An affordable housing fund established by a Denver city council ordinance a year ago will collect a fraction of the projected amount in its first year.

The fund, which went into effect Jan. 1, is expected to collect $150 million over the course of 10 years to support the creation and preservation of affordable housing units in Denver using money collected from increased property taxes and a new fee levied on developers.

Initial projections created by the city of Denver indicated that the fund was expected to collect $3.5 million in 2017, but it will only collect $800,000 by the end of the year, said Brendan Hanlon, CFO for the city, in a briefing Tuesday on the city's proposed 2018 budget.

Hanlon pointed to a rush for building permits before Dec. 31, 2016 to avoid the new fees, which are charged on a per-square-foot basis and vary by building type, as the main contributor to the less-than-projected collections. And many of those projects that have been permitted this year have been smaller than those built in recent years, leading to smaller fee collections.

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