Denver council puts ‘elephants on the table’ over sales tax question

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The Safety, Housing, Education and Homelessness Committee of the Denver City Council put some “elephants on the table” Wednesday regarding a .5% sales tax increase Mayor Mike Johnston hopes to put to voters.

The increase would create $100 million for affordable housing projects throughout the city. But the council has many concerns about the ballot question before they are ready to put it on the ballot, members said. On Wednesday, the committee voted unanimously to postpone voting on referring the item to the ballot for two weeks.

Council President Amanda Sandoval said in her district the Sunnyside neighborhood is gentrifying. “I want affordable housing in northwest Denver,” Sandoval said. “What does equity even mean?”

Council members said voters need to know how many units will be created for various income levels, such as 30% or below average median income, 30-60%, 60-100% and 100% and higher. Thirty percent AMI for one person is $27,400 annually, 60% is $54,780 and 100% is $91,280. Income limits are higher for larger households.

Sandoval added she does not want to see public housing go up that are “silos of poverty. I am not interested in doing that.” Council member Sarah Parady said the greatest need is for low-income and workforce housing. She said when those groups cannot afford housing it creates “a whole lot of harm to that person and the city.”

Hinds: ‘The system is broken’

“The system is broken,” said council member Chris Hinds. “If we’re putting elephants on the table, I think that’s an elephant as well.” He agreed that more housing needs to be created for those in lower income brackets. “Funding housing at 100% or 200% AMI sounds nuts but if it’s not in the ordinance….”

Council member Darrell Watson said the time for the ballot initiative is now. “This has been a quick process, but that doesn’t mean it wasn’t a thorough process.”

Kashmann wants assurances

Council member Paul Kashmann said he wants assurance in the ordinance that the council will have input as spending begins if the ballot measure passes. He said it would be up to Johnston, who he said he likes and trusts, but how future mayors would manage the fund is uncertain.

Council member Amanda Sawyer wanted to know how much of the $100 million would be spent on administrative costs. Director of the Department of Housing Stability, Jamie Rife, said 3%.

Even if the committee approves the measure Aug. 7, the full City Council also will have to vote on it twice to go on the ballot.