Title
A Resolution declaring the intent of the City of Colorado Springs to issue its Multifamily Housing Revenue Bonds to finance the construction of an affordable multifamily housing development known as Academy Heights
Presenter:
Steve Posey, HUD Program Manager, Planning & Community Development
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
A Preliminary Inducement Resolution for the issuance of Private Activity Bonds (PAB) for Academy Heights, a 201 unit multi-family affordable rental development made up of 1BR, 2BR and 3BR apartments for households earning an average of 60% area median income. The proposed project is located at the NW corner of E Fountain Blvd & Academy Park Loop.
Previous Council Action:
On June 22, 2020, this item was introduced to City Council at the work session.
Background:
Private activity bonds (PAB) are a form of tax-exempt financing in which the City acts as the conduit issuer, but assumes no debt responsibility. The developer accessing PAB financing agrees to carry all costs related to the bond issuance, including attorney's fees, document preparation, and public notifications. Proceeds from the sale of the bonds are combined with 4% Low-Income Housing Tax Credits (LIHTC) to finance affordable multi-family development.
The developer must include a preliminary inducement resolution from an issuer such as the City of Colorado Springs in their application to the Colorado Housing Finance Authority (CHFA) for the balance of the financing needed to build the project. Previously, City Council has adopted preliminary inducement resolutions for two other affordable multi-family projects, including the Atrium at Austin Bluffs and Draper Commons. The Atrium project will be breaking ground this summer and Draper Commons is expected to break ground later this year.
The developer for the project submitted an application for PAB financing to the Community Development Division (CDD) on April 9,...
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