Denver City Council approves zoning change for mixed-use building with 100% affordable housing

The Denver City Council on Monday unanimously approved a zoning change in a West Colfax neighborhood allowing development of a mixed-use, three story building with 100% affordable housing. 

The 15,000 square foot lot at 4862 W. 13th Ave. currently houses a two story six-plex, and the previous zoning classification of road home appeared to allow a third story. However, there's a caveat in Denver's zoning code that prohibits a three story building on local streets, according to Edson Ibanez, Denver's Community Planning and Development senior city planner. 

"The current zoning, U-RH-3A, is a row house zone district and the 3A does allow for the apartment to be built there, but code says it can only be on a collector or arterial street," he said. "The applicant is mainly seeking to rezone so they can build an apartment here."

Though seemingly procedural, the change in zoning could allow the landowner and developer — listed as the 1757 Clarkson Street Trust which is part of The Blueprint Effect LLC, in city documents — to build up to 25 units on the lot, according to Nick Young, who represented the trust. Though there is no deed restriction in place, Young said an affordability agreement with the city has been signed.

Development is currently "up in the air," he said, as the decision is in Denver's review process following the council's vote. Current occupants may rest easy, Young said, as there is a plan for them.

"In response to possible displacement, the development team plans to reach out first to the existing tenants in regards to opportunities to rent the new units once constructed," he said in an email. "The development group focused on creating buildings that are in line with the desires of local registered neighborhood organizations and Denver’s overall goals for Affordability.”

Every unit at this development, as well as a building next to it, will be available at 60% area median income (AMI), which District 3 Councilwoman Jamie Torres praised. Denver requires new developments with over 10 units have 8-12% of those units be income restricted. Of course, developers can opt to pay a fee ranging from $250,000 to $478,000 rather than incorporate affordable housing. 

District 1 Councilwoman Amanda Sandoval used to represent the neighborhood the property is in. She helped develop the West Area Plan, approved in 2023 — a comprehensive plan outlining a process to reinvest in and revitalize neighborhoods like West Colfax, Valverde and Sun Valley, among others.

Rezoning the property to allow 25 units of affordable housing like this was the whole point of the West Area Plan, Sandoval said, and called the process "super meaningful."

For a small developer to learn and explore what 25 units of affordable housing can mean for the city was huge, Torres said. 

"This is a pretty unique situation," she said. "60% AMI is our workforce... That's a meaningful number in a neighborhood where we've largely had market rate and luxury developments built, many of which are very vacant."

The city is facing an affordable housing shortfall, and it is one of Mayor Mike Johnston's major priorities. Torres said she hopes this process can be seen as somewhat of a lesson for the mayor and other developers in the future about including more affordable housing in developments — beyond what the city requires. 

Denver's Housing Authority reported the city may need up to 50,000 additional housing units to sustain future growth.  

"It really speaks to the need of developments like this," Torres said.