HomeMy WebLinkAbout2021-069-06/15/2021-Authorizing the execution of a funding agreement between the city and housing catalyst for a loan ofr r
RESOLUTION 202 1-069
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION OF A FUNDING AGREEMENT BETWEEN
THE CITY AND HOUSING CATALYST FOR A LOAN OF FUNDS FROM THE
AFFORDABLE HOUSING CAPITAL FUND FOR THE OAK 140 DEVELOPMENT
WHEREAS,Housing Catalyst,formerly known as the Housing Authority of the City of
Fort Collins (“HC”),is partnering with the Downtown Development Authority (DDA)to construct
the Oak 140 project,a mixed-use building at the intersection of Oak and Remington Streets that
will provide 79 affordable rental homes in the Downtown area serving residents who make
between 30 and 80%of Area Median Income (the “Project”);and
WHEREAS,the financing for the project includes contributions from DDA and HC,state
and federal tax credits,Private Activity Bond allocations from the City and Larimer County,and
bonds;and
WHEREAS,HC requested $610,000 in City funding from the Affordable Housing Capital
Fund (AHCF)in the Community Capital Improvement Program (CCIP)to help close a financing
gap created by escalating commodities pricing,especially lumber;and
WHEREAS,this request is aligned with guidance in the Housing Strategic Plan and with
the City’s criteria for funding affordable housing projects;and
WHEREAS,the requested funds are appropriated and available in the AHCF;and
WHEREAS,the voter-approved ballot language for the CCIP says the AHCF is to be used
to fund the capital costs of development or rehabilitation of one or more public or private housing
projects designated specifically for low-income individuals or families;and
WHEREAS,if the City Council approves the request,the City would provide the funding
to HC in the same way it provides most other funding for affordable housing capital projects:as a
due-on-sale loan pursuant to a Recipient Contract between the City and HC (the “Contract”);and
WHEREAS,the Contract would require a restrictive covenant to guarantee affordability of
the Project for a 40-year term,the same as is required of the Project by a Land Use Restriction
Agreement from the Colorado Housing and Finance Authority;and
WHEREAS,Article II,Section 16 of the City Charter of Fort Collins empowers the City
Council,by ordinance or resolution,to enter into contracts with governmental bodies to furnish
governmental services and make charges for such services,or enter into cooperative or joint
activities with other governmental bodies;and
WHEREAS,under Section 1-22 of the City Code,intergovernmental agreements and other
cooperative arrangements between the City and other governmental entities are to be submitted to
the City Council for review,unless they fit within one of the exceptions that permit execution by
the City Manager;and
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WHEREAS,Section 29-1-203 of the Colorado Revised Statutes provides that governments
may cooperate or contract with one another to provide certain services or facilities when such
cooperation or contracts are authorized by each party thereto with the approval of its legislative
body or other authority having the power to so approve;and
WHEREAS,the Council Finance Committee at its meeting on May 24,2021,and the
Affordable Housing Board at its meeting on June 3,2021,both supported the use of AHCF funds
for the Project;and
WHEREAS,the City Council finds that the Project meets the requirements for funding
from the AHCF,and that it is in the best interests of the City to provide the requested funding to
HC for the project.
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 Manager is hereby authorized to execute a Recipient Contract
with Housing Catalyst on terms consistent with this Resolution,along with such other terms and
conditions as the City Manager,in consultation with the City Attorney,determines to be necessary
or appropriate to protect the interests of the City or effectuate the purposes set forth herein.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th
day of June,A.D.2021.
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ATTEST:
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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°o to 80°o of area median income (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 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:
1.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 24-32-1 706(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;
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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:____________________________________
[Signature Page to Assignment of Allocationi
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