During a recent government meeting, officials discussed the ongoing challenges and strategies surrounding affordable housing in the city. The Affordable Housing Fund, established in 2016, generates approximately $42 million annually, focusing on rental assistance for households earning 80% of the area median income (AMI) or below, as well as homeownership support for those at 100% AMI or below. This fund also allocates resources for eviction prevention, rent, mortgage, utility assistance, and legal defense.

In addition, the Homeless Resolution Fund, created in 2020, generates around $50 million each year, primarily aimed at supporting services for individuals experiencing or exiting homelessness, particularly those earning between 0% to 30% AMI. For 2024, about $11 million from this fund is earmarked for development, preservation, and housing assistance.

A proposed new funding mechanism, a 0.5% sales tax, aims to broaden support across all income levels, enhancing homeownership opportunities and rental assistance. This initiative seeks to shift the current funding structure, which tends to categorize affordable housing strictly by income levels, towards a more integrated approach that includes mixed-income developments.

Officials highlighted the need for increased funding to address the city's affordable housing crisis, noting that Denver's spending on housing is significantly lower than that of other high-cost cities like San Francisco and Seattle, which allocate $342 million and $600 million respectively for affordable housing initiatives.

The discussions underscored a historic opportunity to tackle the affordability gap and enhance existing tools while introducing new strategies to meet the pressing needs of Denver residents concerned about housing affordability.