Littleton City Council explores private activity bonds for affordable housing initiatives

The Littleton City Council convened on May 27, 2025, for a study session focusing on private activity bonds, an update on city ditch discussions, and a citizen initiative charter amendment petition. The primary emphasis of the meeting was on the potential use of private activity bonds to enhance affordable housing options in the city.

Deputy City Manager Kathleen Osher introduced representatives from South Metro Housing Options, including Corey Kalanick, a bond counsel from Taft Law. The discussion centered on the underutilization of private activity bonds, which are essential for financing affordable housing projects. Kalanick provided a detailed overview of how these bonds function, distinguishing them from traditional governmental bonds and explaining their significance in facilitating low-interest financing for housing developments.

Kalanick highlighted that private activity bonds serve as a "permission slip" for municipalities to issue bonds that can be used for projects benefiting the public, such as multi-family housing. He noted that Colorado's allocation for private activity bonds in 2025 was approximately $767 million, with Littleton receiving a cap of $2.9 million. The council discussed the options available for utilizing this cap, including issuing bonds for specific projects, carrying the cap forward for future use, or assigning it to another governmental entity like South Metro Housing Options.

The council members expressed interest in understanding the implications of holding onto the bond cap versus assigning it to South Metro Housing Options, which has the expertise to manage affordable housing projects. It was noted that the city has historically relinquished its bond cap to the statewide balance due to a lack of suitable projects. However, this year marked a renewed opportunity to leverage the cap for local developments.

The meeting concluded with a consensus on the importance of utilizing the bond cap effectively to support affordable housing initiatives in Littleton. The council plans to further explore potential projects that could benefit from this financial tool, emphasizing the need for proactive engagement with South Metro Housing Options to ensure that the city capitalizes on available resources for community development.