Agenda Date: 06/16/2026
Subject:
Title
Resolution 23-2026: Authorizing assignment of the city’s private activity bond allocation for 2026 to the Housing Authority of the City of Littleton, Colorado d/b/a South Metro Housing Options
Body
|
From: |
James L. Becklenberg, City Manager |
|
Prepared by: |
Julie Latham, Housing Policy Analyst |
|
|
Kathleen Osher, Deputy City Manager |
|
Presentations: |
N/A |
PURPOSE:
To assign the Private Activity Bond allocation to South Metro Housing Options
LONG-TERM OUTCOME(S) SERVED:
Robust and Resilient Economy
DISCUSSION:
Starting in 2025, City Council began the process of annually assigning the allocation of Private Activity Bonds (PABs) to South Metro Housing Options (SMHO), Littleton’s housing authority by resolution.
BACKGROUND:
Private Activity Bonds had been a historically underutilized tool, with the city relinquishing its balance to the statewide balance for the fifteen years prior to 2025. Littleton’s PAB allocation for 2026 is $3,162,447.
Private Activity Bonds are tax-exempt bonds that offer low-cost financing for private projects serving a public purpose. The city is allocated funds on an annual basis that can be used to support projects. Unlike typical municipal bonds, PABs do not require the city to repay investors. Eligible uses include affordable multifamily rental housing, single-family mortgage revenue bonds, mortgage credit certificates, industrial development bonds for smaller manufacturing projects, qualified redevelopment bonds for blighted areas, and solid waste disposal bonds. Multifamily rental housing is the only PAB use that unlocks additional federal funding via the 4% Low Income Housing Tax Credit. Interest paid to bondholders is exempt from federal income tax, resulting in lower costs. Options for allocation are issuance, carryforward, relinquish to the statewide balance, or assign to a qualified issuer to support a project.
Prior Actions or Discussions
June 3, 2025 - City Council adopted Resolution 56-2025: Authorizing assignment of the city’s private activity bond allocation for 2025 to the Housing Authority of the City of Littleton, Colorado dba South Metro Housing Options
May 27, 2025 - City Council study session providing direction to assign Private Activity Bonds annually to SMHO.
FISCAL IMPACTS:
N/A
STAFF RECOMMENDATION:
Staff recommend council assign Littleton’s PAB balance to SMHO.
ALTERNATIVES:
1. Issue Bonds
2. Carryforward for up to 3 years
3. Assign PAB cap to another issuer (i.e., Other local governments, housing authorities, Colorado Housing and Finance Authority)
4. Do nothing: Relinquish to the Statewide Balance for DOLA to distribute
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 23-2026 authorizing assignment of the city’s private activity bond allocation for 2026 to the Housing Authority of the City of Littleton, Colorado d/b/a South Metro Housing Options.