DENVER, CO – By Alex Burness for The Colorado Independent. Denver’s affordable housing program has "multiple, significant problems," the city auditor determined in a report released last week.
The program, with its 1,200 units throughout the city, is overseen by the Denver Office of Economic Development (OED). That office earlier this year came under fire after a 9News investigation revealed that some the program’s residents were improperly sold housing for which their incomes were too high to qualify — and then abruptly informed they’d need to sell, possibly at a loss, and move on to other housing outside the program.
The new audit claims that the OED "incorrectly calculated initial sale and resale prices of affordable homes, resulting in both overpricing and underpricing of homes." The report found three units were purchased for more than the allowed maximum price, and that the OED didn’t calculate a maximum sale price matrix at all during 2007, leading to up to 51 homes sold at too low a price.
Additionally, the audit found, the OED is improperly calculating income eligibility to guarantee affordable rates.
(Photo Credit: HopeCommunities, Creative Commons, Flickr)