Developer Sued Over Denver Apartment Site Selection
A dispute over a proposed 137-unit apartment project in the Clayton neighborhood has moved to the courts.
Updated on Sept. 22, 2026 in Apartments
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Resource Housing Group has filed a lawsuit against the Regional Transportation District to challenge the selection of a competitor for a development at 2340 E. 40th Ave. in Denver. The legal action seeks to reverse the decision for the planned 2.3-acre site.
Why it matters
The outcome of this lawsuit could determine the future of a significant, four-story, 137-unit housing project in the Clayton neighborhood. The dispute unfolds as the Regional Transportation District faces a $200 million deficit, highlighting the financial pressures impacting local land development.
The proposed groundlease for the 2.3-acre lot at 2340 E. 40th Ave. was valued at $4.2 million. The project plan called for a 137-unit, four-story residential building.
The players
Resource Housing Group
An Atlanta-based residential development firm focused on multi-family housing projects.
Regional Transportation District
A public agency managing regional transit infrastructure that is currently facing a $200 million budget deficit.
The details
Resource Housing Group initiated the legal challenge following a breakdown in the site selection process. The firm had previously engaged with the Regional Transportation District regarding the parcel, with plans centered on the high-density design. The developer is now asking a judge to intervene and overturn the agency's choice of a competing bidder for the property.
Timeline
September 14, 2026: Resource Housing Group filed the lawsuit against the Regional Transportation District.
The Home Front
This dispute highlights the complex intersection of public transit land management and residential development goals in major urban centers. It reflects the ongoing tension as agencies prioritize fiscal stability alongside the need for new housing inventory.
Residents in the Clayton neighborhood should monitor public planning notices for any updates on how this land will be utilized. If you are tracking local zoning or density changes, check the city's project portal periodically for updates on the 2340 E. 40th Ave. parcel.
The takeaway
This case serves as a reminder that land development projects involving public agencies are subject to rigorous legal and competitive bidding processes. Homeowners interested in local density trends should keep an eye on court filings for properties located on public transit agency land.
Further reading
For more on the local housing landscape, explore the latest updates in Denver Apartments.
Source note: This article includes information reported by BusinessDen.
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