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HomeMy WebLinkAbout1985-131-08/20/1985-PROPOSING A POLICY REPORT UNDER SECTION 103A AND SETTING A DATE FOR PUBLIC COMMENT ON THE PROPOSED R RESOLUTION 85- 131 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO PROPOSING A POLICY REPORT UNDER SECTION 103A AND SETTING A DATE FOR PUBLIC COMMENT ON THE PROPOSED REPORT IN CONJUNCTION WITH THE ISSUANCE OF SCORE LOAN REVENUE BONDS , SERIES 1985A WHEREAS , on June 18 , 1985 , the City of Fort Collins , Colorado ( the "City" ) , adopted Bond 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 the interest on the Bonds to be exempt from taxation , certain requirements as set forth in Section 103A of the Internal Revenue Code of 1954, as amended ( the "Code" ) , must be met ; and WHEREAS , the Code requires that the City propose and issue a Policy Report Under Section 103A in a form substantially similar to that attached to this Resolution and that the City conduct a public hearing on such report ; and WHEREAS , in order to comply with the notice requirements set forth in the Code a Notice of Public Hearing has been published indicating that a public hearing will be conducted on September 3 , ,1985, or as soon thereafter as the Council may direct . NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS: Section 1 . That the Policy Report Under Section 103A as attached is hereby proposed to be issued by the City of Fort Collins . Section 2. That the City Council of the City of Fort Collins shall conduct a public hearing on such Policy Report at its regular meeting on September 3 , 1985 , at which time interested citizens are invited to attend and will have an opportunity to be heard and to express their views both orally and in writing concerning the matters contained in the Policy Report, after which the Council shall consider adopting the Policy Report . Section 3. That copies of the Policy Report as proposed shall be available before the public hearing to interested citizens at the office of the City Clerk and that copies of the Policy Report as finally adopted shall be available after the public hearing to interested citizens at the office of the City Clerk. Section 4 . This Resolution shall take effect immediately upon its introduction and passage. Passed and adopted at a regular meeting of the City Council held this 2Cth day of August, A.D. , 1985. Mayor ATTEST: % City Clerk cmb6 2 - CITY OF FORT COLLINS , COLORADO TAXPAYER IDENTIFICATION NO. 84-6000587 POLICY REPORT UNDER SECTION 103A 1 . 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 . iii ) The City' s Low-Income Housing Assistance Policies and Goals are consistent with its Housing and Development Policies and Goals both as described herein by uniformly serving the broad-based needs of the community as demand for the Loans dictates . 5 . COMPLIANCE WITH PRIOR POLICY STATEMENTS The City has not issued qualified mortgage bonds in the preceding year and so there is no prior policy statement with which to comply. 6. COMPLIANCE WITH THE INTENT OF CONGRESS As mentioned, the City did not issue qualified mortgage bonds in the preceding year and so a statement with respect to compliance with Congress ' s intent that local governments use their authority to issue such bonds to assist lower-income families to the greatest extent feasible does not apply. 7. PUBLIC HEARING At its meeting on August 20 , 1985 , the City Council of the City of Fort Collins proposed the policies and goals contained in this report and directed that a public hearing be held at its regular Council Meeting on September 3 , 1985. Notice of this public hearing with respect to these policies was published in the Fort Collins Coloradoan, a newspaper of general circulation within the City of Fort Collins , on August 18 , 1985 . A copy of such publication is attached. At the public hearing, conducted on September 3 , 1985 , no comments were received on the proposed report and so the City Council approved this report as proposed . As the attached publication indicates , copies of the report as finally approved were available to the public at the office of the City Clerk. CITY OF FORT COLLINS Attest: By: Mayor City Clerk SCO23