Agenda Date: 05/12/2026
Subject:
Title
South Metro Housing Options (SMHO) Board Joint Study Session
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Kathleen Osher, Deputy City Manager
Julie Latham, Housing Policy Manager
Presentations:
SMHO staff and Board of Commissioners
PURPOSE:
This is the annual joint meeting between Littleton City Council and the South Metro Housing Options (SMHO) Board of Commissioners.
LONG-TERM OUTCOME(S) SERVED:
Robust & Resilient Economy
DISCUSSION:
The South Metro Housing Options Board and staff will provide an update on recent accomplishments and ongoing work, including the annual cycle of Private Activity Bond allocation and a gap funding request on the Starlight project. SMHO's Board will then engage Council in a discussion about future priorities and needs to further the city's affordable housing goals, policies, and action steps.
BACKGROUND:
South Metro Housing Options (SMHO) provides affordable housing solutions in Littleton. SMHO is governed by a seven-member Board of Commissioners appointed by City Council.
Private Activity Bonds (PAB) are tax-exempt bonds that offer low-cost financing for private projects serving a public purpose. Unlike typical municipal bonds, PABs do not require the city to repay investors. The city is allocated funds on an annual basis that can be issued, carried forward, relinquished to the statewide balance, or assigned to a qualified issuer to support a project. PABs are a valuable tool for SMHO that unlocks the federal 4% Low Income Housing Tax Credit (LIHTC) program. In 2025, the city shifted from relinquishing its balance to the state to a policy of annual assignment to SMHO. Littleton's PAB balance for 2026 is $3,162,447, and the annual assignment resolution is anticipated to be on City Council's June 16 consent agenda.
SMHO's Starlight project will redevelop property at the corner of W Littleton Blvd and Delaware to create 72 affordable multifamily units for families earnin...
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