WELD COUNTY — The Weld County Board of Commissioners last month approved transferring the county’s allocation of private activity bonds to the Larimer County Housing Authority, which requested access to them for affordable housing projects.
PAB are tax-exempt bonds allocated to the state by the federal government and are used by the private sector for programs such as mortgages and student loans. The state allocates a portion of its share of PABs to county governments which become the vehicle for private industry to purchase the bonds.
“The county doesn’t actually borrow the money, rather we become the authority to issue the bonds,” said Commissioner Chairman William Garcia. “In the past, we had several parties interested in the program, but that interest has declined due to the low interest rates available today. This year we had no interest in the bonds.”
Because the county has not used its allocation, it can either return the allocation to the state for use on various approved projects or transfer its share of PABs to the state or another approved entity.
“Larimer County approached us requesting Weld’s unused allocation for project needs they have, and we are happy to assist them with that request,” said Garcia. “This transfer will allow the bonds to be put to good use in Northern Colorado.”
The amount of PAB transferred to the Larimer County Housing Authority totals about $7.6 million.