Englewood officials push for affordable housing incentives; state lawmaker cites tax credits, modular construction and construction-defect reform

City staff told state officials that an Englewood affordable housing task force concluded the city will likely need dedicated incentives to attract developers to build below‑market units.

The city committee, formed as part of the Unified Development Code update, recommended establishing an affordable housing fund and said it encountered instances where developers preferred paying fees in lieu of building on‑site affordable units. City representatives warned that density and zoning changes alone may not deliver affordable units without financial incentives.

At the briefing, Jeff, chair of the Joint Budget Committee, laid out state-level tools Englewood can consider. “I passed a bill to create the middle income housing authority,” he said, describing legislation that lets middle‑income housing projects access municipal bond markets. He also said the state created a middle‑income housing tax credit and expanded low‑income housing tax credits, and that he is sponsoring a bill on modular construction this year to lower costs and speed production.

On construction‑defect reform, Jeff said the reforms passed previously will “dramatically increase the number of for‑sale multifamily units across the state” but cautioned that the changes do not necessarily increase the total number of units — they shift some rental inventory toward for‑sale units. He said he will watch a new construction‑defect bill in the House closely and has not cosponsored it to date.

Why it matters: Local officials said they have increased capacity and zoning to allow more density but that market economics and developer choices could limit actual production of affordable housing without incentives and funding support. State tax credits, bond access, and modular construction are among the mechanisms Jeff suggested Englewood could use to leverage state support.

Clarifying details: City staff reported the city created an affordable housing task force and that recommendations were delivered to council roughly two weeks before the briefing. The task force specifically recommended an affordable housing fund; the council noted some developers have preferred fee‑in‑lieu payments.

Next steps: City staff said they will continue refining the council’s legislative priorities and coordinate with state staff to explore how Englewood can access or match state programs and credits. Jeff encouraged local officials to review state tax credits and the modular‑construction proposal as part of local planning.