Keys to Affordable Housing
Mayor Joe RiceThe Census figures are in, and by now you've probably heard that there are more of us!  The Denver metropolitan area grew by almost a half a million people from 1990 to 2000.

Housing prices in the metro area have soared as well; far out pacing the rate of population growth, inflation, or almost any other measure. Tony Hernandez of Fannie Mae estimated that approximately 80% of the new housing constructed is affordable to less than 20% of our region's residents. Research in Glendale, as another example, indicates that up to 40% of Glendale's current population will not be able to afford to live in our community in 5-10 years, if present trends continue.

The Metro Mayors Caucus, in collaboration with a number of other private and public entities, has taken steps to preserve the benefits of this growth, such as jobs and economic development, while also protecting our region's high quality of life and promoting housing opportunities.

Our framework is a plan developed by the 49 cities and counties that make up the Denver Regional Council of Governments.  This plan, called "Metro Vision 2020," addresses the issues of growth, transportation, and housing. Cities and counties representing nearly 80% of the region's population have signed a binding agreement known as the "Mile High Compact" implementing the plan's  provisions.

All the elements of Metro Vision affect housing in one way or another.  Take the issue of sprawl for instance, prior to Metro Vision the urbanized metro area was projected to double from approximately 520 square miles to nearly 1,000 square miles by 2020.  Through Metro Vision, municipalities and  counties negotiated and agreed to hold development in that same period down to 735 square miles. This figure prevents unmitigated urban sprawl and provides enough new developable land to meet the needs of the region's anticipated population growth as well as to support affordable housing.

Some opponents argue that any type of growth limit constrains the amount of land available for development and therefore drives up housing costs.  But it's just not that simple. The costs of serving new homes with public services and utilities rise dramatically as development moves out onto raw open lands and traffic congestion worsens as homes and jobs move farther apart.  A better alternative is to allow more units to be built on a smaller amount of land in already urbanized areas.

Other specific activities of the Metro Mayors Caucus include:

BEST PRACTICES: The Caucus, working with the local office of the Department of Housing and Urban Development, published a resource book highlighting successful affordable housing strategies from around the region.  The Affordable Housing Source can be seen on the Web at www.metromayors.org/AffHousing.html.

REGULATORY BARRIERS: The Caucus developed a list of regulatory barriers that drive up the cost of housing and has taken action to reduce or eliminate many of them. For example, Northglenn's zoning allows lot sizes less than 4,000 square feet. Englewood waives fees for some affordable projects.  Boulder exempts from their growth management system affordable units, mixed use developments, and housing in developments that provide 35% or more affordable units.  Many  communities, including Glendale, are considering incentives to encourage mixed-use developments.

HOMEBUYER PROGRAM: By far the most successful effort of the Metro Mayors Caucus has been pooling more than $65 million in tax exempt bonds to provide low interest mortgages.  The program also provides down payment grants and closing cost assistance.   At a time when housing demand has driven prices to record levels, combining interest rates as low as 6.5% with down payment assistance has been the key to homeownership for many that would otherwise be priced out of the market.  This ongoing program has helped more than 500 families since 1998.  The program normally begins each spring, and information is posted on our website at www.metromayors.org.

The Metro Mayors Caucus understands that a vibrant region provides both urban and suburban housing opportunity.  A sustainable metro Denver must include single family homes and townhomes in neighborhoods and apartments and condominiums near jobs and in thriving city centers.  Opportunity must exist throughout the region for seniors, assisted housing and for everyday people working everyday jobs.

Metro Vision is built on these principles and we hope that as the citizens, local governments, and the Colorado General Assembly wrestle with these complex problems that they look closely at Metro Vision 2020 as a model of regional cooperation and responsible growth management.

Joe Rice is the mayor of Glendale, Vice Chair of the Metro Mayors Caucus and a member of the Colorado Democratic Leadership Council, a think tank advocating new ideas and the Democratic Party's historic commitment to economic growth,  personal responsibility, community, individual liberty and equal opportunity.

(This commentary was published in The Denver Post on April 9, 2001)