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.
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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
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COLORADO HOUSING AND FINANCE
AUTHORITY
[SEAL]
By:
Executive Director
ATTEST:
By:
Assistant Secretary
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