A new proposal unveiled by Denver Mayor Michael Hancock would, over a period of ten years, draw the funds for the city’s $150 million affordable housing initiative from development impact fees (charged per square foot in the permitting process) and a property tax increase, The Denver Post reports.
The ultimate goal is to support the construction and preservation of 6,000 units of income-restricted apartments and homes. Local builders, however, are pushing back against the development fees.
Builders believe the fees would hurt the construction industry and harm consumers in the end and say it is counterintuitive to support and encourage affordability by making homes more expensive. They argue development fees would cause rents in new buildings to rise and decrease the amount of available housing that service industry workers can afford.