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Affordable Housing Fee

Development fee supports a permanent fund for affordable housing

On September 21, 2016, Mayor Michael B. Hancock signed Council Bill 16-0625 into city law. The bill creates a dedicated affordable housing fund to help create or preserve thousands of affordable homes for low- to moderate-income families in Denver. The bill is funded in part by a linkage fee on commercial and residential development that started January 1, 2017.

Fee schedule

Updated July 2021

The affordable housing fee is assessed alongside standard permit fees, all of which are due in full before building permits will be issued.

Beginning July 1, 2018, and each July 1 annually thereafter, linkage fees are adjusted for inflation in an amount equal to the percentage change from the previous year in the national Consumer Price Index for All Urban Consumers (CPI-U).

For mixed-use buildings, the fees listed below are based upon the new floor area in the structure attributable to each proposed use.

Project Type	Fee, per square foot
Multi-unit dwellings designed and regulated under the International Building Code	$1.64
Single-unit, two-unit or multi-unit dwellings designed and regulated under the International Residential Code, or any primary residential use other than multi-unit dwellings regulated under the International Building Code	$0.66
Commercial sales, services and repair	$1.86
Civic, public or institutional	$1.86
Industrial, manufacturing and wholesale	$0.44
Agricultural	$0.44

Fee changes are published here and in the building permit fee policy(PDF, 180KB).

What projects does the fee apply to?

Every project logging in for a building permit must document information required for compliance with Denver’s affordable housing fee.

The affordable housing fee is assessed based on new gross floor area only (not including parking) and must be paid before receiving a building permit for the following:

Any new square footage, except additions of 400 gross square feet or less to existing single-family or duplex buildings, and

Converting a space where the fee did not apply into a space where the fee would apply. For example, the square footage of a garage is exempt from the fee since parking is not included in the calculation of “gross floor area.” However, if the garage is converted into living space, for example, it is considered an addition to the gross floor area of the structure, and the fee would apply (unless the addition of new space is 400 square feet or less to an existing single-family or duplex building).

The fee does not apply to zoning or trade-specific permits (mechanical, electrical, etc.).

If your project is in an existing building and is not adding any new square footage, or if you already know your project will qualify for one of the allowed exceptions from the fee, you must still submit the affordable housing fee application at log-in before receiving a fee waiver.

Documents to submit when requesting an exception from the fee

This table lists each exception allowed under the ordinance as well as what supporting materials are required to verify an individual exception. Any additional information listed in the table below must be received and verified by CPD prior to building permit issuance in order for the fee to be reduced or waived.

As an alternative to the linkage fee, an applicant for a building permit has the option of including affordable housing units either on, or within a quarter-mile radius of, the subject property, according to a set formula.

	Exception	Information Needed
A	Submitted a concept site development plan prior to 12/30/2016.	Date submitted, concept record number, and project master number.
B	Project is part of a property subject to an affordable housing plan or other preexisting contractual commitment or covenant to construct affordable housing.	Submit the project name and plan recordation number and a copy of the recorded affordable housing plan, contractual commitment or covenant.
C	Project has an affordable housing obligation from zoning.	Provide zoning ordinance number that contains this obligation.
D	Project entails residential dwelling units being built by a charitable, religious or other non-profit entity that are deed-restricted to ensure affordability.	Submit a copy of the covenant, land use restriction agreement or instrument of affordability, and evidence of 501(c)(3) status.
E	This is an affordable housing project constructed with the support of federal, state or local financial resources.	Submit evidence of the federal, state or local financial resources and a copy of one of the following: (a) covenant or land use restriction agreement, (b) instrument of affordability, (c) HUD contract or similar, or (d) evidence that the project is being developed by the Denver Housing Authority.
F	This is a non-residential project by a charitable, religious or other non-profit to be used primarily to provide housing, shelter, housing assistance or related services to low-income households or persons experiencing homelessness.	Submit evidence of 501(c)(3) status, the organization’s mission statement, and a description of the project.
G	This is construction by or on behalf of the federal, state or local government, or any department or agency thereof, that will be used solely for a governmental or educational purpose.	Submit a description of how the project will be used for a governmental or educational purpose and proof of property ownership via a deed or lease that documents ownership and/or use.
H	This is a reconstruction of a structure that was destroyed due to a natural or manmade involuntary disaster.	Submit an insurance report, report from Denver Police, report from Denver Fire or similar.
I	This is an addition of 400 square feet or less to an existing single-family or duplex structure.	Plans submitted for building and zoning review must clearly outline the addition with square footage information and dimensions to verify the addition meets this requirement as well as provide evidence that the existing structure is only a single-unit or two-unit dwelling.
J	This project is for an Accessory Dwelling Unit (ADU).	Plans submitted for building and zoning review must clearly indicate the structure is an ADU, and submit evidence of the status of the primary structure to ensure what is being built is not an additional primary structure on the lot.
K	This project is meeting the “build alternative,” per the Affordable Housing Linkage Fee Ordinance 2016-0625.	Submit a copy of the agreement/affordable housing plan from the Office of Economic Development (OED) to prove the build alternative is being met.
L	OED has granted a waiver or fee reduction for a non-residential project due to proof of lack of employment impact.	Submit the approved waiver from OED indicating that the project is subject to either a reduced or waived fee. Be advised that, if the fee is reduced, the reduced fee will still be due at the time of building permit issuance.
M	This submittal is for modified drawings for a project under construction that does not increase square footage.	Original log number.

About the Affordable Housing Fund

Denver's housing costs, both for-rent and for-sale, have risen dramatically since 2010. Even with robust construction, Denver's supply of housing is unable to keep pace with demand. The community asked the city to address the struggle for the estimated 87,000 households who are cost-burdened (paying more than one-third of their monthly income on housing) by establishing a dedicated fund.

The new housing fund will be used to create and preserve housing for households across a wide income spectrum. The fund will support permanent housing and supportive services for at-risk residents, low- and moderate-income workforce rental housing, and moderate-income for-sale housing.