Denver affordable housing sales tax moves closer to making it on the Nov. ballot

Denver Mayor Mike Johnston's proposal to raise the sales tax by five cents on every ten dollars now needs to pass through one more reading after a unanimous vote in favor at Monday night's city council meeting.

A good chunk of the discussion centered around Councilperson Shontel Lewis' suggestion that the estimated $100 million gathered from this tax be used to help with home ownership. It would all be based on how much people make versus Denver's area median income (AMI).

Lewis proposed this amendment to avoid using public money to financially support building rental housing that is already priced at market rate, but the motion ultimately failed 5-8.

Councilperson Flor Alvidrez said she felt there was a disconnect, explaining a household making even $100,000 a year could still struggle to live comfortably in Denver's equal market rate.

"I do think there are families making that much that are struggling to get market rate because at 100% AMI, you cannot pay that rental price. And so I think we can definitely prioritize lower AMIs. But to exclude those families and professionals — like two couples that make 50,000 each — to exclude them from being able to benefit from affordable housing, is a huge loss so I can’t support this tonight," Alvidrez said.

In July, there was some skepticism from city council members when Mayor Johnston made his proposal, some saying it needed more clarity.

This is now the 23rd version of this ordinance since it was drafted.

If passed, it would be the largest dedicated sales tax in Denver's history.