Council to consider assigning $2.76 million in 2025 private activity bonds to Brighton Housing Authority for Adams Point

City staff recommended assigning Brighton’s 2025 private activity bond allocation — $2,755,798 — to the Brighton Housing Authority to support the Adams Point affordable housing project, and council signaled support to place the assignment on next week’s consent agenda.

Finance Director Katrina (presenting) told the council that private activity bonds allow qualified private issuers to access tax-exempt borrowing for eligible public-purpose projects under the Tax Reform Act of 1986. "Private activity bonds are not a grant to the City. It's the capacity or ability to borrow money," Katrina said.

Staff outlined three options: (1) city-issued bonds in partnership with a qualifying issuer, (2) assign the allocation to a qualified issuer such as the Brighton Housing Authority, or (3) do nothing and let unused allocation revert to the state. Staff recommended assignment to the housing authority to keep the capacity within the Brighton community and to leverage the housing authority’s experience with complex affordable-housing finance.

Deb (Brighton Housing Authority executive director) described Adams Point as a potential three-phase multifamily project of one- to three-bedroom units, estimating total phases between "140 to 200 units" and noting site plan review is in progress. She said Ravenfield (another housing authority project) was submitted for a 9% tax credit but that 9% projects generally do not combine with 4% tax credits and private activity bonds.

Council members asked clarifying questions about default risk and municipal exposure. "When we assign this, can they default on these bonds?" Council Member Green asked. Katrina and Deb explained the bonds are repaid by the private issuer and that the city would have no repayment obligation under the proposed assignment; staff noted defaults on similar housing-authority-structured projects are rare due to layered financing.

Multiple council members expressed support for assigning the allocation to aid Adams Point and to strengthen future financing applications. Mayor Pro Tem said the assignment would signal local support without requiring city dollars and that staff should move the item to next week's consent agenda if council wished. Council indicated they were "good with putting this on consent."

Council did not adopt a final ordinance at the study session; staff will return next week with a consent item for formal action.