Denver City Council approved a plan to increase retail weed sales tax, as well as dedicate a portion of property tax to Denver's affordable housing efforts.
This plan will bring $105 million towards affordable housing over the next five years, funding more than 6,000 new units.
Councilwoman-at-large Robin Kniech said after the vote that the proposal was a result of “a confluence of ongoing community urgency” and “a sincere response from the (Hancock) administration.” The plan will be developed in partnership with the DHA and help build units over the five-year period. The whole plan was approved through two different bills passed unanimously by the council on Monday.
Office of Economic Development spokesperson Derek Woodbury said in an email the affordable housing fund currently generates about $15 million a year; the new plan will push this to $30 million annually.
According to the plan, the proposal will help build, preserve or obtain property for more affordable housing. It earmarks about half of the new funds to support people experiencing homelessness and very low-income individuals and families. The money will be given to DHA, the Denver Housing Authority.
DHA will turn around and borrow against that stable source of revenue, Law said, which should enable it to raise about $105 million over the first five years. Then the city will raise the marijuana retail sales tax to make up for the money it had been getting from those property taxes.
To read more about where exactly the money is coming from, and how it will be spent, visit Denverite.com