County decides to carry forward $1.344M private-activity bond cap for potential housing projects
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Summary
Chaffee County commissioners approved carrying forward the countys 2025 private activity bond (PAB) cap of $1,344,400 for potential affordable-housing use in 2026, with staff to prepare required notice and documentation to the Colorado Department of Local Affairs.
Chaffee County commissioners on Tuesday voted to carry forward the countys 2025 private-activity bond (PAB) cap of $1,344,400 for potential future use, most likely to support affordable-housing financing by the Chaffee County Housing Authority or a similar borrower.
Staff explained that the federal/state volume cap creates an opportunity to issue tax-exempt private activity bonds for eligible projects, and counties may either use the allocation, assign it to another borrower, or carry it forward for up to three years. The board unanimously approved staffs recommendation to carry the 2025 allocation forward to 2026 and to allow county staff to prepare necessary documents required by the Colorado Department of Local Affairs by the Sept. 15 deadline.
Planning and finance staff and the county attorney will continue diligence work, including preparing an inducement resolution and related documents if a borrower emerges.
Why this matters: Private-activity bonds can reduce financing costs for eligible projects such as affordable housing by providing tax-exempt bond rates. Preserving the volume cap keeps future options available as housing providers pursue capital projects.
Next steps: Staff to file the required notice with DOLA and complete any necessary legal or financial diligence if and when an eligible borrower seeks the allocation.