Garfield County revenue bonds to assist with housing initiatives
CHFA has utilized more than $34 million in bonds for local housing in the past 8 years
Garfield County commissioners recently approved the allocation of revenue bonds toward residential rental projects and single-family mortgage loans for low- and moderate-income families in the area.
The Colorado Housing and Finance Authority (CHFA) is seeking to utilize more than $3.3 million in private activity bonds toward affordable housing initiatives in Garfield County, according to a county news release.
Over the past eight years, the county has issued $24.8 million in bonds to CHFA for affordable housing projects in the area, including support 123 first-time home buyers and an additional $9.2 million investment in the 76-unit Glenwood Manor phases one and two.
Shannon Friel, CHFA tax credit officer, laid out several bond options for the county commissioners, including placing bonds in reserve for next year.
“We’re seeking a transfer of the county’s 2021 private activity volume cap in the amount of more than $3.3 million,” she told the board during its July 19 meeting. “The county has the options of what it can do with its private activity bond volume cap, which is based on population.”
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If no action was taken, however, the funds would automatically be relinquished to the state and redeployed to other areas. If the bond allocation is transferred to CHFA, it makes “a commensurate investment in your community over the next 12 months,” Friel said.
According to the Colorado Department of Local Affairs (DOLA), the tax-exempt bonds are used to help fund private development projects. Counties and municipalities may issue the bonds with no obligation to repay investors. The amount of the bonds is limited by the Internal Revenue Service, and underwriters utilize investor funding to issue a loan for a qualifying project, which then repays the loan to investors, plus interest, according to DOLA.
Friel added that qualified veterans do not have to be first-time home buyers to utilize the program for housing.
“There’s strong interest in our program by the lenders, because it helps them with loan production,” she said. “We work with the lenders, who send us qualifying mortgage packages, and we review them and provide the investment.”
County commissioners unanimously approved the revenue bond allocation.
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