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HomeMy WebLinkAbout1985-152-09/03/1985-FINALLY ADOPTING A POLICY REPORT UNDER SECTION 103A IN CONNECTION WITH THE ISSUANCE OF SCORE LOAN RE RESOLUTION 85- 152 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO FINALLY ADOPTING A POLICY REPORT UNDER SECTION 103A IN CONNECTION WITH THE ISSUANCE OF SCORE LOAN REVENUE BONDS , SERIES 1985A WHEREAS , on June 18 , 1985, the City of Fort Collins , Colorado ( the "City" ) , adopted Ordinance No. 69 , 1985 authorizing the issuance of SCORE Loan Revenue Bonds , Series 1985A, of the City of Fort Collins , Colorado, in a principal amount not to exceed $3, 000 , 000 ( the "Bonds" ) for the purpose of financing certain loans to the citizens of Fort Collins for installing energy saving improvements to residences ; and WHEREAS , in order for interest on the Bonds to be exempt from taxation the Internal Revenue Code of 1954, as amended ( the "Code" ) , requires that the City issue a Policy Report Under Section 103A ( the "Policy Report" ) and conduct a public hearing thereon ; and WHEREAS , Notice of the Public Hearing was published in the Coloradoan, a newspaper of general circulation in the City, at least 14 days before the date of the public hearing ; and WHEREAS , a public hearing has been conducted in which interested citizens desiring to comment were invited to attend and had an opportunity to be heard and to express their views both orally and in writing concerning the matters contained in the Policy Report. NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS: Section 1 . That the Policy Report , as attached is hereby adopted. Section 2. That copies of the Policy Report , as adopted shall be made available to interested citizens at the office of the City Clerk. Section 3 . That this Resolution shall take effect immediately upon its introduction and passage. Passed and adopted at a regular meeting of the City Council held this 3rd day of September A.D. , 1985 . ,4du ,,d.tea.; Mayor ATTEST: () City Clerk cmb7 - 2 - CITY OF FORT COLLINS , COLORADO TAXPAYER IDENTIFICATION NO. 84-6000587 POLICY REPORT UNDER SECTION 103A I . INTRODUCTION The City of Fort Collins , Colorado (the "City" ) is instituting a program to provide low-interest loans to energy users in the City for the purpose of financing energy improvements to residences. This program is entitled the SCORE Loan Revenue Bond Program. It involves two aspects : First , the sale of SCORE Loan Revenue Bonds , Series 1985A ( the "Bonds" ) to individuals who will earn tax-free interest on the Bonds ; and Second , the making of SCORE Loans ( the "Loans" ) from the proceeds of the sale of the Bonds at below-market interest rates for improvements which protect or improve the energy efficiency of the borrower ' s residence . This program is in the best interests of the citizens of Fort Collins because it enables the City to enhance its ability to furnish energy to its citizens , reduces dependence on non-renewable energy resources , and enhances the local economy through reducing personal expenditures for energy. Pursuant to section 103A( j ) ( 5) of the Internal Revenue Code of 1954 , as amended ( the "Code" ) , this statement describes the City's policies and goals to be followed by the SCORE Loan Revenue Bond Program. 2. HOUSING POLICIES AND GOALS i ) All of the proceeds from the sale of the Bonds , less program and administration expenses , will be used to provide qualified home improvement loans to the citizens of Fort Collins for installing energy saving improvements to residences . ii ) The Bond proceeds will be available to both new and existing housing on a first-come , first-served basis. The Loans will not be targeted to any particular class or type of housing ; however, the Loans will be limited to 1- , 2- , 3- and 4-family residences one unit of which is occupied by the owner of the property. iii ) The absence of a need to target the Loans to particular classes or types of housing has been concluded by the Fort Collins Light & Power Utility. As part of its function of providing electric power to all the citizens of the City, through continuous interaction with the citizens , and through its Community Energy Flow Study completed in April of 1982, the Light & Power Utility has determined that the need for improvement of energy efficiency is a broad-based community need which is not dependent on the particular class or type of housing. iv) As a result of the determination that the need for the Loans is not limited to any particular class or type of housing , no method of targeting will be implemented. v) The City' s Housing Policies and Goals are consistent with its Development and Low-Income Housing Assistance Policies and Goals as described herein by allowing the SCORE Loans to be available for all types of housing which exist in development • • areas and by allowing the SCORE Loans to be available to all low- income individuals--regardless of the particular class or type of residence that they own. 3. DEVELOPMENT POLICIES AND GOALS i ) A portion of the proceeds from the sale of the Bonds will be targeted to three specific areas within the City of Fort Collins . ii ) The proceeds will be targeted to census tracts 2 , 6 , and 7 within the City. These three areas are to the west and south of downtown and generally bordered on the north by the Poudre River, on the west by Shields Street , on the south by Prospect Street and on the east by Stover Street. These areas do not include the downtown census tract. iii ) These areas have been selected for targeting because they are designated as "qualified census tracts" by the United States Department of the Treasury or "areas of chronic economic distress" by the State of Colorado as approved by the United States Department of Housing and Urban Development . iv ) The proceeds targeted to each of these areas will be available to finance the Loans for both new and existing housing within these target areas. v) The City will target the loans to these areas by reserving 20% of the proceeds as received to fund Loans in these areas for one year from the date at which the Loans first become available. vi) The City' s Development Policies and Goals relates to its Housing and Low-Income Housing Assistance Policies and Goals both as described herein by continuing the approach of those policies within the three targeted areas. Within the targeted areas , the qualification for loans will be the same as in other areas of the City. The reservation of a certain portion of the proceeds for the targeted areas will only affect the availability of loans for these areas and not the ability of particular individuals to qualify for the Loans . 4. LOW INCOME HOUSING ASSISTANCE POLICIES AND GOALS i ) All of the proceeds from the sale of the Bonds less program and administration expenses will be available for Loans to citizens without respect to their income. ii ) The City has determined that making the Loans available on a first-come , first-served basis will best serve the needs of the citizens and will best serve the needs of low- , moderate- , and medium-income families .