The building industry in Denver has weighed in against a proposal that would use development impact fees to help pay for the city's $150 million affordable housing initiative, with the other half of the initiative paid for via a property tax increase. Denver Post staffer Jon Murray reports on the pushback from the building industry.
The recently formed Colorado Real Estate Alliance, which includes the Home Builders Association of Metro Denver and others wants the initiative to be funded using the property tax and points out the flaws of the development fee:
“Fundamentally, the premise that developers are responsible for creating this (housing) demand is wrong. They are responding to the demand that is in the market,” said Carl N. Koelbel of developer Koelbel and Co. in testimony to the committee. “If we want to encourage development and encourage affordability, then we shouldn’t make the homes more expensive.”