Since the introduction of Unit 214 at Park Place Lofts last week our fans on Facebook have sent many inquiries seeking to understand what exactly affordable housing is, what the qualifications are and how one goes about applying to purchase a residence. So, let’s dive in.
Affordable Housing resides under the larger umbrella of Denver’s Inclusionary Housing Ordinance (IHO). The ordinance was first passed in 2002 and has since been revised but the intent remains the same: offer urban living opportunities for those who make less than 80% (in general) of the Area’s Median Income (AMI). Affordable housing should not be mistaken for low-income housing whose goal is similar in principal but is designed specifically for those making less than 50% of the AMI.
Developers who construct condominiums, like East West Partners who will be developing The Coloradan in Union Station, are required and incentivized to conform to the ordinance. In its present state, the ordinance requires any development larger than thirty units in size to earmark at least ten percent of the residences for those who make a specified percentage of the AMI. Developers have the option to pay cash-in-lieu of adhering to the ordinance should they wish to do so. In recent history, SPIRE, Four Seasons Private Residences, One Lincoln Park and 250 Columbine are a few examples of condominium projects that have elected to pay cash instead of offering affordable house units.
There are some restrictions and limitations that individuals seeking affordable housing should consider, however. While qualified buyers are able to purchase residences for below-market value, their asset’s appreciation is also restricted. In 2015 the city of Denver realized 14.1% appreciation amongst condos and single-family residences , noticeably more than the appreciation gained from an affordable housing unit. Individuals who purchase affordable housing units must also make the unit their primary residence thus excluding investors from purchasing multiple units and renting them out for profit.
To qualify, in addition to the standard process of purchasing a home, the buyer will need to submit an application to the city of Denver’s Office of Economic Development verifying employment and current income.
This is a simplified overview of the Inclusionary Housing Ordinance and the process for qualifying and purchasing an affordable housing residence. Should you have further interest, please give me a call and I’d be happy to walk you through the entire process step-by-step… it’s not too difficult I promise.
Or, if you prefer some light, late night reading head on over to the city of Denver’s Office of Economic Development where you can learn more about the program, the requirements and the application process:
Mile Hi Modern
LIV | Sotheby’s International Realty
255 Clayton Street, Unit 100
Denver, CO 80206
Request information about Park Place 214 or to be notified about new Affordable Housing Opportunities.