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: September 1, 2026
PURPOSE
To update the assignment of the City’s 2026 Private Activity Bond capacity to the Colorado Housing Financing Authority (CHFA) on behalf of Dominium.
PREVIOUS CITY COUNCIL PRESENTATIONS
On April 14, 2026, City Staff, along with a representative from Dominium, shared a proposal to assign the City’s Private Activity Bond allocation in support of a senior affordable housing project in Brighton.
On May 5, 2026, City Council approved a Resolution assigning the City’s bonding capacity to Dominium.
The following discussion was included in the packet from the April 14, 2026 Study Session:
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.
BACKGROUND
As noted above, this item has been discussed with and approved by City Council at previous sessions. Staff learned recently that the assignment to Dominium requires an administrative update in order for it to be valid and usable for the project.
Private Activity Bonds must be issued by an authorized issuer. In the event that the developer is not an authorized issuer, the bonds should be assigned to an authorized issuer on behalf of the developer and project. In this case, Dominium, is not an authorized issuer so the bonding capacity needs to be reassigned to another entity that can issue the bonds on Dominium’s behalf. In this case, that other entity is CHFA.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
Council has the option to assign the bonding capacity to CHFA on behalf of Dominium for use on the proposed project. Council also has the option to not update the previous assignment. In that case, the bonding capacity would revert to the State to be used on projects at the State’s discretion. All assignments must be final and reported to the State of Colorado Department of Local Affairs by September 15th.
FINANCIAL IMPACT
There are no financial implications for the City as the bonds would be issued by and authorized agency (e.g. CHFA) and managed by the assignee. The City's role is strictly to decide whether the City would like the bonds allocated to this organization and/or project.
STAFF RECOMMENDATION
Staff recommends updating the assignment of the City’s 2026 Private Activity Bond allocation to assign to CHFA on behalf of Dominium in support of the proposed project.
Attachments:
Ø Resolution - Reso 26 PAB Assignment to CHFA
Ø 2026 Assignment of Allocation (CHFA)