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Adams County planners push to assign 2025 private activity bond cap to Maker for affordable housing projects
Summary
County staff recommended assigning the county’s 2025 private activity bond (PAB) allocation to Maker Housing Partners to support preservation and new-construction affordable housing projects, and commissioners agreed to place an assignment resolution on the Sept. 2 agenda and submit the assignment to the state by Sept. 15.
Adams County staff recommended assigning the county’s 2025 private activity bond allocation to Maker Housing Partners to support two affordable-housing projects in the county, and developers said the PAB award is critical to securing low-income housing tax credit equity.
Why it matters: Private activity bonds are a limited, federally-authorized tool local issuers can assign to multifamily affordable housing projects. County staff and developers said PAB allocation is often a linchpin that leverages substantial federal tax-credit equity for preservation and new construction of affordable units.
Erica (county staff) and Maker affiliates told the commissioners the county’s bond capacity is small and assignment decisions must be made quickly to meet state deadlines. "If we did absolutely nothing, that capacity would automatically roll into DOLA’s statewide balance," county staff warned. Staff recommended an assignment and asked commissioners to approve a resolution and an assignment agreement at the Sept. 2 board meeting.
Developers presented capital stacks for two projects that rely on 4% low-income housing tax credits and tax-exempt bonds to be financeable. Related Affordable (preservation of Squire Village, a 51-unit senior property) and Maker (the Wellby, a new 117-unit project) said the PAB assignment unlocks tax-credit equity that is necessary for project viability. Patrick Berry of Related explained recent federal tax-law changes that reduced the share of project basis that must be bond-financed from 50% to 25% for projects placed in service in 2026 — which affects how much PAB each project needs now and next year.
What the board asked: Commissioners and staff discussed alternatives — assigning the county’s PAB capacity to CHFA (Colorado Housing and Finance Authority) for down-payment assistance, assigning it to Maker/Related for specific projects, or leaving it to roll into the state balance. County staff said CHFA can administer down-payment programs but Maker could not reconfigure its bond issuance to support down-payment assistance quickly enough for 2025; CHFA would be an option to pursue for 2026.
Next steps: Commissioners directed staff to prepare an assignment resolution for the Sept. 2 agenda and an assignment agreement between Maker and the county for signature that day. Staff said Adams County will submit the signed assignment and required documentation to the state by Sept. 15 to retain the county’s 2025 PAB capacity.
Developers and staff said the county’s full award would allow construction and preservation work to proceed in early 2026, and they described coordination with nearby municipalities and CHFA to secure additional or alternative bond capacity when needed.
