Builders on construction site

Board approves activity bond transfer for housing

CHFA utilizes the bonds for affordable housing initiatives in Garfield County

Sept. 9, 2022

Garfield County has assigned its 2022 private activity bond (PAB) cap (more than $3.4 million) to the Colorado Housing and Finance Authority (CHFA) to use toward affordable housing initiatives. The transfer allows CHFA to issue the bonds for single and multi-family projects in Garfield County, including first-time homebuyer loan programs.

The county has worked with CHFA for years to allocate its bonds into the first-time homebuyer loan program. Since 2020, there have been 60 loans issued under this program for low- to moderate-income homebuyers in Garfield County.

Kathryn Grosscup, CHFA housing tax credit manager, told the Board of County Commissioners that CHFA appreciated the county’s support for the housing program.

“This makes a commensurate, and even double sometimes, investment back into Garfield County to support low- and moderate-income homebuyers,” she said.

According to the Colorado Department of Local Affairs (DOLA), the tax-exempt bonds are used to help fund private development projects. Counties and municipalities may issue the bonds with no obligation to repay investors. The amount of the bonds is limited by the Internal Revenue Service (IRS), and underwriters utilize investor funding to issue a loan for a qualifying project, which then repays the loan to investors, plus interest.

DOLA notes that eligible activities include new construction or rehab and acquisition of housing for low- to moderate-income people, and single-family mortgage bonds for low- to moderate-income people, among other uses. CHFA reported that there have been 154 household members who have benefitted from the program since 2020.

“This is a great program that keeps our HUD dollars in Garfield County,” said Commissioner Tom Jankovsky.

The allocation was approved unanimously, 3-0.