Title
Ordinance No. 22-96 by the City of Colorado Springs, Colorado extending the effective date of Ordinance No. 22-51, increasing the not to exceed amount of the bonds to $21,500,000 and authorizing the execution and delivery by the City of certain loan documents for Paloma Garden
Presenter:
Katie Sunderlin, Senior Affordable Housing Coordinator
Steve Posey, Community Development Division Manager
John Bales, Fred Marienthal, Kutak Rock LLP
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
The ordinance will authorize an additional $2.5M of Private Activity Bonds (PAB) for the new construction and rehab of 127 total units of affordable housing located at 920 S. Chelton Road and 3140 Mallard Drive Colorado Springs, CO 80910. The original Private Activity Bond (PAB) ordinance authorized the issuance of $19M in PAB to be issued by December 31, 2022. Due to increased construction costs and interest rates the development team is requesting additional PAB volume to total an amount not to exceed $21.5M and an extension of the expiration date of to June 1, 2023. When completed the project will provide 75 new, and 50 rehabbed units for low-income seniors, with two units reserved for managers.
Previous Council Action:
18-038, 19-352, 20-389, 114-21, 106-22: Resolutions adopted to carry forward the City's annual private activity bond allocations for the financing of affordable multi-family rental projects.
22-51: Ordinance authorizing the issuance of PAB to Paloma Garden in an amount not to exceed $19M to be issued by December 31, 2022.
Background:
In 2018, 2019, 2020, 2021, and 2022 City Council voted to carry forward its PAB allocations for the purpose of financing qualified residential rental projects, an eligible use of PAB under the IRS code. Carrying forward PAB for multi-family affordable housing is a means for City Council to address the need for additional housing for lower-income populations in the community. The C...
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