Community Development Block Grant Program (CDBG)

The priority of this program is housing, economic development and infrastructure for low-income communities. Partners include private-sector businesses, local planning and zoning offices, economic development offices, and nonprofit organizations. Jefferson County receives an annual funding allocation from the U.S Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Program. These funds are to be used to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment, and expand economic opportunities for low and moderate income (LMI) persons.

Jefferson County has elected to target the 2019 CDBG funds to the development of decent, safe and affordable housing, and contribute to the development of sustainable communities by preserving existing housing stock or promoting affordable rental or homeownership opportunities for LMI families. 

To learn more about CDBG please review HUD's Community Development website.

Community Services Block Grant (CSBG)

Priority is employment, housing services, and emergency services to help individuals reach self-sufficiency. Partners include schools, faith-based and nonprofit organizations and employment organizations like government agencies and workforce centers. Jefferson County receives an annual funding allocation from the State of Colorado, Department of Local Affairs (DOLA) through the CSBG Program. These funds are to be used to alleviate the causes and conditions of poverty in communities and to achieve the following goals:

• Low-income people become more self-sufficient
• The conditions in which low-income people live are improved
• Low-income people own a stake in their community
• Partnerships among supporters and providers of services to low-income people are achieved
• Agencies increase their capacity to achieve results
• Low-income people, especially vulnerable populations, achieve their potential by strengthening family and other supportive systems.

To learn more about CSBG, please visit the Colorado Department of Local Affairs website. If you have any questions, call 303-271-8374.

Home Investments Partnership Program (HOME)

The priority of this program is affordable housing and it's partners include faith-based and nonprofit organizations.

Private Activity Bonds

What are Private Activity Bonds (PABs)?

PABs are tax-exempt bonds that can be issued for specific purposes by eligible entities including cities, counties and states and are subject to a volume cap allocation established each year by the federal government.  They are used to raise investor capital to support specific and privately developed projects.

What is the purpose of Colorado’s PAB program?

Establish an orderly and equitable process of allocating tax-exempt PAB issuance authority.

Encourage private investment in housing, higher education, jobs, solid and hazardous waste treatment, and water and sewer facilities.

Encourage development in areas of the state where housing, higher education, jobs, and certain infrastructure improvements are most needed.

What types of projects qualify for PAB funding?

• Qualified Residential Rental Projects (Finance new construction or acquisition/rehabilitation of affordable housing).  This is the primary use of PABs throughout the state
• Redevelopment bonds to acquire property in blighted areas and prepare land for redevelopment
• Manufacturing “Small Issue” Industrial Development Bonds (not to exceed $10 million)
• Hospital, health care, or nursing-home facilities
• 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
• Facilities for private and not-for-profit institutions of higher education
• Mortgage credit certificates for qualified home buyers

The specifics of what qualifies is complicated because it is driven by federal tax regulations. In fact, a threshold requirement of the state and Jefferson County policy is that the project is reviewed by a nationally recognized bond counsel to determine if the applicant’s proposal qualifies.    

What is the county role in PAB?

PABs authority is allocated by the federal government to eligible entities including states, counties and cities.  Counties/cities can issue PABs using that allocation, assign PAB allocation to other issuing entities or relinquish the PAB allocation to the state in a given year.  PABs are not grants/cash, but rather an alternative type of low interest funding.

Why haven’t local entities fully used their PABs allocations?

Private Activity Bonds are a critical financing tool for multifamily and single-family housing and are used for airports, water and sewer projects, and local electric and gas facilities. PABs were established to provide another source of low interest rate loans in a high interest environment.   However, with interest rates being low the past eight-nine years, the desire to use PABs to fund projects has been low due to the overall cost and added restrictions imposed on the use of PAB funding. Projects that qualify for PAB funding, oftentimes also qualify for a loan from a bank or other sources of funds without the regulations and reporting requirements, and cost of issuance associated with a PAB.  The PAB interest rate is currently higher than conventional borrowing.  Therefore, PABs are not an attractive financing option in the current economic environment.

In addition, due to market conditions since 2008/2009, viable housing projects have not been planned, therefore developers have not reached out for funding under this program.

How are PABs marketed in the county?

The county uses JEDC as its marketing mechanism for PABs in Jeffco.  It has this option for funding listed on its website and it markets to anyone that fits its mission of creating primary jobs in Jefferson County.  JEDC has an annual service contract for advertising and marketing Jefferson County and is the logical place for promoting the PAB finance option since PABs are intended for primarily housing and industrial projects.  Since housing projects are not within JEDC’s mission scope, Jefferson County may want to promote utilizing PABs to fund housing projects through another avenue such as Community Development. Community Development is able to present PAB information to interested housing developers and promote this financing option through the Community Development Advisory Board if the Board of County Commissioners wishes to promote this financing mechanism for housing development.

Are other cities/counties marketing PABs?

Generally, the requests to use PABs is initiated by, project developers who are pursuing funding as opposed to city/counties promoting PABs. The City of Thornton is the only known PAB recipient that actively markets to affordable housing developers. More information can be found regarding their program and process at City of Thornton website.

Has the Rocky Mountain Metropolitan Airport been involved with projects utilizing PABs?

The Rocky Mountain Metropolitan Airport historically has not been involved with projects funded by PABs.   Most recently a developer considered using PAB funding for a project, but the project did not qualify.

What are the steps/barriers for asking other cities/counties for their allocation vs the state after funds have been relinquished?

The assigning entity with sufficient allocation must approve the request for allocation and pass a resolution assigning the allocation to the county.  There is also the option of applying to the state for allocation after September 15 if you have a viable project. However, there is a 0.25% issuance fee on the portion of the issuance that is allocated from the State.

What are the requirements for carrying forward PAB allocation that are different than the requirements for using PAB allocation for a project in the year that the allocation is made? 

Allocated funds can be carried forward up to the entity’s volume cap for up to three years from the year of the initial allocation until you have accumulated a sufficient quantity of volume cap for a qualified project. You must identify a specific project that qualifies as a project for carry forward purposes. Volume cap may only be carried forward for three years, and the oldest volume bond cap allocation will be used first.

Specifically, the requirements are:

(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.

(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 volume cap allocation to another issuer, and you will not be able to use it for any purpose except what is indicated on the form.

• Lack of notification to the State by 9/15 will cause the volume cap allocation to be relinquished to the Statewide Balance.
• If you do not file IRS Form 8328 by February 15th of the following year, the volume cap allocation will revert to the Federal Government.
• Industrial development projects cannot be funded with volume cap allocation on a carried forward basis.

Other Information 

Annual Allocations: 

The federal government grants annual allocations of Private Activity Bonds to states under the Tax Reform Act of 1986

• Fifty percent of the state allocation is allocated directly to statewide authorities
• Fifty percent is allocated directly to local governments
• Allocation by be assigned or carried forward or PABs may be issued utilizing the allocation.
• Allocation can be utilized from January 1 – September 15
• Local unused allocation will revert to the statewide balance on September 15

Jefferson County PAB History:

2004: Assigned $4.0 million of the county’s PAB allocation to Lakewood Housing Authority                      

Issued approximately $2.2 million Industrial Development Revenue Bonds using PAB allocation for an industrial development facility (Epi-Center)

2005: Relinquished a portion of the county’s PAB allocation to the state to re-allocate approximately $8.4 million of that allocation to CHFA for a housing project (Castlegate Apartments)

2007: Assigned $3.0 million of the county’s PAB allocation to Adams County for an industrial development (TruStile Doors)

2008 thru 2013: Relinquished full PAB allocations to the state

2014: Assigned $8.5 million to city of Lakewood, Colorado, dba Metro West Housing Solutions for financing the construction and equipping of a four-building 95 unit rental housing project along the West Rail Line of RTD’s system known as Zephyr Line Apartments.

2015: Relinquished full PAB allocations to the state

2016: Assigned to Housing Authority of the city of Lakewood, Colorado, dba Metro West Housing Solutions for the financing of the construction and equipping of approximately 152 unit rental housing project for $10,051,850.00

2017: Assigned to Colorado Housing and Finance Authority for new construction of 54 units of housing (El Rancho Flats Project) in Evergreen, CO for $10,122,550.00

2018: Assigned to Colorado Housing and Finance Authority for its FirstStep Program, providing low and moderate-income families with mortgage loan financing in the amount of $10,715,933.

2019: Assigned to Metro West Housing Solutions (MWHS) for the rehabilitation of JCHA’s Caesar Square Apartments located in Wheat Ridge in the amount of $10,972,263.

2020: Assignment of $2.4 million to Metro West Housing Solutions (MWHS) for the additional funding to assist with the rehabilitation of JCHA’s Caesar Square Apartments located in Wheat Ridge. 

Assignment of $8,581,962 to Jefferson County Housing Authority (now called “Foothills Regional Housing”) for funding to assist with the construction of Allison Village Apartments, located in Arvada. 

2021: Allocated $11,519,395; assignment pending.

Who do I contact for more information/to have my project considered for PAB assignment?

• Jeffco Community & Workforce Development Division 
  • Email Marie Wilkinson, administrative coordinator
• Jefferson County Economic Development Corporation 
  • Email JeffcoEDC
  • Call: 303.202.2965
• State of Colorado
  • Email Wayne McClary
  • Call: 303.864.7819
• Visit the Colorado Private Activity Direct Allocation for Issuers (current year) web page