Q: What is considered “affordable” housing?

A: Generally speaking, affordable housing refers to housing that is affordable to households that make below 80 percent of the Denver area median income (AMI). For context, a one-person household, 80 percent of the area median income is $43,600; for a four-person household, 80 percent of the AMI is $62,250. Workforce housing is a term used to describe units affordable to households that make 60–80 percent of the area median income. The recommended standard is that a household should spend no more than 30 percent of their household income on their mortgage or rent. Income-qualifying buyers can purchase housing units at discounted prices below market rates, usually with down payment assistance and affordable mortgage programs. Housing in Downtown and the adjacent center city neighborhoods offers a variety of affordable rental and for sale options.

Q: How do I know if I qualify for affordable housing? What are the income restrictions on affordable housing?

A: There are a number of developments that offer a spectrum of 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. Each community that has affordable housing units has to comply with regulations and specific requirements that vary from building to building depending on the targeted AMI level they are serving. To know if you qualify and get the most up-to-date information, it is best to contact the individual properties directly.

Income limits vary by county. For the City and County of Denver, the limits (based on HUD requirements) are as follows:

Q: What is low-income housing?

A: Low-income housing is generally defined as housing affordable to households that make below 50 percent of the area median income. For a one-person household, 50 percent of the median income is $27,250. Housing available for these households is primarily in multifamily rental projects.

Housing affordability for households that meet this criteria is made possible by assistance that comes in the form of a public subsidy, either through direct payment to the project owner or through vouchers and certificates that allow tenants to find affordable housing in their targeted community. In voucher programs (such as HUD’s Section 8 housing program), a tenant pays no more than 30 percent of their household income for rent and utilities; the government pays the balance directly to the landlord that accepts the voucher.

In Downtown Denver, Halcyon House (1955 Arapahoe Street), The 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 West 14th Street) are 100 low-cost single-room occupancy (SRO) units for homeless individuals transitioning off the streets; tenants pay 30 percent of their income for rent.

Q: 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 new for sale projects with 30 or more units to offer 10 percent of the total units in the development as affordable to households that earn less than 60–80 percent of the area median income. In projects that have three or more stories, elevators and structured parking, the average qualifying household income is raised to 95 percent of the AMI, which is $51,775 for a one-person household and $73,910 for a four-person household). For example, a 50-unit development would be required to offer five units to buyers that fit the AMI criteria. The IHO does not apply to rental projects.