An affordable housing mandate in Denver could be on the horizon

Denver's elected officials are moving forward with a proposed mandate aimed at increasing the city's stock of affordable rental and for-sale homes.

Why it matters: Denver is considered among the most expensive metro areas in the U.S., with an average home sale price recently hitting a record $705,812.

Driving the news: A Denver City Council committee on Tuesday advanced Mayor Michael Hancock's plan to require all new residential buildings with 10 or more units to include between 8-15% income-restricted dwellings.

• The pricier the area (think Cherry Creek and Union Station), the more affordable units there would need to be.
• If developers don't comply with the new regulations, they would face significant fees.

State of play: Council members are proposing several amendments to the policy before they give the green light.

• Changes on the table include expanding the areas in which housing developers can build affordable units without including on-site parking.
• Another amendment would ensure that grandfathered projects pay the steeper linkage fees — government-issued dues for real estate developers to fund affordable housing needs — that kick off July 1.

The other side: As is, Denver's understaffed planning department is approving housing projects on time in just 1% of instances, Denverite reports.

• And a rush of new development plans could create even more of a backlog, builders say.
• Meanwhile, some developers doubt the plan will achieve its intended purpose and deter projects entirely due to the city's rules and regulations.

What's next: Council members are expected to vote on the final proposal over the next several weeks.

• A public hearing will be held before the final vote.