By September 15th:
(1) Issue your volume cap for a specific PAB project. If more is needed, make an application for a portion of the statewide balance to use in your qualified project.
(2) Assign your volume cap to another local government or housing authority to assist their qualified project. The recipient must either issue or carryforward that cap by September 15th.
(3) Assign your cap to another issuer such as CHFA to assist with a qualified project or their single-family programs. The recipient must either issue or carryforward that cap by September 15th.
(4) Relinquish bond volume cap to the Statewide balance. If you intend to do this, please send a letter or email to us to that effect. In this situation, all relinquished bond cap will be awarded to other projects in the state through a competitive process by the end of the calendar year.
(5) Carryforward your volume cap for up to the next three years until you have accumulated a sufficient quantity of bond cap to issue it for a qualified project. You must have a specific project in mind (if that project fails, you may issue it for another similar project). Please note that bond cap may only be carried forward for three years, and the oldest bond cap allocation must be used first. Specifically:
(a) by September 15th – notify the Colorado Department of Local Affairs, Division of Housing in writing of your election to carryforward, and the intended purpose. (Industrial development projects cannot use bond cap that was carried forward.) Please see the attached for a complete list of required documentation, including an inducement resolution from your governing body. NOTE: Lack of notification to the State by 9/15 will cause the bonds to be relinquished to the Statewide Balance.
(b) by February 15th of the following year – file with the Internal Revenue Service form 8328, “Carryforward Election of Unused Private Activity Bond Volume Cap.” Once this is filed, you will not be able to assign the bond cap to another issuer, and you will not be able to use it for any purpose except what is indicated on the form. NOTE: If you do not file IRS Form 8328 by February 15th, the bonds will not be available to be issued. If you have assigned your cap to another issuer, it becomes their responsibility to file this form.