Denver City Council on Aug. 18 adopted a resolution (25-11-26) declaring the city's intent to use its best efforts to issue housing revenue bonds or mortgage credit certificates to finance residential facilities for low- and middle-income households. The council vote was unanimous on the item.

Why it matters: the declaration begins the city's formal commitment process for private activity bond authority that allows developers to access tax-exempt bond financing commonly paired with 4% low-income housing tax credits. Host staff told council these instruments are not direct cash subsidies from the city but are financing tools private developers use to complete projects with affordable units.

Host (Housing Opportunity for Host) Deputy Director Adam Lyons explained that these are private-activity bonds that are typically part of a project's capital stack and that, under federal tax rules, a certain percentage of eligible project costs must be financed by the bonds to qualify for the 4% low-income housing tax credit. Lyons said the city advances bond inducement resolutions and later takes a second council action when projects are ready to close.

What council did: council adopted the inducement-resolution-style measure, which staff said allows projects to assemble financing and apply for related tax-credit awards. Staff explained the city would take later council actions when specific projects reach closing stage and submit bond regulatory agreements.

Outlook: the action positions Denver to support affordable housing development financed through private activity bonds and low-income housing tax credits; specific projects will return to council for final approvals and regulatory agreements as they progress.