The Denver City Council recently passed an ordinance creating the City’s first ever dedicated affordable housing fund, which is paid for by development impact fees and a property tax mill levy. ICSC along with other business groups opposed the new development impact fees.
January 1, 2017 is the effective date for the new impact fees, which will be imposed as follows:
* Residential – Single Family/Duplex: $0.60/square foot
* Multifamily – $1.50/square foot
* Commercial – Hotel/Office/Retail/Other: $1.50/square foot
* Industrial/Agricultural : $0.40/square foot
The impact of the mill levy increase on a commercial property owner will be $145/year for every $1 million of value. City officials say these dedicated revenue streams will subsidize the preservation or building of 6,000 income-qualified housing units over the next 10 years.
Again, please remember the January 1, 2017, effective date. If a development application is submitted by end of day Dec. 31, 2016, technically, the new impact fees will not apply. However, if you are planning new projects, make sure to submit applications as soon as you can; things will be very busy in late December.
Article Courtesy of ICSC – Office of Global Public Policy
Call Tony, Matt or John at Western Investment Network, WINning Real Estate Solutions, for all your commercial real estate needs. 720-344-1174