To: Board of County Commissioners
Through: Katherine Smith, Director, Community Resources
Prepared By:
prepared
Elizzebeth Loomis, Division Manager, Community Development, Housing and Homeless Services, Community Resources
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Subject:
title
2024 Private Activity Bonds (PAB) Allocations
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Purpose and Request:
recommended action
The purpose of this report is to request the Board of County Commissioners (BOCC) formally approve the 2024 Private Activity Bond (PAB) allocations as presented in the April 16, 2024, BOCC study session, and adopt a resolution authorizing the assignment of PABs to the aforementioned projects through Colorado Housing Finance Authority (CHFA).
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Background and Discussion: The BOCC reviewed PAB recommendations during an April 16, 2024, study session and recommended the PAB assignments/allocations be placed on Consent Agenda for a BOCC Business Meeting. The information below, was provided in the Study Session BSR, which provided background information on the PAB program, 2024 Arapahoe County award and staff recommendations. Based on the Study Session, Community Development Housing and Homeless Services (CDHHS) staff is seeking approval from the BOCC to award 2024 PABs to the aforementioned projects and submit the required paperwork to CHFA to complete the formal PAB allocation process:
2024 Private Activity Bond (PAB) Recommendations
* 2024 PAB Allocation Award of $8,502,112.00
Private Activity Bonds (PABs) are a tax-exempt bonding authority, used either to create a loan for a project at a tax-exempt rate, or to create a mortgage credit certificate. The State of Colorado established its PAB allocation program by state statute (24-32-1701 et seq, C.R.S.) to provide for the allocation of Colorado’s PAB authority. Staff is requesting that the assignment of the PAB’s to CHFA will be used to generate a 4% Low Income Housing Tax Credit (LIHTC) loan for the top-ranking projects awarded funding.
Arapahoe County received three applications for 2024 PABs. CDHHS reviewed all applications for completeness, eligibility, and financial feasibility. Preference is given to applicants that have the ability to close and complete underwriting within current calendar year; efficient use of PAB allocation; leverage of equity sources (LIHTC or SHTC); and impact of PABs to support economic/ housing needs.
Staff is recommending the following for the 2024 PAB allocation: $5,000,000.00 for Grovewood Community Development- The Stables; $2,000,000.00.00 for The Housing Authority of the City of Aurora- The Stanley and $1,502,112.00 for Arapahoe Green, LLLP c/o Archway Communities, Inc.- Arapahoe Green Townhomes.
By assigning the County’s PAB’s directly to a specific project/development through CHFA, we can ensure the funds are used for multifamily projects in Arapahoe County compared to being allocated to state-wide projects. The other option is to assign our PAB’s directly to CHFA, who will determine their use for statewide purposes.
The Stables
Developer: Grovewood Community Development
Recommendation: $5,000,000.00
Requested Funding: $5,000,000.00
County: Arapahoe County
Number of Units: 130 + units (one, two, and three bedrooms)
Target Population: Families, Seniors, Veterans, Disabled, Individuals
AMI: 30%-80%
Type: New Construction
An allocation of PAB funds is requested to develop a 4.79-acre parcel at 10850 East Expo Avenue in Aurora. It was owned by the same family as the Aurora Horse Stables since 1947 and would be ideal for affordable housing. With plans to build 130+/- one-, two-, and three-bedroom units of multifamily rental housing affordable to households earning between 30% and 80% of Area Median Income (AMI), GCD has applied for 2024 HOME Investment Partnership funds and was awarded 2 million in Affordable Housing Development Grant funds in 2022.
The Stanley
Developer: The Housing Authority of the City of Aurora
Recommendation: $2,000,000.00
Requested Funding: $2,000,000.00
Location: East 25th Avenue & Joliet Street, Aurora, CO
County: Adams County (less than a mile from Arapahoe County border)
Number of Units: 75 units (one, two, and three bedrooms)
Target Population: Families with a target AMI of 30-70%
AMI: 30%-70%
Type: New Construction
This project is located at East 25th Avenue and Joliet Street, Aurora, CO. Proposed development will create 75 units of housing for families at, or below, 70% AMI, with the majority of units available to residents at 30%- 50% AMI. Of the 75 units, 30 units are one-bedroom, 40 are two-bedroom and 5 three- bedroom units. This project will request HOME funds from the City of Aurora.
Arapahoe Green Townhomes
Developer: Arapahoe Green, LLLP c/o Archway Communities, Inc.
Recommendation: $1,502,112.00
Requested Funding: $6,546,000.00
Location: 1135 S Xenia Street, Denver, CO
County: Arapahoe County
Number of Units: 60 units (one, two, and three bedrooms)
Target Population: Families with a target AMI of 30-60%
AMI: 30%-60%
Type: Acquisition/Rehabilitation
An allocation of private activity bonds is requested to support a proposed acquisition and rehabilitation of the Arapahoe Green Townhomes project located at 1135 S. Xenia St. in Denver. The project, which was constructed in 2002, offers 60 units in a community that supports the well-being of the whole resident. The community serves a range of incomes and family types, with units ranging from 30-60% AMI and a mix of 2-, and 3-bedroom townhomes. At this community, 31.6% of the households are at 30% AMI.
Alternatives: The BOCC may recommend an alternative distribution of the County’s 2024 PABs or may choose to relinquish all, or a portion, of the County’s PABs to CHFA for statewide allocations at their discretion.
Fiscal Impact: Private Activity Bonds (PABs) are administered by the Department of Local Affairs (DOLA) and limited by the IRS. This request does not have a direct fiscal impact on Arapahoe County’s budget, but will provide a great benefit to increasing affordable housing in our area.
Alignment with Strategic Plan:
☒Be fiscally sustainable
☒Provide essential and mandated service
☒Be community focused
Concurrence: N/A
Resolution: Attached is a copy of the draft resolution.