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A RESOLUTION AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF COMMERCE CITY PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT
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Summary and Background Information:
In 2022, staff established a process for entertaining Private Activity Bond (PABs) allocation for qualifying projects. That process can be found on the city’s website at the bottom of the page by following this hyperlink: Private Activity Bond Allocation Process
. The City’s 2024 PAB allocation is $4,087,661, which is a 5.6% increase over the 2023 PAB allocation amount. For context and background, this allocation can be used in one of the four manners below:
1. Local issuers can issue the bonds.
2. Local issuers can assign their volume cap to another local issuer.
3. Local issuers can assign their volume cap (maximum amount of PABs that can be issued) to the Colorado Housing Finance authority (CHFA).
4. Local issuers can do nothing and let their cap revert to DOLA’s Statewide Balance.
Eligible uses of PABs are:
· Affordable multifamily housing including new construction or acquisition and rehabilitation for low- and moderate-income individuals and families.
· Single Family Mortgage Revenue Bonds (SFMRBs) used to finance the purchase of mortgages made to income-qualified first-time homebuyers.
· Mortgage Credit Certificates (MCCs), a financing enhancement for income eligible first-time homebuyers (can’t be combined with SFMRB financing).
· Industrial Development Bonds for smaller manufacturing projects (less than $10 million) that produce any type of goods.
· Qualified Redevelopment Bonds used to acquire and redevelop blighted areas (typically not used in Colorado).
· Solid Waste Disposal Bonds used to finance certain disposal facilities utilizing certain waste disposal processes.
In addition to the information posted on the cit...
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