Denver’s Department of Housing Stability (“HOST”) and Denver Housing Authority (“DHA”) are partnering to pilot a program aimed at spurring development of middle-income housing. As reported in the Denver Post, Denver Mayor Mike Johnston has described the pilot program as a way for the city to promote the development of housing units for people with annual incomes between $60,000 to $100,000.
The program will offer property tax rebates and exemptions for developers who commit to building deed restricted apartment units affordable to households earning less than 100% of the area median income (“AMI”). As a part of the program, DHA will enter into the ownership structure of each project as a special limited partner. The program, a sort of parallel to an existing DHA program that involves projects for people making no more than 60% of AMI, aims to include about five projects or approximately 500 units in the first phase, according to Dr. James Rife with HOST.
Note that these projects will also be subject to the City’s new Expanding Housing Affordability policy (“EHA”), meaning that the projects will be eligible for the related incentives and that the units within the project subject to the EHA policy must be deed restricted for 99 years. The deed restrictions on all other units must have a term of at least 30 years.
To be eligible, projects must be new construction that would not be financially feasible without a property tax exemption for at least the first five years as demonstrated by a projected debt service coverage ratio of less than 1.2 without the exemption. The proposed length of the tax exemption must be less than 15 years (with the intended term being 10 years). Additionally, financial closing must be achieved by the end of 2026.
HOST will give preference to projects that are:
• Transit-Oriented Communities, as defined by C.R.S. § 29-35-202(11);
• located in Neighborhood Equity and Stabilization (“NEST”) neighborhoods; and
• aligned with Denver’s affordable housing priorities.
Additional requirements apply. Go to HOST’s website for more information, including a complete list of eligibility requirements, a timeline for the program, and the required documentation to include with a letter of intent.
Denver will accept letters of intent between July 15, 2025, and August 15, 2025. Following the letter of intent deadline, HOST enters a “quiet period” to ensure awards are based on the merits of the project. Then, in September, HOST and the DHA will announce projects invited to submit applications and enter underwriting.
Following this solicitation cycle, the city will assess whether an additional winter solicitation cycle is necessary to meet program goals.
Read more about the launch of the program from CBS News and the Denver Post.