Littleton assigns 2026 bond cap to housing authority, adds $1 million for 72-unit Starlight project

Littleton City Council voted 7-0 on June 16 to approve two housing-finance actions for South Metro Housing Options: assigning the city’s full 2026 private activity bond allocation and contributing $1 million from the Affordable Housing Fund to the housing authority’s planned 72-unit Starlight project, according to the meeting video.

Resolution 23-2026 assigns Littleton’s entire annual private activity bond cap — $3,162,447 for 2026 — to South Metro Housing Options for use in financing qualified residential rental projects. City staff explained in the council packet that the bonds are a tax-exempt financing tool that can support affordable rental housing without making the city responsible for repaying bond investors.

For multifamily rental housing, staff said in the packet private activity bonds can also unlock 4% low-income housing tax credits. The resolution says the allocation will revert to Colorado’s statewide balance if the bonds are not issued by Sept. 15, 2026, unless the housing authority carries the allocation forward under state law.

Resolution 46-2026 approves the $1 million city contribution for Starlight. The council packet says the development would serve families earning 30% to 70% of area median income and include eight foster-youth vouchers.

According to the same staff memo, Starlight has an estimated total development cost of about $32 million and a remaining funding gap of roughly $3.5 million. South Metro Housing Options said it expected to close that gap through city funding, Colorado Division of Housing money, Arapahoe County support and deferred developer fees.

The packet says South Metro Housing Options planned to apply to the Colorado Housing and Finance Authority in August 2026. If that application succeeds, construction would begin in spring 2027 and finish in summer 2028, according to the same memo.

Both resolutions were approved on the consent agenda, and the available meeting video does not show separate debate on either housing item before the unanimous vote.

The bond-allocation vote ties Littleton’s annual private-activity-bond authority to an active affordable-housing pipeline. But Resolution 23-2026 assigns the bond capacity for qualified residential rental projects generally, rather than naming Starlight as the specific bond-financed development.