Denver City Council Establishes $65M Affordable Housing Land Acquisition Trust

DENVER, CO — Denver City Council approved legislation on Tuesday establishing the Denver Transit-Oriented Land Acquisition Trust, allocating $65 million in initial capital to acquire strategic land parcels along planned bus rapid transit (BRT) and commuter rail corridors before private speculative land prices escalate.

Land Banking for Long-Term Housing Affordability

The municipal land trust will purchase vacant commercial lots, aging retail plazas, and underutilized parking structures along Colfax Avenue, Federal Boulevard, and East 38th Avenue. The acquired land will be leased under 99-year ground leases to non-profit housing developers and community land trusts at nominal rates.

The policy ensures that newly constructed residential developments maintain legally binding affordability covenants restricting rents to households earning between 30% and 80% of Area Median Income (AMI) in perpetuity.

Preventing Displacement in Growing Transit Corridors

City planners emphasized that public land acquisition prevents the displacement of lower-income residents and local minority-owned businesses as the city completes multibillion-dollar transit modernization projects.

Mayor Mike Johnston commended council for taking proactive steps to address Denver's housing crisis, highlighting that controlling land costs is the single most effective tool to lower per-unit construction costs for subsidized housing.

Financing Structure and Private Matching Capital

The trust is capitalized through municipal housing bond revenues alongside $20 million in philanthropic matching capital from regional housing foundations, with initial parcel acquisitions scheduled for late 2026.