Politics
Denver Mandates 15% Affordable Units in New Apartment Projects Starting 2026
The ordinance requires 15 percent of units in qualifying developments to rent at below-market rates starting in September 2026, applying to projects in districts including Capitol Hill and Globeville.
How we reported this
Denver City Council passed the Inclusionary Zoning Ordinance during its July 6 meeting, requiring new residential developments with 20 or more units to designate at least 15 percent of those units as affordable for households earning up to 80 percent of area median income.
The vote came after the council reviewed housing production data from the city's 2025 annual report, which documented permit approvals for 4,200 market-rate units in the prior 12 months but fewer than 600 income-restricted units. Council members cited ongoing permit applications for projects along Federal Boulevard and in the River North area as the immediate trigger for action.
Direct effects on household budgets
Residents seeking rental housing in new buildings will encounter a portion of units priced according to formulas tied to Denver's area median income figures published by the Department of Housing and Urban Development. For a two-person household, that threshold sits near $72,000 annually, meaning qualifying rents will be calculated to remain under 30 percent of that income level. Existing tenants in buildings completed before September 2026 face no immediate change to their lease terms.
Property owners and developers must submit compliance plans to the Denver Office of Housing Stability before receiving certificates of occupancy. The ordinance document states that projects failing to meet the set-aside can pay an in-lieu fee of $150,000 per required unit into a city-managed affordable housing fund.
Next steps for implementation
City staff will begin accepting compliance applications on August 1, with the first projects expected to break ground under the new rules by late 2026. The legislation directs the Office of Housing Stability to publish quarterly reports tracking unit delivery and rent levels, with the initial report scheduled for January 2027.
Local real estate analysts note that the measure covers only developments seeking new permits after the effective date, leaving smaller infill projects and single-family construction outside its scope. Residents in neighborhoods with active rezoning requests can review project filings through the city's online permitting portal to determine whether a given site falls under the ordinance.