Department of Finance
Reference: Assignment of the City of Brighton's 2025 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 15, 2025
PURPOSE
To propose assignment the City's 2025 Private Activity Bond capacity to the Brighton Housing Authority for affordable housing projects.
BACKGROUND
This was presented to City Council at a Study Session on April 8, 2025. Based on the feedback received from the City Council, the proposed resolution will be placed on the consent agenda.
The following information was provided in the staff report submitted for the April 8th 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 2025 allocation of $2,755,798 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 housing authority or the Colorado Housing Finance Authority (CHFA).
It is always...
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