tax-exempt private activity bonds and 4 percent lihtc application requirements
To assist both our partners and customers, CHFA implemented new steps to help manage its Private Activity Bond (PAB) volume cap and ensure efficient deployment of this limited statewide resource.
When CHFA is the issuer, CHFA limits multifamily private activity bond issuances to no less than 52 percent and no more than 55 percent of the 4 percent LIHTC aggregate basis.
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.
These steps are being implemented as CHFA anticipates robust demand for its PAB volume cap to continue as Colorado communities work diligently to meet their varied affordable housing and economic development needs.
CHFA is proud to support its mission of affordable housing and community development using a variety of innovative resources including PAB. The positive result of this investment is significant with over 3,450 first time homebuyers supported, 12,239 rental housing units developed or preserved, and 232 manufacturing jobs supported since 2016. CHFA is not alone in deploying PAB to support statewide needs. In 2019, DOLA-DOH allocated $282 million in PAB to local city and county issuers. To view a list of all statewide issuers
To provide feedback to CHFA or for more information, please contact
or call Shannon Friel at 303.297.7387.