Denver’s TDM Ordinance Could Impact Affordable Housing Development
By Robert Davis
On Monday, April 19, Denver City Council approved a new ordinance that will require housing developers to provide residents with access to alternative means of transportation.
Known as Transportation Demand Management (TDM), the ordinance requires certain mixed-use and commercial developments to provide access to protected bicycle parking, showers and lockers for bike commuters, subsidized or free transit passes, and credits for shared bikes or scooter.
It was approved without discussion.
When the ordinance first came before Council in March, some members expressed skepticism of the ordinance’s enforcement tiers. It is tiered from 0 to 3, with more restrictions following the greater numbers.
Councilwoman Candi CdeBaca (District 9) was concerned that “Tier 0”, which includes single-family homes and small commercial spaces, would not include some properties in her district that could benefit from the ordinance.
One example she pointed to is the area surrounding the RTD station at 41st Avenue and Fox Street. The area is light industrial, with a healthy mix of both commercial and residential properties.
“I’m concerned that our Tier 0 will eliminate a lot of buildings in places where we need to have a TDM plan,” CdeBaca said.
CdeBaca’s concerns were echoed by Councilman Paul Kashmann (District 2).
While some developers share these concerns, others see TDM as a means of providing Denver the affordable housing stock that the city desperately needs.
Justin Schor, principal at Wells + Associates, an engineering firm, told the Denver VOICE that TDM can provide developers several ways of providing affordable housing against the grain of the city’s housing market.
“Although there are a lot of variables that can go into making housing more affordable, there are two variables that TDM can support: increased density and decreased parking,” Schor said in an emailed statement.
Density helps developers spread the cost of construction out over several units, Schor says. For example, a piece of land costs the same whether a developer builds a 4-story or a 10-story building. In this regard, TDM incentivizes developers to think bigger about their projects.
However, thinking bigger doesn’t necessarily mean that developers must plan for large parking lots either. TDM can decrease parking density by providing alternate means of transportation to-and-from home that do not involve roadways or cars.
“Many jurisdictions require by code that new developments construct a minimum number of parking spaces because of concerns that insufficient parking will lead to occupants parking on the street. So, in essence, local policies requiring excess parking can drive up the cost of housing and make it less affordable,” Schor added.
Less parking also equates to a lower cost of construction. This means developers can leverage existing transportation infrastructure to control the cost of their product when it goes to market.
At the same time, the ordinance provides decreased setbacks and greater flexibility for land uses. When coupled with increased density, Schor says TDM could increase developer revenue while simultaneously cutting their costs.
“Clearly the City of Denver put a lot of thought into what they would give developers in exchange for implementing TDM at their sites. I commend the City of Denver and the team they worked with to develop the policy,” he added.