HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2022 - RESOLUTION 2022-067 AUTHORIZING THE ASSIGNMENT OF Agenda Item 10
Item # 10 Page 1
AGENDA ITEM SUMMARY July 5, 2022
City Council
STAFF
Sue Beck-Ferkiss, Social Policy and Housing Programs Manager
Ingrid Decker, Legal
SUBJECT
Resolution 2022-067 Authorizing the Assignment of the City's 2022 Private Activity Bond Allocation to Housing
Catalyst to Finance New Construction and Rehabilitation of Affordable Homes.
EXECUTIVE SUMMARY
The purpose of this item is to support the new construction and rehabilitation of affordable housing at one
specific location and one or more other planned projects developed by Housing Catalyst in the City by
assigning the City’s 2022 Allocation of Private Activity Bond (PAB) capacity to Housing Catalyst (HC). PAB
capacity is required for development projects using federal 4% Low-Income Housing Tax Credit financing.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
The State of Colorado Private Activity Bond (PAB) allocation program is established by the Colorado Private
Activity Bond Ceiling Allocation Act, Colorado Revised Statutes Section 24-32-1707, et seq., (the Allocation
Act). PABs are tax-exempt bonds that can be issued by eligible authorities. The proceeds of the sale of the
bonds must be used for specific purposes as determined by the In ternal Revenue Service. Permitted purposes
include, but are not limited to, affordable housing development and rehabilitation. Historically, PAB financing
has also been used by the City for economic and industrial development purposes.
In 2022, the total amount available statewide is $ $639,327,590. Fifty percent of the state ceiling is allocated
directly to statewide authorities and the other half is allocated directly to local governments based on
population size. The City has been notified that, pursuan t to Section 24-32-1706 of the Allocation Act, its
allocation from the state for 2022 is $9,395,372. (Attachment 1) PAB capacity is merely the authority to take
on tax exempt debt and is not an allocation of funding. The City will not incur debt by assign ing this allocation
and this will not affect the City's credit rating. If a local government does not issue bonds or assign the bond
cap to an eligible entity for a local project or projects by September 15 annually, the City allocation
automatically reverts to the state’s pool of available bond capacity.
The Colorado Housing and Finance Authority (CHFA) offers a 4% Low Income Tax Credit Program which is a
financing mechanism for the development and rehabilitation of affordable housing. CHFA requires these types
of financing deals to include private activity bonds. Historically, Fort Collins had assigned its annual allocation
on a first come, first served basis. From 2009 through 2012, the Fort Collins allocation was not used locally
and therefore reverted to the state’s pool of available bond capacity. In 2013, 2014, 2015 and 2017 the City
assigned its full allocation to the Fort Collins Housing Authority, now Housing Catalyst (HC), for the
rehabilitation of affordable rental housing units. In 2016, the PAB was assigned to CHFA for the benefit of two
local affordable housing projects.
Agenda Item 10
Item # 10 Page 2
As of 2018, the City implemented an application process for requesting the City’s annual allocation of PAB.
The guidelines are set forth in the City’s General Financial Polici es. Applications are due annually by March 15
and are reviewed by the City PAB committee. Finance policy states that the following factors be considered
when making a recommendation for allocation of PAB capacity:
• How well the project meets the land use, economic development and/or affordable housing goals of the
City;
• Project feasibility and timing;
• Leverage of other investment into the project;
• Maintenance of or increase in local tax base;
• Competing uses for the City’s allocation;
• Whether the City’s allocation should be used in multiple projects ; and
• Whether the application should be considered by any City board or commission.
This year the City has received one request for PAB capacity . (Attachment 2) It is from HC for the Village on
Impala Redevelopment and Renovations project and for one or more of HC’s other planned projects,
depending on the timing of and order in which those projects develop :
1. The Village on Impala Redevelopment and Renovation project will provide 86 affordable rental homes for
individuals and families with incomes ranging from 30-80% area median income (AMI). The location is just
south of Poudre High School on South Impala Drive and Impala Circle. (Attachment 3) HC will
substantially renovate 12 existing duplexes, totaling 24 affordable rental homes. Additionally, HC is
replacing 11 aging and inefficient single family public housing rental homes and one duplex with 60 newly
constructed energy efficient affordable apartment rental homes. Upon completion, there wi ll be a net
increase of 49 new affordable homes to the City’s inventory of affordable housing. The project will utilize
low income-housing tax credit financing and will require approximately $16 million in PAB capacity. The
City’s 2021 PAB allocation ($9.3M capacity) has been assigned to HC for this project.
2. HC has several planned projects that they will develop themselves or through partnerships that will use 4%
Low Income Housing Tax Credit financing to construct or rehabilitate rental homes in the C ity. All HC
projects align with the objectives outlined in the City’s Housing Strategic Plan. HC has the authority to
issue bonds and has experience in utilizing PAB capacity.
In addition to the City’s 2022 PAB capacity, HC has acquired 2022 PAB capacity from Larimer County. Both
allocations are necessary for current and future HC projects.
The City’s PAB committee made up of staff representatives from the Social Sustainability, Economic Health
and Finance departments considered the application and reco mmend assigning the entire 2022 PAB allocation
to HC for the purpose of renovating and constructing affordable apartment homes. For HC to use the City’s
allocation of PAB capacity, Council must adopt a resolution assigning the 2022 PAB allocation to HC who will
issue the bonds for the qualifying projects. HC may carry forward PAB capacity for three years to assemble the
entire required amount for these projects.
CITY FINANCIAL IMPACTS
The City will not issue the Private Activity Bonds and the bonds will n ot be obligations of the City. The debt
service on the bonds will be repaid from revenue generated by the housing developments and does not
constitute a debt of the City. This action will not affect the City's credit rating. The construction of more than 86
new units and rehabilitated duplexes will require goods and labor which will benefit the local economy.
BOARD / COMMISSION RECOMMENDATION
The Affordable Housing Board considered a request by HC for the entire 2022 PAB capacity at its May 2022
meeting and supports the PAB Committee’s recommendation to provide the 2022 PAB allocation to HC.
(Attachment 4)
Agenda Item 10
Item # 10 Page 3
PUBLIC OUTREACH
The Affordable Housing Board heard this matter at its remote May meeting which was open to the public. The
process to seek PAB capacity is detailed on the Social Sustainability Department’s web page and the
guidelines are set forth in the City’s General Financial Policies.
ATTACHMENTS
1. Private Activity Bond Allocation Letter (PDF)
2. Housing Catalyst Request (PDF)
3. Location Map - Impala (PDF)
4. Affordable Housing Board Minutes (draft) (PDF)
January 12, 2022
Kelley Vodden
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522
Re: Private Activity Bond Allocation of $9,395,372
Dear Ms. Vodden:
I hereby certify that the above amount will be allocated to the respective local government for
the purpose of issuing Private Activity Bonds (PAB) in 2022 under the state ceiling imposed by the Internal
Revenue Code of 1986, as amended.
In accordance with the provisions of C.R.S. 24-32-1709.5, a fee on bonds issued is due to DOLA for
the portion of each issuance that originated from a direct allocation. The amount of this fee is subject
to revision, but is currently 0.027% of bonds issued. This fee is also due within five working days of the
bond closing. In the event that the full allocation amount is not issued, or the fee rate changes, the fee
will be recalculated to reflect the actual amount issued and the rate in effect at the time of closing.
If you have any questions, please contact Wayne McClary at (303) 864-7819 or wayne.mcclary@state.co.us.
Sincerely,
Rick M. Garcia
Executive Director
ATTACHMENT 1
June 21, 2022
Jacqueline Kozak-Thiel
Chief Sustainability Officer
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522
RE: Request for assignment of 2022 Private Activity Bonding Authority
Dear Ms. Kozak-Thiel:
Housing Catalyst respectfully requests assignment from the City of Fort Collins’ 2022 Private
Activity Bond (PAB) cap for the purpose of affordable housing development. As the primary
developer and operator of affordable housing in Northern Colorado, Housing Catalyst intends to
utilize this authorization to further expand affordable housing opportunities within the City of Fort
Collins.
As a quasi-governmental entity formed under the state housing statute, Housing Catalyst will be
the direct issuer of bonds utilizing the PAB allocation. Therefore, the City of Fort Collins will not be
required to provide assistance, nor incur any costs associated with the utilization of the authorized
PAB cap.
Housing Catalyst contact information for this request:
Kristin Fritz, Chief Real Estate Officer
415-531-5617 / kfritz@housingcatalyst.com
1715 W. Mountain Ave.
Fort Collins, CO 80521
Amount of Allocation Requested: $9,395,372
Housing Catalyst is requesting the City of Fort Collins’ 2022 PAB allocation. The 2022 award from
the City of Fort Collins will be used to fulfill the PAB requirements for both the Impala
Redevelopment and qualifying pipeline projects.
Once the PAB cap is allocated to Housing Catalyst, it can be carried over or maintained for 3 years
to allow for its utilization in an approved project. Housing Catalyst maintains a robust development
pipeline to continue to address the significant need for affordable housing in the community. Any
ATTACHMENT 2
PAB allocation awarded to Housing Catalyst will be utilized to meet this need, either through
partnerships or Housing Catalyst’s own pipeline of new construction and preservation projects.
PAB Awards for Qualified Affordable Housing Projects
• PAB Awarded in 2021: $14,998,888 from City of Fort Collins and Larimer County
• PAB Awarded in 2022: $5,834,687 from Larimer County
Impala Redevelopment
• Total current estimated PAB needed: $19,500,000
• 86 units (49 new + 37 preserved), average 55% AMI
• LIHTC Application Submission: October 2022
• Construction: May 2023 - July 2024
All PAB awarded to Housing Catalyst will be used for current and future affordable housing
pipeline projects.
Bond Counsel Firm:
Gilmore & Bell, P.C.
15 West South Temple, Suite 250
Salt Lake City, UT 84101
Principal Contact: Ryan Warburton
801-258-2726 / rwarburton@gilmorebell.com
Description of Applicant’s Local Projects: See Attachment A
Number of Years Entity has been doing business in State of Colorado: 50 years
Certificate of Good Standing:
Housing Catalyst was originally formed as the Housing Authority of the City of Fort Collins in 1971
under state statute. As a result, this legal entity does not maintain a corporate filing with the
Colorado Secretary of State office and therefore is not required to maintain a Certificate of Good
Standing under that entity.
Description of Assets to be Purchased or Constructed:
The Impala Redevelopment includes two primary project components: 1) the new development of
62 new apartments and townhomes on the current site of 11 single family public housing units at
306 Impala Drive and a duplex on W. Mulberry St and 2) the renovation of 12 existing duplexes at
400 Impala Circle (26 units total, currently operating as the Village on Impala). Both sites are
currently owned and managed by Housing Catalyst, though the affordable restrictions on the
Village on Impala duplexes have expired. These two properties present a unique opportunity to
preserve and expand quality affordable housing as they are located adjacent to each other, but
they function separately. Less than 1 mile to grocery stores, early childhood centers, and health
clinics, the location shares a property boundary with Poudre High School making this an ideal
location for local families.
The renovation component will include the completion of major capital improvements and
upgrades that enhance site and unit accessibility, increase efficiency, and improve the quality and
livability of the units. The planned exterior improvements include roof, siding, and window
replacement and improvements to existing landscape and drainage. The renovation will also
address aging interior furnishings and systems including flooring, cabinets, appliances, energy
efficient lighting and plumbing fixtures, and HVAC systems.
The design of the new construction portion of the project promotes health, connectivity, and open
space and balances high density in a suburban context. Architecturally, the goal is to relate to,
compliment, and enhance the scale and aesthetic of the surrounding neighborhood as much as
possible. Pitched roofs and exterior cladding materials that complement the surrounding
architectural character are used on every building so the project fits in seamlessly with the
adjacent neighborhood.
The redevelopment will increase livability with the addition of a community center/clubhouse,
active green space and playground, and connectivity paths. There will be increased accessibility
and greater levels of sustainability as the project will meet all required City codes and achieve
2020 Enterprise Green Community Criteria.
See Attachment B for more project information.
Explanation of how project aligns with City objectives:
Housing Catalyst is the primary affordable housing provider, developer, and operator in the City of
Fort Collins and is a public housing authority formed under state statute. All projects of Housing
Catalyst align with the objectives outlined in the City of Fort Collins 2015-2019 Affordable Housing
Strategic Plan.
Largely, Housing Catalyst upholds an objective to assist all affordable housing deals in Northern
Colorado to come to fruition. This assistance is achieved in several ways, including education,
tracking and prioritizing developments, providing technical expertise in development and financing,
and issuing PAB on their behalf.
Number of Housing Units and Target Demographics:
There is a significant shortage of affordable housing units in the community with 99% of the
affordable housing units in the area occupied. According to a recently conducted market analysis
for Housing Catalyst, there is significant demand for additional family LIHTC rental housing in the
area, as evidenced by the low vacancy rates and occasional waitlists, the projected renter
household growth, and the relatively limited supply of new family LIHTC units in the development
pipeline.
The current unit mix for the 86 units in the Impala Redevelopment includes 20 one-bedroom, 39
two-bedroom, and 27 three-bedroom units. A minimum of 10% of the units will be constructed to
meet UFAS accessibility requirements and accessible design principles will be a priority. The
population served will primarily be low-income families given the proximity to Poudre High
School, though the development will also serve other household types. The Impala project will
provide housing opportunities at affordability levels that are currently underserved in our housing
market, ranging from 30% to 80% AMI, with an average of 55% AMI. The development will include
25 project-based housing vouchers.
Statement from Bond Counsel of Project Eligibility: See Attachment C
Thank you for your consideration. I am happy to provide any additional information as needed.
Sincerely,
Kristin Fritz
Chief Real Estate Officer
AT T A C H M E NT A
D E V E LO P M EN T R ES UM E
H o u s i n g C a t a l y s t i s t h e l a r g e s t a f f o r d a b l e h o u s i n g d e v e l o p e r a n d p r o p e r t y m a n a g e m e n t c o m p a n y i n
F o r t C o l l i n s . E s t a b l i s h e d i n 1 9 7 1 , H o u s i n g C a t a l y s t o w n s a n d o p e r a t e s o v e r 1 ,2 0 0 a f f o r d a b l e h o m e s
a n d a s s i s t s m o r e t h a n 2 ,1 0 0 f a m i l i e s (o v e r 4 ,0 0 0 i n d i v i d u a l s ) i n N o r t h e r n C o l o r a d o t h r o u g h o u r r e n t a l
p r o p e r t i e s a n d h o u s i n g p r o g r a m s . W e p r o v i d e c r i t i c a l t o o l s a n d r e s o u r c e s t o s e r v e f a m i l i e s w i t h i n
t h e f u l l s p e c t r u m o f n e e d s f r o m m o v i n g o u t o f h o m e l e s s n e s s t o a c h i e v i n g h o m e o w n e r s h i p .
H o u s i n g C a t a l y s t u s e s a T r i p l e B o t t o m L i n e m o d e l t o b u i l d h e a l t h y a n d s u s t a i n a b l e a f f o r d a b l e
c o m m u n i t i e s . W e a r e l e d b y a s k i l l e d e x e c u t i v e t e a m w i t h e x t e n s i v e e x p e r i e n c e i n r e a l e s t a t e
a c q u i s i t i o n , d e v e l o p m e n t , m a n a g e m e n t , a n d f i n a n c i a l a d m i n i s t r a t i o n . W e c r e a t e v i b r a n t , s u s t a i n a b l e
c o m m u n i t i e s , i n c o r p o r a t i n g g r e e n b u i l d i n g d e s i g n i n t o a l l o u r v e n t u r e s a n d s e r v i n g a s a m o d e l f o r
h i g h s t a n d a r d s i n a s s e t a n d p r o p e r t y m a n a g e m e n t , a s e v i d e n c e d b y n u m e r o u s a w a r d s f o r p r o j e c t
d e s i g n s , i n n o v a t i o n s , e n v i r o n m e n t a l s u s t a i n a b i l i t y , a c c o u n t a b i l i t y , a n d f i n a n c i a l r e p o r t i n g .
H o u s i n g C a t a l y s t h a s s e c u r e d h o u s i n g t a x c r e d i t s a n d o t h e r l o c a l a n d f e d e r a l f u n d i n g s o u r c e s f o r t h e
f o l l o w i n g r e c e n t d e v e l o p m e n t s a n d r e n o v a t i o n s :
OAK 14 0
OPENS SPRING 2023
(7 9 ) S t u d i o , 1 & 2 b e d r o o m a p a r t m e n t s
s e r v i n g 3 0 % - 8 0 % A M I
D o w n t o w n F o r t C o l l i n s l o c a t i o n
$3 1 .5 M n e w c o n s t r u c t i o n
4 % L I H T C , $1 3 .6 M f e d e r a l a n d s t a t e t a x
c r e d i t i n v e s t m e n t , $1 9 .3 M P r i v a t e A c t i v i t y
B o n d s , D D A e q u i t y , C i t y A H C F
(6 0 ) 1 & 2 b e d r o o m a p a r t m e n t s
A l l u n i t s a t o r b e l o w 3 0 % A M I , s e r v i n g
i n d i v i d u a l s e x p e r i e n c i n g h o m e l e s s n e s s
M i d t o w n F o r t C o l l i n s , t r a n s i t -o r i e n t e d
d e v e l o p m e n t
$1 9 .4 M n e w c o n s t r u c t i o n
9 % L I H T C , $1 1 .9 M t a x c r e d i t i n v e s t m e n t
C i t y A H C F , D O H , C D B G , H O M E
MASON PLACE PERMANENT
SUP PORTIVE HOUSING 2021
2022 HOUSING COLORADO EAGLE AWARD
FINALIST: 2021 AFFORDABLE HOUSING FINANCE READERS' CHOICE AWARDS
1 6 a p a r t m e n t s a t o r b e l o w 5 0 % A M I , s e r v i n g
t h o s e e x p e r i e n c i n g h o m e l e s s n e s s a n d
r e i n t e g r a t i n g a d u l t f e l o n y o f f e n d e r s
$1 M r e n o v a t i o n
C i t y o f F o r t C o l l i n s A f f o r d a b l e H o u s i n g F u n d ,
V i l l a g e s , L t d . e q u i t y
MY RTLE STRE ET SINGLE
ROOM OC C U PANCY 2021
(9 6 ) 1 , 2 , 3 & 4 b e d r o o m a p a r t m e n t s
s e r v i n g 3 0 % - 6 0 % A M I
F i r s t C i t y L a n d B a n k P r o j e c t
$2 7 M n e w c o n s t r u c t i o n
4 % L I H T C , $1 2 .5 M f e d e r a l a n d s t a t e t a x
c r e d i t i n v e s t m e n t , $1 9 M P r i v a t e A c t i v i t y
B o n d s , C D B G -D R , R A D p r o c e e d s
V ILLAGE ON H O R S ETOO H 2018
2019 NAHRO AWARD OF MERIT FOR PROGRAM INNOVATION IN AFFORDABLE HOUSING
VILL AG E ON S HIEL D S
(2 8 5 ) 1 , 2 , & 3 b e d r o o m a p a r t m e n t s
s e r v i n g 5 0 % - 6 0 % A M I
$6 8 M r e n o v a t i o n
4 % L I H T C , $4 1 .1 M f e d e r a l a n d s t a t e t a x
c r e d i t i n v e s t m e n t , $3 5 M P r i v a t e
A c t i v i t y B o n d s , R A D p r o c e e d s , C D B G ,
H O M E , O w n e r l o a n
2018
2019 NAHRO AWARD OF EXCELLENCE FOR COMMUNITY REVITALIZATION
2019 NAHRO AWARD OF MERIT FOR COMMUNITY REVITALIZATION
2019 CO NAHRO YES! IN MY BACKYARD AWARD
T OO TRENDY!
A n e w s l e t t e r i s a r e g u l a r l y d i s t r i b u t e d
p u b l i c a t i o n t h a t i s g e n e r a l l y a b o u t o n e
m a i n t o p i c o f i n t e r e s t t o i t s s u b s c r i b e r s .
N e w s p a p e r s a n d l e a f l e t s a r e t y p e s o f
n e w s l e t t e r s . F o r e x a m p l e , n e w s l e t t e r s
(9 5 ) 1 , 2 & 3 b e d r o o m a p a r t m e n t s
s e r v i n g 3 0 % - 6 0 % A M I
$1 6 .1 M r e n o v a t i o n
4 % L I H T C , $5 .3 M t a x c r e d i t i n v e s t m e n t ,
$8 .7 5 M P r i v a t e A c t i v i t y B o n d s , V i l l a g e s ,
L t d . e q u i t y ; p r e v i o u s g r a n t o r s : C i t y o f
F o r t C o l l i n s , D O H
V ILLAGE ON PLUM 2015
V ILLA GE ON REDWOOD 2017
(7 2 ) 1 ,2 ,3 & 4 b e d r o o m a p a r t m e n t s &
t o w n h o m e s i n N o r t h F o r t C o l l i n s s e r v i n g
3 0 % - 6 0 % A M I
$1 9 .4 M n e w c o n s t r u c t i o n
4 % L I H T C , $1 0 M f e d e r a l a n d s t a t e t a x
c r e d i t i n v e s t m e n t , $1 2 M P r i v a t e A c t i v i t y
B o n d s , R A D p r o c e e d s
2018 NAHRO AWARD OF EXCELLENCE FOR PROJECT DESIGN
2018 NAHRO AWARD OF MERIT FOR PROJECT DESIGN
2018 FORT COLLINS UTILITIES ENERGY EFFICIENCY AWARD
R EDTAIL PON DS PERMA NENT
SUPPORTIVE H OUS ING
(6 0 ) 1 & 2 b e d r o o m a p a r t m e n t s
A l l u n i t s a t o r b e l o w 3 0 % A M I , s e r v i n g
i n d i v i d u a l s e x p e r i e n c i n g h o m e l e s s n e s s
S o u t h F o r t C o l l i n s , t r a n s i t -o r i e n t e d
d e v e l o p m e n t
$1 2 .5 M n e w c o n s t r u c t i o n
9 % L I H T C , $8 M t a x c r e d i t i n v e s t m e n t ,
C D B G , H O M E
2017
2017 ULI COLORADO IMPACT AWARD FOR INFLUENCE
2016 NAHRO AWARD OF EXCELLENCE FOR PROJECT DESIGN
2016 NAHRO AWARD OF MERIT FOR PROJECT DESIGN
2015 HOUSING COLORADO EAGLE AWARD
A T T A C H M E N T B
Poudre High School
306 Impala
400 Impala
W Mulberry St
PRELIMINARY TOWNHOME DESIGN
I M P A L A R E D E VE L O PM E N T
CONSTRUCTION: MAY 2023 TO JULY 2024
(8 6 ) 1 , 2 & 3 b e d r o o m a p a r t m e n t s
S e r v i n g 3 0 % - 8 0 % A M I (5 5 % A M I
A v e r a g e )
$3 3 .9 M n e w c o n s t r u c t i o n a n d r e n o v a t i o n
4 % L I H T C a p p l i c a t i o n : O c t o b e r 2 0 2 2
P A B A w a r d e d i n 2 0 2 1 : $1 4 ,9 9 8 ,8 8 8 f r o m
C i t y o f F o r t C o l l i n s a n d L a r i m e r C o u n t y
2 0 2 2 P A B R e q u e s t : $2 ,3 0 0 ,0 0 0
2018
A T T A C H M E N T C
ATTACHMENT 3
AFFORDABLE HOUSING BOARD
REGULAR MEETING
5/5 /202 2 – MINUTES Page 1
May 5, 2022, 4:00-6:00pm
Remote/Online via Zoom due to COVID-19 DRAFT
CALL TO ORDER
At 4:00 PM the meeting was called to order by Tatiana Zentner
1.ROLL CALL
•Board Members Present: Tatiana Zentner, John Singleton, Jennifer Bray, Stefanie Berganini, Bob
Pawlikowski, Kristin Fritz, and Seth Forwood joined in progress.
•Staff Members Present:
•Sue Beck-Ferkiss, Staff Liaison – City of Fort Collins
•Taylor Reynolds, Minutes – City of Fort Collins
•Meaghan DeMasters, Environmental Services – City of Fort Collins
•Heidi O’Mara, Environmental Services – City of Fort Collins
•Selina Lujan Albers, Environmental Services – City of Fort Collins
•Noah Beals, City Planning – City of Fort Collins
•Guests Present:
•Marilyn Heller
•Lisa Cunningham
•Bill King
•Richard Cavendish
•Ruthie (no last name listed)
•housing costs.
Edited to PAB discussion
2.2022 Private Activity Bond Request – Sue Beck-Ferkiss
•Private Activity Bonds (PAB) are an affordable housing incentive and serve as a capacity for
tax exempt borrowing.
•PAB are required for tax increment financing and must be paired with 4% low-income housing
tax credits at the federal level (increasingly competitive).
•The IRS allocates Private Activity Bond amounts to various states based on population
formula, and the state distributes to eligible communities and organizations.
•Fort Collins regularly receives PAB and can use them or choose to issue them to another for a
permitted use. If unused, that capacity returns to the state on September 15th of every year.
ATTACHMENT 4
AFFORDABLE HOUSING BOARD
REGULAR MEETING
5/5 /202 2 – MINUTES Page 2
• The City has an application process for the Private Activity Bonds that require written
applications by March 15th. This year, Housing Catalyst was the only applicant and would like
to use the PAB for their Impala and Montava projects.
• The PAB application was presented to the Private Activity Bond Committee, and all feel very
comfortable allowing Housing Catalyst to use these for the purpose of new construction and
renovation of affordable housing.
• DISCUSSION SUMMARY:
• Do unused State Private Activity Bonds return to the federal government?
• The State can allocate them to different projects, and most don’t go
unused.
• The City has not been sent back PAB to the State in 9 years.
• How would this PAB allocation impact the Human Services and Housing Funding
Board’s Competitive Grant Process funding recommendations?
• These bonds support the soft funding allocations made in the grant
process. Both are needed to fully fund Housing Catalyst’s projects.
• Would Housing Catalyst have requested more Private Activity Bonds, if available?
• Housing Catalyst’s needs exceed the City’s allotment of bond cap.
• In the past, Housing Catalyst has been issued additional bonds because of
their ability to use it for their projects or extend them to other affordable
housing developers.
• Would the Impala Project by Housing Catalyst be fully funded with these bonds?
• The PAB issued by the City, in addition to PAB issued by Larimer County, is
expected to fully fund the Impala Project.
Bob Pawlikowski moved to recommend to City Council that the entire 2022 allocation of
Private Activity Bonds be made to Housing Catalyst for the Impala and Montava projects.
Stefanie Berganini seconded. Approved 6-0.
Kristin Fritz abstained.
-1-
RESOLUTION 2022-067
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ASSIGNMENT OF THE CITY’S 2022 PRIVATE ACTIVITY
BOND ALLOCATION TO HOUSING CATALYST TO FINANCE THE NEW
CONSTRUCTION AND REHABILITATION OF AFFORDABLE HOMES
WHEREAS, the City of Fort Collins is authorized and empowered under the laws of the State of
Colorado (the “State”) to issue revenue bonds for purposes including the financing of multi-
family rental housing projects for low- and moderate-income persons and families; and
WHEREAS, the Internal Revenue Code of 1986, as amended (the “Code”), restricts the
amount of tax-exempt bonds (“Private Activity Bonds” or “PAB”) which may be issued in the
State (the “State Ceiling”); and
WHEREAS, pursuant to the Code, the Colorado General Assembly adopted the Colorado
Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado
Revised Statutes (the “Allocation Act”), providing for the allocation of the State Ceiling among
various State and local governmental units, and further providing for the assignment of such
allocations from such governmental units to any entity or person with the authority to issue
bonds; and
WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act,
the City has received a direct allocation of the 2022 State Ceiling for the issuance of Private
Activity Bonds in the aggregate principal amount of $9,395,372 (the “2022 Allocation”); and
WHEREAS, if the City does not issue bonds or assign its annual allocation to an other
entity by September 15 of each year, its allocation is relinquished to the statewide balance; and
WHEREAS, the City received one application for the 2022 Allocation from Housing
Catalyst, seeking PAB capacity for the development of affordable housing; and
WHEREAS Housing Catalyst proposes using the 2022 Allocation for the Village on
Impala Redevelopment and Renovation project, which will provide 86 affordable rental homes
for individuals and families with incomes ranging from 30-80% area median income (AMI), and
which also received the City’s 2021 PAB allocation; and an additional planned Housing Catalyst
project or projects, depending on the timing and order in which those projects develop, that will
also renovate or construct affordable apartment homes and shall align with the objectives
outlined in the City’s Housing Strategic Plan (collectively, the “Projects”); and
WHEREAS, the City’s PAB Committee considered the Housing Catalyst application and
recommends assigning the 2022 Allocation to Housing Catalyst pursuant to Section 24-32-1706
of the Allocation Act; and
WHEREAS, Housing Catalyst has expressed its willingness to attempt to issue Revenue
Bonds in an amount equal to or greater than the 2022 Allocation; and
-2-
WHEREAS, the City Council finds that the 2022 Allocation can be utilized most
efficiently by assigning it to Housing Catalyst to issue Private Activity Bonds for financing the
Projects, and that such assignment will advance the City’s objective of increasing the availability
of adequate affordable housing for low- and moderate-income persons and families within the
City; and
WHEREAS, the Council wishes to assign the 2022 Allocation to Housing Catalyst,
which assignment is to be evidenced by an Assignment of Allocation agreement between the
City and Housing Catalyst; and
WHEREAS, a draft of the proposed Assignment of Allocation is attached as Exhibit “A”
and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the City Council hereby approves assignment to Housing Catalyst of
the City’s 2021 Allocation of $9,395,372 for the Projects as described herein.
Section 3. That the City Council hereby authorizes the Mayor to execute an
Assignment of Allocation with Housing Catalyst in substantially the form attached as Exhibit
“A,” along with such other terms and conditions as the City Manager, in consultation with the
City Attorney, determines are necessary or appropriate to protect the interests of the City or
effectuate the purposes of this Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 5th
day of July, A.D. 2022.
Mayor
ATTEST:
City Clerk
ASSIGNMENT OF ALLOCATION
THIS ASSIGNMENT (the “Assignment”), dated ________ , 2022 is between the
City of Fort Collins, Colorado, a municipal corporation (the “Assignor”), and Housing Catalyst,
a body corporate and politic (the “Assignee”).
RECITALS
A.The Assignee intends to finance the construction of 86 units of new and renovated
rental housing on Impala Drive and Impala Circle, all for households with incomes ranging from
30% to 80% of area median income, and the construction of another affordable housing project
or projects consisting of the construction or rehabilitation of rental housing, consistent with the
objectives outlined in the City’s Housing Strategic Plan (collectively, the “Projects”.) The
Projects will each be designed to qualify as a “project” within the meaning of Title 29, Article 4,
Part 2, Colorado Revised Statutes, as amended (the “Act”).
B.The Assignee intends to provide for the issuance of its Multifamily Housing
Revenue Bonds (the “Proposed Bonds”), pursuant to the provisions of the Act for the purpose of
financing the Projects.
C.The Assignee has requested that the Assignor assign to the Assignee the
Assignor’s 2022 allocation of $9,395,372 (the “Allocation”) under the bond ceiling for the State
of Colorado and its issuing authorities (“the State Ceiling”) computed under Section 146(d) of
the Internal Revenue Code of 1986 (the “Code”) as provided for the Assignor as a “designated
local issuing authority” under part 17 of article 32 of title 24, Colorado Revised Statutes (the
“Allocation Act”), for use in connection with the financing of the Projects.
D.Subject to the terms and conditions set forth herein, the Assignor desires to assign
to the Assignee, and the Assignee desires to accept, such Allocation from the State Ceiling.
ASSIGNMENT
In exchange for the agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1.The Assignor hereby assigns and transfers to the Assignee the Assignor’s 2022
Allocation of $9,395,372 from the State Ceiling for private activity bonds. The Assignor and the
Assignee understand that such assigned allocation shall automatically be relinquished to the
“Statewide Balance” as defined under the Allocation Act unless (a) the Proposed Bonds are
issued by the Assignee on or before September 15, 2022, or (b) Section 24-32-1706(3)(c),
C.R.S., applies.
2.The Assignor represents that it has received no monetary consideration for the
assignment set forth above.
EXHIBIT A
2
3. The Assignee hereby:
(a) accepts the assignment of the Assignor’s Allocation from the State Ceiling
described above;
(b) agrees to use its best efforts to issue and use the Proposed Bonds for the
purpose of financing the Projects; and
(b) agrees to abide by each of the terms and conditions of this Assignment in
connection with the use of such Allocation.
4. The Assignor hereby consents to the election by the Assignee, if the Assignee in
its discretion so decides, to treat all or any portion of the assignment set forth herein as an
allocation for a project with a carryforward purpose.
5. This Assignment shall not constitute a debt or indebtedness or financial obligation
of the Assignor within the meaning of the constitution or statutes of the State of Colorado, nor
give rise to a pecuniary liability or charge against the general credit or taxing power of the
Assignor.
[The remainder of this page is intentionally left blank]
EXHIBIT A
[Signature Page to Assignment of Allocation]
S-1
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this instrument to
be executed to be effective as of the date and year first written above.
CITY OF FORT COLLINS, COLORADO,
as Assignor
____________________________________
Jeni Arndt, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________________ ____________________________________
City Clerk Assistant City Attorney
____________________________ _______________________________
(print name) (print name)
HOUSING CATALYST, as Assignee
By: ________________________________
Its: ________________________________
ATTEST:
By: ________________________________
Its: ________________________________
EXHIBIT A