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 or...
Click here for full text