Denver Mayor and City Council Discuss Affordable Denver Fund - July 9, 2024

The Mayor and Denver City Council held a weekly session on July 9, 2024, primarily to discuss the proposed Affordable Denver Fund, a 0.5% sales tax increase intended to generate funding for 44,000 affordable housing units over the next 10 years. Council members raised questions about the proposal's details, oversight, and impact on residents. The meeting concluded with a tribute to outgoing Council President Jamie Torres.

Announcements

• Council members announced upcoming community events, including a Southeast Denver conversation on affordable housing on July 25, yoga in the park, the Guadalupe Summer Bazaar, and the Colorado Black Arts Festival in City Park.
• Council President Torres highlighted a cleanup effort along Weir Gulch in Barnum Park, noting the removal of debris and the commitment to monthly cleanups.

Discussion Items

• Affordable Denver Fund Proposal: The Mayor presented the rationale for a 0.5% sales tax increase to address a projected shortage of 44,000 affordable housing units over 10–15 years. The funds would support a continuum of housing needs from 0% to 100% of Area Median Income (AMI), including rental subsidies, preservation of existing affordable units, and new construction. The Mayor emphasized that the sales tax would not apply to groceries, fuel, or medical supplies, and that about 35% of the tax would be paid by non-residents.
• Council Questions and Concerns:
  • Councilmember Sawyer requested more time to review the ballot language and ordinance details, noting she received the ballot language only 17 hours before the meeting. The Mayor indicated the ordinance language would be ready in 10–14 days.
  • Councilmember Hines questioned who pays and who benefits, noting that households at 100–120% AMI might be recipients but also pay the tax. The Mayor responded that the tax is about $2 per week per household and that the benefit for renters in affordable units could be substantial.
  • Councilmember Cashman discussed the need to support the most vulnerable and expressed concern about the regressive nature of sales taxes, but acknowledged the housing crisis.
  • Councilmember Sandoval raised concerns about oversight and longevity of the fund, suggesting a sunset or reauthorization requirement and an advisory board.
  • Councilmember Alvitres worried about concentration of poverty, the stigma of affordable housing, and the impact on struggling families. She also questioned the need for a new tax given existing state and federal funding sources.
  • Councilmember Torres emphasized the need for systems-based accountability, not reliant on the current administration.
  • Councilmember Romero Campbell highlighted the need to target specific populations such as seniors and families with young children.
• Mayor's Responses: The Mayor addressed concerns by explaining strategies to avoid concentrated poverty, such as mixed-income developments and acquisition of existing units. He also noted that the city is working to improve permitting times and that the fund would be part of a comprehensive housing portfolio with annual data tracking.

Key Outcomes

• No formal votes were taken. The Mayor committed to providing detailed ordinance language within 10–14 days.
• The proposal is scheduled to go to committee on July 17, 2024, for further review.
• Council members expressed the need for transparency, oversight, and clear metrics before the measure is referred to voters.
• The meeting ended with a tribute to outgoing Council President Jamie Torres, recognizing her leadership and service.