In our 2024 Vote Your Values Guide Supplement for Denver voters, the Interfaith Alliance of Colorado explained its support for Ballot Issue 2R. 2R would add 0.5% (half of 1 percent) to Denver’s sales tax to generate $100 million a year to expand affordable housing in the city. Some categories of items are exempt from the tax, including food, fuel, medical supplies and some personal hygiene items.
As housing costs have rapidly escalated, many Denverites are struggling and can no longer afford to stay in the communities they have called home. Many households, and in particular low and middle income households, find themselves “cost-burdened”, meaning that they are paying more than a third of their income for housing costs. According to 2022 data from the National Low Income Housing Coalition, 85 percent of households renting in the Denver metro making less than 50% of the adjusted median income are cost burdened. At 51% to 80% of the adjusted median income, 60 percent of those households are cost burdened. Dealing with cost burden is a key goal of 2R and affordable housing policy.
Rising housing costs are burdening financially and can lead to families being uprooted from their homes, schools, faith families, and other important connections. The costs of that displacement may be less easy to quantify, but they are no less impactful.
2R will involve an additional .5% sales and use tax and generate $100 million dollars annually that the city can use to support affordable housing programs and help our neighbors stay in their communities. It’s a small increase that stands to make a big impact. As we explain in the guide, our tax dollars are investments in our communities and are an important reflection of how we care for our neighbors. Voting “Yes” on 2R allows our entire community, and its visitors, to invest in our residents through affordable housing programs.
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