AFFORDABLE HOUSING

Denver Revised Municipal Code ch. 27, art. IV

in effect

Denver Revised Municipal Code § 27-101 Legislative findings.

Sec. 27-101. - 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 moderately priced dwelling units or MPDUs. 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 the undesirable and unacceptable effects of limiting housing available to moderate and low-income households, thus failing to implement the housing goal of the Denver Comprehensive Plan 2000 and Blueprint Denver of dispersal of a diverse range of housing throughout the city; (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; (d) Rapid regional growth and a strong housing demand have also combined to make land and construction costs higher, limiting the areas where affordable housing is located; (e) Income 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 home-ownership opportunities for moderate income families 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; (g) Developers of new housing are not meeting the need for moderately priced, affordable housing. The provision of only higher priced housing contributes to the lack of affordable housing; (h) Developers of new for sale housing are not meeting the need for dispersed, affordable housing. In reviewing public records and development trends from 2000—2014, the city council has concluded that average housing prices have increased forty-eight (48) percent since 2000 for all housing, and sixty-nine (69) percent for new housing, and that the affordability gap between median sale price and median income in Denver has widened by one hundred thousand dollars ($100,000.00) since 2000; (i) Without a program requiring moderately priced housing to be built, it is unlikely based on current trends that developers will provide such housing on their own initiative, leaving Denver citizens without sufficient affordable housing; and (j) Providing incentives and increased flexibility to developers will assist developers in providing a minimal percentage of affordable housing units as an integral part of new developments. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 475-14, § 1, 8-25-14)

Denver Revised Municipal Code § 27-102 Declaration of public policy.

Sec. 27-102. - Declaration of public policy. The city council hereby declares it to be the public policy of the city to: (a) Implement the comprehensive plan goal of providing for a full range of housing choices, conveniently located in a suitable living environment, for all incomes, ages and family sizes; (b) Increase the availability of additional low and moderate income housing to address existing and anticipated future housing needs in Denver; (c) Assure that moderately priced housing is dispersed throughout Denver consistent with the Comprehensive Plan; (d) Encourage the construction of moderately priced housing by offering incentives; (e) Require that all development of thirty (30) or more detached for sale single-family dwelling units and all for sale attached or multifamily projects of thirty (30) or more units include a minimum number of moderately priced units; (f) Allow developers of residential units in qualified projects flexibility to meet the broad objectives of the policies set forth herein by allowing a developer, under specified circumstances, to comply with this article by, where approved by the city, voluntarily agreeing to build alternative moderately priced units or contributing to a special revenue fund; (g) Assure that provision of moderately priced housing does not diminish existing resources which have previously been devoted to development of low and very low income housing in the city; and (h) Administer the special revenue fund for the purpose of providing future incentive payments to developers who build moderately priced units, and utilize any amounts in the special revenue fund in excess of all obligations remaining for the next fiscal year, next for the creation or preservation of affordable housing in accordance with applicable city plans, with consideration being given to create housing from funds that were generated from areas identified within this article as high need zones, in areas proximate to those same high need areas when practicable. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 305-13, § 1, 6-24-13; Ord. No. 475-14, § 2, 8-25-14)

Denver Revised Municipal Code § 27-103 Definitions.

Sec. 27-103. - Definitions. The following words and phrases, as used in this article, have the following meanings: (a) AMI or adjusted median income or median income or area median income means the median income for the Denver metropolitan area, adjusted for household size as calculated by HUD. (b) 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, which after this article takes effect develops a total of thirty (30) or more new for sale dwelling units at one location in Denver. (c) At one location means all real property of 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 of the applicant which is not subject to this article at the time of any building permit, site plan, development or subdivision application by the applicant. (d) Available for development means all real property: (1) Owned by, or under contract to, the applicant; (2) Zoned for residential development; and (3) Which will use public water and sewerage. (e) Comprehensive plan means the Denver Comprehensive Plan 2000. (f) Consumer Price Index means the latest published version of the Consumer Price Index for All Urban Consumers (CPI-U) of the U.S. Department of Labor for the Denver metropolitan area, or any similar index selected by the director. (g) Control period means the time an MPDU is subject to restrictions to insure the long-term affordability of the MPDU. The control period is no less than fifteen (15) years and begins on the date of initial sale as defined herein. (h) Date of initial sale means the date of closing for initial purchase of a MPDU. (i) Director means the director of HOST or director's designee. (j) Dwelling unit means one (1) or more habitable rooms constituting a unit for permanent occupancy, having but one (1) kitchen together with facilities for sleeping and bathing, and which unit occupies a structure or portion of a structure, but does not include hotels or other lodging accommodation, hospitals, tents, or similar structures providing transient or temporary accommodation. (k) Eligible household means a household whose income qualifies the household to participate in the MPDU program, and who holds a valid verification of eligibility from HOST which entitles the household to buy an MPDU. To be qualified to participate in the MPDU program as an eligible household at initial sale, the household must be able to demonstrate that its total household income will allow it to pay the mortgage on the unit and the household must earn no more than eighty (80) percent of AMI or if the MPDU is in a high cost structure, no more than ninety-five (95) percent of AMI. To be qualified to participate in the MPDU program as an eligible household on a resale during the control period, the household must be able to demonstrate that its total household income will allow it to pay the mortgage or rent on the unit and the household must earn no more than the amount set forth in a schedule of eligibility provided by HOST, which schedule may not under any circumstances exceed one hundred (100) percent of AMI. To be qualified to participate in the MPDU program as an eligible household for a rental MPDU, the household must be able to demonstrate that, as of the date the lease is signed, its total household income will allow it to pay the rent under the formula provided by HOST for the unit and the household must earn no more than sixty-five (65) percent of AMI adjusted for the household size or if the MPDU is in a high cost structure, no more than eighty (80) percent of AMI. Eligibility standards shall be based on the UND AMI calculation. All nonprofit organizations designated by the director, governmental or quasi-governmental bodies who purchase MPDUs for the purpose of sale or rental under any city approved program designed to assist the construction or occupancy of housing for families of low or moderate income are deemed "eligible households" for the purposes of this article. (l) Final MPDU sale means the first resale within ten (10) years after the end of the control period. (m) For sale dwelling unit means a dwelling unit which is offered for sale any time up to two (2) years after completion of construction, as evidenced by a certificate of occupancy. (n) High cost structure means a development in which buildings are greater than three (3) stories, elevators are provided, and over sixty (60) percent of the parking is structured. In the event a project is presented as high cost, the director shall determine whether a project is qualified as high cost. (o) HOST means the Department of Housing Stability of the City and County of Denver or its successor. (p) Household means: (1) A single person; (2) Any number of persons bearing to each other the relationship of: husband, wife, mother, father, grandmother, grandfather, son, daughter, brother, sister, stepson, stepdaughter, stepbrother, stepsister, stepmother, stepfather, grandson, granddaughter, mother-in-law, father-in-law, sister-in-law, brother-in-law, daughter-in-law, son-in-law, uncle, aunt, nephew or niece, living together as a single nonprofit housekeeping unit; or (3) Two (2) unrelated adults over the age of eighteen (18) years plus, if applicable, any persons bearing to either of the two (2) unrelated adults the relationship of son, daughter, stepson, stepdaughter, mother, father, grandmother, grandfather, grandson, granddaughter, sister, brother, living together as a single nonprofit housekeeping unit. (q) HUD means the U.S. Department of Housing and Urban Development. (r) Initial sale means the sale by an applicant to an eligible household. (s) Low and moderate income means the level of income as defined by the AMI, as adjusted for household size, within the income range for low and moderate income established from time to time by HUD for the Denver metropolitan area, under federal law. (t) Maximum purchase price means the maximum amount for which an MPDU may be transferred, calculated in accordance with the covenants recorded against the property. Transfer fees shall never be charged for transfer of an MPDU and shall not be permitted to be included in any MPDU pricing calculation. (u) Memorandum of acceptance means a document signed by each MPDU purchaser stating the purchaser is aware of and will be bound by the MPDU restrictions and providing an address for notices to the purchaser. (v) MPDU or moderately priced dwelling unit means a dwelling unit which: (1) Is offered to eligible households under the terms of this article or as an approved alternative under section 27-106 and is priced at initial sale to be affordable to households earning no more than eighty (80) percent of AMI, adjusted for household size. For high cost structures, the unit shall be priced at initial sale to be affordable to households earning no more than ninety-five (95) percent of AMI, adjusted for household size; or (2) Was constructed as an MPDU pursuant to a contractual commitment requesting incentives and entered into before December 1, 2014; or (3) Is constructed pursuant to a customized alternative allowed under section 27-106 as part of a master-planned development project that has either: (A) A general development plan (GDP) or planned unit development (PUD) where the total mix of for sale dwelling units within the master planned area exceeds thirty (30) units; or (B) Where the total number of for sale dwelling units within the master-planned development project area exceeds one thousand (1,000) units. (w) New development means all residential development which is being constructed for the first time or existing buildings which are being substantially rehabilitated or remodeled to provide dwelling units. (x) Owner means any eligible household which purchases an MPDU from the applicant and any subsequent buyer, devisee, transferee, grantee, owner or holder of title of any MPDU. (y) Parking is structured means parking that is not an open lot and that is not a carport or carports. (z) Special revenue fund means a fund established by the director for use for affordable housing purposes. Community Development Block Grant (CDBG) and HOME moneys may never be deposited into this fund. The director shall adopt procedures in the rules and regulations to determine whether there is adequate funding of the special revenue fund for estimated incentive payments and all other affordable housing obligations for the subsequent fiscal year. The director shall use the special revenue fund for the primary purpose of providing future incentive payments to applicants who build moderately priced units, and utilize any amounts in the special revenue fund in excess of all obligations remaining through the subsequent fiscal year, next for the creation or preservation of affordable housing in accordance with applicable city plans, with consideration being given to create housing from funds that were generated from areas identified within this article as high need zones, in area proximate to those same high need areas when practicable. Amounts in the special revenue fund exceeding the adequate funding for these priorities through the subsequent fiscal year may be expended for the administration of this article, up to the greater of five (5) percent of the total amount of the balance in the fund on January 1 of each year or two hundred fifty thousand dollars ($250,000.00). Notwithstanding the foregoing, the director shall adopt as part of the rules and regulations, a reservation for a portion of alternative contribution payments paid by applicant from high need downtown areas as defined in the rules and regulations. This reservation shall be held for payments for MPDUs created in the same or proximate neighborhoods. The reservation shall take priority over all other purposes of the special revenue fund for a reasonable time as defined by the rules and regulations. (aa) Statistical neighborhood category means a classification for a neighborhood into either a high need for affordable housing, an average need for affordable housing, or a low need for affordable housing. Classifications shall be assigned and set forth in rules and regulations by HOST through periodically updated modeling of for sale housing prices and proximity to transit. (bb) Substantially rehabilitated or remodeled means more than fifty (50) percent of an existing building is being rehabilitated or remodeled. (cc) Supplemental incentive has the meaning set forth at section 27-108. (dd) Verified or verification means that a household has been determined to be eligible to occupy an MPDU under this article. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 654-02, §§ 1, 2, 8-12-02; Ord. No. 710-06, § 1, 10-30-06; Ord. No. 305-13, § 2, 6-24-13; Ord. No. 475-14, § 3, 8-25-14; Ord. No. 47-20, § 7, 3-16-20)

Denver Revised Municipal Code § 27-104 Applicable development.

Sec. 27-104. - Applicable development. (a) This article is applicable to all applicants who, prior to January 1, 2017: (1) Submit for approval or extension of approval a development plan, rezoning, or site review, or seek a building permit which provides or will provide for the construction or development of a total of thirty (30) or more for sale dwelling units at one location in one or more subdivisions, parts of subdivisions, or stages of development; or (2) With respect to all real property in zones not subject to subdivision approval or site plan review, apply for a general zoning approval for the construction of a total of thirty (30) or more for sale dwelling units at one location. (b) In determining whether a development contains the applicable total number of dwelling units for the purpose of applying this article, all real property at one location within Denver under common ownership or control by an applicant, including real property owned or controlled by separate corporations in which any stockholder or family of the stockholder owns ten (10) percent or more of the stock, shall be included. An applicant shall not avoid this article by submitting piecemeal applications or approval requests for subdivision plats, rezoning, site or development plans, or building permits. Any applicant may submit a preliminary plan of subdivision for approval, site or development plans for approval, record plat or request for building permits for less than the applicable number of dwelling units at any time; but the applicant shall agree in writing that upon the next such application or request the applicant will comply with this article when the total number of dwelling units at one location has reached the applicable number of dwelling units. (c) Any application for any approval as set forth in subsection (a) of this section submitted on or after January 1, 2017, shall not be subject to the requirements of this article. However, this article shall continue to govern MPDU plans associated with applications for approvals submitted prior to January 1, 2017. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 625-16, § 3, 9-19-16)

Denver Revised Municipal Code § 27-105 MPDU requirements.

Sec. 27-105. - MPDU requirements. (a) For new developments of thirty (30) or more for sale dwelling units, applicants shall create ten (10) percent of all the units as MPDUs which are priced at initial sale to be affordable to households earning no more than eighty (80) percent of AMI, adjusted for household size. For new developments of high cost structures, applicants shall create ten (10) percent of all the units as MPDUs which are priced at initial sale to be affordable to households earning no more than ninety-five (95) percent of AMI, adjusted for household size. Maximum purchase prices for MPDUs shall be determined by the HOST based on normal underwriting standards and a maximum down payment of five (5) percent. HOST shall make available tables which show maximum purchase price. (b) The allowable prices for the MPDUs shall be adjusted for the number of bedrooms in the unit. This price adjustment shall be reflected in the tables provided by HOST. (c) Any homeowner association fees shall be included in the determination of affordability. (d) If parking or additional amenities are being provided to the purchasers of the market rate units, the same parking and additional amenities must be offered to the purchasers of MPDUs and the pricing or fees for parking and additional amenities shall be included in the determination of affordability. (e) In calculating the number of MPDUs to be created, rounding shall be used such that five-tenths (.5) or greater shall result in requiring that a whole unit shall be produced. For example, ten (10) percent of thirty-three (33) units calculates to three and three-tenths (3.3) units, which would require three (3) whole units to be MPDUs, but ten (10) percent of thirty-five (35) units calculates to three and five-tenths (3.5) units, which would require four (4) whole units to be MPDUs. Alternative contribution payments for a unit required to be an MPDU solely as a result of rounding up may be offered in the affordable housing plan at the rate established under [section] 27-106 for an alternative contribution payment. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 2, 10-30-06; Ord. No. 305-13, § 3, 6-24-13; Ord. No. 475-14, § 4, 8-25-14; Ord. No. 47-20, §§ 8, 9, 3-16-20)

Denver Revised Municipal Code § 27-106 Plan to build MPDUs; alternatives.

Sec. 27-106. - Plan to build MPDUs; alternatives. (a) Prior to obtaining a building permit, an applicant shall submit to HOST a written MPDU plan. The director shall review the plan and approve, approve with conditions, or reject the MPDU plan. No permits, rezoning, or plans shall be approved or issued until approval of the MPDU plan is obtained. Each plan shall contain information as set forth in rules and regulations adopted by the director and a form of covenants to encumber the MPDUs, a statement that the terms of this plan will bind the applicant and will run with the land upon approval of HOST and recording with the clerk and recorder of the City and County of Denver, and such other information as HOST requires to determine the applicant's compliance with this article. The director shall provide written confirmation of approval of a MPDU plan to the manager of the department of community planning and development to allow building permits to be issued. For MPDU plans prepared as part of a customized alternative allowed under this section as part of a master-planned development project as defined in subsection 27-106(b), the MPDU plan shall be included as part of the development agreement, PUD, or GDP. (b) Alternatives. (1) In lieu of building the required number of MPDUs on site, when consistent with the plans, rules, regulations and policies of the department of community planning and development and HOST, the director may approve an alternative defined in the MPDU plan customized to provide MPDUs at a different site that would: (A) Build more total bedrooms or more MPDUs at one (1) or more other sites in the same or proximate statistical neighborhood as defined in the rules and regulations; or (B) Build more total bedrooms or more MPDUs at one (1) or more other sites within five-tenths (.5) miles of a light rail or commuter rail station as defined in the rules and regulations; or (C) Build more rental MPDUs at one (1) or more other sites in the same or proximate statistical neighborhood or at one (1) or more other sites within five-tenths (.5) mile of a light rail or commuter rail station as defined in rules and regulations. (2) In lieu of building the required number of MPDUs on site, the director may approve an alternative defined in the MPDU plan customized to provide alternate MPDUs on the site if the alternate would: (A) Build fewer MPDUs at affordability levels lower that the AMI required under section 27-105; or (B) Build fewer MPDUs with more net bedrooms; or (C) Build fewer MPDUs for populations or special need or high priority of the director; or (D) Build fewer MPDUs for a longer control period; or (E) Build more rental MPDUs at the site. (3) In lieu of providing the required number of MPDUs, the director may approve an alternative defined in the MPDU plan to contribute to the special revenue fund an amount equal to percentage up to one hundred (100) percent of the price per MPDU not provided but required under section 27-105. The percentage will be based on the statistical neighborhood category of low need, average need, or high need, in which the applicant proposes to construct the development. HOST will categorize statistical neighborhoods as low, average or high, and the specific percentages associated with each statistical neighborhood category shall be defined in the rules and regulations. The contribution amount shall be calculated at the prices set forth on the then current table provided by HOST under section 27-105 for the maximum sale prices without homeowners' association fees. This percentage and amount may be adjusted by the director using a formula set forth in the rules and regulations promulgated under this article. (c) The approved MPDU plans shall be signed by the applicant and shall be recorded with the clerk and recorder of the City and County of Denver. (d) HOST shall assist applicants interested in any of the above alternatives explore options prior to submitting an MPDU plan. (e) Final discretion for granting an alternative is solely with the director and the city is not liable nor shall there be any review for the director's decision to require an applicant to meet the standard obligations of this ordinance [article] instead of granting an alternative. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 3, 10-30-06; Ord. No. 305-13, § 4, 6-24-13; Ord. No. 475-14, § 5, 8-25-14; Ord. No. 47-20, §§ 10—12, 3-16-20)

Denver Revised Municipal Code § 27-107 Incentive for producing MPDUs.

Sec. 27-107. - Incentive for producing MPDUs. (a) Standard incentive. The director is authorized to reimburse the producer of the MPDUs a tiered amount based on statistical neighborhood category as further defined in the rules and regulations up to twenty-five thousand dollars ($25,000.00) per MPDU built, up to fifty (50) percent of the total units in a development. The director is further authorized to reimburse the producer of the MPDUs an additional five thousand dollars ($5,000.00) per MPDU built which is affordable to households earning no more than sixty (60) percent of AMI, adjusted for household size, up to fifty (50) percent of the total units in a development, unless the producer has provided MPDUs at this affordability level as a result of an alternative being granted under [section] 27-106, in which case the average need level incentive will apply. The amount of reimbursement to any one producer of MPDUs is limited to a maximum of two hundred fifty thousand dollars ($250,000.00) per development per year; however, if a producer of MPDUs constructs MPDUs in a high cost structure, then this maximum yearly limit shall not apply. The amount of reimbursement is limited to the amount available in the special revenue fund. Furthermore, this incentive will only be made available to developments that provide the minimum number of MPDUs required by this article and at the tiered level for the statistical neighborhood category where the MPDU is constructed. The director is authorized to establish procedures through rules and regulations for reimbursement from the special revenue fund and for the manner of payment of incentives. The director may seek annual appropriation in order to adequately fund the special revenue fund. (b) The standard incentive(s) set forth in this section shall be in addition to any supplemental incentives available, whether in this article, in other governmental incentive programs, or elsewhere. (c) The standard incentive amount requested shall be set forth in the applicant's MPDU plan and if the applicant is not identical to the producer of MPDUs the applicant shall fully identify the producer. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 654-02, § 3, 8-12-02; Ord. No. 710-06, § 4, 10-30-06; Ord. No. 475-14, § 7, 8-25-14)

Denver Revised Municipal Code § 27-108 Supplemental incentive.

Sec. 27-108. - Supplemental incentive. (a) Producers of the MPDUs may request in the MPDU plan as set forth in section 27-106(a), a density bonus or premium, a parking reduction, and expedited processing as supplemental incentives set forth under the terms of this section, pursuant to the procedures set forth in the Denver Zoning Code, former Chapter 59, and in rules and regulations. The supplemental incentives will only be available to those producers of the MPDUs where the MPDUs are proposed to be constructed. The supplemental incentives requested shall be set forth in both the applicant's and producer's MPDU plans. (b) Density bonus. Except for R-0, R-1, R-2, R-2A, and R-2-B zone districts, or in planned unit developments (PUDs), or in districts where there is no maximum floor area ratio, or in districts where no residential use is permitted, producers of the MPDUs may be able to request a density bonus or premium in select zone districts where allowed under the Denver Zoning Code or its equivalent in former Chapter 59. (c) Parking reduction. Except for existing PUDs, reduced parking requirements are available as provided by former Chapter 59 of the Denver Zoning Code. (d) Expedited processing. (1) Development services shall provide a development review check list to producers of MPDUs upon request. (2) Producers of the MPDUs who fully comply with all items on the development review check list in a completed application for site development plan review may request any expedited processing as set forth in the rules and regulations. The expedited processing time frame excludes time not attributable to Development Services. (3) To provide notice to development services, in addition to a request for expedited processing in the MPDU plan producers of the MPDUs shall file a written request for expedited processing with submission of the completed application for site development plan review. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 654-02, § 4, 8-12-02; Ord. No. 1024-02, § 2, 12-20-02; Ord. No. 710-06, § 5, 10-30-06; Ord. No. 543-08, § 1, 10-13-08; Ord. No. 305-13, § 6, 6-24-13; Ord. No. 475-14, § 7, 8-25-14)

Denver Revised Municipal Code § 27-109 Eligibility standards.

Sec. 27-109. - Eligibility standards. (a) The standards of eligibility for households applying to purchase an MPDU shall be based on the AMI calculation adjusted for household size. The income levels required herein shall be reviewed by HOST to be verified. (b) All nonprofit organizations designated by the director, governmental or quasi-governmental entities who purchase MPDUs for the purpose of sale or rental under any city approved program designed to assist the construction or occupancy of housing for families of low or moderate income are deemed eligible households for all purposes under this article. (c) To be eligible to purchase an MPDU at initial sale, households must be earning no more than eighty (80) percent of the AMI, or no more than ninety-five (95) percent of the AMI for high cost structures. To be eligible to purchase an MPDU on a resale, the household must be earning no more than the amount set forth in a schedule of eligibility provided by HOST, which schedule may not under any circumstances exceed one hundred (100) percent of AMI. (d) The director shall adopt regulations for approving eligibility and for approving the sale or rental of MPDUs to eligible households. (Ord. No. 617-02, § 6, 8-5-02; Ord. No. 305-13, § 6, 6-24-13; Ord. No. 475-14, § 8, 8-25-14; Ord. No. 47-20, §§ 13, 14, 3-16-20)

Denver Revised Municipal Code § 27-110 Initial offering of MPDUs.

Sec. 27-110. - Initial offering of MPDUs. (a) In view of the critical, long-term public need for housing for families of low and moderate income, governmental entities or nonprofit organizations designated by the director are deemed eligible buyers and may buy for sale MPDUs. The MPDUs so purchased may be sold or rented to households of low or moderate income who are eligible for assistance under any federal, state, or local program or to eligible households as defined in this article. (b) Initial sale to eligible households. (1) Every MPDU required under this article shall be offered solely to eligible households for sale to be used primarily for the buyer's own primary residence. (2) During the initial sales period, the MPDUs shall be offered to eligible households by the applicant through a fair and equitable system. (3) The applicant shall use reasonable, good-faith efforts to enter into contracts with eligible households and in marketing to eligible households. (4) An applicant shall not sell any unit without first obtaining a verification of eligibility issued by HOST from the buyer. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 7, 10-30-06; Ord. No. 305-13, § 7, 6-24-13; Ord. No. 47-20, § 15, 3-16-20)

Denver Revised Municipal Code § 27-111 Covenants and deeds of trust.

Sec. 27-111. - Covenants and deeds of trust. (a) The applicant shall execute and pay the recording fees for HOST to record with the clerk and recorder for the City and County of Denver a completed covenant and, if applicable, a performance deed of trust or a lien on the MPDU property, which shall comply with the provisions in the rules and regulations promulgated hereunder. Partnerships, associations or corporations shall not evade this article through voluntary dissolution. (b) The covenants, performance deeds of trust, and liens shall each at a minimum contain the information that the property value and that use and resale are restricted and shall set forth the control period, the maximum purchase price calculation, the eligibility requirements, penalties for violation, and any other restriction provided herein or in the rules and regulations adopted hereunder. The covenants, performance deeds of trust, and liens shall also include provisions which govern the first resale within ten (10) years after the end of the control period ("final MPDU sale") as set forth in section 27-112. (c) The director may waive the covenant restrictions and, if applicable, the performance deed of trust requirements or the lien requirements on the resale prices for MPDUs if the director finds that the restrictions conflict with regulations of federal or state housing programs and thus prevent eligible households from buying dwelling units under the MPDU program. Any waiver shall be in writing and signed by the director, shall reference the recorded covenant and, if applicable, performance deed of trust or the lien, or both, and shall be recorded in the records of the clerk and recorder for the City and County of Denver, Colorado. (d) At the time of conveyance, all grantors of MPDUs shall require the grantee to execute a memorandum of acceptance which states that the conveyed property is a MPDU and is subject to the restrictions contained in the covenants and, if applicable, performance deeds of trust or the lien required under this article during the control period. (e) The director may require certain owners of MPDUs who are out of compliance with the covenant required in this section to execute a performance deed of trust in favor of the city that addresses recapture of noncompliant periods of affordability. The director shall release the performance deed of trust upon a finding that all requirements of the performance deed of trust have been satisfied. (f) The director shall release the covenants and, if applicable, 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. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 654-02, § 5, 8-12-02; Ord. No. 710-06, § 8, 10-30-06; Ord. No. 305-13, § 8, 6-24-13; Ord. No. 975-18, § 1, 10-22-18; Ord. No. 47-20, § 16, 3-16-20)

Denver Revised Municipal Code § 27-112 Final MPDU sale.

Sec. 27-112. - Final MPDU sale. (a) Right of HOST to purchase. The first resale within ten (10) years after the end of the control period shall be known as the "final MPDU sale." The covenant and, if applicable, the performance deed of trust or the lien, or both, shall provide that the owner thirty (30) days before the final MPDU sale notify HOST of the proposed offering and the date on which the owner will be ready to offer the property for sale. The property shall be offered as a single property for sale and shall be offered at fair market value with no extraordinary terms of sale. The notice shall set forth the number of bedrooms, and the floor area for the MPDU type, a description of the amenities offered in the MPDU. Within thirty (30) days from receipt of said written notice, HOST shall notify the owner by written notice of the city's intent or the city's designee's intent to purchase. Any sale under this subsection shall close within sixty (60) days of the notice of intent to purchase to the owner. If the property does not close within the sixty (60) days, the owner may proceed to sell the MPDU as provided by this subsection. Any property purchased by HOST or its designee shall be used for affordable housing purposes. (b) Final MPDU payment. In return for the benefits received by the owner in being able to purchase the MPDU, the owner shall upon the final MPDU sale pay to the city's affordable housing special revenue fund an amount equal to the following calculation: One-half (½) of the excess of the total resale price over the sum of: (i) The prior purchase price (prior maximum purchase price); (ii) A percentage of the MPDU's prior purchase price equal to the increase in the cost of living since the MPDU was last sold, as determined by the Consumer Price Index; (iii) The fair market value of documented capital improvements made to the MPDU between the date of the last sale and the date of resale; and (iv) A reasonable sales commission and all reasonable costs of sale. (v) In the event that the amount remaining after the calculation of items (i)—(iv) above, is less than twenty thousand dollars ($20,000.00) the amount which shall be due to the special revenue fund shall be adjusted in each case so that the owner/seller will retain ten thousand dollars ($10,000.00) or the entire amount, of the excess of the final MPDU sales price, whichever is less. This section does not apply to any designated nonprofit organization, or any governmental entity, or any quasi-governmental entity which owns an MPDU. (Ord. No. 710-06, § 9, 10-30-06; Ord. No. 305-13, § 9, 6-24-12; Ord. No. 475-14, § 9, 8-25-14; Ord. No. 47-20, § 17, 3-16-20)

Denver Revised Municipal Code § 27-113 Voluntary opportunities for developers of less than thirty (30) dwelling units.

Sec. 27-113. - Voluntary opportunities for developers of less than thirty (30) dwelling units. Prior to January 1, 2017, 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 (1) location, which after this article takes effect develops less than thirty (30) new for sale dwelling units at one (1) location in Denver may request the incentives described in sections 27-107 and 27-108 by voluntarily making application to the HOST and meeting the requirements of this article. Such entities shall be considered "applicants" for all purposes of this article. 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. 710-06, § 10, 10-30-06; Ord. No. 305-13, § 10, 6-24-12; Ord. No. 625-16, § 4, 9-19-16; Ord. No. 47-20, § 18, 3-16-20)

Denver Revised Municipal Code § 27-114 Voluntary opportunities for developers of rental dwelling units.

Sec. 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)

Denver Revised Municipal Code § 27-115 Foreclosure.

Sec. 27-115. - Foreclosure. (a) Foreclosure or other court-ordered sales. In the event of foreclosure or the acceptance of a deed in lieu of foreclosure with respect to such MPDU by a holder of a purchase money first priority deed of trust against the MPDU (the "purchase money first lien holder"), HOST shall release the covenant of record and the performance deed of trust or the lien, or both, and waive its ability to enforce the provisions of the covenant with respect to such MPDU. The purchase money first lien holder shall be the only party entitled to take the MPDU free of the covenant. (b) In the event that the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Housing Administration (FHA), or Veteran's Administration (VA) forecloses or accepts a deed in lieu of foreclosure the restrictions imposed by this article shall automatically and permanently terminate. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 12, 10-30-06; Ord. No. 305-13, § 12, 6-24-13; Ord. No. 47-20, § 25, 3-16-20)

Denver Revised Municipal Code § 27-116 Regulations; enforcement.

Sec. 27-116. - Regulations; enforcement. (a) The director may, from time to time, adopt rules and regulations necessary to administer this article. (b) HOST shall maintain a list of all MPDUs constructed, sold or rented under this article. The list shall include the date of the expiration of the control period for each unit. (c) If an applicant violates the requirements of section 27-101 et seq., the city may withhold any and all later building department permits to that applicant until the MPDUs required hereunder are built and offered for sale to eligible buyers. (d) This article applies to all agents, successors and assigns of an applicant. A building permit shall not be issued, and a preliminary plan of subdivision, development plan, or site plan shall not be approved unless the applicant meets the requirements of this article. The city may deny, suspend or revoke any building or occupancy permit for a site where a violation is found upon finding a violation of this article. Any prior approval of a preliminary plan of subdivision, development plan or site plan may be suspended or revoked upon the failure to meet any requirement of this article. (e) Any violation of this article or rules and regulations adopted hereunder is subject to the penalties described under D.R.M.C. section 1-13(e), except covenant and performance deed of trust or lien, or both, violations shall be enforceable through the district court. Pursuant to D.R.M.C. section 1-13(e), the city may impose a civil fine on applicants in an amount up to one hundred fifty (150) percent of the value of the housing required but not provided. (f) The director may take legal action to enjoin or void any transfer of an MPDU if any party to the transfer does not comply with all requirements of this article. The director may recover any funds improperly obtained from any sale or rental of an MPDU in violation of this article. (g) In addition to or instead of any other available remedy, the director may take legal action to: (1) Enjoin an MPDU owner who violates this article, or any covenant, performance deed of trust or lien signed or order issued under this article, from continuing the violation; (2) Require an owner to sell an MPDU owned or occupied in violation of this article to an eligible household; or (3) Recapture a lost term of affordable housing. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 13, 10-30-06; Ord. No. 305-13, § 13, 6-24-13; Ord. No. 475-14, § 11, 8-25-14; Ord. No. 975-18, § 2, 10-22-18; Ord. No. 47-20, §§ 26—28, 3-16-20; Ord. No. 1178-20, § 3, 11-16-20)

Denver Revised Municipal Code § 27-117 Administrative review and appeal.

Sec. 27-117. - Administrative review and appeal. (a) Any persons aggrieved by a denial, suspension or revocation of a building or occupancy permit or denial, suspension or revocation of approval of a preliminary plan of subdivision, development plan, or site plan may appeal to the official, agency, board, agency or other entity designated by law to hear such appeal. (b) Any person aggrieved by a final administrative action or decision of HOST under this article may appeal by the procedure described in D.R.M.C. section 56-106 with the director of HOST to serve as the designated official in the stead of the manager of transportation and infrastructure. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 14, 10-30-06; Ord. No. 305-13, § 14, 6-24-13; Ord. No. 39-20, § 57, 2-3-20; Ord. No. 47-20, § 29, 3-16-20)

Denver Revised Municipal Code § 27-118 Severability.

Sec. 27-118. - Severability. If any part, term, or provision of this article is held by a court of competent jurisdiction to be illegal or in conflict with any law of the State of Colorado, the validity of the remaining portions or provisions shall not be affected, and the rights, obligations and enforcement of this article shall be continued in full force and effect as if the article did not contain the particular part, term, or provision held to be invalid. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 15, 10-30-06)

Denver Revised Municipal Code § 27-119 Applicability.

Sec. 27-119. - Applicability. (a) This article applies to all applicants and housing units developed by applicants, where an application for approval of a site plan, development plan, or submission to the development review committee is requested after August 12, 2002 and prior to January 1, 2017. The amendments to this article apply to all applicants and housing units developed by applicants, where any application for approval of a site plan, development plan, or submission to the development review committee is requested on or after December 1, 2014 and prior to January 1, 2017. Any application for any approval set forth in this subsection submitted on or after January 1, 2017, shall not be subject to the requirements of this article. However, this article shall continue to govern MPDU plans associated with applications for approvals submitted prior to January 1, 2017. (b) The requirements of this article shall not apply to planned unit developments (PUDs), adopted prior to August 12, 2002. The amended requirements to this article shall not apply to planned unit developments (PUDs) adopted prior to December 1, 2014. (c) The requirements of this article shall not apply to any public or private developer who has, prior to August 12, 2002, made a contractual commitment in a zoning application to the city for the provision of affordable housing. The amended requirements of this article shall not apply to any public or private developer who has, prior to December 1, 2014, made a contractual commitment in a zoning application to the city for the provision of affordable housing. (d) The requirements of the amendments to this article shall not apply to any public or private developer which, prior to December 1, 2014, makes a contractual commitment to the city to construct MPDUs as part of any master planned development project under the terms of this chapter 27, article IV, as it existed prior to December 1, 2014. (e) This article does not apply to: (1) Applicants whose projects utilize private activity bond allocation and four (4) percent Low Income Housing Tax Credits ("LIHTC") or nine (9) percent LIHTC. (2) Governmental entities, or quasi-governmental bodies which develop or construct dwelling units for the purpose of sale or rental under any government program that provides for equivalent or greater number of required dwelling units meeting the definition of MPDU and occupied as housing for persons of low or moderate income. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 710-06, § 16, 10-30-06; Ord. No. 475-14, § 12, 8-25-14; Ord. No. 625-16, § 6, 9-19-16)

Denver Revised Municipal Code § 27-120 Evaluation of article.

Sec. 27-120. - Evaluation of article. (a) General. To achieve affordable housing within the City and County of Denver, it is contemplated that participation in this endeavor is not only the responsibility of the applicants but shall include the support and involvement of the Denver city government, other governmental entities, and the community as a whole. (b) Evaluation. Every twelve (12) months, HOST shall prepare a written report of HOST's activities related to, and an assessment of outcomes and progress toward the goals of, this article. No later than August of 2020, HOST shall conduct a policy review of the ordinance, hold a public hearing to gather input for the review, and report the findings and any recommendations to the city council. (Ord. No. 617-02, § 1, 8-5-02; Ord. No. 654-02, § 8, 8-12-02; Ord. No. 710-06, § 17, 10-30-06; Ord. No. 305-13, § 15, 6-24-13; Ord. No. 475-13, § 13, 8-25-14; Ord. No. 47-20, § 30, 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_ARTIVAFHOFetched: 10/27/2026