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Montezuma County to delegate unused private‑activity bond volume cap to CHFA
Summary
County bond counsel told commissioners the county holds federal private‑activity bond volume cap awards from 2021 and 2022 that will expire if not used; staff brought a resolution to delegate authority to the Colorado Housing and Finance Authority to deploy the cap for multifamily housing closings this year.
Bond counsel for the Colorado Housing and Finance Authority told the Montezuma County Board of County Commissioners at a workshop that the county holds unused private‑activity bond volume cap awards from 2021 and 2022 and is considering a resolution to delegate authority to CHFA so the cap can be used on other multifamily projects this year.
Bond counsel (CHFA) said Colorado receives about $700 million of private‑activity bond volume cap each year under the federal tax code and that a large share (about 48–50 percent) is allocated to CHFA. He told the commission Montezuma County received $1,429,096 of volume cap in 2021 and $2,050,279 in 2022 from a statewide balance award administered by the Colorado Department of Local Affairs (DOLA). The counsel noted the 2021 award expires at the end of the current calendar year if not used.
“There's this thing called private activity bond volume cap…what volume cap does is it is it's not a dollar. It doesn't have a dollar value, but it limits the amount of private activity bonds that can be issued, in the state in any given year,” Bond counsel (CHFA) said. He also described statewide demand for multifamily bond authority as roughly three times the available cap and said the county’s unused allocation could be deployed elsewhere to support closing projects.
Commissioners said they understood the proposal and had no detailed questions at the workshop. The board was presented with a resolution to delegate the county’s remaining volume cap authority to CHFA so the award does not “evaporate” at the statutory carryforward deadline. If adopted, CHFA would be authorized to reallocate the county’s unused cap to multifamily transactions that close this year under CHFA’s allocation process.
No formal vote on the delegation was recorded in the workshop segment provided; county staff indicated paperwork would be routed to the parties and that CHFA expected projects to close within days if documents were finalized.
Why it matters: private‑activity bond volume cap is a limited, federally governed tax resource used to support low‑cost financing for privately owned public‑purpose projects (such as affordable multifamily housing). A county’s unused allocation can expire, meaning potential housing financing capacity would be lost unless another entity is authorized to use it.
