Denver Passes Ballot Measure to Increase Funding for Homeless Services

Denver Homeless Tax_CI0A4446_print.jpg

 

Sotry by Robert Davis

Photo by Giles Clasen

More than 65 percent of Denver voters approved a ballot measure that will increase city sales tax to generate additional funds for homeless services.

Known as “2B,” the measure increases sales tax by $0.25 and is estimated to bring in $40 million during its first year. Funding is expected to fluctuate depending on sales activity. The City estimates the average Denver family will see a $5 per month increase.

Money raised will go toward adding 500-to-600 beds in 24-hour shelters. Denver lost approximately 1,200 beds because of the COVID-19 pandemic, according to estimates by the Department of Housing Stability (HOST). Other services include increasing day services for mental health and substance abuse treatment, and rental assistance for 1,800 households.

The tax will not be collected on food for home consumption, water, fuel, medical supplies, or feminine hygiene products. No more than 8 percent of revenue generated can be used by HOST to administer the program.

2B also requires City Council to approve a city plan every three to five years that funds housing or homelessness investments. Denver’s response is guided by two plans: The Housing an Inclusive Denver Plan, and the Three-Year Shelter Plan. Both plans increase funding for services but conspicuously left out options to address homelessness outside of Denver’s shelter system.

Councilwoman Robin Kniech, the measure’s prime sponsor, said Wednesday the City expects a quick turnaround on the first plan for the program. Describing how funds will be dispersed in the first year she said the City will put out a plan for public comment “in the next few weeks”.

“We know that homelessness is increasing because of the pandemic, and it is a long journey ahead of us to get to the improved outcomes that we’re working towards,” Kniech said.

Service providers like the Colorado Coalition for the Homeless say they are glad the City took this step forward to address the issue of homelessness.

“We know what it takes to reduce homelessness—and Measure 2B helps to put much-needed resources towards those efforts,” John Parvensky, president and CEO at Colorado Coalition for the Homeless, said in a statement. “Through these resources, we will be able to scale access to housing and other necessary support services that are proven methods nationwide and right here in our backyards.”

However, housing advocates are concerned the City is too reliant on its shelter system. Terese Howard, an activist with Denver Homeless Out Loud, said the $40 million 2B is estimated to generate could be used to lease housing for low-to-no income individuals instead of putting them into shelters.

“The trick is, our City has shown thus far they do not want to create housing for people but rather want to use the money they have to keep people in shelters,” she told the Denver VOICE in an emailed statement. “In order for this 2B funding to make a real impact on homelessness we must hold our City accountable to use these funds for housing.”

Denver VOICE