Council agrees to allocate Lafayette’s 2025 private‑activity bond cap to preserve Helios Station townhomes

Lafayette City Council on July 2 discussed two requests for the city’s 2025 private activity bond allocation and directed staff to prepare a formal allocation to fund the preservation and rehabilitation of 30 townhomes at Helios Station.

Background: Private activity bonds (PABs) are federal tax‑exempt bond authority that local governments can allocate to qualified projects — commonly affordable housing — to lower borrowing costs. Colorado’s statewide PAB cap is split between statewide entities and individual municipal allocations; Lafayette’s 2025 share equals roughly $1.99 million in bonding authority based on the IRS per‑capita formula for 2025. If the city does not assign its share by mid‑September it reverts to the statewide pool.

Applicants: City staff reported having received two strong applications: Boulder County Housing Authority’s Willoughby Corner phases 2 (128 rental units) and 3 (80 for‑sale units) — large new construction phases with an anticipated 2027 start — and a proposal from Related (a private developer) to acquire, rehabilitate and re‑restrict 30 existing townhomes at Helios Station, preserving those units as affordable (proposed 60% AMI deed restriction through 2056).

Council discussion weighed unit production and preservation. Supporters of preservation noted Helios Station’s location near schools, trails, the rec center and transit and said preserving existing family‑sized units would prevent displacement and stabilize supply. Supporters of Willoughby Corner noted the project’s size and the city’s prior investments and the continuing need for large new production.

Outcome: Council reached consensus to move forward with an allocation to Related’s Helios Station preservation application and asked staff to bring a formal allocation ordinance for the August meeting so the city can meet the mid‑September assignment deadline. Staff noted past practice: Lafayette has previously assigned PABs to CHFA and directly to local projects; multi‑year windows exist for use after allocation, but projects must meet federal and state program steps and related low‑income housing tax credit schedules.

What’s next: Staff will prepare the formal ordinance and supporting documents to assign Lafayette’s 2025 PAB allocation to the Helios Station preservation transaction. Council did not adopt the allocation at the July 2 meeting; the formal allocation remains a future, time‑sensitive action.