Politics
Denver Inclusionary Housing Rules Take Effect for 2027 Permits
Denver renters in central neighborhoods will encounter the first new affordable units tied to the updated rules after projects permitted in early 2027 reach completion.
How we reported this
Denver City Council passed the mayor's update to the inclusionary housing ordinance on July 6. The measure requires residential projects with 10 or more units to reserve 15 percent of units at below-market rents for households earning up to 60 percent of area median income. The rules apply to all permits issued on or after January 1, 2027.
The update follows the release of the city's 2026 housing needs assessment, which recorded a 9 percent rise in market rents across the metro area between 2024 and 2025. City staff prepared the ordinance after reviewing permitting data from the Department of Community Planning and Development.
Changes for Permit Applicants and Future Tenants
Developers planning buildings in Five Points, Baker and Lincoln Park will submit compliance plans that detail unit locations and rent schedules before permits are granted. A two-bedroom unit reserved under the program in those areas must rent for no more than $1,450 monthly in 2027 dollars. Families already on the city's housing choice voucher waitlist may receive priority placement once the first buildings open in 2028.
The legislation directs $8.5 million from the housing trust fund to cover administrative costs and gap financing for the first three years of the program, according to the budget summary attached to Ordinance 2026-045.
Remaining Steps Before Full Operation
City staff will open an online portal for pre-application reviews on October 1, 2026. Projects that receive permits before the January 2027 cutoff remain under the prior 10 percent set-aside rule. The Department of Housing Stability expects the first certificate of occupancy for a compliant building in the second quarter of 2028.