HomeMy WebLinkAbout2013-069-08/20/2013-AUTHORIZING THE ASSIGNMENT OF THE CITY'S PRIVATE ACTIVITY BOND ALLOCATION FOR 2013 TO THE FORT COLLI RESOLUTION 2013-069
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ASSIGNMENT OF THE CITY'S PRIVATE ACTIVITY BOND
ALLOCATION FOR 2013 TO THE FORT COLLINS HOUSING AUTHORITY
TO FINANCE MULTI-FAMILY HOUSING REVENUE BONDS FOR THE
VILLAGES ON PLUM AND VILLAGES AT CUNNINGHAM CORNER PROJECTS
WHEREAS, the City of Fort Collins is authorized and empowered under the laws of the
State of Colorado (the "State") to issue revenue bonds for purposes including the financing of
multi-family rental housing projects for 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 (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 various
State and local governmental units, and further providing for the assignment of such allocations
from such governmental units to any entity or person with the authority to issue bonds; and
WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act,
the City has received a direct allocation of the 2013 State Ceiling for the issuance of Private
Activity Bonds in the aggregate principal amount of$6,962,218 (the "2013 Allocation"); and
WHEREAS, if the City does not issue bonds or assign its annual allocation to another
entity by September 15 of each year, its allocation is relinquished to the statewide balance; and
WHEREAS, the City of Fort Collins Housing Authority (the "Authority") has requested
that the City assign all of the 2013 Allocation (the "Assigned Allocation") to the Authority
pursuant to Section 24-32-1706 of the Allocation Act for the purpose of assisting in the financing
of the rehabilitation of two rental housing projects located in the City of Fort Collins, Larimer
County, Colorado: (1) a 95-unit rental housing project known as The Villages on Plum, located at
2021 West Plum; and (2) a 284-unit rental housing project known as the Villages at Cunningham
Corner, which includes a management office located at 3436 South Shields Street, and three
rental housing projects: Hickory Hill Village Apartments, 3425 Windmill Drive; Rose Tree
Village Apartments, 1000 Horsetooth Road; and Willow Grove Village, 1025 Cunningham Drive
(collectively, the "Projects"); and
WHEREAS, the City has determined that the 2013 Allocation can be utilized most
efficiently by assigning it to the Authority to issue Private Activity Bonds for the purpose of
financing the Projects; and
WHEREAS, the City has determined that such assignment to the Authority will advance
the City's objective of increasing the availability of adequate affordable housing for low- and
moderate-income persons and families within the city; and
WHEREAS, the Council wishes to assign the 2013 Allocation to the Authority, which
assignment is to be evidenced by an Assignment of Allocation between the City and the
Authority in substantially the form attached and incorporated herein as Exhibit "A" (the
"Assignment of Allocation").
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fort Collins
as follows:
Section 1. That the assignment to the Authority of the City's 2013 Allocation of
S6,962,218, for-use by the Authority for the purposes set forth herein, is hereby approved.
Section 2. That the City Manager is hereby authorized to execute the Assignment of
Allocation in substantially the form attached hereto as Exhibit "A", along with such other terms
and conditions as the City Manager, in consultation with the City Attorney, determines are
necessary or appropriate to protect the interests of the City or effectuate the purposes of this
Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
20th day of August, A.D. 2013.
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ATTEST: SEAS.
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City Clerk
Exhibit A
ASSIGNMENT OF ALLOCATION
THIS ASSIGNMENT (the "Assignment"), dated August [_J, 2013, is between the City
of Fort Collins, Colorado, a municipal corporation (the "Assignor"), and the Fort Collins
Housing Authority, a body corporate and politic (the "Assignee").
RECITALS
A. The Assignee intends to finance the rehabilitation of a 95-unit rental housing
project known as The Villages on Plum located at 2021 West Plum, in the City of Fort Collins,
Larimer County, Colorado and the rehabilitation of a 284-unit rental housing project known as
the Villages at Cunningham Corner which includes a management office located at 3436 South
Shields Street, Fort Collins, Latimer County, Colorado and three rental housing projects whose
names and respective addresses are as follows: Hickory Hill Village Apartments, 3425 Windmill
Drive, Fort Collins, Larimer County, Colorado; Rose Tree Village Apartments, 1000 Horsetooth
Road, Fort Collins, Latimer County, Colorado; and Willow Grove Village, 1025 Cunningham
Drive, Fort Collins, Latimer County, Colorado (collectively, the "Project'). The Project will be
designed to qualify as a "project" within the meaning of Title 29, Article 4, Part 2, Colorado
Revised Statutes, as amended (the "Act").
B. The Assignee intends to provide for the issuance of its Multifamily Housing
Revenue Bonds (the "Proposed Bonds'), pursuant to the provisions of the Act for the purpose of
financing the Project.
C. The Assignee has requested that the Assignor assign to the Assignee all
$6,962,218 of the Assignor's 2013 allocation (the "Allocation") under the bond ceiling for the
State of Colorado and its issuing authorities (the State Ceiling") computed under Section 146(d)
of the Internal Revenue Code of 1986 (the "Code") as provided for the Assignor as a "designated
local issuing authority" under part 17 of article 32 of title 24, Colorado Revised Statutes (the
"Allocation Act"), for use in connection with the financing of the Project.
D. Subject to the terms and conditions set forth herein, the Assignor desires to assign
to the Assignee, and the Assignee desires to accept, $6,962,218 of the Assignor's 2013 allocation
from the State Ceiling.
ASSIGNMENT
In exchange for the agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
1. The Assignor hereby assigns and transfers to the Assignee the Assignor's 2013
Allocation from the State Ceiling for private activity bonds in an amount equal to $6,962,218.
The Assignor and the Assignee understand that such assigned allocation shall automatically be
DM W FST 910080442 Q
relinquished to the "Statewide Balance" as defined under the Allocation Act unless (a) the
Proposed Bonds are issued by the Assignee on or before September 15, 2013, or (b) Section
24-32-1706(3)(c), C.R.S., pertaining to the carryforward of the assigned allocation, applies.
2. The Assignor represents that it has received no monetary consideration for the
assignment set forth above.
3. The Assignee hereby:
(a) accepts the assignment of $6,962,218 of the Assignor's Allocation from
the State Ceiling described above;
(b) agrees to use its best efforts to issue and use the Proposed Bonds for the
purpose of financing the Project; and
(b) agrees to abide by each of the terms and conditions of this Assignment in
connection with the use of such Allocation.
4. The Assignor hereby consents to the election by the Assignee, if the Assignee in
its discretion so decides, to treat all or any portion of the assignment set forth herein as an
allocation for any project with a carryforward purpose.
5. This Assignment shall not constitute the debt or indebtedness or financial
obligation of the Assignor within the meaning of the constitution or statutes of the State of
Colorado, nor give rise to a pecuniary liability or charge against the general credit or taxing
power of the Assignor.
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DMW FST N 10080442 v3 2
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this instrument to
be executed to be effective as of the date and year first written above.
CITY OF FORT COLLINS, COLORA DO,
as Assignor
[SEAL] Darin A. Atteberry, City Manager
ATTEST: APPROVED AS TO FORM:
City Clerk Assistant City Attorney
FORT COLLINS HOUSING
AUTHORITY, as Assignee
By:
[SEAL] Its:
ATTEST:
By:
Its:
[Signature Page to Assignment of Allocation]
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