HomeMy WebLinkAbout1991-107-08/06/1991-COLORADO HOUSING FINANCE AUTHORITY LOW INCOME MORTGAGE LOANS REVENUE BONDS RESOLUTION 91- 107
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING ASSIGNMENT TO THE
COLORADO HOUSING AND FINANCE AUTHORITY OF
THE CITY OF FORT COLLINS' PRIVATE
ACTIVITY BOND CEILING ALLOCATION
WHEREAS, the City of Fort Collins (the "City") 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 finance such single-family mortgages 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 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(1) of the
Allocation Act, the City is authorized to issue a specified principal amount of
Private Activity Bonds during the period from January 1 to September 14, 1991
(the "1991 Initial Allocation") ; and
WHEREAS, the City 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 1991 Initial
Allocation; and
WHEREAS, the City has determined that the 1991 Initial 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 single
family mortgages for low- and moderate-income persons and families; and
WHEREAS, the Council of the City of Fort Collins has determined to assign
its 1991 Initial Allocation, or a portion thereof, as set forth below to the
Authority, which assignment is to be evidenced by an Assignment of Allocation
between the City and the Authority attached hereto as Exhibit A (the "Assignment
of Allocation") .
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
1 . The assignment to the Colorado Housing and Finance Authority of Two
Million Forty-eight Thousand Dollars ($2,048,000) of Fort Collins' 1991 Initial
Allocation under Section 24-32-1706(1) , C.R.S. , be and hereby is approved.
2. The form and substance of the Assignment of Allocation (Exhibit A) be
and hereby are approved, provided, however, that the City Manager and City
Attorney be and hereby are authorized to make such technical variations,
additions or deletions in or to such Assignment of Allocation as they shall deem
necessary or appropriate and not inconsistent with the approval thereof by this
resolution.
3. The City Manager and City Attorney of Fort Collins be and hereby are
authorized to execute and deliver the Assignment of Allocation on behalf of the
City 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 Council of the City of Fort
Collins held this 6th day of August, A.D. 1991 .
M r �
-ATTEST-
City Clerk
EXHIBIT "A"
ASSIGNMENT OF ALLOCATIOi,
This Assignment of Allocation(the "Assignment"), dated this day of
1991, is between the (name of city, county or town) (the "Assignee') 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 lowand 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 single-family mortgages 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
Authority and other governmental units in the State, and further providing for the assignment of
allocations from such other governmental units to the Authority; and
WHEREAS, pursuant to an allocation under Section 24-32-1706(1) of the Allocation Act,
the Assignor is authorized to issue a specified principal amount of Private Activity Bonds during
the period from January I to September 14, 1991 (the "1991 Initial Allocation"); and
WHEREAS, the Assignor has determined that, in order to increase the availability of
adequate affordable housing by lowand moderate-income persons and families within the (name
of city, county or town) and elsewhere in the State, it is necessary or desirable to provide for the
utilization of all or a portion of the 1991 Initial Allocation; and
WHEREAS, the Assignor has determined that the 1991 Initial Allocation of Private
Activity Bonds, 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 single family mortgages
for lowand moderate-income persons and families ("Mortgage Bonds"), and the Assignee has
expressed its willingness to attempt to issue Mortgage Bonds with respect to the 1991 Initial
Allocation; and
WHEREAS, the (designation of governing body) of the Assignor has determined to
assign to the Assignee its 1991 Initial Allocation, or a portion thereof, as set forth below to the
Assignee, 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 $ of its 1991 Initial
Allocation, subject to the terms and conditions contained herein and in Resolution 91-70
("Resolution 91-70") adopted by the Board of Directors of the Assignee on June 27, 1991, which
is attached hereto as Exhibit A and incorporated herein by reference.
The Assignor hereby consents to the election by the Assignee, if the Assignee in
its discretion so decides, to: (i) treat all or any portion of the assignment set forth herein as an
allocation for a project with a carryforward purpose; or (ii) make a mortgage credit certificate
election with respect to all or any portion of the assignment set forth herein.
The Assignor agrees that it will take such further action and adopt such further
proceedings as may be required to implement the terms of this Assignment.
The Assignor represents that it has received no monetary consideration for the
assignment set forth above.
2. The Assignee hereby accepts the assignment to it by the Assignor of
$ of its 1991 Initial Allocation, subject to the terms and conditions
contained herein and in Resolution 91-70.
The Assignee agrees that it will take such further action and adopt such further
proceedings as may be required to implement the terms of this Assignment.
3. This Assignment is effective upon execution and is irrevocable.
Except as provided in Resolution 91-70, nothing contained in this Assignment
shall obligate the Authority 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 Mortgage Bonds
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to finance mortgage loans to provide single-family housing facilities located in the (name of city,
county or town).
IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment .n the
date first written above.
(Name of City County or Town)
By:
[SEA,] Title:
Attest:
By:
Title:
COLORADO HOUSING AND FINANCE
AUTHORITY
By:
[SEAL] Executive Director
Attest:
By:
Assistant Secretary
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EXHIBIT A
A RESOLUTION
AUTHORIZING ACCEPTANCE OF TRANSFERS OF PRIVATE ACTIVITY BOND
ALLOCATIONS FROM CERTAIN LOCAL ISSUERS AND APPROVING CERTAIN
CONDITIONS IN CONNECTION THEREWITH
WHEREAS, the Colorado Housing and Finance Authority (the "Authority") is authorized
by the Colorado Housing and Finance Authority Act, Part 7 of Article 4 of Title 29, Colorado
Revised Statutes (the "Act"), to issue its revenue bonds to provide funds to alleviate the shortage
of decent, safe and sanitary housing which is within the financial means of low- and moderate-
income persons and families within the State of Colorado (the "Program"); and
WHEREAS, pursuant to the Colorado Private Activity Bond Ceiling Allocation Act, Part
17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act"), the following
local issuers, and possibly certain other local issuers (collectiveiy,the "Local Issuers"),may
transfer all or a portion of their respective private activity bond allocations to the Authority to be
used for the issuance of the Authority's Single Family Program Bonds (Federally Insured or
Guaranteed Mortgage Loans), 1991 Issue C (the "Bonds"), subject to certain conditions set forth
below: the County of Boulder, the City and County of Denver, and the cities of Arvada, Aurora,
Boulder, Lakewood,Thornton and Westminster; and
WHEREAS, the Authority will use the proceeds of the Bonds to finance the Program;
and
WHEREAS, the Board of Directors of the Authority (the "Board") has reviewed the
report of the Executive Director with respect to the proposed transfers of private activity bond
allocations from the Local Issuers to the Authority, and on the basis of such report and such
other information as the Board deems relevant and material, has determined to accept such
transfers and to approve the conditions pursuant to which such transfers will be made by the
Local Issuers.
NOW,THEREFORE,BE IT RESOLVED by the Board of Directors of the Authority as
follows:
1. The Executive Director is hereby authorized and directed to file with the
Department of Local Affairs,under and pursuant to Section 24-32-1706 of the
Allocation Act, any and all documents necessary to effect the transfers of the
private activity bond allocations from the Local Issuers to the Authority for the
Program.
2. Such transfers are subject to the following conditions;
(a) The following income limits are hereby approved for the Program:
COLORADO HOUSING AND FINANCE AUTHORITY Page 2.
RESOLUTION 91-
(1) City of Boulder
Family Size First 30 Days Thereafter
1-2 $34,400 $43,000
3 or More 39,200 49,000
(2) Denver PMSA
Family Size First 30 DM Thereafter
1 $26,000 $32,500
2 32,000 40,000
3 or More 36,000 45,000
(3) All Other Areas
Family Size First 30 DW Thereafter
1 $22,000 $27,500
2 28,000 35,000
3 or More 32,200 40,250
(b) The following purchase price limits are hereby approved for the Program:
Area Purchase Price Limit
(1) City of Boulder $125,000
(2) Colorado Springs MSA 91,500
(3) Denver PMSA 106,000
(4) Fort Collins/Loveland MSA 85,600
(5) All Other Areas 91,500
3. For the first six (6) months of the Program, an amount equal to the private
activity bond allocation transferred by a Local Issuer is hereby set-aside for use
only in the jurisdiction of such Local Issuer.
4. The Executive Director is hereby authorized to determine set-asides for certain
designated areas located within the jurisdiction of a Local Issuer,provided,
COLORADO HOUSING AND FINANCE AUTHORITY Page 3.
RESOLUTION 91-
however, that the term of any such set-aside may not exceed one (1) year and the
amount of any such set-aside may not exceed the amount of the private activity
bond allocation transferred by such Local Issuer, including any amount set-aside
for targeted areas.
5. Each Local Issuer will be reimbursed for Bond issuance costs in an amount equal
to five (5) basis points of the private activity bond allocation transferred by the
Local Issuer.
6. The Authority will minimize the principal amount of taxable Bonds so that the
spread between the Programs relending rate and mortgage loan market interest
rates is not narrowed to an amount that would discourage origination of mortgage
loans. The Authority hereby acknowledges that the Local Issuers would prefer
that no taxable Bonds be issued if such a structure would result in a mortgage
loan interest rate below eight percent (8%).
7. The Authority will compile statistical information for the Program which will be
distributed to the Local Issuers. The content of such information will be limited
to information reasonably requested by the Local Issuers.
8. By August 28, 1991, the Authority will make a joint application with the Local
Issuers (and possibly the cities of Englewood and Littleton) to the Department of
Local Affairs for an allocation from the statewide balance to be used for the
issuance of single fancily revenue bonds by the Authority. Any allocation so
received will be allocated among the Authority and the Local Issuers (and
possibly the cities of Englewood and Littleton) pro rats based upon their
respective transferred allocations (and, in the case of the cities of Englewood and
Littleton, based upon their respective populations).
9. The Executive Director is hereby authorized and directed to take all such
additional steps as may be necessary or appropriate in connection with the
transfers of private activity bond allocations from the Local Issuers to the
Authority subject to the conditions stated herein and to such other conditions as
are determined by the Executive Director to be necessary and appropriate in
connection with the transfers of private activity bond allocations from the Local
Issuers to the Authority by such date or dates as will assure the full utilization by
the Authority of the transferred allocations.
COLORADO HOUSING AND FINANCE AUTHORITY Page 4.
RESOLUTION 91-70
INTRODUCED, READ AND ADOPTED by a vote of for and against at a regular
meeting of the Board of Directors of the Colorado Housing and Finance Authority on June 27,
1991 at 1:00 p.m. at its offices at 1981 Blake Street, Denver, Colorado 80202. Mr. Bowler
abstained from voting.
James A. Roberts
Assistant Secretary