City to consider private activity bond carryforward and proposals for Bradley Ridge and Royal Pine apartments

City housing and planning staff presented a primer on private activity bonds (PABs) and reviewed two affordable housing projects—Bradley Ridge and Royal Pine—that are expected to use the city’s 2022–2025 private activity bond cap. Staff asked the council to adopt a resolution declaring the city’s intent to use the 2025 PAB allocation for affordable multifamily housing; staff also introduced inducement and ordinance items tied to the two developments.

Amy Cox, chief housing and homelessness officer, and Katie Sunderland, housing solutions manager, explained PAB basics: PABs are tax‑exempt municipal revenue bonds issued as a conduit (the city is not responsible for repayment) and are typically paired with Low Income Housing Tax Credits (LIHTC). The IRS allocates PAB cap to states by population; Colorado’s allocation is then distributed to local jurisdictions. The City of Colorado Springs received an allocation of about $31.8 million for 2025 (staff said total available including transfers would be roughly $38.865 million when including a $7 million transfer from the Colorado Springs Housing Authority).

Bradley Ridge (District 4) — inducement resolution: Katie Sunderland described Bradley Ridge as a 336‑unit development with two, three and four‑bedroom apartments targeting 60% area median income (AMI). Developer Ben Taylor (Lincoln Avenue Communities) proposes an on‑site child care center operated by Early Connections Learning Center serving roughly 60–65 children (6 weeks to 5 years), an 8,500 sq. ft. facility with a staff of about 20. Staff noted that childcare affordability is a local deficit and that on‑site child care was awarded extra scoring points in the city’s PAB review. Bradley Ridge applied in phases and aggregated multiple PAB sources: city cap recommendations from 2023–2025, a $5 million statewide balance allocation, and a $7 million allocation secured by the Colorado Springs Housing Authority, for an overall PAB source of $76.8 million. The city’s issuance fee (120 basis points) on the PAB would fund the rebate program that offsets permit and impact fees for affordable projects.

Royal Pine (District 2) — ordinance introduction: The Royal Pine project proposed issuing $40 million in tax‑exempt PABs plus a $20 million taxable tail (the lending partner required a taxable tail). Royal Pine is a 232‑unit development with a mix of units at 30%, 60% and 70% AMI; staff highlighted that the project would be 100% solar‑powered for common areas and include amenities requested by neighbors (exercise room, community kitchen, community garden, vertical trash chutes). The project is north of Woodman, a part of the city that has seen fewer LIHTC projects in recent years. Staff said the developer has prior experience in the city and that the project has completed land use approvals and would proceed to financial closing in the coming months.

Council questions focused on readiness, neighborhood outreach and public infrastructure impacts. Kevin Walker, planning director, confirmed land use approvals for Royal Pine were complete and that 12 written public comments had been received; project opponents had not prevailed on land use appeals. Councilmembers asked about traffic and emergency access; the developer reported an emergency exit and other adjustments in response to neighborhood concerns.

Why it matters: PABs paired with LIHTC are one of the city’s primary tools for financing affordable multifamily housing. These two projects would absorb most of the city’s recent PAB cap and shape the distribution of affordable units across districts.

Ending: Staff will return to council for formal ordinance votes and financial‑closing approvals; council members asked for continued one‑on‑one briefings and the housing department said it would provide more detailed closing timelines and documentation prior to formal votes.