HomeMy WebLinkAbout2001-113-09/04/2001-AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLO RESOLUTION 2001-113
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING ASSIGNMENT TO THE
COLORADO HOUSING AND FINANCE AUTHORITY
OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF FORT COLLINS
PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ACT
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 the purpose ofproviding single-family mortgage
loans to 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")which may be issued in the State to provide
such mortgage loans and for certain other purposes; and
WHEREAS, pursuant to the Code, the Colorado legislature 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 the Colorado Housing
and Finance Authority (the "Authority") and other governmental units in the State; and
WHEREAS, Section 24-32-1706(2), C.R.S., authorizes the assignment of such allocations
from such other governmental units to the Authority; and
WHEREAS, Section 24-32-1706(l)establishes a formula by which the City of Fort Collins
will receive an allocation of the 2001 State Ceiling permitting issuance of a specified principal
amount of Private Activity Bonds prior to September 15, 2001 (the "2001 Allocation"); and
WHEREAS,the Council has determined that the 2001 Allocation,or a portion thereof, can
be utilized most efficiently by assigning it to the Authority to issue Private Activity Bonds for the
purpose of providing single-family mortgage loans to low- and moderate-income persons and
families; and
WHEREAS, the Council has determined to assign a portion of its 2001 Allocation to the
Authority, which assignment is to be evidenced by an Assignment of Allocation between the City
of Fort Collins and the Authority attached hereto as Exhibit "A" (the Assignment of Allocation").
NOW, THEREFORE, BE IT RESOLVED by the City of Fort Collins as follows:
Section 1. The assignment to the Authority of TWO MILLION THREE HUNDRED
SIXTY-EIGHT THOUSAND THREE HUNDRED SEVENTY-FIVE DOLLARS ($2,368,375)of
the City of Fort Collins' 2001 Allocation is hereby approved.
Section 2. The form and substance of the Assignment of Allocation attached hereto as
Exhibit"A,"are hereby approved;provided,however,that the Mayor,upon the recommendation of
the City Manager in consultation with the City Attorney,is hereby authorized to make such technical
variations, additional or deletions in or to such Assignment of Allocation as shall be deemed
necessary or appropriate and not inconsistent with the approval of this Resolution.
Section 3. The Mayor is hereby further authorized to execute and deliver the Assignment
of Allocation on behalf of the City of Fort Collins and to take such other steps or actions upon the
recommendation of the City Manager in consultation with the City Attorney, as may be necessary,
useful, or convenient to effect the aforesaid assignment in accordance with the intent of the
Resolution.
Section 4. If any section,paragraph,clause,or provision of this resolution shall for any
reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section,
paragraph, clause, or provisions shall not affect any of the remaining provisions of this Resolution.
Section 5. This resolution shall be in full force and effect upon its passage and approval.
2001. Passed and adopted at a regular meeting of City Council held this 4th day of September,A.D.
Mayor
ATTEST:
City Clerk
EXHIBIT "A"
ASSIGNMENT OF ALLOCATION
This Assignment of Allocation (the "Assignment"), dated this day of
September, 2001, is between the City of Fort Collins (the "Assignor") and the Colorado
Housing and Finance Authority (the "Assignee").
WITNESSETH:
WHEREAS, the Assignor and the Assignee are authorized and empowered under
the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of
providing single-family mortgage loans to 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") which may be issued
in the State to provide such mortgage loans and for certain other purposes (the "State
Ceiling"); and
WHEREAS, pursuant to the Code, the Colorado legislature 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 the Assignee and other governmental units in the State, and further providing for
the assignment of allocations from such other governmental units to the Assignee; and
WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation
Act, the Assignor has an allocation of the 2001 State Ceiling for the issuance of a
specified principal amount of Private Activity Bonds prior to September 15, 2001 (the
"2001 Allocation"); and
WHEREAS, the Assignor has determined that, in order to increase the availability
of adequate affordable housing for low- and moderate-income persons and families
within the City of Fort Collins and elsewhere in the State, it is necessary or desirable to
provide for the utilization of all or a portion of the 2001 Allocation; and
WHEREAS, the Assignor has determined that the 2001 Allocation, or a portion
thereof, can be utilized most efficiently by assigning it to the Assignee to issue Private
Activity Bonds for the purpose of providing single-family mortgage loans to low- and
moderate-income persons and families ('Revenue Bonds"), and the Assignee has
expressed its willingness to attempt to issue Revenue Bonds with respect to the 2001
Allocation; and
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WHEREAS, the Council of the City of Fort Collins of the Assignor has
determined to assign to the Assignee $2,368,375 of its 2001 Allocation, and the Assignee
has agreed to accept such assignment, which is to be evidenced by this Assignment.
NOW, THEREFORE, in consideration of the premises and the mutual promises
hereinafter set forth, the parties hereto agree as follows:
1. The Assignor hereby assigns to the Assignee $2,368,375 of its 2001
Allocation, subject to the terms and conditions contained herein. The Assignor
represents that it has received no monetary consideration for said assignment.
2. The Assignee hereby accepts the assignment to it by the Assignor of
$2,368,375 of Assignor's 2001 Allocation, subject to the terms and conditions contained
herein. The Assignee agrees to use its best efforts to issue and sell Revenue Bonds, in
one or more series, and to make proceeds of such Revenue Bonds available from time to
time during the period of two (2) years from the date of this Assignment for the purchase
of mortgage loans in at least the aggregate amount of$2,368,375 to finance single-family
housing facilities located in City of Fort Collins. Unless otherwise agreed to in writing,
the mortgage loans will be subject to all applicable current requirements of Assignee's
mortgage revenue bond program, including Assignee's income and purchase price limits.
3. 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.
4. The Assignor and Assignee each agree that it will take such further action
and adopt such further proceedings as may be required to implement the terms of this
Assignment.
5. Nothing contained in this Assignment shall obligate the Assignee to
finance mortgage loans in any particular amount or at any particular interest rate or to use
any particular percentage of the proceeds of its Revenue Bonds to provide mortgage
loans to finance single-family housing facilities located in City of Fort Collins.
6. This Assignment is effective upon execution and is irrevocable.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment
on the date first written above.
[SEAL] City of Fort Collins, Colorado
By:
Mayor
ATTEST:
By:
City Clerk
COLORADO HOUSING AND FINANCE
AUTHORITY
[SEAL]
By:
Executive Director
ATTEST:
By:
Assistant Secretary
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