DENVER – July 2, 2025 – The City and County of Denver’s Department of Housing Stability (HOST), in partnership with the Denver Housing Authority (DHA), today launched a new pilot program to support the development of new middle-income rental housing. Through the Partnership for Middle Income Housing Pilot Program, HOST will conduct underwriting and DHA will provide property tax relief to unlock otherwise financially infeasible projects and expand housing options for Denver’s essential workforce.
“This program reflects the kind of innovation we need to solve Denver’s housing crisis,” said Mayor Mike Johnston. “We’re using every tool available to help people stay in the communities they grew up in and make sure working families can afford to live in the neighborhoods they want to.”
Denver’s skyrocketing housing prices continue to be one of the most urgent issues Denverites are facing, and even residents with good jobs are facing the risk of being priced out of the city they love. For too long it has been too difficult to build housing that is actually affordable to middle-income Denverites. In fact, data from the Denver Regional Council of Governments shows that without any action, Denver will be short more than 4,200 units of housing that working families can afford in the next 10 years.
This program aims to address that problem by offering a tax exemption for up to five new multifamily developments in 2025. In return, projects must deed restrict apartments for 30 years to be affordable to middle-income households defined as those earning less than 100% of area median income (AMI), which is $58,860 to $98,100 for a 1-person household and $111,000 to $185,000 for a 4-person household.
“This is a smart and scalable strategy to catalyze viable housing opportunities for the middle-income workforce,” said Joaquín Cintrón Vega, Chief Executive Officer of the Denver Housing Authority. “We’re proud to be part of a team that’s working to bring forward a new kind of housing option for Denver families and one that is responsive to the city’s real needs and the people we proudly serve.”
Eligible projects must be new construction, meet the affordability requirements, and demonstrate that the development would not be financially viable without the property tax relief and exemption from the State portion of sales and use tax. DHA will enter the ownership structure as a special limited partner in order to access the exemption. HOST will underwrite each proposal to determine the appropriate length of the tax exemption, which is capped at 15 years and expected to average around 10 years.
The program builds on the City’s 2022–2026 Strategic Housing Plan and complements other emerging tools focused on middle-income affordability, including new programs from the Colorado Housing and Finance Authority (CHFA) and Proposition 123 funding. Selected projects may be able to combine local tax relief with these other resources to achieve deeper affordability or stronger financial feasibility.
Applications will be prioritized based on alignment with the City’s strategic goals, including:
•Location in a neighborhood with high risk of involuntary displacement
•Transit-Oriented Developments
•Provision of family-sized units, accessible design, or green building features
•Depth and duration of affordability beyond what is required by City ordinance
Letters of Intent are being accepted for Round 1 beginning July 15, with selected projects expected to be approved in late 2025/early 2026. If the pilot is successful, it could be considered for expansion. To view program details and submit a Letter of Intent, visit denvergov.org/housing or email housingdevelopment@denvergov.org.
###
The Department of Housing Stability is committed to building a healthy, housed and connected Denver. The department invests resources, creates policy, and partners to provide housing stability, resolve episodes of homelessness, and create housing opportunities. For more information, visit denvergov.org/housing.
Denver Housing Authority (DHA) is a quasi-municipal corporation with a portfolio of over 14,600 units and housing choice vouchers, providing affordable housing to more than 30,700 very low, low, and middle-income individuals. DHA’s mission is to serve the residents of Denver by developing, owning, and operating safe, decent, and affordable housing in a manner that promotes thriving communities. DHA has been creating vibrant communities and sustainable neighborhoods since 1938. For more information, visit www.denverhousing.org.