HomeMy WebLinkAbout2023-048-06/06/2023-AUTHORIZING THE ASSIGNMENT OF THE CITY’S 2023 PRIVATE ACTIVITY BOND ALLOCATION TO HOUSING CATALYST ARESOLUTION 2023-048
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ASSIGNMENT OF THE CITY’S 2023 PRIVATE ACTIVITY
BOND ALLOCATION TO HOUSING CATALYST AND COLORADO HOUSING AND
FINANCE AUTHORITY FOR CARE HOUSING TO FINANCE THE CONSTRUCTION
AND REHABILITATION OF AFFORDABLE HOMES
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 2023 State Ceiling for the issuance of Private Activity
Bonds in the aggregate principal amount of $10,289,735 (the “2023 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 seeking applications for the 2023 Allocation from three
entities:Housing Catalyst;CARE Housing;and Steele Properties;and
WHEREAS,the City’s PAB Committee considered the applications and recommends
assigning the 2023 Allocation to Housing Catalyst and CARE Housing in the amounts requested
by those two entities pursuant to Section 24-32 1706 of the Allocation Act;and
WHEREAS,Housing Catalyst proposes using $6,289,735 of the 2023 Allocation to
develop at least 36 affordable rental homes within the City of Fort Collins (the “Housing Catalyst
Projects”);and
WHEREAS,CARE Housing proposes using $4,000,000 of the 2023 Allocation through
the Colorado Housing and Finance Authority (“CHFA”),along with $16,100,000 of previously
secured funds from the CHFA,to develop 72 new affordable rental apartments at Heartside Hill
(the “CARE Housing Projects”);and
WHEREAS,CARE Housing,through CHFA,and Housing Catalyst have each expressed
its willingness to attempt to issue Revenue Bonds in the amounts proposed;and
WHEREAS,the City Council finds that the 2023 Allocation can be utilized most efficiently
by assigning it to CARE Housing,through CHFA,and Housing Catalyst and to issue Private
Activity Bonds for financing the Projects,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
WHEREAS,the Council wishes to assign the 2023 Allocation to Housing Catalyst and
CARE Housing,which assignments are to be evidenced by an Assignment of Allocation #1 to
Housing Catalyst and Assignment of Allocation #2 to CARE Housing,through CHFA;and
WHEREAS,a draft of the proposed Assignment of Allocation #1 is attached as Exhibit
“A”and incorporated herein by reference and a draft of the proposed Assignment of Allocation #2
is attached as Exhibit “B”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
$6,289,735 of the City’s 2023 Allocation for the Housing Catalyst Projects as described herein.
Section 3.That the City Council hereby approves assignment to CARE Housing,
through CHFA,of $4,000,000 of the City’s 2023 Allocation for the CARE Housing Projects as
described herein.
Section 4.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”
and an Assignment of Allocation with CARE Housing,through CHFA,in substantially the form
attached as Exhibit “B,”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 6th
day of June,2023.IA
ATTEST:
I
Chief Deputy City Clerk
EXHIBIT A TO RESOLUTION 2023-048
ASSIGNMENT OF ALLOCATION #1
THIS ASSIGNMENT (the “Assignment”),dated ________________,2023 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 not less than 36 rental homes
within the City of Fort Collins,all for households with incomes ranging from 30%to 80%of area
median income,and 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 $6,289,735 of
the Assignor’s 2023 allocation (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
Ii~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 $6,289,735 of the
Assignor’s 2023 Allocation 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 15,2023,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.
3.The Assignee hereby:
(a)accepts the assignment of the Assignor’s Allocation from the State Ceiling
described above;
EXHIBITATO RESOLUTION 2023-048
(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.
[The remainder of this page is intentionally left blank]
EXHIBITATO RESOLUTION 2023-048
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
AflEST: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 Allocation]
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EXHIBIT B TO RESOLUTION 2023-048
ASSIGNMENT OF ALLOCATION #2
THIS ASSIGNMENT (the “Assignment”),dated ________________,2023 is between the
City of Fort Collins,Colorado,a municipal corporation (the “Assignor”),and the Colorado
Housing and Finance Authority,a body corporate and political subdivision of the State of Colorado
(the “Assignee”).
RECITALS
A.The Assignee intends to facilitate Community Affordable Residences Enterprise,
Inc.’s,a Colorado nonprofit corporation (dba CARE Housing)financing of the construction of 72
rental apartments within the City of Fort Collins at the Heartside Hill Apartments,all for
households with incomes ranging from 30%to 80%of area median income,and 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 $4,000,000 of
the Assignor’s 2023 allocation (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 $4,000,000 of the
Assignor’s 2023 Allocation 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 15,2023,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.
3.The Assignee hereby:
—1—
EXHIBIT B TO RESOLUTION 2023-048
(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.
[The remainder of this page is intentionally left blank]
EXHIBIT B TO RESOLUTION 2023-048
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)
COLORADO HOUSING AND FINANCE
AUTHORITY,as Assignee
By:
It:
ATTEST:
By:
Its:
[Signature Page to Assignment of Allocation]
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