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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 - 2 - 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 - 3 - 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