DOLA Fees for Private Activity Bonds (PABs) Posted Sepetember 3, 2020
The Department of Local Affairs (DOLA) hereby issues notice that the Private Activity Bond (PAB) fee structure is revised, effective November 1, 2020. These fees affect both statewide balance award fees and direct allocation fees paid by local governments and statewide authorities that issue PABs. As per CRS 24-32-1709.5, fees are only charged when bonds are issued.
Fees are set as per CRS 24-32-1709.5, which allows DOLA to charge and collect fees for the costs associated with the PAB program. This new fee structure is based on DOLA’s projections of the amount of bonds that will be issued in the next twelve months.
Starting November 1, 2020 PAB fees will be as follows:
Direct allocation fees apply to all PABs issued from a local government and/or from a statewide authority’s direct formula allocation. This fee applies as follows:
- The fee rate will be 0.027%, an increase from the previous fee rate of 0.009%.
- Since most PAB issuances are for at least $4 million, the smallest fee would typically be $1080. Likewise, a $15 million issuance would cost $4,050.
Statewide balance award fees apply to all PABs issued pursuant to an award from the statewide balance, which is managed by DOLA. This fee applies as follows:
- Each applicant to DOLA for PABs from the statewide balance will pay a $750 application fee, no change from current practice.
- The fee rate will be 0.027%, a decrease from the previous fee rate of 0.128%.
- Since most PAB issuances are for at least $4 million, the smallest fee would typically be $1080. Likewise, a $15 million issuance would cost $4,050.
Generally, for both direct allocation and statewide balance award fees:
- As per C.R.S. 24-32-1708, each issuing authority shall submit a copy of form 8038 or a copy of the mortgage credit certificate election form to DOLA within five (5) days of closing. DOLA will invoice the issuer, and payment is due within 30 days of invoicing.
- If PABs are assigned or delegated to another issuer, the recipient becomes responsible for payment once the bonds are issued.
- If PABs are never used, the fee will never be due.
- The new fee rates apply to all PABs that have not yet been issued, regardless of the year of origin.
The fee does not apply to refinanced or refunded bonds. For additional information, please contact Wendy Hawthorne at DOLA-Division of Housing at (303) 864-7838 or wendy.hawthorne@state.co.us