Council hears staff recommendation to assign Thornton's 2025 private activity bond allocation to apartment preservation project

City staff presented three letters of interest and a staff recommendation for how Thornton should assign its 2025 private activity bond (PAB) allocation, which staff said totals $9,400,000 per the Department of Local Affairs (DOLA) allocation.

Housing staff presented three applicants: Maker Housing Partners (requesting bonds for a new 80‑unit development previously awarded 2024 bonds but not yet started); Related Affordable LLC (requesting PABs to renovate Dawson Square Apartments, a 36‑unit project in unincorporated Adams County one block from Thornton); and Colorado Housing Assistance Corporation (CHAC, proposing PABs for down‑payment assistance serving about 30 households over three years).

Anna Flankas, housing coordinator, summarized eligibility, the DOLA submission deadline (staff said the allocation must be submitted to DOLA by Sept. 12), and a three‑year use requirement for allocation. Staff advised Maker Housing Partners could apply again in 2026 and that its 2024 award remains available to that project in its current award year. Staff recommended Related Affordable LLC’s Dawson Square renovation for the full 2025 allocation because the project would preserve workforce/senior units, the applicant has national preservation experience, and the project’s timeline and location make it suitable for the city’s allocation.

Council discussion focused on equity and geographic impacts — several members noted Dawson Square sits just outside Thornton city limits but serves residents who shop and work in Thornton — and on the bond mechanics (the PAB allocation is an authority over tax‑exempt bond volume rather than a direct cash grant; staff explained the relationship between bond allocation and the down‑payment assistance amounts proposed by CHAC). Council members asked whether a split allocation was possible; staff said the allocation could be split at council direction. Several council members said they supported staff’s recommendation to assign the allocation to Related Affordable LLC; one council member favored splitting the allocation to fund down‑payment assistance as well. Staff and council members noted a pending quasi‑judicial matter related to Maker and clarified that the PAB assignment discussion should not be construed as taking a position on any future quasi‑judicial decision.

No formal roll call vote was recorded in the transcript. Staff will prepare formal language and next steps for a future council meeting if council directs staff to adopt the recommendation or an alternative split.