GARFIELD, CO - The distribution of revenue bonds to residential rental projects and single-family mortgage loans for low and moderate-income families in Garfield County has been approved.
The Colorado Housing and Finance Authority (CHFA) is looking to provide more than $3.3 million in private activity bonds in Garfield County to fund affordable housing projects.
Before, the county has issued bonds to CHFA for affordable housing projects in the area. CHFA has used the bonds to assist 123 first-time homeowners in Garfield County over the last eight years, representing a $24.8 million investment in the community.
Including a $9.2 million investment in the Glenwood Manor.
CHFA tax credit officer, Shannon Friel said that the Board of County Commissioners was offered many bond choices, including putting the bond allocation in a reserve and carrying it forward to the following year. She added if there's no feedback, on September 15, the resource will be automatically returned to the state and redeployed to other locations.
Friel also mentioned that if the bond allocation is given to CHFA, it will be a good investment for the community for the next 12 months.
“We’re seeking a transfer of the county’s 2021 private activity volume cap for more than $3.3 million,” she told the board.
According to the Colorado Department of Local Affairs (DOLA), Tax-exempt bonds are used to assist support private development programs.
The bonds may be issued by counties and municipalities with no commitment to repay investors. The size of the bonds is capped by the Internal Revenue Service (IRS), and underwriters use investor funds to make a loan for a qualifying project, which subsequently repays the loan plus interest to investors.
According to Friel, qualified veterans do not have to be first-time homebuyers to benefit from the program.
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