Title
2022 Private Activity Bonds Initial Discussion
Body
Summary and Background Information:
Every year, Commerce City receives an allocation of the state-wide Private Activity Bond (PAB) ceiling for the purpose of providing special financing benefits for qualified projects. The funds must be spent on specific types of projects:
• New construction or rehabilitation of housing for low- to moderate-income
• Single-family mortgage revenue bonds sold by local and state agencies for mortgages low- and moderate-income
• Mortgage Credit Certificates for qualified homebuyers
• Manufacturing "small issue" industrial development bonds (not to exceed $10,000,000) for construction of manufacturing facilities
• Qualified redevelopment bonds for acquiring property in blighted areas, prepare land for redevelopment, and relocate occupants of structures on the acquired property
• Exempt facility bonds for hazardous waste facilities, solid waste disposal facilities, water and sewer facilities, mass commuting facilities, local district heating and cooling facilities, local electric energy or gas facilities and multifamily housing bonds.
• Qualified 501(c) (3) bonds for use by non-profit hospitals and private universities.
As a part of the annual process, once the allocation amount is received from the State, Finance reaches out to various departments to determine if allocation to a specific project is needed. In addition, developers can also request an allocation. Due to the need to provide more detailed information to Council during the annual request and an anticipated rise in requests from private developers, staff is drafting a formal PAB Allocation policy that will come before Council prior to staff making dollar-specific allocation requests later this year. And, although the City has not yet received the allocation for ...
Click here for full text