HomeMy WebLinkAbout2021-063-06/01/2021-Authorizing the assignment of the city's private activity bond allocation for 2021 to housing catalyC
RESOLUTION 2021-063
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ASSIGNMENT OF THE CITY’S PRIVATE ACTIVITY
BOND ALLOCATION FOR 2021 TO HOUSING CATALYST TO FINANCE THE NEW
CONSTRUCTION AND REHABILITATION OF AFFORDABLE HOUSING UNITS
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 2021 State Ceiling for the issuance of Private
Activity Bonds in the aggregate principal amount of $9,438,581 (the “2021 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 received one application for the 2021 Allocation from Housing
Catalyst,seeking PAB capacity for the Impala Redevelopment and Renovation project (the
“Project”),which would convert eleven single family homes owned by Housing Catalyst into 26
renovated duplexes and 60 new apartments;and
WHEREAS,the City’s PAB Committee considered the application and recommends
assigning the 2021 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 2021 Allocation;and
WHEREAS,the City Council finds that the 2021 Allocation can be utilized most
efficiently by assigning it to Housing Catalyst to issue Private Activity Bonds for financing the
Project,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
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WHEREAS,the Council wishes to assign the 2021 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 $9,438,581 for the Project 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 1st
day of June,A.D.2021.I
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ATTEST:/
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City CISX
1’EXHIBIT A
ASSIGNMENT OF ALLOCATION
THIS ASSIGNMENT (the “Assignment”),dated ________________,2021 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°c,of area median income (the “Project”.)The Project will be designed to quali~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 the Assignor’s
2021 allocation of $9,438,581 (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:
I.The Assignor hereby assigns and transfers to the Assignee the Assignor’s 2021
Allocation of $9,438,581 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 15,2021,or (b)Section 24-32-I 706(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;
C EXHIBIT A
(b)agrees to use its best effo~5 to issue and use the proposed
purpose of financing the Projects and
(b)agrees to abide by each of the terms and conditions of this
connection with the use of such Allocation.
~•The ~ssignOr hereby consents to the election by the ~ssignee,if the ~ssignee in its
discretion so decides,to treat all or any po~iOfl of the assignment set fo~h herein as an allocation
for a project with a car~f0t~a~~purpose.
~•This ~55ignment shall not constitute a debt or indebtedness or financial obligation
of the ~ssignOr within the meaning of the constitution or statutes of the State 0f Colorado,nor give
rise to a pecunia~jiability or charge against the general credit or taxing power of the ~ssignOr.
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Bonds for the
Assignme~~~t in
EXI-ilB~T P~
IN WITNESS WHEREOF~the Assignor and the ~ssignee 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
AflEST APPROVED AS TO FORM:
City Clerk Assistant City ~ttorney
(print name)(print name)HOUSING CATALYST,as Assignee
By;
its:
ATTEST:
By:
Its:
~SignatU~Page to ~5sigflment of AIIoCati0~fl
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