Voluntary opportunities for developers of rental dwelling units.
Denver Revised Municipal Code § 27-114
in effectSec. 27-114. - Voluntary opportunities for developers of rental dwelling units.
(a) Prior to January 1, 2017, for new developments of rental dwelling units, a rental applicant may request the incentives described in this chapter by voluntarily making application to the HOST and submitting for approval a written MPDU plan which meets the requirements of section 27-106 and which provides that at least ten (10) percent of the units will be made available to households earning no more than sixty-five (65) percent of AMI, adjusted by household size. Such entities shall be considered "applicants" for all purposes of this article. A high cost structure may provide MPDUs for households earning no more than eighty (80) percent of AMI. Incentives shall not be available for rental units provided in lieu of affordable for sale units provided under [sub]section 27-106(b). A rental applicant may request the enhanced standard incentive of an additional five thousand dollars ($5,000.00) per rental MPDU unit made available to households earning no more than fifty (50) percent of AMI, adjusted by household size. The specific incentives requested shall be set forth in the MPDU plan. Rents shall be limited and the formula for determining allowed rent shall be set forth in rules and regulations.
(b) Definitions. The following words and phrases shall have the following meanings as used in connection with developers of rental dwelling units under this section:
(1) Control period means the time period an MPDU is subject to maximum rental rate requirements set forth in this section. The control period is no less than fifteen (15) years and begins on the date of initial rental as defined herein. If an individual rental MPDU is offered for sale during the control period, the unit shall be treated as a resale MPDU for purposes of pricing and eligibility.
(2) Date of initial rental means the date a certificate of occupancy is issued for a rental MPDU.
(3) Landlord means the applicant and any subsequent owner or operator of multifamily rental development which owns or operates a rental development containing MPDUs during the control period.
(4) MPDU in this section means a rental dwelling unit offered to eligible households for rent under this section, or rented under any government or city approved program designed to offer or support housing for families of low or moderate income. Units rented under a government program are deemed MPDUs but are not offered the incentives available under this article or subject to the requirements of this article.
Other terms shall have the same meaning as assigned to them in section 27-103.
(c) Covenants. A rental applicant requesting incentives under this section, whose MPDU plan is approved by HOST, shall enter into covenants and performance deeds of trust or lien, or both, as described in section 27-111 in order to receive the incentives requested. At a minimum the covenants, performance deeds of trust and liens will meet the following:
(1) The rental applicant shall execute and record with the clerk and recorder for the City and County of Denver a covenant and a performance deed of trust or a lien, or both, on the MPDU property, which shall comply with the provisions in this section. Partnerships, associations or corporations shall not evade this section after receiving incentives through voluntary dissolution.
(2) The covenants, performance deeds of trust and liens shall contain at a minimum the information that the property is affordability restricted and shall set forth the control period, the rental pricing calculation, the eligibility and non-sublease requirements, penalties for violation, and any other restriction provided herein or in the rules and regulations hereto.
(d) During the control period, all grantors of real property which contains rental MPDUs shall require the grantee to execute a memorandum of acceptance which states that the conveyed property contains rental MPDUs and is subject to the restrictions contained in the covenants and performance deeds of trust or lien, or both, required under this article.
(e) The director shall release the covenants and performance deeds of trust or lien, or both, upon a finding that all amounts due the city's special revenue fund have been received and all other provisions of the covenant have been satisfied.
(f) The director may waive the covenant and performance deed of trust or lien, or both, restrictions on rental if the director finds that the restrictions conflict with regulations governing federal or state housing programs and thus prevent eligible households from renting such units under the MPDU program. Any waiver shall be in writing, shall reference the recorded covenant, and shall be recorded with the clerk and recorder for the City and County of Denver.
(g) Effective January 1, 2017, HOST shall no longer accept voluntary applications for incentives under this section.
(Ord. No. 617-02, § 1, 8-5-02; Ord. No. 654-02, §§ 6, 7, 8-12-02; Ord. No. 710-06, § 11, 10-30-06; Ord. No. 305-13, § 11, 6-24-13; Ord. No. 475-14, § 10, 8-25-14; Ord. No. 625-16, § 5, 9-19-16; Ord. No. 47-20, §§ 19—24, 3-16-20)
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_ARTIVAFHO_S27-114VOOPDEREDWUNFetched: 10/27/2026