|2017-01-26 by Kathy Stevens|
|City Requests Applications for 2017 Private Activity Bond Allocation|
Private Activity Bonds - Request for Applications
The City of Longmont is pleased to announce this Request for Applications for the City’s 2017 Private Activity Bond (PAB) Allocation. The City has received its 2017 PAB allocation in the amount of $4,631,650. The City of Longmont annually receives a PAB allocation from the Colorado Department of Local Affairs that allows tax exempt bond financing for a variety of economic development and/or affordable housing projects.
PABs are designed to offer low‐cost financing that encourages private sector investment in communities throughout the country. PABs encourage investment in projects that increase the tax base of a local community, including: (1) affordable housing, (2) economic development/manufacturing, (3) infrastructure, and (4) environmental projects. This form of bond financing can provide 100% financing of land, building, equipment and machinery, as well as project development costs, financing costs and other costs incidental to the issuance of bonds.
Eligible uses of the PAB program are wide ranging and include:
Qualified residential rental projects – Bond proceeds are used to finance new construction
or acquisition/rehabilitation of housing for persons with low and moderate incomes.
Single‐family mortgage revenue bonds – Bonds sold by local and state agencies, to be used
for mortgages for persons with low and moderate incomes.
Mortgage Credit Certificates – Local issuers can elect to use a bond allocation as mortgage
credit certificates for income‐qualified homebuyers.
Student loans – Proceeds are used to provide low interest loans to eligible students at
institutions of higher education.
Manufacturing "small issue" industrial development bonds (not to exceed $10,000,000) –
Bonds sold for construction of manufacturing facilities that cause a change in the condition
of goods or products.
Qualified redevelopment bonds – Bonds sold to acquire property in blighted areas; prepare
land for redevelopment; and relocate occupants of structures on the acquired property.
Exempt facility bonds – Hazardous waste facilities, solid waste disposal facilities, water and
sewer facilities, mass commuting facilities, local district heating and cooling facilities, local
electric energy or gas facilities, and multifamily housing bonds.
To obtain a copy of the application package, including the City of Longmont’s PAB Procedures and Guidelines, or for more information please contact:
City of Longmont
385 Kimbark Street
Longmont, CO 80501
Applications will be accepted until June 23, 2017