HomeMy WebLinkAbout2022-067-07/05/2022-AUTHORIZING THE ASSIGNMENT OF THE CITY'S 2022 PRIVATE ACTIVITY BOND ALLOCATION TO HOUSING CATALYST TASSIGNMENT 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.
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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