Denver studying 'social housing' model to increase affordable housing access

DENVER — The City of Denver is studying the potential of a housing program that would decide a resident's rent based on a percentage of their income rather than setting an income requirement.

Housing programs in Denver have helped numerous people get into homes, including Central Park homeowner David Kugler. He was able to purchase his home with help through the Department of Housing Stability’s (HOST) Affordable Home Ownership Program . The program provides housing opportunities to low to moderate-income households at a lower price than if the home was on the open market.

Richard Butler

"I closed on my home in December 2019. I've lived here for about four and a half years, and I love it. I'm not planning on moving anytime soon. I can't afford anything else in Denver, and so I'm so thankful for this program. I purchased my home for probably about $150,000 less than what it would have appraised at the market rate," said Kugler.

While the city currently holds the deed, Kugler will be the sole owner after the house is paid off.

"There was a market rate appraisal for the purchase of the home, and an inspector came in and gave a market rate appraisal. But the city actually is the one that determined the actual purchase price in order to keep this affordable for people like me," Kugler explained.

Denver currently has several affordable housing programs, but Denver City Councilwoman Shontel Lewis hopes to expand housing programs to reach more residents.

Last year, Lewis introduced a budget amendment to study social housing under the climate justice lens. She wanted to tackle concerns with the climate as well as housing affordability. The study began early this year.

Richard Butler

"It's really this concept to think about adaptability. How can we provide housing for folks while also thinking about, what are the things that we can intentionally integrate into the building and developing of those housing that may have an impact on our climate? Can we think about the usage of solar panels? Or can we think about how we intentionally incorporate electric versus gas? And things of that nature," she said

Similar to low-income housing, social housing removes the income requirement and replaces it with a set percentage of your income that you would pay monthly. Social housing is usually owned by the city and under community control.

"No matter if you make $200,000 or if you make $20,000, you're only paying a certain percentage of your income," said Lewis.

Richard Butler

The range would be 20 percent to 35 percent of your gross income. For example, non-family households in Denver County have a median income of $67,000, according to census data. That means, after taxes, you would take home an estimated $4,118 per month. Therefore, your rent could be as low as $1,117 and as high as $1,954. At its highest, it would amount to 47 percent of your take-home income.

"If we decided to put dollars to that as a city, I think you could actually see that as early as 2025, to be honest, because not all social housing buildings have to be things that we are building from the ground up," Lewis said.

The study is expected to wrap by the end of summer.

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