to live in Denver.

The discussion made clear that affordable-housing solutions won’t come easily.  But participants walked away from the meeting with some answers and more information about the “Affordable Denver” proposal.

Another community meeting in Denver City Council District 5 is scheduled for Sept. 3. You can register for the event and share your questions.

Front Porch photos by Christie Gosch