Sec. 27-224. - On-site compliance requirements.
(a) Base on-site compliance. Applicants electing to provide income restricted units on-site may satisfy its requirements by providing the number of IRUs at the income-restricted levels in accordance with the options set forth below, as the applicant may choose, as follows:
Market Area | Applicant Compliance Options | Minimum percent of total dwelling units to be IRUs | Maximum AMI for eligible households
High Market Area | H-1B | 10% of total dwelling units | Rental development 60% of AMI | Ownership developments: 80% of AMI
H-2B | 15% of total dwelling units | Rental developments: An effective average of 70% of AMI | Ownership developments: An effective average of 90% of AMI
Typical Market Area | T-1B | 8% of total dwelling units | Rental developments: 60% of AMI | Ownership developments: 80% of AMI
T-2B | 12% of total dwelling units | Rental developments: An effective average of 70% of AMI | Ownership developments: An effective average of 90% of AMI
(b) Base incentives for on-site compliance.
(1) To promote the construction of on-site IRUs, an applicant providing IRUs on-site pursuant to the requirements in subsection (a) is eligible for the following incentives for the applicable residential development:
a. Permit fee reduction. An applicant will receive a building permit fee reduction of six thousand five hundred dollars ($6,500.00.00) per IRU in a typical market area and ten thousand dollars ($10,000.00) per IRU in a high market area. The building permit fee reduction shall not exceed fifty (50) percent of the total building permit fee.
b. Reserved.
c. Commercial, sales service and repair street level exemption to linkage fee. An applicant may receive an exemption from the requirement to pay a linkage fee for the gross floor area of a primary commercial sales, services, and repair use located on the street level of a structure. As used in this subsection, the terms "primary commercial sales, services, and repair use" shall have the same meaning as the term is defined in article 11 of the Denver Zoning Code and "Street level" shall have the same meaning as the term is defined in article 13 of the Denver Zoning Code.
(2) Notwithstanding the applicability of this division, any residential development that is exempt pursuant to section 27-222(c) or (d) may receive the base incentives set forth in this section.
(c) Enhanced on-site compliance; incentives.
(1) Enhanced incentives. To increase the overall supply of housing and encourage applicants to provide on-site IRUs in excess of the base requirements specified in subsection (a), an applicant is eligible for the incentives set forth in a. and b. of this subsection if the applicant provides IRUs as follows:
Market Area | Applicant Compliance Options | Minimum percent of total dwelling units to be IRUs | Maximum AMI for eligible households
High Market Area | H-1E | 12% of total dwelling units | Rental developments: 60% of AMI | Ownership developments: 80% of AMI
H-2E | 18% of total dwelling units | Rental developments: An effective average of 70% of AMI | Ownership developments: An effective average of 90% of AMI
Typical Market Area | T-1E | 10% of total dwelling units | Rental developments: 60% of AMI | Ownership development: 80% of AMI
T-2E | 15% of total dwelling units | Rental developments: An effective average of 70% of AMI | Ownership developments: An effective average of 90% of AMI
a. Access to base incentives. An applicant is eligible for the base incentives for on-site compliance set forth in section 27-224(b)(1).
b. Height and floor area increase. A residential development shall be entitled to an increase in building height and floor area ratio in accordance with the provisions set forth in articles 8 and 10 of the Denver Zoning Code.
(2) Notwithstanding the applicability of this division, any residential development that is exempt pursuant to section 27-222(c) or (d) may receive the enhanced incentives set forth in this subsection if the residential development provides the percentage of IRUs specified in subsection (c)(1).
(d) Affordable housing plan submission. An applicant who chooses to provide IRUs on-site pursuant to this section shall submit an affordable housing plan to HOST. The affordable housing plan must be submitted in conjunction with the formal site development plan or, if no site development plan is required, at time of the applicable permit application. The director shall review the proposed affordable housing plan for consistency with the requirements of this article prior to approval of the site development plan or applicable permit. The director shall approve, approve with conditions, or reject the affordable housing plan. A site development plan or applicable permit may not be approved until an affordable housing plan is approved by the director.
(e) Covenant restriction. Residential developments, specific IRUs, or both, shall carry deed restrictions, restrictive covenants, or other forms of affordability restrictions, in the form approved by the director. No temporary or final certificate of occupancy shall be issued until a deed restriction, restrictive covenant, or other form of affordability restriction is recorded in the real property records of the Clerk and Recorder for the City and County of Denver and encumbers the residential development or IRUs, as applicable.
(f) Minimum standards and requirements for on-site IRUs.
(1) Length of affordability. IRUs must be maintained as affordable for a minimum term of ninety-nine (99) years.
(2) IRUs must be (i) functionally equivalent in construction and appearance to other dwelling units at the residential development; (ii) interspersed among other dwelling units at the residential development; (iii) proportionate to the number of bedrooms of the other dwelling units at the residential development; and (iv) compliant with all rules and regulations adopted by the director.
(3) IRUs in rental developments must be made affordable to and occupied by eligible households whose incomes are at or below the applicable AMI limit.
(4) IRUs in ownership developments must be made available for purchase at an affordable price to eligible households whose incomes are at or below the applicable AMI limit.
(5) The city may require an eligible household that purchases an IRU in an ownership development to record a performance deed of trust or a lien on the IRU.
(6) The AMI limit associated with each IRU will be identified as a part of the affordable housing plan and will remain subject to such limitation for the duration of the term of affordability.
(g) Rounding. In calculating the number of on-site IRUs required pursuant this section, rounding shall be used such that five-tenths (0.5) or greater shall result in requiring that a whole unit shall be produced; provided, however, that at least one (1) unit shall be provided if the calculation results in less than five-tenths (0.5). By way of example, if a requirement is for 8.3 IRUs, the number of on-site IRUs would be eight (8). Alternatively, if a requirement is for 8.7 IRUs, the number of on-site IRUs would be nine (9).
(h) Effective average. For applicants selecting to meet compliance options H-2B, T-2B, H-2E or T-2E, applicants may elect to serve eligible households earning eighty (80) percent or less of AMI for rental developments and one hundred (100) percent or less of AMI for ownership developments, so long as the average AMI for all on-site IRUs remains at seventy (70) percent of AMI for rental developments and ninety (90) percent of AMI for ownership developments.
(Ord. No. 426-22, § 2, 6-6-22; Ord. No. 1154-24, § 3, 9-30-24; Ord. No. 686-25, §§ 1(b), 2, 8-4-25)
