HomeMy WebLinkAbout2016-072-09/06/2016-AUTHORIZING THE ASSIGNMENT OF THE CITY'S PRIVATE ACTIVITY BOND ALLOCATION FOR 2016 TO THE COLORADO H RESOLUTION 2016-072
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ASSIGNMENT OF THE CITY'S PRIVATE ACTIVITY
BOND ALLOCATION FOR 2016 TO THE COLORADO HOUSING
AND FINANCE AUTHORITY TO FINANCE THE DEVELOPMENT
AND REHABILITATION OF AFFORDABLE HOUSING UNITS
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, including the Colorado Housing and Finance Authority (the
"Authority"), 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 2016 State Ceiling for the issuance of Private
Activity Bonds in the aggregate principal amount of$7,728,500 (the "2016 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 Authority has requested that the City assign all of the 2016 Allocation
(the "Assigned Allocation") to the Authority'pursuant to Section 24-32-1706 of the Allocation
Act; and
WHEREAS, the Authority intends to use the Assigned Allocation to issue Private
Activity Bonds for the purpose of financing one or more multi-family rental housing projects for
low-and moderate-income persons and families ("Revenue Bonds")•including the following
identified projects: (1) up to $5,000,000 for the rehabilitation of DMA .Plaza Apartments, a
senior housing project; and (2) up to $2,728,500 for the construction of Oakridge Crossing, a
multifamily senior project, provided such projects otherwise qualify and are approved for
financing or the allocation of tax credits as may be applicable (collectively, the "Projects"); and
WHEREAS, the Authority has expressed its willingness to attempt to issue Revenue
Bonds in an amount equal to or greater than the 2016 Allocation assigned herein; and
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WHEREAS, the City has determined that the 2016 Allocation can be utilized most
efficiently by assigning it to the Authority to issue Revenue Bonds for the purpose of financing
the Projects, and that such assignment 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 2016 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 COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above. ;
Section 2.. That the assignment to the Authority of the City's 2016 Allocation of
$7,728,500, for use by the Authority for the purposes set forth herein, is hereby approved.
Section 3. That the Mayor 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 6th
day of September, A.D. 2016
�FORT CO
•co,o Mayor
ATTEST:
City Clerk
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EXHIBIT A
Draft Assignment 8-22-2016
ASSIGNMENT OF ALLOCATION
(Multi-family Housing Facility Bonds)
This Assignment of Allocation (the "Assignment"), dated this day of
2016, is between the City of Fort Collins, Colorado (the "Assignor" or the "Jurisdiction") and the
Colorado Housing and Finance Authority (the "Assignee").
W ITN ESSETH:
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 financing qualified
residential rental 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 to finance
such projects 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 Assignee and
other governmental units in the State, and further providing for the assignment of allocations
from such other governmental units to the Assignee; and
WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the
Assignor has an allocation of the 2016 State Ceiling for the issuance of a specified principal
amount of Private Activity Bonds prior to September 15, 2016, (the "2016 Allocation"); and
WHEREAS, the Assignor has determined that, in order to increase the availability of adequate
affordable rental housing for low- and moderate-income persons and families within the
Jurisdiction and elsewhere in the State, it is necessary or desirable to provide for the utilization
of all or a portion of the 2016 Allocation; and
WHEREAS, the Assignor has determined that the 2016 Allocation, or a portion thereof, can be
utilized most efficiently by assigning it to the Assignee to support the issuance of Private
Activity Bonds for the purpose of financing one or more multifamily rental housing projects for
low- and moderate- income persons and families ("Revenue Bonds"), and the Assignee has
expressed its willingness to attempt to issue Revenue Bonds in an amount equal to or greater
than the 2016 Allocation assigned herein; and
WHEREAS, the City Council of the Assignor has determined to assign to the Assignee all or a
portion of its 2016 Allocation, 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 $7,728,500 of its 2016 Allocation (the
"Assigned Allocation"), subject to the terms and conditions contained herein. The Assignor
represents that it has received no monetary consideration for said assignment.
2. The Assignee hereby accepts the assignment to it by the Assignor of the Assigned
Allocation, subject to the terms and conditions contained herein. The Assignee agrees to
use its best efforts to issue and sell Revenue Bonds in an aggregate principal amount equal to
or greater than the amount of the Assigned Allocation, in one or more series, and to make
proceeds of such Revenue Bonds available from time to time for a period of two (2)
years from the date of this Assignment to finance multifamily rental housing projects
located in the Jurisdiction, including the following identified projects: (i) up to $5,000,000 for
the rehabilitation of DMA Plaza Apartments, a senior housing project; and (ii) up to $2,728,500
for the construction of Oakridge Crossing, a multifamily senior project; provided such projects
otherwise qualify and are approved for financing and/or the allocation of tax credits as may be
applicable.
3. 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 Assigned Allocation as an allocation for a
project with a carryforward purpose, in lieu of issuing Revenue Bonds.
4. The Assignor and Assignee each agree that it will take such further action and adopt
such further proceedings as may be required to implement the terms of this Assignment.
5. Nothing contained in this Assignment shall obligate the Assignee to finance any
particular multi-family rental housing project located in the Jurisdiction, subject to paragraph 2
above.
6. 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.
7. This Assignment is effective upon execution and is irrevocable.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment on the date first
written above.
City of Fort Collins, Colorado
[S E A L] a municipal corporation
By:
Name: Wade 0. Troxell, Mayor
ATTEST:
By:
Name:
Title:
APPROVED AS TO FORM:
Assistant City Attorney
COLORADO HOUSING AND FINANCE
AUTHORITY
[SEAL]
By:
ATTEST: Name:
Title:
By:
Assistant Secretary
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