Denver City Council gave preliminary approval Monday to the creation of a new special revenue fund to hold fee-in-lieu dollars paid to the city as part of its Expanding Housing Affordability Guidelines.

The Mandatory Affordable Housing Fee-In-Lieu Fund will hold money developers pay to the city should they decide not to build affordable housing on that site. The fund is designated to create additional affordable housing throughout the city.

Council approved the housing affordability program in early June. It requires that a certain amount of affordable units must be developed alongside market-rate condos and apartments.

Builders can either build more affordably priced units as part of any construction or pay a fee to offset construction of affordable units elsewhere. Policies such as these are known as inclusionary housing policies.

No council members called out the bill establishing the fund for a vote or discussion, so it passed unanimously in a block vote The bill will need to pass a second vote from council.

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