By Stan Bush

DENVER (CBS4) – In February, Neil O’Toole received a letter from the City of Denver saying the home he purchased at market value was supposed to be part of an affordable housing program and that he may have violated the program in buying it.

affordable housing mixup 10pkg transfer frame 120 Home Buyers Told To Resell Homes That Were Part Of Affordable Housing

CBS4’s Stan Bush interviews Neil O’Toole. (credit: CBS)

“It felt like my home was being stolen from me,” said O’Toole.

He bought the home in Green Valley Ranch for $270,000 in 2016 from the previous owner who was living in California and was making money off the home as a rental.

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(credit: CBS)

O’Toole paid roughly $8,000 more than the home should have been sold at.

“It seemed like a regular transaction, and I was going through the process,” O’Toole said. “There was never any mention about affordability.”

The city says more than 300 homes in a 1,200 home affordable home program have been sold at market value or two home buyers who would not have qualified for the reduced rate homes. The city made limited efforts at best to enforce the program that was largely self-regulated.

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(credit: CBS)

“They’re lucky all 1,200 homes didn’t violate it,” said attorney Rob McGough, who is now representing effected home owners. “I’m confident should the city try to force people like my clients out that we’ll be able to fight that in court.”

affordable housing mixup 10pkg transfer frame 1080 Home Buyers Told To Resell Homes That Were Part Of Affordable Housing

(credit: CBS)

Some of O’Toole’s neighbors are renters who are already moving out because the owners received letters from the city ordering them to reapply for the program or to sell the home back at a loss.

O’Toole says he’s worried about what happens next.

“You have to live somewhere. Everyone has to live somewhere. Now I’m going to have to go back to paying someone else’s mortgage,” he said.

Stan Bush is a general assignment reporter at CBS4. His stories can be seen on CBS4 News at 10. Read his bio and follow him on Twitter @StanBushTV.

Comments (2)
  1. I can’t believe that nobody has commented on this issue. This Affordable Housing statute is crazy!

  2. Jeff Barnes says:

    I hope the homeowners band together and file a class action lawsuit against the city who is soley responsible for this failed program and who’s gross mismanagement and negligence falls on their shoulders not the people who bought the homes are were never told about them being part of a program. I think the homeowners will prevail in court and their particular homes should be taken out the program.

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