If you want to sound smart for your next social function, this story is a good place to start.
As the Atwood Commons affordable housing project nears its groundbreaking, the Longmont Housing Authority Board of Commissioners will meet Tuesday to decide whether to approve a resolution to help finance the project.
What to know:
Brikwell Olive Grove Housing Solutions will begin building 72 affordable housing units at 130 3rd Avenue on August 10. The homes will be restricted to those earning between 20-80% of the area’s average income. But — like us all — the project is looking for money.
The resolution will “authorize LHA to issue multi-family revenue bonds [to Brikwell] at closing and loan the proceeds thereof to support the financing of the project,” according to an LHA agenda packet.
English, please…
The proposal gives the greenlight for LHA to give Brikwell a revenue bond to help fund the project.
Revenue bonds are essentially loans that are paid back using money the project earns, rather than tax dollars. In this case, Brikwell may use rent from the apartments to repay the loan.
Brikwell can borrow up to $15 million, but may not need that much.
In addition to the loan, Brikwell has a big tab to pay. When the dust clears, Brikwell owes…
$85,500 for the bond issuance fee.
LHA’s legal fees, and…
Starting in 2027, once a year for the life of the loan, an annual monitoring fee. This would be roughly $9,200 in the first year.
Bonds…Revenue Bonds:
These are typical funding methods used by government entities to kickstart projects beneficial to a community. Other examples include airport expansions, water systems, hospitals, and toll roads. They’re an especially unique tool for governments who don’t want to risk taxpayer money for substantial investments and for companies to more easily afford big projects.
The meeting will take place Tuesday at 8 p.m. Learn more here.