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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presenter
Presenter: Elizzebeth Loomis, Division Manager, Community Development, Housing and Homeless Services, Community Resources
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Subject:
title
11:45 AM *Reassignment of 2025 Private Activity Bonds from Colorado Housing and Finance Authority to South Metro Housing Options for the Star Light Development
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Purpose and Request:
recommended action
The purpose of this report is to recommend the allocation of the County’s 2025 Private Activity Bonds (PABs) to South Metro Housing Options (SMHO) for the administration of a 4% Low-Income Housing Tax Credit (LIHTC) loan for the Star Light project, in lieu of the Colorado Housing and Finance Authority (CHFA).
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Background and Discussion: : On July 22, 2025, the Board of County Commissioners approved the reallocation of $5,000,000 of the County’s 2025 Private Activity Bonds (PABs). PABs are a form of tax-exempt bonding authority that can be used to provide either low-interest financing for qualifying projects or to create mortgage credit certificates. The State of Colorado established its PAB allocation program through state statute (24-32-1701 et seq., C.R.S.) to manage the distribution of the state’s annual PAB authority.
Community Development Housing and Homeless Services (CDHHS) staff is requesting approval to assign $5,886,811.00 in PABs to South Metro Housing Options (SMHO) for their in-house development project, Star Light. SMHO will administer the bonds and utilize the allocation to generate a 4% Low-Income Housing Tax Credit (LIHTC) loan in lieu of going through the Colorado Housing and Finance Authority, who was the original designee assigned on July 22, 2025. This allocation will support the development of 74 affordable multifamily units along Littleton Boulevard, serving individuals and families earning between 30% and 70% of the Area Median Income (AMI), including young adults ages 18-24 who are aging out of foster care.
Should the BOCC approve this allocation, this item will be placed on the next available consent agenda for formal adoption.
Fiscal Impact: Private Activity Bonds (PABs) are administered by the Department of Local Affairs (DOLA) through CHFA and limited by the IRS. This request does not have a direct fiscal impact on Arapahoe County’s general budget but will provide a great benefit to increasing affordable housing in our jurisdiction.
Alternatives: 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
Staff Recommendation: Staff recommends approval of this reallocation.
Concurrence: N/A