Arapahoe County commissioners agreed informally to reallocate $5,000,000 in private activity bond (PAB) allocation to South Metro Housing Options’ Starlight project, a proposed 74‑unit affordable multifamily development on Littleton Boulevard that targets households earning between 30% and 70% of area median income and includes an emphasis on young adults aged 18–24 who are aging out of foster care.

The county’s Community Resources staff recommended the reallocation after one of the projects previously awarded the county’s largest slice of the PAB allocation informed the county it would not move forward. “We are therefore recommending that the $5,000,000 be added to the South Metro Housing Options Starlight project,” Community Resources staff member Nancy Sonnenfeld said during the meeting.

The recommendation follows the county’s June presentation of its PAB recommendations for 2025, in which four projects were funded at different levels. Staff told commissioners three of those projects had funding levels sufficient for their needs and one remaining project required additional PAB allocation to proceed as new construction rather than rehabilitation. Staff emphasized that, if the county did not reallocate the funds, they could be returned to the state pool for reallocation elsewhere in Colorado.

County staff described Starlight as a five‑story, new‑construction development going through Littleton planning review and traffic study. The project is pursuing low‑income housing tax credits (a non‑competitive 4% LIHTC through the Colorado Housing and Finance Authority) and may request inclusionary‑zone funds from the City of Littleton. Staff said Starlight has sought financial commitments from nearby jurisdictions and partners: Littleton has already committed $3,000,000, and the project team is in discussions with Englewood and Inglewood for additional allocations.

Commissioners expressed support during the meeting; staff reported “four thumbs up” in favor of moving the $5,000,000 from the previously recommended Arapahoe Peaks allocation to Starlight. The county did not record a formal roll‑call vote during this discussion; the approval was reached by informal consensus.

Why it matters: reallocating these PAB dollars keeps the financing local and supports a project designed to add 74 units of affordable housing in a corridor within Arapahoe County while directing resources to a development with targeted services for foster‑youth transition ages. The county emphasized the choice was between local reallocation and relinquishing the funds back to the state pool for a statewide redistribution.

Next steps: Staff said the Starlight project is pursuing CHFA financing in September and remains engaged with municipal partners; county staff will continue to coordinate with the developer and neighboring jurisdictions on the final financing package.