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HomeMy WebLinkAbout2021-014-02/02/2021-AUTHORIZING AND APPROVING THE CITY'S PARTICIPATION IN THE METRO MORTGAGE ASSISTANCE PLUS PROGRAM, AN4842-3532-0186.3 DELEGATION AND PARTICIPATION AGREEMENT This DELEGATION AND PARTICIPATION AGREEMENT, dated as of February 3, 2021 (this “Delegation and Participation Agreement”), is by and between the CITY OF FORT COLLINS, a legally and regularly created, established, organized and existing home rule charter city and political subdivision under the Constitution and statutes of the State of Colorado (“Fort Collins”) and the CITY AND COUNTY OF DENVER, COLORADO, a legally and regularly created, established, organized and existing home rule charter city and political subdivision under the Constitution and statutes of the State of Colorado (“Denver”), each a “Party”. R E C I T A L S: WHEREAS, the State of Colorado (the “State”) Constitution Article XIV, Section 18(2)(a) provides that nothing in the Constitution shall prohibit any of the State’s political subdivisions from cooperating with one another to provide any service lawfully authorized to each of the cooperating units; and WHEREAS, Denver is authorized pursuant to its Home Rule Charter to promote the financing of mortgage loans for persons or families that earn 150% or less of the area median income for Denver and to purchase homes intended for use as the sole place of residence by the owners or intended occupants thereof and to promote the health, welfare, safety, convenience and prosperity of the people of Denver; and WHEREAS, Denver sponsors the Metro Mortgage Assistance Plus Program to provide competitive mortgage loans which will be coupled with down payment and closing cost assistance in connection with financing mortgage loans for persons or families that earn 150% or less of the area median income for Denver to purchase homes intended for use as the sole place of residence by the owners or intended occupants thereof (the “Program”); and WHEREAS, Fort Collins previously offered its own Home Buyers Assistance Program but no longer does so and now refers residents to other assistance programs serving the Fort Collins community; and WHEREAS, Denver has invited Fort Collins to participate in the Program in order to expand the available housing finance options for Fort Collins residents; and WHEREAS, Fort Collins has the full legal authority to participate in the Program pursuant to the general powers granted to it in Title 29, Article 1, Section 203 of the Colorado Revised Statutes, as amended; Title 31, Article 15, Colorado Revised Statutes, as amended; and the Resolution 2021-014 adopted on February 2, 2021 by the Fort Collins City Council authorizing Fort Collins’s participation in the Program pursuant to this Delegation and Participation Agreement (collectively the “Act”); and WHEREAS, Fort Collins desires to delegate to Denver the authority of Fort Collins to take action and exercise power under the Act on behalf of Fort Collins with respect to the Program within Fort Collins’s boundaries; EXHIBIT A 4842-3532-0186.3 NOW THEREFORE, in consideration of the mutual covenants and undertakings set forth herein, Fort Collins and Denver hereby agree as follows: Section 1. Fort Collins hereby delegates to Denver the authority of Fort Collins to take action and exercise power under the Act on behalf of Fort Collins with respect to the Program within Fort Collins’s boundaries. Section 2. Denver hereby accepts the delegation of authority from Fort Collins pursuant to Section 1 hereof and agrees to abide by each of the terms and conditions of this Delegation and Participation Agreement in connection with the use of such delegation. Denver agrees to make the Program available to Fort Collins for the origination of home mortgages within Fort Collins’s boundaries. Section 3. In the event that the Program is discontinued by Denver, this Delegation and Participation Agreement, and all duties, obligations and rights of Denver and Fort Collins hereunder, shall terminate. If the Program is terminated, Fort Collins agrees to release Denver from any claims for costs or any other liabilities incurred by Fort Collins with respect to the adoption and approval of this Delegation and Participation Agreement or any other Fort Collins actions related thereto. Section 4. Fort Collins’s participation in the Program pursuant to this Delegation and Participation Agreement shall be at no cost to Fort Collins and shall not be construed as creating or constituting a general obligation or multiple fiscal year direct or indirect i ndebtedness or other financial obligation whatsoever of Fort Collins nor a mandatory payment obligation of Fort Collins in any fiscal year during which this Delegation and Participation Agreement shall be in effect. Fort Collins does not assume any responsibility or liability for any financial obligations of Denver or of participants in the Program, and Denver agrees to release Fort Collins from any claims for costs or any other liabilities incurred by Denver with respect to the adoption and approval of this Delegation and Participation Agreement or any other Denver actions related thereto. Section 5. Either Fort Collins or Denver may terminate this Delegation and Participation Agreement by providing at least thirty (30) days’ prior written notice of such effective date of termination to the other Party of such termination. Notice of termination may be sent to the following, via electronic mail or U.S. First Class U.S Mail, postage prepaid, addressed as follows: If to Fort Collins: City of Fort Collins Social Sustainability Department P.O. Box 580 Fort Collins, CO 80522-0580 Attn: Sue Beck-Ferkiss sbeckferkiss@fcgov.com If to Denver: City and County of Denver Department of Housing Stability 201 West Colfax Avenue, 6th Floor 4842-3532-0186.3 Denver, Colorado 80202 Attn: Andrew Johnston, Catalytic Projects Andrew.Johnston@denvergov.org Notwithstanding the foregoing, any termination of this Delegation and Participation shall only prevent Denver from initiating any new loans under the Program within the boundaries of Fort Collins and shall not affect the legality or effectiveness of any loans previously-initiated or -closed under the Program with the boundaries of Fort Collins prior to the effective date of termination. IN WITNESS WHEREOF, Fort Collins and Denver have caused this Delegation and Participation Agreement to be executed and be effective as of February 3, 2021. CITY OF FORT COLLINS [SEAL] By Wade Troxell, Mayor ATTEST: City Clerk Name ______________________________ APPROVED AS TO FORM: __________________________________ Assistant City Attorney Name _____________________________ 4842-3532-0186.3 CITY AND COUNTY OF DENVER, COLORADO By Britta E. Fisher Executive Director and Chief Housing Officer Department of Housing Stability [Signature Page to Delegation and Participation Agreement]