The Denver City Council recently passed an ordinance creating the Cityâ€™s first ever dedicated affordable housing fund, which is paid for by development impact fees and a property tax mill levy.Â ICSC along with other business groups opposed the new development impact fees. Â
January 1, 2017 is the effective date for the new impact fees, which will be imposed as follows:
â€¢Â Â Â Residential - Single Family/Duplex: Â $0.60/square foot
â€¢Â Â Â Multifamily - $1.50/square foot
â€¢Â Â Â Commercial - Hotel/Office/Retail/Other: $1.50/square foot
â€¢Â Â Â Industrial/Agricultural : $0.40/square foot
The impact of the mill levy increase on a commercial property owner will be $145/year for every $1 million of value. Â City officials say these dedicated revenue streams will subsidize the preservation or building of 6,000 income-qualified housing units over the next 10 years.
Again, please remember the January 1, 2017 effective date. Â If a development application is submitted by end of day Dec. 31, 2016, technically, the new impact fees will not apply. Â However, if you are planning new projects, make sure to submit applications as soon as you can; things will be very busy in late December.
If you have any questions or comments, please donâ€™t hesitate to contact email@example.com.
Courtesy of ICSC - Office of Global Public Policy