County staff briefed the Pueblo County Board of County Commissioners on private activity bonds during a July 29 work-session update, laying out how the county’s $125-per-capita allocation — $3,724,705 for 2025 — could be used for local projects including affordable housing and manufacturing facilities. The presentation was informational; commissioners were told staff will return with recommendation material ahead of an internal August 15 planning decision to meet a state submission deadline of Sept. 15.

Private activity bonds (PABs) are tax-exempt allocations that local governments can assign to non‑governmental borrowers to support projects such as new construction, acquisition or rehabilitation of housing for low- and moderate-income households, mortgage-related programs, manufacturing facilities, redevelopment of blighted property, certain disposal facilities, nonprofit hospitals and private universities. “The bonds can be used for many types of projects, including new construction, the acquisition and or rehabilitation of housing for low to moderate income households,” said Alexis Alice, Housing Program Administrator, during the presentation.

County Manager Spina Genesio prefaced the item as informational and said staff and county counsel are coordinating with bond counsel to clarify whether industrial (industrial revenue) bonds overlap with the PAB program and whether the two can proceed on separate timelines. “This presentation is informational so you can understand more about the program,” Genesio said.

Staff described three options for the county’s 2025 allocation: assign the allocation to the Colorado Housing and Finance Authority (CHFA) as Pueblo County has done historically; carry forward the county’s allocation for up to three years to “stack” volume for a larger local project; or relinquish the allocation to the statewide balance for use anywhere in the state. Staff emphasized a preference to keep the allocation available locally when there is a viable project.

The county identified the Tava Square affordable-housing project on the West Side as a potential candidate and said a presentation on that project is scheduled for Aug. 5. Staff also noted an oil reclamation project and an industrial prospect previously discussed with the board could be high-priority candidates depending on legal and financing details.

Staff explained that projects that use PABs must be sufficiently advanced before the county can commit the allocation. That typically means plans, financing underwriting, and project graphics are in place and developers understand the financing package; if the developer is pursuing tax credits, acceptance into a tax-credit round is often part of the financing picture. “It has to be a project that ... is moving forward,” Alice said. If there is no eligible local project by the deadlines, staff said the county may either carry the allocation forward or relinquish it to the state balance.

Commissioners asked about county financial liability; staff clarified the county would not be obligated to repay bonds issued on behalf of private borrowers. Alice reiterated: the county receives an allocation based on population and issues the allocation to a nongovernmental borrower; the borrower is responsible for the debt. Staff also reported the county’s allocation has trended upward slightly year over year and is population‑based.

Several commissioners expressed support for keeping the allocation local and for prioritizing housing and feasible industrial projects, but the board did not take formal action on July 29. Staff said they will return with additional legal detail from bond counsel and a recommended path forward before the board must finalize paperwork in August for the Sept. 15 state deadline.