Economic Development Fund Used for Homeless Initiatives

The money for new pallet homes, or transitional housing units, will come from Lakewood’s Economic Development fund. The 2025 budget also shows the city expects to spend $9.5 million on land purchases for unspecific purposes, also from the Economic Development Fund. Lakewood is waiting to start the transitional housing program until land can be purchased somewhere. The city budgets $300,000 for pallet homes. These homes will be a new program that Lakewood will provide funding and support for, but may be owned and run by an outside organization with limited oversight. The Economic Development Fund has traditionally been used to develop economic opportunities in Lakewood, but in 2023, Lakewood re-interpreted the ordinance to include safety and general upkeep of the city. Previous discussion on the transitional housing program did not include a business analysis of any economic growth potential this program would provide.

The $9.5 million for land purchases could be used for transitional housing land (for pallet homes), in whole or in part. By approving the budget, the city will have funds to allocate for purchases as it prioritizes.

State of the Economy

The budget presentation shows that median household income rose by 10% but the Jeffco employment rate is down by 1%, marking the need for more economic opportunities.

Lakewood predicts just under 1% growth in sales tax which reflects the state of the economy.