Title
A Resolution declaring the intent of the City of Colorado Springs to issue $21 million of Multifamily Housing Private Activity Bonds to finance the construction of an affordable multifamily housing development known as Draper Commons
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 $21 million of Private Activity Bonds (PAB) for Draper Commons, a 280 unit multi-family affordable rental development made up of studio, 1BR, and 2BR apartments for households earning an average of 60% area median income. The proposed project is located at 335 Victoria St. near the intersection of Fountain Blvd. and Wahsatch Ave. in the SE part of downtown.
Previous Council Action:
N/A
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. Annually, the City of Colorado Springs receives an allocation of PAB from the State of Colorado. The allocation is based on population. Year over year, the City of Colorado Springs has seen an increase in its PAB allocation as a result of continued growth. In 2018, the City's allocation totaled $24,200,033 and in 2019 the City's allocation totaled $24,866,520.
Prior to 2018, the City routinely assigned its PAB allocation to El Paso County. The County has used the City's PAB to finance affordable multi-family rental projects, including Copper Range, a 240 unit work force housing development where rents are capped at 60% of area median income (AMI), Traditions at Colorado Springs, a 180 unit senior affordable housing project with similar rent caps, and the acquisition and rehabilitation of Whitney Young Manor, a 200 unit senior affordable rental complex.
In 2018 and 2019, the City Council voted to carry forward its PAB allocations for the purpose of financing qua...
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