Department of Finance
Reference: Brighton Housing Authority Update and Proposed Assignment of the City of Brighton's 2024 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 9, 2024
PURPOSE
To provide Council an update from the Brighton Housing Authority and to propose assignment of Brighton's 2024 Private Activity Bond allocation to the Brighton Housing Authority (BHA) for affordable housing projects.
BACKGROUND
The Brighton Housing Authority's Executive Director, Deb Bristol, will provide an update on the authority's projects and activities. Refer to the attached presentation for more information.
In addition, staff is proposing allocation of the City's 2024 Private Activity Bond allocation to the Brighton Housing Authority for use towards affordable housing projects as discussed below.
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 2024 allocation of $2,587,111 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 ...
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