SUBJECT: Agenda
Title
A Resolution of the Board of Trustees of the Town of Erie Assigning the Town of Erie 2022 Private Activity Bond to the Boulder County Housing Authority
Body
DEPARTMENT: Planning and Development Department
PRESENTER: Ariel Tolefree, Affordable Housing Manager
TIME ESTIMATE: 10 minutes
only required for non-consent items
STAFF RECOMMENDATION:
Recommendation
Staff recommends the Town assign its 2022 PAB allocation of $1,680,707 to the Boulder County Housing Authority (BCHA) so that the allocation can be used towards an affordable housing project, Willoughby Corner Phase 1A Senior Apartments, in Lafayette.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Private Activity Bonds (PAB) are allocated by the State to the Town of Erie annually. PABs are federally tax-exempt bonds and are often used as debt instruments by affordable housing developments. These bonds are applied to active projects that will close and fund within the year of allocation. The PAB bond allocations are renewed annually for each municipality. The Town's 2022 allocation of $1,680,707 have been requested by the Boulder County Housing Authority (BCHA) toward the Willoughby Corner Phase IA Senior Apartments in Lafayette. Granting the PABs to BCHA assures the Town that they may only be used for a local affordable housing project.
Private Activity Bonds - Definition and Use
PABs are tax-exempt bonds issued by or on behalf of local or state government for the purpose of providing special financing benefits for qualified projects. These bonds are used to attract private investment for projects that have some public benefit. The financing is most often applied to projects of a private developer, and the government generally does not pledge its credit. There are strict rules as to which projects qualify (e.g., single-family mortgage revenue bonds sold by local or state agencies, low-income housing projects, hazardous waste facilities, small-issue manufacturing industri...
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