The low-down on the cost of living Downtown.
The perception that living Downtown is only for the wealthy is certainly not true in Denver. In fact,
there are many policies in place to insure affordable housing and many developers committed to providing and
building reasonably-priced homes. Before you rule out the beautiful neighborhoods of Downtown Denver, read about
the affordable options available. You may find this is not only the best place for your soul, it’s also the best
place for your wallet.
AFFORDABLE HOUSING FREQUENTLY ASKED QUESTIONS
- What is affordable housing?
A: Generally speaking, "affordable" housing refers to housing affordable to households that make below 80%
of the Denver area median income. (For a one-person household, 80% of the median income is $40,150; for a
four-person household, 80% of the median income is $57,350. "Workforce" housing is a term used to
describe units affordable to households that make 60% - 80% of the median income. A commonly used standard is
that a household should spend no more than 30% of the household income for an income-qualifying household. In
for-sale housing, income-qualifying buyers can purchase housing units at discounted prices below market rates,
usually with downpayment assistance and affordable mortgage programs. Housing in Downtown and the adjacent
center city neighborhoods offers a variety of affordable rental and for-sale options.
- How do I know if I qualify for affordable housing? (What are the income restrictions on affordable housing?)
A: There are many affordable housing options in Downtown in which a percentage of the total number of units
are set aside as affordable (non-market rate) units for a variety of income levels. However all buildings that
have affordable housing units have specific requirements that vary from building to building. To know if you
qualify, please contact the individual properties.
Income limits vary by county. For the City and County of Denver, the limits are as follows:
| Income Limits |
| AMI |
Household |
| 1 Person |
2 Persons |
3 Persons |
4 Persons |
| 40% |
$20,075 |
$22,950 |
$25,600 |
$28,675 |
| 60% |
$30,100 |
$34,400 |
$38,700 |
$43,000 |
| 95% |
$47,690 |
$54,435 |
$61,275 |
$68,115 |
- What is low-income housing?
A: Low-income housing is generally defined as housing affordable to households that make below 50% of the
area median income (For a one-person household, 50% of the median income is $25,100). Housing for these
households is nearly always rental housing. Housing affordability for these income populations usually comes
in the form of public subsidy, often through vouchers and certificates that allow tenants to find affordable
housing in the general population of their community. In voucher programs (such as HUD’s Section 8 housing
program), a tenant pays no more than 30% of their household income for rent and utilities; the government pays
the balance directly to the landlord that accepts the voucher. In Downtown Denver, Halycon House
(1955 Arapahoe Street), Barth Hotel (1514 17th Street), and Sunset Village (1865 Larimer Street) are examples
of housing in which all units are below-market rate subsidized housing, and reserved for elderly and disabled
residents. The Forum Apartments (250 W. 14th Street) are 100 low-cost single-room occupancy (SRO) units for
homeless individuals transitioning off the streets; tenants pay 30% of their income for rent.
- What is the Inclusionary Housing Ordinance?
A: Denver’s Inclusionary Housing Ordinance (IHO) was adopted by Denver City Council in September, 2002.
It requires developers of for-sale projects with 30 or more units to set aside 10% of total units as
"affordable" to households that earn less than 60% -80% of the area median income. (In projects that have 3
or more stories, elevators and structured parking, the average qualifying household income is raised to 95%
of the are median income, which is $47,690 for a one-person household, and $68,115 for a 4-person
household). For example, a 50-unit development would be required to have five affordable units. Incentives
offered to the developers include: $5,000 cash rebate per affordable unit; a 10% increase in allowable
density; expedited processing and plan review; and a 20% decrease in parking spaces required. Developers
may chose to opt-out of the requirement by paying one-half of each affordable units’ sale price (varies but
about $75,000) into a special fund that will be used to subsidize various affordable housing efforts. Rental
developments are exempt from the ordinance.
For more information on affordable housing, please visit the following websites:
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