Title
Resolution to Carryforward the City's 2018 Private Activity Bond Allocation for Qualified Residential Rental Projects
Presenter:
Steve Posey, HUD Program Administrator, Community Development Division
Body
Summary:
The City's 2018 Private Activity Bond (PAB) volume cap, as determined by the Colorado Department of Local Affairs, is $24,200,033. 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 Economic Development and Community Development Divisions reached out to staff at Colorado Springs Utilities, the Urban Renewal Authority, the Public Works Department, and the Colorado Springs Airport to circulate information about the City's PAB volume cap and identify projects potentially qualified for PAB financing. Currently, there are no projects eligible for carryforward other than qualified residential rental projects in the planning stages.
In 2016, 90% of PAB issues nationwide were used to finance the development and preservation of affordable housing. Since 2015, 100% of PAB issued in the El Paso County region, including the City of Colorado Springs, has been used to finance affordable housing. In recent years, the City has assigned its volume cap to El Paso County. Rather than assign its volume cap to El Paso County in 2018, staff recommends carrying forward the City's allocation of PAB to support the development of qualified residential rental projects. PAB can be carried forward a maximum of three year...
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