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HomeMy WebLinkAbout2002-003-01/15/2002-SETTING FORTH THE INTENTION OF THE CITY TO ASSIGN ITS YEAR 2002 PRIVATE ACTIVITY BOND ALLOCATION TO RESOLUTION 2002-003 OF THE COUNCIL OF THE CITY OF FORT COLLINS SETTING FORTH THE INTENTION OF THE CITY TO ASSIGN ITS YEAR 2002 PRIVATE ACTIVITY BOND ALLOCATION TO THE COLORADO HOUSING AND FINANCE AUTHORITY TO FINANCE MULTI-FAMILY HOUSING REVENUE BONDS FOR THE CARIBOU APARTMENTS PROJECT 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 of financing 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") which may be issued in the State to finance such rental housing projects 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 Colorado Housing and Finance Authority (the "Authority") and other governmental units in the State, and further providing for the assignment of such allocations from such other governmental units to the Authority; and WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the City of Fort Collins has an allocation of the 2002 State Ceiling for the issuance of Private Activity Bonds in the aggregate principal amount of up to $4,450,950 prior to September 15, 2002 (the "2002 Allocation"); and WHEREAS, the City of Fort Collins has determined that, in order to increase the availability of adequate affordable housing by low- and moderate-income persons and families within the city and elsewhere in the State, it is necessary or desirable to provide for the utilization of all or a portion of the 2002 Allocation to advance that objective; and WHEREAS, the City of Fort Collins has determined that the 2002 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 financing the Caribou Apartments Project, a multi-family housing project planned to be located near the intersection of Timberline Road and Caribou Road in the north part of Fort Collins, which is expected to include a 192 housing units and a clubhouse facility (the "Project'), or, if the Project does not proceed, for one or more rental housing projects for low- and moderate-income persons and families in the Fort Collins area; and WHEREAS, the Council has determined to assign $4,450,950 of its 2002 Allocation to the Authority, which assignment is to be evidenced by an Assignment of Allocation between the City of Fort Collins and the Authority (the "Assignment of Allocation"), attached hereto as Exhibit "A" and incorporated herein by this reference. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fort Collins as follows: Section 1. That the assignment to the Authority of $4,450,950 of the City of Fort Collins' 2002 Allocation, for use by the Authority for the purposes set forth herein, is hereby approved. Section 2. That the form and substance of the Assignment of Allocation are hereby approved; provided, however, that the City Manager, in consultation with the City Attorney, is hereby authorized to make such technical variations, additions or deletions in or to such Assignment of Allocation as he shall deem necessary or appropriate and not inconsistent with the approval thereof by this Resolution. Section 3. That the City Manager is hereby 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 as may be necessary, useful or convenient to effect the aforesaid assignment in accordance with the intent of this Resolution. Section 4. That 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 provision shall not affect any of the remaining provisions of this Resolution. Section 5. That this Resolution shall be in full force and effect upon its passage and approval. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of January, A.D. 2002. ayor _ ATTEST: City Clerk Exhibit"A" ASSIGNMENT OF ALLOCATION This Assignment of Allocation(the "Assignment"),dated this day of January,2002, 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 financing 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")which may be issued in the State to finance such rental housing projects 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 2002 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2002 (the "2002 Allocation"); and WHEREAS, the Assignor has determined that, in order to increase the availability of adequate affordable housing by 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 2002 Allocation; and WHEREAS,the Assignor has determined that the 2002 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 financing one or more multi-family rental housing projects for 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 2002 Allocation; and WHEREAS, the City Council of the Assignor has determined to assign to the Assignee $4,450,950 of its 2002 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 $4,450,950 of its 2002 Allocation, subject to the terms and conditions contained herein. The Assignor represents that it has received no monetary consideration for said assignment. 1 2. The Assignee hereby accepts the assignment to it by the Assignor of$4,450,950 of Assignor's 2002 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 a mortgage loan to finance the Caribou Apartment Project, a proposed 192-unit multi-family rental housing project for low and moderate income families located near the intersection of Timberline Road and Caribou Road, Fort Collins, Colorado(the "Project"). In the event Assignee is unable to finance the Project on or prior to December 31, 2002, Assignee agrees to use its best efforts to use an amount equal to the 2002 Allocation hereby assigned in connection with the issuance of Revenue Bonds to finance one or more other multi-family rental housing projects located within Assignor's boundaries for low and moderate income families,or, in the event such efforts are unsuccessful,for one or more such projects anywhere within the State, as it may in its discretion determine. 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 the Project or to use the allocation hereby assigned it to finance any other multi-family rental housing project located in the City of Fort Collins. 6. This Assignment is effective upon execution and is irrevocable. IN WITNESS WHEREOF,the parties hereto have duly executed this Assignment on the date first written above. THE CITY OF FORT COLLINS, COLORADO [SEAL] By: John F. Fischbach City Manager ATTEST: By: Wanda M. Krajicek City Clerk APPROVED AS TO FORM: By: Carrie M. Daggett Assistant City Attorney 2 COLORADO HOUSING AND FINANCE AUTHORITY [SEAL] By: Executive Director ATTEST: By: Assistant Secretary 3