To: Board of County Commissioners
Through: Katherine Smith, Director, Community Resources
Prepared By:
prepared
Nancy Sonnenfeld, Community Development Administrator, Community Development and Housing Stability Services, Community Resources
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presenter
Presenter: Lizze Loomis, Manager, Community Development and Housing Stability Services, Community Resources
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Subject:
title
10:30 AM *2026 Private Activity Bonds (PAB) Re-Adjusted Allocation
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Purpose and Request:
recommended action
Community Development and Housing Stability Service (CDHSS) staff is requesting direction from the Board of County Commissioners regarding the reassignment of the County’s 2026 Private Activity Bond allocation due to a change in the financing status of a project previously prioritized to receive $3,000,000 of the County’s 2026 PAB allocation and subsequently approved by the Board of County Commissioners on March 31, 2026.
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Alignment with Strategic Plan: Economic Resilience and Stability - Maintain and improve affordable housing initiatives, including housing preservation and homeownership support.
Background and Discussion: Private Activity Bonds (PABs) are a tax-exempt bonding authority that may be used to finance eligible projects at a tax-exempt interest rate or to support the issuance of Mortgage Credit Certificates. The State of Colorado administers the PAB allocation program pursuant to state statute (Section 24-32-1701 et seq., C.R.S.), which governs the allocation of the state’s annual PAB authority.
On February 17, 2026, the Board of County Commissioners (BOCC) considered and approved the assignment of the County’s initial 2026 Private Activity Bond (PAB) allocation totaling $8,011,903 to support eligible affordable housing developments.
In late June 2026, Community Development and Housing Stability Services (CDHSS) staff were notified by the developer of a previously approved project that its financing strategy had changed. The project transitioned to a different tax credit application that no longer requires a local PAB contribution. As a result, the developer suggested that the previously assigned $3,000,000 in County PAB allocation be made available for reassignment to other affordable housing developments using the 4% Low-Income Housing Tax Credit program that continue to require local PAB financing.
Following a review of the County’s 2026 PAB priorities and discussions with the developers of the remaining projects approved for PAB allocations, CDHSS staff recommend reallocating the available $3,000,000 in County PAB authority to the Reserve at South Creek. This reallocation would increase the County’s total PAB assignment for the Reserve at South Creek from $4,005,092 to $7,005,092, allowing the project to move forward with its financing plan while ensuring the County’s available PAB allocation is fully utilized to advance affordable housing development priorities.
Alternatives: The BOCC may recommend an alternative distribution of the County’s 2026 PABs or may choose to relinquish the PABs to CHFA for statewide allocations at their discretion.
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.
Alignment with Strategic Implementation Strategies: N/A
Staff Recommendation: CDHSS staff is recommending the adjusted PAB funding allocation presented above.
Concurrence: N/A