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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/20/2013 - RESOLUTION 2013-069 AUTHORIZING THE ASSIGNMENT OFDATE: August 20, 2013 STAFF: Sue Beck-Ferkiss AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 24 SUBJECT Resolution 2013-069 Authorizing the Assignment of the City’s Private Activity Bond Allocation for 2013 to the Fort Collins Housing Authority to Finance Multi-Family Housing Revenue Bonds for the Villages on Plum and Villages at Cunningham Corner Projects. EXECUTIVE SUMMARY The purpose of this item is to assign the City’s 2013 Private Activity Bond Allocation to the Fort Collins Housing Authority. The City has been notified that it has an allocation of a portion of the State ceiling Private Activity Bonds (PAB) for 2013 in the amount of $6,962,218. The City received a request from the Fort Collins Housing Authority (FCHA) for the assignment of the City's 2013 Allocation for the purpose of affordable housing rehabilitation. Specifically, these funds will be used to finance the rehabilitation of 95 affordable housing rental units located in the Village on Plum project, and any remaining funds will be carried over for the rehabilitation of additional specific affordable housing projects. Annually, the state allocates a portion of its ceiling for PAB to the City. If the City does not use or assign this allocation, it is returned to the state on September 15. The City has not received any other requests for the 2013 Allocation. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Private Activity Bonds (PAB) are tax-exempt bonds that can be issued by eligible authorities. The proceeds of the sale of the bonds may be used for specific purposes as determined by the Internal Revenue Service. Permitted purposes include, but are not limited to, affordable housing development and rehabilitation. PAB financing has also been used by the City for economic and industrial development purposes. The State of Colorado PAB allocation program is established by the Colorado Private Activity Bond Ceiling Allocation Act, Section 24-32-1701, et seq., C.R.S. (the Allocation Act). In 2013, the total amount available statewide is $492,820,290. 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, pursuant to Section 24-32-1706 of the Allocation Act, it has an allocation of a portion of the State ceiling (as defined in the Allocation Act) for 2013 in the amount of $6,962,218. If a local government does not issue bonds or assign the bond cap to an entity for a local project by September 15th annually, the cap automatically reverts back to the state’s pool. The last time the City used its allocation was in 2008 for the purpose of issuing bonds for economic development. Specifically, the funds raised were used for the financing, acquisition, construction and equipping of a manufacturing facility (Custom Blending, Inc. project). Since then, the annual allocation has reverted to the state pool. However, as market conditions make the Colorado Housing Finance Authority’s (CHFA) 4% Low Income Tax Credit Program a viable way to finance affordable housing development, the City will likely see more requests to use the annual PAB allocation. CHFA requires these types of financing deals to include private activity bond financing. Historically, the City has used this allocation to finance multifamily low and moderate income rental housing at Fox Meadow Apartments (2000) and Caribou Apartments (2002), and multifamily senior housing at Oakbrook Manor (2005). In these examples, the City’s allocation was assigned to CHFA. Prior to that, the City was the issuer of multifamily housing revenue bonds for Bull Run (1997) and Courtney Park Apartments (1995). The Fort Collins Housing Authority made a formal request (Attachment 1) for assignment of the 2013 Allocation. It intends to use the PAB to finance the rehabilitation of 95 affordable housing rental units in the Village on Plum project, August 20, 2013 -2- ITEM 24 located at the southeast corner of Plum Street and Taft Hill Road (Attachment 2). This property, owned by the non- profit housing development arm of FCHA, serves households with incomes at 30%-50% of the Area Median Income. FCHA estimates utilizing approximately $5,400,000 of the 2013 Allocation for the Village on Plum project and any remaining cap would be utilized toward the rehabilitation of the Villages at Cunningham Corner, or other qualified rehabilitation project, at a future date. The Villages at Cunningham Corner, which consists of 284 units of existing affordable housing located at the northeast corner of Horsetooth Road and Shields Street (Attachment 3), was purchased in 2012 by the FCHA. It serves households with incomes at 30%-60% of the Area Median Income. FCHA will likely be applying for additional PAB allocations to undertake the enormous task of rehabilitating 284 units. If the FCHA has not used the entire 2013 Allocation by December of 2013, it can apply for a three year carryover. If it does not do this, the unused bond cap will revert to the state’s pool. FCHA’s intended use of affordable housing rehabilitation supports the City’s goal of preserving existing affordable rental housing units. This is a permissible and beneficial use of the City’s 2013 Allocation. For FCHA to use this financing tool, the City Council must adopt a resolution assigning the 2013 Allocation or a part thereof to the FCHA so it can submit this with its application to the state no later than September 15, 2013. Additionally, the use of the City’s allocation is evidence of local support for this project, which helps FCHA leverage other funding sources and is important to CHFA’s 4% Low Income Tax Credit Program. The investment of tax credit equity in the project will extend the affordability period for the Village on Plum by 30-40 years. The City has not received any other requests to date for the 2013 Allocation. FINANCIAL / ECONOMIC IMPACTS The Private Activity Bonds that will be issued by the FCHA cannot and will not be obligations of the City of Fort Collins. The debt service on the bonds will be repaid from revenue generated by the housing projects, and does not constitute a debt of the City. This action will not affect the City’s credit rating. The rehabilitation of at least 95 units will require goods and labor which will benefit the local economy. ENVIRONMENTAL IMPACTS Affordable housing programs help provide for a healthy environment. By offering affordable housing options for lower income people, more of Fort Collins’ work force can live in the community instead of being forced to live outside the community and commute into the city for work. This helps reduce traffic congestion and, thus, improves air quality. The rehabilitation will include specific improvements that will result in energy savings. BOARD / COMMISSION RECOMMENDATION At its August 1, 2013 meeting, the Affordable Housing Board reviewed the request of the FCHA and recommended that the City assigns its entire 2013 Allocation to the FCHA (Attachment 4). ATTACHMENTS 1. FCHA letter requesting the assignment of the 2013 Allocation 2. Location Map of Village on Plum 3. Location Map of Villages on Cunningham Corner 4. Affordable Housing Board minutes, August 1, 2013 ATTACHMENT 1 W Elizabeth St S Taft Hill Rd Skyline Dr M o n t v i e w R d Broadview Pl Mc a llister Ct Glenmoor D r Cragmore Dr Meadowbrook Dr Castlerock Dr W Plum S t O rchard Pl The Village on StPreluetm The Village Fort Collins, on CO Plum 80521 Street CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use PRODUCTS of the by the public. City The of Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: August 02, 2013 The Village on Plum Street Parcels 0 150 300Feet © ATTACHMENT 2 ATTACHMENT 2 W Horsetooth Rd S Shields St Colony Dr Richm ond Dr Windmill Dr Tradition Ct S a n t a F e Ct Colony Ct Justice Dr Justice Ct Patterson Ct Republic Dr Laredo L n P a t t e r s o n P l Santa Fe Ln Sharps Ct Sun Disk Ct Richmond Dr Century Dr T r a d i t i o n Dr A rbor Ave Cunningha m D r Hickory VillageHill RVoislleatgreee WGrilolovwe Village Care Housing has completed a rehabilitation of Greenbrier, both exterior and interior. Eagle Tree and Swallow is also under consideration for rehab, under 4% non-competitive, which doesn’t provide as much funding. They have reinvigorated their support services, with events geared toward families. They are having their annual picnic next Tuesday at Rolland Moore Park, starting at 5:30. AHB is invited to attend. Care Housing is networking with community organizations on issues related to affordable housing. They are also working with laypeople to see how churches can invest in affordable housing. They are starting a pilot program to get people with disabilities out of nursing homes and institutions when it’s not appropriate placement for them. They are also working with Housing Colorado to work on advocacy (see page 1 of handout). Bill mentioned that Care Housing has a small number of senior units, but most units are for families. The organization is proud of being able to keep rents low, at $411-750/month. There are currently 700 household members in their units.  Terence noted that Care Housing had many projects for a while, then not many for a stretch of time. Bill explained that it became more difficult to get tax credits. There has been more competition. If there were more tax credits they could do more projects.  Troy asked if Care Housing has looked at inventory in the Land Bank program for properties that are intended to later become affordable housing. Bill said that right now Care Housing is committed to the second phase of Provincetowne, so that is the focus now. Troy said that the City may want to look at the properties we have and consider selling some to get more strategic properties. Chadrick said that the big struggle is finding land that is developable. He has talked to people and found we are holding properties indefinitely. Many of the sites we have in Land Bank are in good locations. With urban growth boundaries it is tough to get good sites. The available sites have lots of issues that make them hard to develop.  Bill said we may want to advocate selling to non-profit developers.  Chadrick noted the general fund dollars that went into the Land Bank properties. The intention was to buy low and sell below market, but the market has gone down.  Troy said that when the City plans to acquire any more properties, agencies like Care Housing should help steer the City in the direction to get good land.  Sue said that one of the policies behind Land Bank is that the City can pick up properties that aren’t highly developable now, but may become so later. The City benefits from development that comes in around the property. Bill likes idea of working together to identify properties. Dan suggested that it is time for the City to look at these properties again to see what they are worth.  Dan asked when next round of 9% tax credit will be available. Bill said that they have already applied. And will find out August to September. Chadrick said the next CHFA competitive process will be late August to early September; they have received more applications than ever. Chadrick said they applied twice to get Redtail. Bill said if they don’t get it now, they will keep trying.  Dan asked about Housing Colorado. Bill said that they are a statewide non-profit advocacy organization that puts on a conference in Vail annually in which they show new housing developments, and have workshops around advocacy and education. Chadrick clarified that it’s a trade group for housing in Colorado. Investors and developers come to conference. They do advocacy and lobbying on behalf of organizations.  Dan asked whether Housing Colorado was involved with the Redtail project. Chadrick said not at this point.  Bill said that people from local government often attend the conference. Chadrick mentioned a few staff members who have been in the past. Sue said she and Beth may attend this year. If so, Tatiana would like to try to attend as well. Chadrick said that as a member he’d see if he can share the information posted online with the board. AGENDA ITEM 2: PRIVATE ACTIVITY BONDS FOR AFFORDABLE HOUSING—FCHA REQUEST FOR THE 2013 ALLOCATION Sue said that in the board packet is the FCHA request for 2013 Private Activity Bond (PAB) allocation. They are required to be paired with 4% financing. As this financing tool becomes more market viable, we will see more requests. Currently we are using a first come first served policy, but there is not a lot of competition. State entities and local jurisdictions can partner with other projects or assign their allocation to eligible organizations. FCHA can issue its own bonds, but do not get an automatic allocation from the state. There are several ways that people can access PAB funidng: through local jurisdiction, directly from CHFA, or through the state pool. If local jurisdictions AFFORDABLE HOUSING BOARD August 1, 2013 DRAFT minutes ATTACHMENT 4 do not assign allocations, the funds go back to the state pool. It is important to show local support, so it is preferable that the allocation come from the local jurisdiction. Staff supports assigning it to FCHA for this rehabilitation project. The allocation is over 6 million. They expect to use 5.4 million for the Villages on Plum project. They want to carry over the remainder for future rehab of Cunningham Corner. These are not actual funds; this is the authority to issue bonds. These are tax free bonds, so it is a better deal for investors and they can only get that authority through the state process. Giving FCHA the assignment of the allocation gives them authority to raise revenue.  Dan asked what the repayment is on those bonds. Chadrick said the bonds go in during the construction period, so that the 4% non-competitive tax credits have to have a PAB. 50% of the deal has to be in PABs. Typically these are put in place during the construction period to fund the development. It will then convert to a conventional loan on the back end. Dan asked whether the loan would pay off the bonds. Chadrick said the bank loan would pay off the bonds. Colorado Housing Finance Authority (CHFA) requires they come to the City first. The bond market hasn’t been strong. Bonds have been released back to the state over the years. This one would attract some investors so it’s a good time to do this. If we don’t have an assignment by September 15th the bond allocation goes back to the state. In the case of the Villages on Cunningham corner, if there is anything left from 6.9 million it would roll over to another project. Dan asked about the bank loan. Chadrick said they are looking at FHA prime and conventional prime mortgages because they have longer terms and better interest rates. There are also mortgage insurance and principal payments.  Sue said that if the City assigns the bonds to FCHA and they don’t follow through with project, the bonds go back to the state. Chadrick said that if they encumber the whole pot, then they have three years to use it all. Sue said that it is best to use this funding source here, locally, rather than sending back to the state. Council has history of prioritizing affordable housing. Chadrick said that it is good to look at more tools than just CDBG and HOME. If it works, the City can recreate it again and again. The market conditions are favorable at this time. Sue said that since this method has not been used much to date, there is not much process in place. This year FCHA’s is the only request; there is no competition for it. Chadrick added that if there is competition in the future, the state will backfill to make a deal solid.  Dan asked if FCHA has done a debt service analyses. We are assuming that they are capable of repaying, but what happens if they default. Would the City be liable? Chadrick said it would be like a traditional real estate deal, where property would be posting its own assets. Dan asked what would happen if they are unable to get private financing to pay these off. Chadrick said they wouldn’t move forward without a whole package in place. Everything is already laid out, including letters of interest for debt and equity sides.  Sue said that if FCHA is authorized to use PAB for this project, it resets the clock for the affordability of units on the property and keeps them affordable for another 30-40 years.  Chadrick said there is a handout of the master plan for the site. The Housing Authority acquired the property, and did some rehab, but that didn’t go as far as it needed to. They want to put the property into a cycle where it can go 20 years before needing more rehab. The scope of the work is to fix structural deficiencies. The property needs a slanted roof, parking lots, interior enhancements, landscaping, pathways, exercise equipment, enhancement to the pool, and an addition of a community building. There will be on site laundry and exercise facilities to create communities.  Dan suggested making a recommendation to Council on this.  Troy asked if there are any other potential applicants. Sue answered no, and added that no other requests are anticipated this year.  Dan asked what happens to funds that are not awarded and go back into the state pool. Sue said that then anybody in the state can compete for them. She added that DOLA would like to see us use it locally.  Tatiana asked if there is anything bad to this. Sue said that staff recommends it.  Troy said he is not familiar enough with how bonds work to see how it will work. Chadrick said that they are packaging the whole deal, putting the value of the property back into the deal, refinancing the existing debt, and rehabbing the building to like-new.  Troy would like the “Readers Digest” version of how bonds work. Is there a tax benefit to people who invest in bonds? Sue said that the bonds are tax exempt, so the bonds have less costs involved.  Sue said that it is up to the issuer to find investors for the bonds. FCHA will be the issuer. Julie explained that national syndication pools are looking for tax credits. Troy asked if this meant investors who have high tax liability. Julie said yes. Chadrick said they are looking for one investor who would purchase the bonds, hold the debt, etc.  Julie mentioned that Section 4 of the Tax Code explains the 4% bond. Chadrick said that the project will have debt from a bank, have equity back into the deal, tax credits, etc. that will fund the total development cost.  Jeffrey asked what would be the loan to value now and afterward. Chadrick said they expect to have close to 3 million in equity if they can refinance with favorable terms. They will earn money on the development fee. Jeffrey asked if this goes to operations. Julie said that it goes to the next project.  Dan asked whether the board should send a memo to Council. He believes it is a great use of this tool that will go unused if we don’t do this.  Sue has submitted an Agenda Item Summary for the August 20th Council meeting. The AIS asks if the board has a recommendation. She will attach the minutes from this meeting. This will not negatively affect the City’s financial standing or credit rating. Recommendation: Troy moved to fully support as the AHB the request by FCHA to assign the City’s 2013 Private Activity Bond Allocation to FCHA for the purpose of rehabilitating affordable housing. Terence seconded. The AHB voted unanimously the motion to make the recommendation. 5-0-0 AGENDA ITEM 3: GENERAL INFORMATION ON ACCESSORY DWELLING UNITS Sue said we can get a speaker for this if the board wants more information. UPDATES CDBG: JAG PROPERTIES PURCHASE Sue said the board had approved a purchase for Jag Property’s 4-plex for people leaving the penal system. The project is looking good for moving forward, but they are a private entity so ineligible for CDBG funds. However, Jag was asked to resubmit the project in the fall cycle of the competitive process when HOME funds and Affordable Housing funds are available. They will have to resubmit, but the board likes the project. It will depend on what they are competing with at the time, but there is a good possibility of getting funded in the fall. 100K would have been allocated to them in the last cycle. That 100k goes back into CDBG funds for future allocations/projects. A separate meeting will be scheduled for after the packet becomes available. The packets are available through the Zoom Grants web site. At the September meeting the board will schedule the separate meeting. Sue will look into that for the fall process. REDTAIL PONDS, ROLE OF AHB AS ADVOCATES Sue mentioned that this project is a good example of where this board can engage in advocacy for affordable housing. The board wants to be seen as a force to promote affordable housing. This is an important project because the community doesn’t have this type of housing available. The community around the development is giving the Housing Authority a hard time. Julie said that last spring they convened two neighborhood meetings with the nearest neighbors to the project. There wasn’t much turnout, so they instead engaged neighbors individually. Around the same time the seller said he could get a covenant changed to make the property residential again. It was then that they found out that neighbors didn’t want it changed to residential. By fall they had worked with neighbors to get a 75% vote to change the covenant, but continued to hear nasty rumors. The neighbors were afraid their properties would be devalued by the project, but there is no evidence to support this claim. After discussing devaluation with realtors, it was determined that there would be approximately 250K diminution of value, total for all owners, to directly adjacent properties. The project then looked at another piece of property. They then asked the neighbors whether they preferred the original site or site B, which had no covenants. They found out then that the existing plans fit on site B. The neighbors want to keep site A commercially zoned. The City set a formal meeting. However, one business park owner mass-mailed a post card before the meeting. They had planned for 60 attendees and had 130 people show up. The advocates and staff vacated seats to let neighbors in. The facilitator of the neighborhood meeting didn’t have much experience with these types of meetings. The planner didn’t talk about zoning, and the facilitator didn’t set ground rules for meeting. It went very poorly. Advocates of the project were afraid to speak. The City is not required to have a second RESOLUTION 2013-069 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE ASSIGNMENT OF THE CITY’S PRIVATE ACTIVITY BOND ALLOCATION FOR 2013 TO THE FORT COLLINS HOUSING AUTHORITY TO FINANCE MULTI-FAMILY HOUSING REVENUE BONDS FOR THE VILLAGES ON PLUM AND VILLAGES AT CUNNINGHAM CORNER PROJECTS 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”) which may be issued in the State (the “State Ceiling”); and WHEREAS, pursuant to the Code, the Colorado legislature 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 2013 State Ceiling for the issuance of Private Activity Bonds in the aggregate principal amount of $6,962,218 (the “2013 Allocation”); and WHEREAS, if the City does not issue bonds or assign its annual allocation to another entity by September 15 of each year, its allocation is relinquished to the statewide balance; and WHEREAS, the City of Fort Collins Housing Authority (the “Authority”) has requested that the City assign all of the 2013 Allocation (the “Assigned Allocation”) to the Authority pursuant to Section 24-32-1706 of the Allocation Act for the purpose of assisting in the financing of the rehabilitation of two rental housing projects located in the City of Fort Collins, Larimer County, Colorado: (1) a 95-unit rental housing project known as The Villages on Plum, located at 2021 West Plum; and (2) a 284-unit rental housing project known as the Villages at Cunningham Corner, which includes a management office located at 3436 South Shields Street, and three rental housing projects: Hickory Hill Village Apartments, 3425 Windmill Drive; Rose Tree Village Apartments, 1000 Horsetooth Road; and Willow Grove Village, 1025 Cunningham Drive (collectively, the “Projects”); and WHEREAS, the City has determined that the 2013 Allocation can be utilized most efficiently by assigning it to the Authority to issue Private Activity Bonds for the purpose of financing the Projects; and WHEREAS, the City has determined that such assignment to the Authority 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 2013 Allocation to the Authority, which assignment is to be evidenced by an Assignment of Allocation between the City and the Authority in substantially the form attached and incorporated herein as Exhibit “A” (the “Assignment of Allocation”). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fort Collins as follows: Section 1. That the assignment to the Authority of the City’s 2013 Allocation of $6,962,218, for use by the Authority for the purposes set forth herein, is hereby approved. Section 2. That the City Manager is hereby authorized to execute the Assignment of Allocation in substantially the form attached hereto 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 20th day of August, A.D. 2013. _________________________________ Mayor ATTEST: __________________________________ City Clerk DMWEST #10080442 v3 Exhibit A ASSIGNMENT OF ALLOCATION THIS ASSIGNMENT (the “Assignment”), dated August [__], 2013, is between the City of Fort Collins, Colorado, a municipal corporation (the “Assignor”), and the Fort Collins Housing Authority, a body corporate and politic (the “Assignee”). RECITALS A. The Assignee intends to finance the rehabilitation of a 95-unit rental housing project known as The Villages on Plum located at 2021 West Plum, in the City of Fort Collins, Larimer County, Colorado and the rehabilitation of a 284-unit rental housing project known as the Villages at Cunningham Corner which includes a management office located at 3436 South Shields Street, Fort Collins, Larimer County, Colorado and three rental housing projects whose names and respective addresses are as follows: Hickory Hill Village Apartments, 3425 Windmill Drive, Fort Collins, Larimer County, Colorado; Rose Tree Village Apartments, 1000 Horsetooth Road, Fort Collins, Larimer County, Colorado; and Willow Grove Village, 1025 Cunningham Drive, Fort Collins, Larimer County, Colorado (collectively, the “Project”). The Project will 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 Project. C. The Assignee has requested that the Assignor assign to the Assignee all $6,962,218 of the Assignor’s 2013 allocation (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 Project. D. Subject to the terms and conditions set forth herein, the Assignor desires to assign to the Assignee, and the Assignee desires to accept, $6,962,218 of the Assignor’s 2013 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 2013 Allocation from the State Ceiling for private activity bonds in an amount equal to $6,962,218. The Assignor and the Assignee understand that such assigned allocation shall automatically be DMWEST #10080442 v3 2 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, 2013, or (b) Section 24-32-1706(3)(c), C.R.S., pertaining to the carryforward of the assigned allocation, applies. 2. The Assignor represents that it has received no monetary consideration for the assignment set forth above. 3. The Assignee hereby: (a) accepts the assignment of $6,962,218 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 Project; 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 any project with a carryforward purpose. 5. This Assignment shall not constitute the 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] [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 ____________________________________ [SEAL] Darin A. Atteberry, City Manager ATTEST: APPROVED AS TO FORM: ____________________________________ ____________________________________ City Clerk Assistant City Attorney FORT COLLINS HOUSING AUTHORITY, as Assignee By: ________________________________ [SEAL] Its: ________________________________ ATTEST: By: ________________________________ Its: ________________________________ The Villages Fort on Collins, Cunningham CO 80526 Corner CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use PRODUCTS of the by the public. City The of Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: August 01, 2013 The Villages on Cunningham Corner Parcels 0 150 300Feet © ATTACHMENT 3 ATTACHMENT 3