Title
Resolution to Carryforward the City's 2019 Private Activity Bond Allocation for Qualified Residential Rental Projects
Presenter:
Steve Posey, HUD Program Manager, Community Development Division
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
The City's 2019 Private Activity Bond (PAB) volume cap, as determined by the Colorado Department of Local Affairs, is $24,866,520. By September 15th of each year, the City must decide whether to issue bonds for a specific project or projects, assign the City's volume cap to another government entity such as El Paso County (EPC), assign the City's volume cap to another issuer such as the Colorado Housing Finance Authority (CHFA), or relinquish its volume cap to the statewide balance for use on other projects in Colorado.
PAB can be used for multiple purposes, some of which include construction or expansion of light manufacturing facilities, redevelopment of blighted areas, and capital projects for qualified non-profits. The Community Development Division established a PAB working group made up of staff from the Finance Department, Economic Development, Public Works, Colorado Springs Utilities, the Colorado Springs Airport, the Urban Renewal Authority, and representatives from the City Council to circulate information about the City's PAB volume cap and identify projects potentially qualified for PAB financing.
The Community Development Division has been contacted by multiple developers interested in using PAB to finance a qualified affordable multi-family rental project. There have been no requests for PAB for other purposes. Staff recommends carrying forward the City's 2019 allocation of PAB to support the development of qualified residential rental projects. PAB can be carried forward a maximum of three years.
Previous Council Action:
August 28, 2018: City Council resolution 88-18 to 'carry-forward' 2018 allocation for the purpose of "...financing residential facilities ...
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