HomeMy WebLinkAbout2010-076-12/21/2010-AUTHORIZING THE CITY MANAGER TO SUBMIT TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AN AP RESOLUTION 2010-076
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO SUBMIT TO THE
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
AN APPLICATION FOR THE SECTION 108 LOAN GUARANTEE PROGRAM
WHEREAS, the Community Development Block Grant (CDBG) is an ongoing grant
administration program funded by the Department of Housing and Urban Development(HUD);and
WHEREAS, the City of Fort Collins is an entitlement public entity under HUD regulations
and has received CDBG Program funds since 1975; and
WHEREAS,Section 108 is the loan guarantee provision of the CDBG program and provides
communities with a source of financing for economic development, housing rehabilitation, public
facilities, and large-scale physical development projects (the "Loan Guarantee Program"); and
WHEREAS, the City of Fort Collins has prepared an application to HUD requesting
$5,000,000 from the Loan Guarantee Program (the "Application") to create an economic
development loan pool (the "Loan Pool"); and
WHEREAS, a copy of the Application, dated December 21, 2010, is on file in the Office of
the City Clerk and available for review; and
WHEREAS,if the Application is accepted by HUD and the City makes loans from the Loan
Pool, the City would be obligated to repay the loans to HUD; and
WHEREAS, the HUD regulations require the City to pledge its current and future CDBG
entitlement grants and provide additional security as collateral for any loans the City makes from the
Loan Pool; and
WHEREAS,the City intends to require security from any borrowers to whom the City loans
funds from the Loan Pool; and
WHEREAS, on August 5, 2009, the City held a public hearing to solicit comments on the
Application,and the Application was made available on the City's website,but the City received no
comments; and
WHEREAS, On April 19, 2010, staff presented the Application to the City Council Finance
Committee,which directed staff to submit the Application for the City Council's consideration;and
WHEREAS, the Community Development Block Grant Commission at its regular meeting
on November 4, 2010, and the Affordable Housing Board at its regular meeting on December 2,
2010, both recommended that the City Council adopt this Resolution; and
WHEREAS, The City has included the use of Section 108 Loan Guarantee financing as an
economic development tool in its Annual Action Plan and Consolidated Plan for HUD; and
WHEREAS,the federal regulations governing the Loan Guarantee Program require the City
to submit with its Application to HUD an official resolution of the City's governing body authorizing
the City's official representative to submit the Application and any amendments to the Application,
and to execute any documents necessary to implement the Application and the Loan Guarantee
Program.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows;
Section 1. That the City Manager is hereby authorized to submit the Application to HUD
in substantially the form that is on file in the Office of the City Clerk, including all understandings
and assurances contained in the Application, along with such changes or amendments to the
Application as the City Manager,in consultation with the City Attorney,determines to be necessary
or appropriate to protect the interests of the City or effectuate the purposes of this Resolution.
Section 2. That the City Manager is hereby authorized and directed to act in connection
with the Application, including providing such additional information to HUD as may be required,
and executing such documents as may be necessary in order to implement the Application and to
issue debt obligations pursuant thereto.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 21 st
day of December A.D. 2010.
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ATTEST:
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City Clerk