Council approves private‑activity bond allocations and inducements for two affordable housing projects

The City Council on May 13 approved a package of actions to preserve and deploy private activity bond capacity to support two multifamily affordable developments: Bradley Ridge and Royal Pine.

Amy Cox, the city’s chief housing and homelessness officer, told council the city seeks to carry forward $38,865,865 in private activity bond volume cap to fund qualifying low‑income housing tax credit projects. Council adopted the carry‑forward resolution unanimously.

Cox described Bradley Ridge, a proposed 336‑unit development in the Peak Innovation Park area, as a low‑income housing tax credit project with several supportive features. Cox said the total project cost exceeds $157 million and that the inducement resolution before council would allocate about $76.8 million of bond cap to the project drawn from multiple sources: $64.8 million from the city’s allocations (’23–’25), $5 million from a statewide competitive award and $7 million assigned by the Colorado Springs Housing Authority. Cox also said the developer has anticipated on‑site childcare (60–65 slots) and a 20‑unit set‑aside for veterans.

The council approved the Bradley Ridge inducement resolution unanimously. Cox said staff expects to return in the fall with an ordinance to issue bonds once the developer meets due‑diligence requirements; financial closing is projected for the fall with construction following.

Separately, council approved an ordinance authorizing issuance of up to $60 million in multifamily housing revenue bonds for the Royal Pine apartment project, a 232‑unit development in northeast Colorado Springs intended to serve households at 30%, 60% and 70% area median income (AMI). Cox said the ordinance includes a $20 million taxable “tail” that the lender requires; taxable bonds are not subject to the same statewide volume cap as tax‑exempt private activity bonds. Council voted 8‑1 on the Royal Pine ordinance, with Councilman John Donaldson voting no.

Council members praised the staff for assembling complex financing and emphasized that the city acts as a conduit issuer: the city’s approval and issuance of the bonds does not create a city repayment obligation; loan and repayment obligations rest with the borrower and project revenues. Council members asked for continued transparency on timelines and community impacts as the projects proceed to closing.

The actions are part of a multi‑year strategy to preserve private activity bond cap and accelerate affordable housing development through tax‑credit and bond financing.