Page 2
— Multifamily Properties Quarterly — August 2016
CONTENTS
Letter from the Editor
I
t’s difficult to discuss the mul-
tifamily housing environment
without first mentioning how
strong the Colorado market is.
But as demand grows, vacancies
decrease and rents skyrocket, a new
topic of discussion becomes unavoid-
able – can people afford to live here?
The topic is complex, ranging from
legislative and environmental causes
for the crunch to negative implica-
tions it could bring if we continue at
this pace without
addressing it.
In the cover arti-
cles, Denver Mayor
Michael Hancock
and City Council
Members Robin
Kniech and Albus
Brooks lay out the
argument for their
proposed perma-
nent affordable housing funding plan.
NAIOP Colorado executives, mean-
while, share a counter perspective,
stating that the proposed develop-
ment impact fee is unfair. They argue
that affordable housing is a commu-
nitywide concern, which means the
revenue for the solutions should come
from the entire community, not just
one sector.
In an effort to encourage more
affordable housing developments, we
also have two articles that address
funding these types of projects. Ken-
neth Puncerelli with LAI Design
Group gets into the nitty-gritty on
how developers can take advantage
of low-income housing tax credits as
a financial source for these projects.
And Michael Thomas with Gershman
Mortgage writes about the available
funding programs to make these com-
munities come to fruition.
We’ve all heard that Denver is a mil-
lennial hotspot.We also have heard
that this generation is saddled with
crippling student debt, making many
delay homeownership. In a diverse
market, many of these individuals
might look to affordable condomini-
ums as their first real estate purchase.
However, those opportunities are very
limited in Colorado.
While some municipalities are
enjoying a little relief on the construc-
tion defect front through local ordi-
nances, the state’s Legislature remains
at an impasse. Developers and con-
tractors find little incentive to build
affordable housing when the esti-
mated threats of costly construction
defect litigation diminishes expected
returns. As a result, affordable condo-
minium development is being written
off as largely unfeasible, Jared E. Berg
with Sherman & Howard LLC writes in
his article on Page 12.
And while the Denver market can, at
times, be the focal point in the afford-
ability discussion, it is not an isolated
issue. Mountain towns are experienc-
ing an extremely tight market as limi-
tations to new developments combine
with record-setting population growth,
making it difficult for many high-
country residents to find places to
live where they work. Greg Price, with
Marcus & Millichap, breaks down the
escalating supply-and-demand chal-
lenges for the area on Page 8.
303-623-1148, Ext. 104
