Denver Council Approves Affordable Housing Density Rules, Unlocking Zoning in Five Neighborhoods

Denver City Council voted 9-6 on Wednesday to amend zoning code requirements that had blocked construction of affordable housing in five central neighborhoods. The measure eliminates mandatory parking minimums and increases allowed building heights for developments serving households earning 60 percent of area median income or less. Council members said the changes respond to years of community complaints that strict parking and height rules made affordable projects financially unviable.

The vote came after the city released a housing assessment showing Denver needs 24,000 new affordable units by 2035 to keep pace with population growth. Currently, the city produces roughly 600 affordable units annually through its standard approval process. Local developers and housing nonprofits say the old rules required them to either abandon projects or shift focus to higher-income buildings that generate more revenue. The amendment targets Capitol Hill, Five Points, Rino, Baker, and West Highland, where single-family zoning had prevented multifamily affordable developments.

What Changes on the Ground

The rules take effect 30 days after publication in the Denver Revised Municipal Code. A nonprofit housing provider told council staff it had shelved three projects in Capitol Hill because parking requirements would have consumed 40 percent of the buildable site. With those eliminated, the organization expects to move forward on a 78-unit building at 13th and Logan Street targeting households earning $45,000 to $55,000 annually. A second project on South Gaylord Street, halted when height limits forced expensive basement excavation, is now projected to begin construction in early 2027.

The city projects the changes will reduce development costs by 8 to 15 percent for affordable projects, according to the planning department's fiscal note. That translates directly to lower rents. A 50-unit building that would have rented at $1,200 per month under the old approval timeline could rent at $1,080 under the new rules, housing advocates noted. For a household spending 30 percent of income on rent, that difference moves a family from cost-burdened to financially stable by Denver standards.

Who Opposes, and What Comes Next

Residents from neighborhoods bordering the five affected areas testified against the measure, citing concerns about parking spillover and neighborhood character. Council members from northwest Denver voted no, saying their constituents feared increased congestion without transit improvements. The Denver Transit Partnership has separately proposed expanding bus service to Five Points and Capitol Hill, but funding remains uncertain pending the city's 2027 budget process in September.

The council also directed the planning department to study whether the same zoning changes should apply to six additional neighborhoods by October 2026. City staff will assess existing transit access and parking capacity before recommending further amendments. Implementation of Wednesday's vote begins next month when the first affordable projects file under the new code. The housing authority says it expects to fast-track applications once the amended rules are published, targeting 12 to 18 projects for approval by year-end.