Denver’s inclusionary zoning extortion scheme challenged in court

Denver, CO; May 30, 2025: An award-winning Denver homebuilder is suing the City in federal court over the City’s inclusionary zoning program. redT Homes is committed to building sustainable, affordable housing in the area but faces exorbitant fees to pay for Denver’s lack of affordable housing — a problem the homebuilding company didn’t cause.  

“First, these fees are totally counterproductive: You can’t make housing more affordable by making it more costly. Second, these fees are illegal. The U.S. Supreme Court has set clear standards for these kinds of fees in multiple cases,” said David Deerson, an attorney with Pacific Legal Foundation. “Permit conditions for new construction must be proportional and directly related to the construction’s impact. But new housing construction doesn’t create affordability problems — it helps to solve them.”  

Denver’s Linkage Fee ordinance forces builders to either set aside units to sell at below-market prices or pay huge fees to help create affordable housing. Two of redT Homes’ upcoming projects are subject to the fees. To build four single-family homes, $25,000. For two duplexes, $45,000.  

These fees further drive up the cost of housing, making it harder for redT to provide the economical homes that Denver so badly needs. 

Represented at no charge by Pacific Legal Foundation, redT Homes is fighting back with a federal lawsuit challenging Denver’s unconstitutional housing fee. This case is the latest in PLF’s work protecting the right to build, so that property owners can create much-needed housing across the country.    

The case is redT Homes v. City and County of Denver, Colorado.