In a move to expand Denver’s affordable housing stock by up to 20,000 new residential units, Democrat Mayor Mike Johnston is calling for a sales tax hike that could conceivably net up to $100 million for the effort.
In announcing the proposal, Johnston, who has made the creation of additional affordable housing in new construction as well as buildings a hallmark of his administration, said, “There is a tremendous shortage of affordable homes for long-time residents and new residents alike, and this shortage will only grow if we don’t take action now.”
The Mayor’s proposal specifically calls for a five cents sales tax on every $10 consumer purchase in the city, a proposal that will ultimately be determined by Denver voters in November.
If approved, the measure would create what is being called the Affordable Denver Fund which, said Johnston, will provide a “clear path to meet Denver’s affordability needs and establish a community where anyone can build a vibrant life, especially the workers who are serving, caring for, and teaching the residents of this city.”
That latter emphasis is one of the keys to Johnston’s proposal. Unlike other initiatives targeting housing for lower income or homeless residents, the Affordable Denver Fund hopes to build units for, as the Mayor put it, “teachers, nurses, and first responders.”
Johnston made a point of additionally noting that the new housing stock will also target the city’s senior residents.
City officials in the Mile High City have frequently expressed concerns that steadily increasing rents are making it more difficult to attract professionals to move to Denver. According to the site RentCafe, the average rent for a one-bedroom apartment is now just short of $2,000.
The average cost of a home in Denver hasn’t made the situation easier, with the median June listing price coming in at around $600,000.
Johnston’s proposal is scheduled for public comment later this month, before members of the Denver City Council on August 5 vote on whether to put the measure on this fall’s ballot.
In recent past elections, Denver voters have been generally supportive of revenue-generating proposals to build new housing.
Two years ago, city residents approved the state-wide Proposition 123, which called for raising income taxes in an effort to net some $300 million annually for funding loans and grants to various agencies in the purchase of land for affordable housing construction.
By Garry Boulard
Image Credit: Courtesy of Pixabay
