Mayor Mike Johnston has a plan to infuse our tax dollars into the housing crisis to help build affordable housing in a city that has become all but unobtainable for middle-class Coloradans.
But we have to agree with Denver city council members who expressed grave concerns about the plan to raise Denver’s sales tax to fund a new venture into affordable housing for the city.
“I will support it going to the voters but we have to be honest; good intentions exist but the clarity and specificity doesn’t,” Councilwoman Jamie Torres said this month while casting her vote to help place it on the ballot in November.
Denver voters should not approve this dedicated sales-tax increase, at least not without a more thoroughly vetted plan. Johnston does have a vision that he spent an hour sharing with The Post editorial board, but the Affordable Denver Fund needs more scrutiny than it has received in the weeks since Johnston first unveiled the proposal.
If voters approve the $100 million-a-year increase in sales tax, it will be up to Denver City Council to approve spending plans. In other words, this is a tax-first, get-the-details-later approach that has resulted in mixed success for city voters in the past.
For example, Denver’s preschool program was a smashing success that has helped thousands of kids access quality early childhood education since 2006. The Educate Denver sales tax is getting scholarship money into the hands of seniors graduating from Denver high schools but has amassed a $30 million fund. The fund has not moved to reduce its sales tax rate of 0.08%.
Denver needs more affordable housing – particularly housing for Denverites who are making less than $60,000 a year. These middle-class and low-income Coloradans are falling through the cracks. They can’t qualify for subsidized housing through Section 8 (Housing Choice Vouchers) or Denver’s many public housing units but also struggle to afford market-rate rents.
But the city needs a concrete plan to make a dent in the housing crisis, especially given that this 0.5% sales tax would be in place for the next 40 years. Johnston should go back to the drawing board and come up with a proposal that provides voters with more details for how $100 million a year will create affordable housing in Denver. As it’s written now, the ballot language says the money will be used to: increase “production, preservation, financing, acquisition, conversion, (and) subsidies” for housing deemed affordable for those making less than 80% of the area median income. It also could be used for a homebuyer assistance program for those making less than 120% of the area median income. Those income targets feel right, but the “First Year Plan” for how to actually spend the money will be created by the manager of finance and the Department of Housing Stability sometime between the November election and Jan. 30, 2025. Voters need that plan now to judge whether this is a good idea.
We do like many of Johnston’s ideas, especially his plan to emphasize the acquisition of existing affordable housing in Denver, either through direct purchase or the purchase of an easement, to protect it forever from becoming new luxury housing. Johnston understands the housing market and wants to leverage the tax to dollars with other state and federal funding to build new units, preserve existing units, help first-time homebuyers escape the rental market, and help renters on the verge of eviction.
In the meantime, Johnston should select one key initiative in his proposal, find existing funding, and run a pilot program to demonstrate how his Affordable Denver Fund will work on a $100 million-a-year budget. Then build a “First Year Plan” around that success. Rome wasn’t built in a day, and Denver didn’t become unaffordable overnight. It’s OK if the mayor doesn’t solve this problem in his four-year term in office.
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