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HomeMy WebLinkAbout1985-036-03/19/1985-AUTHORIZING THE TRANSFER TO LARIMER COUNTY OF THE ALLOCATION OF THE CITY UNDER FEDERAL AND STATE LAW RESOLUTION 85-36 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER TO LARIMER COUNTY, COLORADO OF THE ALLOCATION OF THE CITY OF FORT COLLINS, COLORADO UNDER FEDERAL AND STATE LAW TO FINANCE MORTGAGE LOANS TO PROVIDE MORE ADEQUATE RESIDENTIAL HOUSING FACILITIES FOR LOW- AND MIDDLE-INCOME FAMILIES AND PERSONS WITHIN LARIMER COUNTY AND WITHIN THE CITY OF FORT COLLINS; AND AUTHORIZING THE EXECUTION AND DELIVERY BY THE CITY OF FORT COLLINS OF ALLOCATION TRANSFER AGREEMENTS WHEREAS, the City of Fort Collins, Colorado (the "City") and Larimer County, Colorado (the "County") are each authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado Revised Statutes (the "Project Act") , to issue revenue bonds for the purpose of financing mortgage loans to provide more adequate residential housing facilities for low- and middle-income families and persons (the "Single Family Revenue Bonds") ; and WHEREAS , Section 103A of the Internal Revenue Code of 1954 (the "Code") restricts the amount of tax exempt obligations which may be issued by the Colorado Housing Finance Authority (the "Authority") and local governmental units in the State of Colorado (the "State" ) to finance single-family mortgages to an amount not exceeding the State Ceiling as defined in the Code (the "State Ceiling") ; and WHEREAS , the Code specifies an allocation formula to be used to determine allocations of the State Ceiling amount among the Authority and local governmental units, which formula, for the local governmental units, is based on historical mortgage lending activity in each such local governmental unit; and WHEREAS, pursuant to the Code, the State had provided for a formula for allocation of the State Ceiling among the governmental units in the State in a manner different from the federal allocation formula, in Part 8 of Article 4 of Title 29 of Colorado Revised Statutes until such act was repealed, effective January 1, 1985; and WHEREAS, House Bill 1108 (the "Allocation Act") , currently pending in the State legislature, provides a new allocation formula of the State Ceiling in a manner different from the federal allocation formula and it is anticipated that House Bill 1108 will become effective sometime this year; and WHEREAS, where there are governmental units in the State with over- lapping jurisdictions, the Code authorizes the governmental unit with jurisdiction over the smallest geographical area to allocate all or a part of such overlapping area to the governmental unit having jurisdiction of the next smallest geographical area and otherwise authorized to issue bonds to finance single-family mortgages and to accept transfers of such allocations ; and WHEREAS, the City desires to allocate all of the area within its jurisdiction to Larimer County for the year 1985 for Larimer County's use in determining its allocation under the Code or all of its anticipated allocation amount under the Allocation Act for Larimer County' s use in determining its total allocation under the Allocation Act for the purpose of financing mortgage loans to provide more adequate residential housing facilities for low- and middle-income families and persons within Larimer County and the City; and WHEREAS, it is necessary to evidence such transfer of area pursuant to the Code and the acceptance of such transfer by the Federal Allocation Transfer Agreement (the "Federal Allocation Transfer Agreement") presented ' to the City Council (the "Council ") at this meeting which will be executed and delivered by the City and Larimer County; and WHEREAS, it may be necessary to evidence such transfer of allocation pursuant to the Allocation Act and the acceptance of such transfer by the State Allocation Transfer Agreement (the "State Allocation Transfer Agree- ment") presented to the Council at this meeting, which will be executed and delivered by the City and Larimer County in the event that the Allocation Act becomes effective before Larimer County issues its Single Family Revenue Bonds. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT COLLINS, COLORADO: Section 1 . The forms, terms and provisions of the Federal Allocation Transfer Agreement hereby are approved and the Mayor of the City and the City Clerk hereby are authorized and directed to execute and deliver the Federal Allocation Transfer Agreement. Section 2. The forms, terms and provisions of the State Allocation Transfer Agreement hereby are approved and the Mayor of the City and the City Clerk hereby are authorized and directed to execute and deliver the State Allocation Transfer Agreement in the event that the Allocation Act becomes effective before Larimer County issues its Single Family Revenue Bonds. Section 3 . The Mayor and the City Clerk hereby are authorized and directed to take such other steps or actions as may be required to carry out the terms and intent of this resolution, the Federal Allocation Trans- fer Agreement and the State Allocation Transfer Agreement. -2- Section 4. Nothing contained in this resolution, in the Federal Allocation Transfer Agreement or in the State Allocation Transfer Agreement shall obligate the City, except to the extent described in the Federal Allocation Transfer Agreement and in the State Allocation Transfer Agree- ment , nor constitute the debt or indebtedness of the City within the meaning of the Constitution or statutes of the State or the home rule charter of any political subdivision thereof, nor give rise to a pecu- niary liability of the City or a charge against its general credit or taxing powers. Section 5. 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 resolu- tion. Section 6. All action (not inconsistent with the provisions of this resolution) heretofore taken by the Council and the officers of the City - directed toward the authorization of the Federal Allocation Transfer Agreement and the State Allocation Transfer Agreement hereby is ratified, approved and confirmed. Passed and adopted at a regular meeting of the City Council held this 19th day of March, A.D. 1985. Mayo r ATTEST: ,ty Ulerk -3-