HomeMy WebLinkAbout2024-073-06/04/2024-AUTHORIZING THE ASSIGNMENT OF THE CITY’S PRIVATE ACTIVITY BOND ALLOCATION FOR 2024 TO HOUSING CATALYRESOLUTION 2024-073
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ASSIGNMENT OF THE CITY’S PRIVATE
ACTIVITY BOND ALLOCATION FOR 2024 TO HOUSING
CATALYST TO FINANCE THE CONSTRUCTION AND
REHABILITATION OF AFFORDABLE HOUSING UNITS
A.The City of Fort Collins is authorized and empowered under the laws of the
State of Colorado to issue revenue bonds for purposes including the financing of
affordable housing projects for low-and moderate-income persons and families.
B.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
of Colorado (the “State Ceiling”).
C.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.
D.Pursuant to an allocation under Section 24-32-1 706 of the Allocation Act,
the City has received a direct allocation of the 2024 State Ceiling for the issuance of
Private Activity Bonds in the aggregate principal amount of $10,812,010 (the “2024
Allocation”).
E.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.
F.The City received applications for the 2024 Allocation from two entities:
Housing Catalyst and CARE Housing.
G.The City’s Private Activity Bond Committee considered the applications and
recommends assigning the City’s entire 2024 Allocation to Housing Catalyst.
H.Housing Catalyst proposes using the entire $10,812,010 of the 2024
Allocation to develop its pipeline of qualifying affordable projects within the City of Fort
Collins,which includes new affordable housing at the Village on Eastbrook (the “Housing
Catalyst Projects”).
Housing Catalyst has expressed its willingness to attempt to issue Revenue
Bonds in the amounts proposed.
J.The City Council finds that the 2024 Allocation can be utilized most
efficiently by assigning it to Housing Catalyst to issue Private Activity Bonds for financing
the Housing Catalyst 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.
K.The Council wishes to assign the 2024 Allocation to Housing Catalyst,
which assignment is to be evidenced by an Assignment of Allocation #1.
L.A draft of the proposed Assignment of Allocation #1 is attached as Exhibit
“A”and incorporated herein by reference.
M.This Resolution shall not be construed as constituting City Council approval,
support for approval,or waiver of any City regulatory requirement,including any
development review process whether administrative or quasi-judicial,for any project
referenced herein.
In light of the foregoing recitals,which the Council hereby makes and adopts as
determinations and findings,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1.
of TEN MILLION
($10,812,010)of the
herein.
The City Council hereby approves assignment to Housing Catalyst
EIGHT HUNDRED TWELVE THOUSAND TEN DOLLARS
City’s 2024 Allocation for the Housing Catalyst Projects as described
Section 2.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 on June 4,2024.
Effective Date:June 4,2024
Approving Attorney:Ted Hewitt
ATTEST:
Iayor
Interim City Clerk
EXHIBIT A TO RESOLUTION 2024-073
ASSIGNMENT OF ALLOCATION #1
THIS ASSIGNMENT (the “Assignment”),dated _______________,2024 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 affordable housing within the
City of Fort Collins,all for households with incomes ranging from 30%to 80%of area median
income,and 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 $10,812,010
of the Assignor’s 2024 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 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 $10,812,010 of the
Assignor’s 2024 Allocation 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 15,2024,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.
3.The Assignee hereby:
(a)accepts the assignment of the Assignor’s Allocation from the State Ceiling
described above;
EXHIBIT A TO RESOLUTION 2024-073
(b)agrees to use its best efforts to issue and use the Proposed Bonds for the
purpose of financing the Projects;and
(1,)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.
6.This Assignment shall not be construed to constitute City of Fort Collins approval,
support for approval,or waiver of any City regulatory requirement,including any development
review process whether administrative or quasi-judicial,for any Project funded with the Proposed
Bonds.
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EXHIBIT A TO RESOLUTION 2024-073
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 Amdt,Mayor
ATTEST:APPROVED AS TO FORM:
Title:Assistant City Attorney
(print name)(print name)
HOUSING CATALYST,as Assignee
By:
Its:
ATtEST:
By:
Its:
[Signature Page to Assignment of Allocation]
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