Title
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:
Each year Commerce City receives an allocation from the state-wide private activity bond ceiling. For 2019, the allocation is $2,973,653. We request assignment to the Colorado Housing and Finance Authority (CHFA) for the Mile High Greyhound Park (MHGHP) income qualified apartments (LIHTC) project located at the NEC of 62nd Avenue and Parkway Drive.
Section 42 of the IRS code, which established the LIHTC program, requires that Public Activity Bonds (PAB's) be issued for at least 50% of the eligible costs. This building will be approximately $60M dollars to build, and we are looking for approximately $30M in PAB Cap. We will request assignment of our 2020 allocation as well as asking Adams County to contribution their 2020 allocation. Commerce City and Delwest are requesting an initial $11M from DOLA and believe we can obtain some additional CAP recycling back to DOLA in September and the remainder from the CAP from CHFA.
Staff supports their request and action must be taken by September 15 in order to complete the assignment.
Staff Responsible (Department Head): Sheryl Carstens
Staff Member Presenting: Sheryl Carstens
Financial Impact:
Funding Source:
Staff Recommendation: Approve Resolution 2019-87