Denver’s Affordable Housing Program is a voluntary program which provides individuals with a variety of housing purchase options. The properties are deed restricted affordable housing units which are subject to the terms of a Covenant. It is crucial that all potential buyers read the Covenant thoroughly prior to purchasing.

The Affordable Housing Covenant, among other things, includes a restriction on the allowable income of prospective buyers, sets a maximum allowable purchase price on the sale of the property to future buyers, may impose a transfer fee and does not allow rental of the unit at any time. Additionally, it may include a Final Resale requirement. In summary:

• To purchase an affordable housing unit, buyers must be an income eligible buyer according to the terms of the Covenant.
• Future sales of unit will be limited to income eligible buyers. Income verification will be required for all current and future buyers of the unit according to income restrictions contained in Covenant.
• The unit may only be sold to eligible buyers per the City’s approval and according to the terms of the Covenant.
• The unit must be owner occupied at all times – no rental of the unit is allowed.
• The resale price will be limited in accordance to the Covenant in an effort to maintain future affordability.
• The affordable housing unit has a control period in which all of the above are in effect.
• The affordable housing unit may or may not have a final sale requirement. The final sale may require profit sharing between the developer, City and seller.
• Buyers should be aware that not all Affordable Housing or Master Covenants are FHA approved. Potential homeowners should determine FHA approval prior to closing and be prepared to seek alternative financing.

If a buyer chooses to sell or refinance their unit, they must contact the City to request a Maximum Resale Price prior to any action being taken. Be aware that any Maximum Resale Price obtained from the City is not a guaranteed price; it is merely the highest price point a unit can list my unit for. If may be necessary for owners to lower the price of the unit depending on market conditions and the condition of the home.

Additionally, homebuyers should be aware that if they purchase an affordable unit which an HOA applies, they are subject to the terms and conditions of the HOA independent of the City’s program. Homebuyers must also be aware that HOA fees may fluctuate and possibly increase over time and adjust accordingly.

Any issues arising between the homeowner and the HOA will be negotiated between the parties involved. The City will not be party to said negotiations or discussions. Therefore, it is strongly recommended that individuals purchasing an affordable housing unit where an HOA is present to thoroughly consider the requirements of the HOA and its present and future cost.