GENERAL

Denver Revised Municipal Code ch. 27, art. X, div. 1

in effect

Denver Revised Municipal Code § 27-217 Legislative findings.

Sec. 27-217. - Legislative findings. The city council hereby finds that a severe housing problem continues to exist within Denver with respect to the supply of housing relative to the need for affordable housing. Specifically, the city council finds that: (a) Demographics and analyses of new housing indicate that a large majority of private development is geared toward high-priced housing development and does not serve households earning less than one hundred (100) percent of area median income; (b) Development trends produce high-priced housing which does not serve a large segment of the population and limits housing available to low- and moderate-income households, thus failing to implement the housing goals of the HOST Strategic Plan, Comprehensive Plan 2040, and Blueprint Denver, calling for a city that is equitable, affordable, and inclusive; (c) Market forces, including continued population growth and unmet demand for new housing, result in highly priced housing, and a lack of economic incentive for developers to offer a more diversified price range of housing, and therefore such housing is not being created at a level that meets current demand; (d) Rapid regional growth and a strong housing demand have combined to make land and construction costs higher, limiting the areas where affordable housing is located; (e) Incomes of Denver's growing workforce has not kept pace with this rapid and significant increase in the cost of housing in Denver; (f) Ensuring a mix of incomes and access to homeownership and rental housing opportunities for low- and moderate-income households are high priorities for the city, and therefore the city has a strong interest in ensuring that the city's limited supply of developable land provides housing opportunities for all incomes of the workforce; (g) Land in Denver is highly limited and without a program requiring affordable housing to be built, it is unlikely based on current trends, new development will create affordable housing, leaving Denver residents without sufficient affordable housing; (h) Naturally occurring affordable housing, which is housing that may rent or sell at an affordable rate without affordability restrictions, has declined significantly in recent years thereby necessitating a program to assist in the development of affordable housing; (i) The city has deployed multiple funding strategies and programs which are successful in creating new affordable housing, but not at a pace sufficient to meet the growing demand of the workforce; and (j) Providing incentives to new development will improve the economic feasibility of providing a minimal percentage of affordable housing units as an integral part of new residential developments. (Ord. No. 426-22, § 2, 6-6-22)

Denver Revised Municipal Code § 27-218 Declaration of public policy.

Sec. 27-218. - Declaration of public policy. The city council hereby declares it to be the public policy of the city to: (a) Exercise the authority granted to the city pursuant to HB 21-1117 to regulate development in order to promote the construction of new affordable housing units; (b) In compliance with HB 21-1117, the city has demonstrated the following actions to increase the overall number and density of housing units within the city: (1) Changing its zoning regulations to increase the number of housing units allowed on a particular site; (2) Promoting mixed-use zoning that permits housing units be incorporated in a wider range of developments; (3) In certain zones, permitting more than one dwelling unit per lot in traditional single-family lots; (4) Increasing the permitted household size in single-family homes; (5) Promoting denser housing development near transit stations and places of employment; (6) Reserved; (7) Granting density bonuses to development projects that incorporate affordable housing units; (8) Materially reducing or eliminating certain utility charges, regulatory fees, or taxes imposed by the city applicable to affordable housing units; and (9) Granting affordable housing development material regulatory relief from any type of zoning or land development regulations that would ordinarily restrict the density of new development. (c) Encourage the construction of new affordable housing units alongside market rate housing units within mixed income residential developments by offering incentives to increase the overall supply and availability of housing; (d) Provide property owners or land developers with alternatives to the construction of new affordable housing units as required by HB 21-1117; (e) Implement the comprehensive plan goal to create a Denver that's equitable, affordable, and inclusive; (f) Increase the availability of additional low- and moderate-income housing to address existing and anticipated future housing needs of the workforce in Denver and the unmet needs of residents in Denver; and (g) Ensure diverse housing options continue to be available for households earning at or below the area median income. (Ord. No. 426-22, § 2, 6-6-22; Ord. No. 686-25, § 1(a), 8-4-25)

Denver Revised Municipal Code § 27-219 Definitions.

Sec. 27-219. - Definitions. The following words and phrases, as used in this article, have the following meanings: (a) AMI or area median income means the median income for the Denver metropolitan area, adjusted for household size, as calculated by the U.S. Department of Housing and Urban Development. (b) Affordable housing plan means a plan approved by the executive director of the department of housing stability outlining the number and type of income restricted units to be provided when an applicant elects to build income restricted units on-site as required by this article. (c) Affordable housing project means a residential rental or ownership development in which the number of affordable units for that project is at least equal to the number and affordability level of IRUs otherwise required under section 27-224(c). (d) Applicant means any person, firm, partnership, association, joint venture, corporation, or any other entity or combination of entities, or affiliated entities and any transferee of all or part of the real property at one location that submits an application for a project that would provide a total of ten (10) or more new dwelling units at one location in Denver. (e) At one location means all real property under common ownership or control by the applicant if: (1) The properties are contiguous at any point; (2) The properties are separated only by a public or private right-of-way or utility corridor right-of-way, at any point; or (3) The properties are separated only by other real property owned by the applicant which is not subject to this article at the time of any building permit(s), site development plan, subdivision, or other zoning development application by the applicant. (f) Building permit means any residential or commercial construction permit issued for the construction of any structure, foundation and/or superstructure or any similar term used to issue permits for such work as the terminology may be modified by the department of community planning and development. A building permit does not include permits for shoring or excavation and any associated permits for such work as electrical, mechanical, plumbing or similar permits. (g) Comprehensive plan means the Denver Comprehensive Plan 2040 or its successor. (h) CPI-U or Consumer Price Index means the United States Department of Labor Statistics (Bureau of Labor Statistics) Consumer Price Index for All Urban Consumers, All items, for the Denver-Aurora-Lakewood Colorado area (1982-84=100). In the event that the CPI-U is substantially changed, renamed, or abandoned by the United States Government, then in its place shall be substituted the index established by the United States Government that most closely resembles the CPI-U, as determined by the executive director of the department of housing stability. (i) Director means the executive director of HOST or executive director's designee. (j) Dwelling unit shall have the same meaning as defined in article 11 of the Denver Zoning Code. (k) Eligible household means (i) a household whose income qualifies them to rent or purchase an IRU and who holds a valid verification of eligibility from HOST; and (ii) nonprofit organizations designated by the director and governmental or quasi-governmental bodies who rent or purchase an IRU for the purpose of renting or selling an IRU to a household whose income qualifies them to rent or purchase the IRU. (l) High market area means census tracts in the City and County of Denver with the highest land values compared to the citywide median land value. Classification of high market areas shall be periodically updated as set forth in the rules and regulations. (m) High impact development means any combination of residential, non-residential, or mixed-use structures that are built as a part of a development where the development: (1) Will be built on ten (10) or more acres; or (2) Is using a city-approved financing tool, such as tax increment financing or a metropolitan district. (n) HOST means the department of housing stability of the City and County of Denver or its successor. (o) HOST strategic plan means the three- to five-year strategic plan or its successor as required by section 27-164(a). (p) IRU or income-restricted unit means a dwelling unit required by this article to be affordable as set forth in section 27-224, a negotiated alternative, or a high impact development compliance plan. (q) On-site means at the same location of a residential development. (r) Ownership development means a residential development where dwelling units are offered for sale. (s) Rental development means a residential development where dwelling units are offered for rent. (t) Residential development means any project that would create ten (10) or more new dwelling units at one location by (i) the construction or alteration of structures or (ii) the conversion of a use within an existing structure to a residential use containing dwelling units from any other non-residential use. If a project has both residential and non-residential uses, the residential portion of a project shall be considered a residential development if it would create ten (10) or more new dwelling units. (u) Typical market area means census tracts in the City and County of Denver that are not identified as high market areas. Classification of typical market areas shall be periodically updated as set forth in the rules and regulations. (v) Townhouse shall have the same meaning as defined in the International Residential Code (IRC). (Ord. No. 426-22, § 2, 6-6-22; Ord. No. 1154-24, § 2, 9-30-24)

Denver Revised Municipal Code § 27-220 Special revenue fund.

Sec. 27-220. - Special revenue fund. (a) The director shall use the Mandatory Affordable Housing Special Revenue Fund for the primary purpose of offsetting the costs of the building permit fee reduction incentive provided in section 27-224. Any amounts in the special revenue fund remaining after offsetting such costs shall then be used for the following purposes, with prioritization being given to utilize such funds generated from areas vulnerable to displacement in areas vulnerable to displacement: (1) For the production or preservation of rental housing, including the funding of rental assistance programs, for qualified households earning eighty (80) percent or less of AMI. (2) For the production or preservation of for-sale housing for qualified households earning one hundred (100) percent or less of AMI. (3) For homebuyer assistance programs, including by way of example, down payment and mortgage assistance programs, for qualified households earning one hundred twenty (120) percent or less of AMI. (b) As used in this section, "areas vulnerable to displacement" means neighborhoods identified as meeting all three (3) indicators as defined in Appendix C—Key Equity Concepts Methodology of Blueprint Denver, a supplement to the comprehensive plan. In the event that the methodology or data source is substantially changed, renamed, or abandoned by community planning and development, then in its place shall be substituted a methodology that most closely resembles the original intent as determined by the executive director of the department of community planning and development. (c) Cap on administrative costs. Monies in the Mandatory Affordable Housing Special Revenue Fund may be expended to pay the costs incurred by the city associated directly with the administration of this fund; provided, however, in no event shall the amount expended from the special revenue fund for such administrative expenses in any year exceed the greater of eight (8) percent of the balance in the fund on January 1 of each year or five hundred thousand dollars ($500,000.00). (d) Fund earnings. Any interest on any balance in the Mandatory Affordable Housing Special Revenue Fund shall accrue to this fund. (e) Administration of fund. The Mandatory Affordable Housing Special Revenue Fund shall be administered by the director. (Ord. No. 426-22, § 2, 6-6-22)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH27HO_ARTXMAAFHO_DIV1GEFetched: 10/27/2026