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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 r r 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. ijj ATTEST: S City Clerk/~pw±f 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; r EXHIBIT A 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 S-I