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.
Read more at the Denver Business Journal: http://bizj.us/1pbgj1
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