Denver Amends Zoning Code to Possibly Save Thousands of Housing Units with SDP Extension

Denver’s Community Planning and Development Department initiated—and on May 4 the City Council approved—the revival of more than 150 planned housing projects amid a multifamily development slowdown plaguing the city. 

Councilmembers approved an amendment to Section 12.4.3.6.C of the Denver Zoning Code, providing that Site Development Plans (SDP) approved prior to Dec. 31, 2025, have 66 months to obtain a building permit and commence construction before the approved SDP expires. SDPs approved after Dec. 31, 2025 will have 30 months to obtain a building permit and commence construction prior to expiration of the SDP. 

Prior to the City Council approved revision, Developers typically have 30 months after the city approves an SDP to commence construction, or they have to restart the planning process, rendering the project subject to any changes in law enacted after SDP approval, including potential elimination of any exemption of the project under Denver’s inclusionary housing ordinance, better known as the “EHA”. The amendment is projected to impact 156 approved site plans that have not yet broken ground, or a total of 23,000 housing units.

It should be noted that extension of the expiration date for these approved SDPs does not operate to exempt these projects from complying with changes to the Denver Building and Fire Code. Developers should review approved SDPs, together with the Denver Zoning Code requirements for amendments and modifications to approved SDPs, to understand whether an amendment or modification is required for Building Code compliance.

In suggesting the change, city planners cited falling rents, record apartment vacancies that hit a 16-year high at the end of 2025, tougher financing conditions and a backlog of unbuilt projects as key reasons for the slowdown in multifamily construction. Despite Denver’s many “shovel‑ready” projects, only 14%–22% of approved multifamily developments have actually broken ground in the last few years, or 3,200 to 5,000 out of the 23,000 approved. City staff also referenced the fact that due to market conditions, many existing multifamily units in Denver are renting at rates less than they would be required to under the EHA requirements (i.e. market rents in older buildings are lower than AMI rent controlled rates). 

The policy aims to prevent the construction pipeline from collapsing and reduce the risk of sharp rent fluctuations once market conditions stabilize. Councilmembers characterized the change as a low‑cost way to prevent a sharp drop in housing supply, particularly rental housing, at a time when many multifamily projects are financially fragile.

For clarification about how the change may affect projects or other questions about Denver’s housing development market, contact Blair Lichtenfels or Caitlin Quander.

This document is intended to provide you with general information regarding temporary changes to the Denver Zoning Code. The contents of this document are not intended to provide specific legal advice. If you have any questions about the contents of this document or if you need legal advice as to an issue, please contact the attorneys listed or your regular Brownstein Hyatt Farber Schreck, LLP attorney. This communication may be considered advertising in some jurisdictions. The information in this article is accurate as of the publication date. Because the law in this area is changing rapidly, and insights are not automatically updated, continued accuracy cannot be guaranteed.