The Colorado Housing and Finance Authority (CHFA) has implemented new steps to manage its Private Activity Bond (PAB) volume cap and ensure efficient deployment of this limited statewide resource.
Effective immediately, CHFA will reduce the maximum tax-exempt bond allocation amount from 55 percent to 52 percent of the eligible aggregate basis for all CHFA multifamily bond issuances.
In addition, CHFA will prioritize its available PAB cap to support those developments seeking cap from CHFA and awarded state Affordable Housing Tax Credits (AHTC) through a competitive allocation process; and for those developments requesting that CHFA serve as the lender for their transaction.
All other sponsors applying for 4 percent LIHTC will be asked to provide the following as part of a complete application.
- An inducement resolution from another PAB issuer in the state indicating that they will be issuing the bonds; or
- A transfer of volume cap to CHFA from another issuer(s) to support the project.
This spring, CHFA will host engagement sessions to provide an opportunity for information sharing and discussion of ways CHFA can best structure its allocation of PAB for long-term future availability. For more information and to participate in the upcoming PAB stakeholder sessions, please contact pab@chfainfo.com or call Shannon Friel at 303.297.7387.
