Department of Finance
Reference: Assignment of the City of Brighton’s 2026 Private Activity Bond Allocation
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Catrina Asher, Director of Finance
Date Prepared: April 14, 2026
PURPOSE
To propose assignment the City’s 2026 Private Activity Bond capacity to Dominium for a senior affordable housing project located within the City of Brighton.
BACKGROUND
Each year, cities throughout the State of Colorado receive an allocation of Private Activity Bonds which are tax-exempt bonds offering low-cost financing for private projects that serve a public purpose. Examples of eligible projects include acquisition, construction or rehabilitation of housing for low- and moderate-income individuals and families, mortgage loans or mortgage credit certificates for income-qualified, first-time home buyers. While Private Activity Bonds can fund projects other than housing, they are primarily directed towards housing projects because there are other financing options that are better suited for non-housing projects.
The City of Brighton has a 2026 allocation of $2,863,217 in Private Activity Bonding capacity.
In order to utilize the bonding capacity, a government authority would partner with a private organization to finance a project. Private Activity Bonds are issued by a government authority and the bond proceeds are used to create a low-interest loan for the project. The project manager pays back the loan and the investors get repaid with interest. The organization issuing the bonds and coordinating the project is typically a developer of affordable housing, a housing authority, or the Colorado Housing Finance Authority (CHFA).
It is always the priority of staff to work towards directing funding to projects within the City of Brighton. In recent years, Private Activity Bonds have been allocated to the Hughes Station rehabilitation project and to the Adams Point housing development. This bonding capacity is highly restricted and time constrained, so it is important to identify projects that can utilize the bonding capacity within the allotted time.
For 2026, the City received a request for its Private Activity Bond allocation to be assigned to Dominium to be used towards an affordable senior housing development. This development would be located at 3360 E. Bridge Street on the corner of E. Bridge and Telluride and would provide 250 affordable housing units. Dominium is a national owner/operator of workforce housing and has extensive experience in this sector, including with developments in Colorado. More information on the organization and the proposed project is included in the attached presentation.
If Council is supportive of assigning the City’s Private Activity Bond allocation to Dominium for this project, this would be accomplished through a resolution at a future City Council meeting.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
Council has the option to assign the bonding capacity to the Dominium for use on the proposed project. Council also has the option to not assign bonds to any specific organization or project. In that case, the bonding capacity would revert to the State to be used on projects at the State’s discretion.
FINANCIAL IMPACT
There are no financial implications for the City as the bonds would be issued and managed by the assignee. The City's role is strictly to decide whether the City would like the bonds allocated to this organization or project.
NEXT STEPS
If Council is supportive, a resolution will be brought forward at a future City Council meeting.
Attachments:
Ø 2026 PAB Allocation Listing - DOLA
Ø Presentation