Denver Mayor Johnston's affordable housing tax inches closer to ballot

Denver Mayor Mike Johnston's proposal to raise taxes for affordable housing development is poised to make the November ballot.

Why it matters: Johnston's signature tax plan is a pivotal component of his mission to "solve" Denver's housing crisis, and a favorable decision could relieve tension between his administration and City Council .

Driving the news: The measure was advanced by a City Council committee on Wednesday.

State of play: A simple majority vote from the council will be required for approval. As of Wednesday afternoon, it appeared as though there was enough support to send the measure to voters, multiple members told Axios Denver.

• Council president Amanda Sandoval leads six others in backing the proposal. Five council members are undecided; council member Kevin Flynn says he will vote no.

Context: Wednesday's decision came two weeks after the committee voted to delay the bill's advancement , with council members calling it rushed and requesting more detail.

• Johnston's plan calls for a 0.5% increase to the city's sales tax to raise roughly $100 million annually to finance, build and maintain rental and for-sale homes.

State of play: Jamie Rife, the city's chief housing officer, on Wednesday presented 13 changes to the measure.

• Those included ensuring ADA compliance, clarifying income-level availability, giving the council approval on an overall spending plan, and additional restrictions on how the money can be used.

The intrigue: Council member Amanda Sawyer, who's undecided, says the plan still doesn't give sufficient time to determine how the money will be spent. Johnston's proposal requires a first-year plan due by Jan. 31, 2025.

• Sawyer added she's concerned about the Johnston administration potentially using the money raised by the tax hike to issue municipal bonds for projects.
• Meanwhile, council member Stacie Gilmore, who's also undecided, says the measure should do more to help people keep existing homes.
• Council member Chris Hinds says though he's voting yes, he wants to see building regulations that go beyond minimal standards to meet ADA requirements.

Zoom out: Data presented Wednesday shows Denver needs 43,990 units to meet local affordable housing demand — a goal Johnston says his plan can meet.

What they're saying: Johnston in a statement Wednesday applauded the council's decision, saying the measure will help working-class Denverites stay in the city.

• Council member Darrell Watson, a co-sponsor of the proposal, told us he feels "confident" his colleagues will put the question before voters this November because "we're all committed to making sure we increase affordable housing."
• Watson doesn't believe the mayor's tax hike will prevent a second proposed sales tax to provide funding to Denver Health and said he will "work with the community to make sure that they both are successful" this fall.

What's next: Johnston's measure will be introduced to the full City Council for the first of two votes next Monday.

• A final vote is scheduled for Aug. 19.