HomeMy WebLinkAbout1997-134-10/07/1997-FINANCE AUTHORITY PRIVATE ACTIVITY BONDS SINGLE FAMILY MORTGAGE LOANS RESOLUTION 97-134
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 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; and
WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private
Activity Bond Ceiling Allocation Act, Part 17 or 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(1), establishes a formula by which the City of Fort Collins
will receive an allocation of the 1998 State Ceiling permitting the issuance of a specified principal
amount of Private Activity Bonds prior to September 14, 1998 (the "1998 Allocation"); and
WHEREAS, the Council has determined that the 1998 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 City's Affordable Housing Board considered the proposed assignment at
its October 2 meeting, and recommended that the Council authorize the assignment in order to
maximize the availability of affordable housing in Fort Collins through this cooperative effort with
the Authority; and
WHEREAS, the Council has determined to assign its 1998 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:
1. The assignment to the Authority of the City of Fort Collins' 1998 Allocation is
hereby approved.
2. The form and substance of the Assignment of Allocation attached hereto as Exhibit
"A," are hereby approved; provided, however, that the Mayor, upon consultation with the City
Attorney, is hereby authorized to make such technical variations, additions or deletions in or to such
Assignment of Allocation as shall be deemed necessary or appropriate and not inconsistent with the
approval thereof by this Resolution.
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 as may be
necessary, useful or convenient to effect the aforesaid assignment in accordance with the intent of
this Resolution.
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 provision shall not affect any of the remaining provisions of this resolution.
5. This resolution shall be in full force and effect upon its passage and approval.
Passed and adopted at a regular meeting of the City Coumil held this 7t)l da�of October,
A.D., 1997.
Mayor
l
ATTEST:
City Clerk
EXHIBIT A
ASSIGNMENT OF ALLOCATION
This Assignment of Allocation (the "Assignment"), dated this day of
1997, is between the City of Fort Collins, Colorado, (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, Section 24-32-1706(1), establishes a formula by which the City of Fort Collins
will receive an allocation of the 1998 State Ceiling permitting the issuance of a specified principal
amount of Private Activity Bonds prior to September 14, 1998 (the "1998 Allocation"); and
WHEREAS, the Assignor has determined that the 1998 Allocation 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 1998 Allocation; and
WHEREAS, the City Council of the City of Fort Collins has determined to assign to the
Assignee its 1998 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 its 1998 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 Assignor's 1998
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 provide mortgage loans in at
least the amount of$5 million to finance single-family housing facilities located in Fort Collins.
3. 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.
4. 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 Fort Collins.
5. 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.
City of Fort Collins, Colorado
By:
Title:
[SEAL]
ATTEST:
By:
Title
COLOR-ADO HOUSING FINANCE AUTHORITY
[SEAL]
By:
Executive Director
ATTEST:
By:
Assistant Secretary