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Denver mayor agrees to smaller cut for housing assistance

Denverite

Denver mayor agrees to smaller cut for housing assistance
Photo: Denverite

The city will provide $8.5 million for eviction prevention, a drop from this year’s $15 million.

The Denver City Council successfully pressed Mayor Mike Johnston to increase eviction prevention funding in the 2027 budget – albeit by far less than some council members say is needed.

Eviction court cases spiked after the pandemic and remain elevated , with some city officials worrying an economic downturn could drive them even higher.

But the city’s funding for emergency rental assistance has dropped in recent years as federal funding has evaporated.

For 2026, the city budgeted $15 million for its Temporary Rental and Utility Assistance (TRUA) program. That would drop to $4.5 million in 2027 under Mayor Mike Johnston’s proposed budget.

The city council pushed back , arguing for a higher amount. And in a meeting this week, the council and the mayor announced a compromise: $8.5 million for the coming year.

“We know that this is just a drop in the bucket,” said Councilmember Serena Gonzales-Gutierrez, who argued for more funding. “We know that the need far exceeds what we have available to us, whether it’s $4.5 million or $8.5 million. It far exceeds what is absolutely needed in our communities.”

She suggested the council look for more funding later in 2027, depending on the city’s financial health.

Johnston maintains that the city can do more with less money. It is getting better at delivering TRUA money to the people who need it most, he said.

The mayor also notes eviction case filings have been dropping year over year, while others have argued that the number of court cases may not correspond to the actual number of evictions. But the decrease has not brought the rate back to pre-pandemic norms.

Councilmember Amanda Sawyer argued that the city can’t afford to increase TRUA’s budget without sacrificing other essential city services.

“We all really want to fund TRUA at a higher level because it is a fantastic program that changes people’s lives,” she said. “And we cannot afford it.”

Council approved the $8.5 million TRUA budget with a 10-2 vote, with Kevin Flynn and Amanda Sawyer opposing it.

Does TRUA work?

Johnston said he is waiting for The People Lab at Harvard Kennedy School to finish studying Denver’s eviction prevention program before deciding whether to further increase funding. That could happen as soon as next year.

Some council members argue there’s no need to wait for a study. The evidence, they say, already exists.

“We have providers right now doing this work on the ground and they will easily tell us that these services are effective and they’re necessary,” Gonzales-Gutierrez said. “We’re able to prevent folks becoming unhoused and being displaced.”

Jeff Kositsky, deputy director of the Department of Housing Stability, told the council the program works – and that the study will reinforce what the city already knows.

“We do have some preliminary results, and no surprise, it does show that this program is effective,” he said.

Renters and landlords are split.

During public comment on the budget last month, multiple speakers said the Temporary Rental and Utility Assistance (TRUA) program had saved them from becoming homeless .

Providing money to prevent homelessness is far cheaper than helping people after they lose their homes, according to a report from the National League of Cities. But it does not solve the issue entirely.

“Though these solutions don’t provide the holistic support that is often necessary to prevent homelessness to those most at risk of homelessness, short-term financial assistance can be vital to households experiencing circumstantial hardships that are making it difficult to pay their bills,” the report states.

Some landlords argue that eviction isn’t such a pressing issue. While there are more eviction cases, that number may be higher because the city forces landlords to take tenants to court before awarding the emergency assistance money, said landlord Tim Townsend.

In a recent email to Denverite, Townsend argued eviction is a necessary part of doing business. City and state eviction prevention policies succeeded in making evicting tenants harder, which increases costs for landlords trying to get their fair payment.

“Evictions have always existed and always will,” Townsend wrote. “It should not be the government’s responsibility to save people from situations they bring onto themselves, sometimes over and over.”

The mayor has until Friday to accept or veto the council’s amendments. On Nov. 9, the council can override any vetoes with nine votes. The body must pass the budget by that date. If it fails to, the proposed budget becomes the final budget.

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