Garfield County commissioners voted unanimously Monday to allocate almost $4.1 million in private activity bonds to the Colorado Housing and Finance Authority (CHFA) to support local affordable housing projects.

Private activity bonds are tax-exempt loans used to fund private development projects, according to the Colorado Division of Housing. Every year, the Internal Revenue Service assigns each state a private activity bond limit. Colorado then allocates the bonds to cities and counties based on area population. This year, Garfield County received a private activity bond cap of nearly $4.1 million based on a population count of 62,722. 

Local governments decide how to use the bonds. Garfield County on Monday authorized the CHFA to use its private bonds for local housing programs. CHFA can now sell almost $4.1 million in tax-exempt bonds to private investors for eligible activities such as low-income housing construction, mortgage credits for first-time homeowners and land redevelopment in blighted areas. 

The proceeds from the bonds can then be used by CHFA “to do that good work of supporting single family mortgages or financing affordable rental housing,” Kathryn Grosscup, CHFA housing tax credit manager, told commissioners Monday.

“(CHFA) is a statewide, independent standalone authority, and we utilize this resource — which essentially allows us to go into capital markets and raise funds and lend them at a tax exempt rate — so the cost of borrowing is lower,” Grosscup said. “That creates opportunity for supporting first-time and moderate home buyers in Garfield County, and in some cases, supporting multifamily transactions where that tax exempt financing also leverages federal housing tax credits and brings additional equity into projects.

“It’s a very powerful resource in Colorado,” she added.

The Daily Report: All the Garfield County News
Breaking news, local headlines, community stories — delivered straight to your inbox.

12,000+ readers stay ahead. Subscribe at PostIndependent.com/newsletter

Private activity bonds were part of the financing package used to fund the Glenwood Springs Canyon Vista project. Greenlighted by the Glenwood Springs City Council in April, the 80-unit development will take over nearly four acres at 51993 U.S. Highway 6.

Developed by Cohen-Esrey, the project will provide income-restricted rentals for residents earning between 20% to 80% of the area median income. Studio prices will start as low as $358 per month. 

By transferring private activity bonds to CHFA, Garfield County has helped approximately 298 residents acquire homes since 2020, according to Grosscup. 

“There’s so much talk about housing right now and affordability,” Commissioner Tom Jankovsky said Monday before calling for a vote. “The cost of housing is so high — I think it’s a great program.”