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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, 2025
  • PAB Allocations Committee presentation and award decisions: April 2025

Round 2, if cap remains after the first round:

  • Application due date: June 1, 2025
  • PAB Allocations Committee presentation and award decisions: July 2025

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

  • Application due date: November 1, 2025
  • PAB Allocations Committee presentation and award decisions: December 2025

The Statewide Balance is available to (1) local issuers not receiving a direct allocation or (2) statewide authorities and designated local governments that need additional allocations. In the March and June rounds, only issuers that did not receive a direct allocation or issuers that have exhausted (Issued) their direct allocations prior to application deadline date(s), may apply. State Law requires that, prior to September 15, agencies in the second group must relinquish unused portions of their direct allocation to the Statewide Balance at the time of award.

PAB Statewide Balance Application Instructions
PAB Statewide Balance Application - Rental property

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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