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Private Activity Bonds

The Private Activity Bond program funds privately developed projects. The bonds are tax-exempt and the amount of the bonds issued are limited by the IRS. Underwriters use investor money called “bond proceeds,” to make a loan to a project. The project then pays back the loan and the investors are repaid, plus interest.

Eligibility

Municipalities or housing authorities issue the bonds, but have no obligation to repay the investors. Investors purchase the bonds.

Eligible activities include:

  • New construction or acquisition/rehabilitation of housing for low- to moderate-income people
  • Single-family mortgage revenue bonds (SFMRB) sold by local and state agencies for mortgages low- and moderate-income people
  • Mortgage Credit Certificates (MCC) which is a bond allocation for qualified homebuyers
  • Manufacturing "small issue" industrial development bonds (not to exceed $10,000,000) for construction of manufacturing facilities that produce goods.
  • Qualified redevelopment bonds for acquiring property in blighted areas, prepare land for redevelopment, and relocate occupants of structures on the acquired property.
  • Exempt facility bonds for 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.
  • Qualified 501(c) (3) bonds for use by non-profit hospitals and private universities.

Applying for the Statewide Balance

The Department of Local Affairs (DOLA) will accept applications for allocations from the Statewide Balance in three rounds:

 Round 1:

  • Application due date: March 1, 2024
  • PAB Allocations Committee presentation and award decisions: April 2024

Round 2, if cap remains after the first round:

  • There will not be a PAB SWB application Round 2 (June 1, 2024) due to insufficient availability of Cap.
  • In Round 1 an application for $13,200,000 was received and an award for the full amount was approved by the State Housing Board on April 9th, 2024.  This reduced the available SWB PAB cap to $41,545

Round 3, open to any issuing authority and to pipeline requests:

  • Application due date: November 1, 2024

Application and Instructions Word Format
Application and Instructions PDF Format

Resources

See PAB Balances by Issuer

Allocations

Reports

Webinars

Contact

Lisa Blakeney
720-557-2112
dola_pab@state.co.us

Local issuing authorities: Add a new point of contact for PAB communications using the contact update form

This form should be used to report problems or issues with this website. Questions pertaining to a program or service provided by DOH should be addressed to contact information located on the specific program pages.

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