Douglas County assigns $15.3 million private-activity bond cap to housing partnership

Douglas County commissioners on March 11 approved assignment of the county—s 2025 private activity bond cap to the Douglas County Housing Partnership. The county—s allocated cap for 2025 is $15,344,854; when combined with allocations from the towns of Castle Rock and Parker the total assignment available through the partnership equals $24,773,264.

Melody Dallincourt, community programs coordinator, told the board the allocation would be used to finance multifamily housing for households earning no more than 60% of area median income. She explained that private activity bonds are tax-exempt debt instruments that often pair with federal low-income housing tax credits; the bond structure lowers borrowing costs for developers and supports more affordable housing outcomes.

Artie Lael, deputy director of the Douglas County Housing Partnership, told commissioners the partnership acts as an issuing authority under an intergovernmental agreement with the county and the two towns. "These bonds have many restrictions on them, including the fact that the projects that we undertake must also, accrue tax credits through another IRS program, to help pay for the development of these projects," Lael said. He added the bonds are a financing vehicle rather than grants and are intended to reduce interest costs so projects can serve teachers, frontline workers and other lower-income households.

The board approved the assignment by a unanimous vote (3-0). County staff and the Housing Partnership said they are available to answer questions as projects move forward and to return with additional details as required by state procedures governing bond-cap assignments.

Details: the bond-cap assignment must follow state processes for reallocation and, under state law, jurisdictions must take action regarding use or reassignment of private activity bond cap prior to the September 15 deadline.