Denver looks to state for help with affordable housing quagmire
Author: Adam McCoy - April 6, 2018 - Updated: April 6, 2018
Denver is grappling with a crisis of sorts within its affordable-housing program — which could force some homeowners to sell — and the city is asking the state for help.
The city has recently discovered that nearly a quarter (300 of 1,302 homes) of its affordable housing stock is out of compliance with requirements under its program, the Denver Post reports. Those requirements include income limits on those who can purchase these homes, restrictions on annual appreciation and short-term rentals.
The affordable housing status of Denver homes are getting lost in the mix at the time of sale but the city is looking to the state for help in that department.
Denver City Attorney Kristin Bronson went before the Colorado Real Estate Commission this week to ask for help including specific disclosure requirements in place related to any affordable housing covenant, the Post reports. The commission also discussed a change in real estate contracts which would move information about exclusions on the title into the deed, making the information more available to the public, the Denver Post reports.
Denver is working with affordable housing homeowners to bring into them compliance with the program. Green Valley Ranch resident Cynthia Lopez dodged a bullet when the city told her she met income requirements at time she bought her home, and wouldn’t be forced to sell, but others might not be as lucky. If Lopez decided to sell her home, she’d have to adhere to appreciation restrictions, which would put the home value far below market value.