Denver Provides Housing Subsidies for Luxury Apartments
Digested from The Wall Street Journal
The Mile High City’s voucher program will help lower-income resident bridge the gap between their salaries and market rent.
Since 2015, some 12,000 apartments have been delivered in Denver and another 22,000 more are under construction, according to CoStar Group.
That amount of new supply pushed the number of vacant apartments in the city from 5,500 in 2015 to 16,000, according to MPF Research. But soon some of those apartments will provide affordable housing for middle-class workers.
“Under a program to be unveiled later this month, the city, along with employers and charitable foundations, will pay the difference between what a lower-income resident can afford and the market rent of an apartment,” writes Laura Kusisto of The Wall Street Journal.
Voucher holders will receive two-year subsidies for their apartments. Initially there is enough money to subsidize 400 apartments and officials say owners have contributed 100 apartments to the program. The city has requested apartments in new or recently renovated apartments be added to the program. The city expects to subsidize about $500 a month for individuals and $900 a month for families, according to Kusisto.
“This is not a welfare program or anything like that,” says Mike Zoellner, a local developer who helped create the program. “This is [for] people who are working at hospitals, hotels and food service. We want them in our community and we want them in our building.”