Denver adds $2.25 million to property tax rebates, and scales back an ADU program that built 26 of 44 units in seven years

Two Department of Housing Stability (HOST) contracts that went through the Mayor-Council meeting on Nov. 10 show where the city is adding and trimming housing help. Both are headed to the Community Planning and Housing Committee on consent.

Why it matters: one pays partial property tax or rent rebates to older, disabled and lower-income residents. The other helps homeowners in West Denver build backyard rental units, and it has fallen short of its goal.

Property tax relief: $2.25 million more

26-1739 adds $2,250,000 and one year to Brothers Redevelopment's contract to run the Denver Property Tax Relief Program, for a new total of $5,900,000 through Dec. 31, 2027. The money is from the General Fund, according to the request.

The program "provides partial rebates to qualifying Denver residents for property taxes paid or the equivalent in rent," the request says. Brothers reviews applications, checks age, disability status and income against the area median for the household's size, confirms the applicant lived in Denver all of the prior year and paid that year's taxes or rent, and then issues payments. It also refers applicants to rent and utility help, eviction legal defense and home repair programs.

The contract started May 1, 2025. This is its second amendment.

The backyard-unit program: $250,000 less

26-1741 amends HOST's agreement with the Denver Housing Authority for the West Denver Single Family Plus ADU program, run through the Authority's West Denver Renaissance Collaborative. The program gives homeowners soft second mortgages to build accessory dwelling units, to be rented to households at or below 80% of the area median income.

From the request:

• Since 2019, the program has delivered 26 of the 44 ADUs it was supposed to build.
• The amendment cuts the goal to 38 and the grant from $1,930,000 to $1,680,000.
• It adds two years, to Dec. 31, 2028, for the remaining 12 units.
• It lets the money reimburse both hard and soft construction costs.

The money comes from inclusionary housing funds and the city's affordable housing property tax. The request doesn't say why the program fell behind.

What our records add

This is the fourth change to the ADU agreement. The Council approved it in 2019 (19-0245), extended and changed its scope in 2021 (21-0642), and extended it again with more money in 2024 (24-1061).

Brothers Redevelopment runs several city aid programs. Since August the Council has approved amendments for its Temporary Rental and Utility Assistance program (26-1287) and its foreclosure assistance program (26-1339). Rental aid was the center of this year's budget fight (our story).

Upzoning is back. The city's citywide middle-housing proposal would also make it easier to add units to single-family lots (our story).

What's next

Community Planning and Housing Committee on consent, then Mayor-Council and the full Council.