HomeMy WebLinkAbout2018-052-05/15/2018-AUTHORIZING THE EXECUTION OF A FUNDING AGREEMENT BETWEEN THE CITY AND THE HOUSING AUTHORITY FOR A LO 0
RESOLUTION 2018-052
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION OF A FUNDING AGREEMENT
BETWEEN THE CITY AND THE HOUSING AUTHORITY FOR A LOAN OF FUNDS
FROM THE AFFORDABLE HOUSING CAPITAL FUND FOR MASON PLACE
WHEREAS, the Housing Authority of the City of Fort Collins, doing business as Housing
Catalyst ("HC") is proposing to construct Mason Place, a permanent supportive housing
development in Fort Collins serving low-income homeless individuals with a disability, including
veterans (the "Project"); and
WHEREAS, HC applied for $2,000,000 in funding for the Project from the City's 2018
competitive process for the allocation of City financial resources to affordable housing programs
and projects and community development activities; and
WHEREAS,the City's Community Development Block Grant Commission recommended
funding $1,123,388 of HC's request; and
WHEREAS, HC is planning to apply for tax credits from the Colorado Housing and
Finance Authority, and must have its application submitted by June'1, 2018; and
WHEREAS, to compete for tax credits,. HC's application must show that all its other
funding is secured; and
WHEREAS, to make up the funding shortfall, HC is requesting $876,662 in funds from
the City's Affordable Housing Capital Fund (AHCF) in the Community Capital Improvement
Program (CCIP); and
WHEREAS, the-voter-approved ballot language for the CCIP says the AHCF is to be used
to fund the capital costs of development or rehabilitation of one or more public or private housing
projects designated specifically for low-income individuals or families; and
WHEREAS, if the City Council approves the request, the City would provide the funding ,
to HC in the same way it provides most other funding for affordable housing capital projects: as a
due-on-sale loan pursuant to a Recipient Contract between the City and HC (the "Contract"); and
WHEREAS, under the terms of the Contract, the City would provide $484,000 in AHCF
funds for the Project in 2018,an additional$300,000 in AHCF funds in 2019 and$92,662 in AHCF
funds in 2020, subject to receipt of anticipated revenue by the City and subject to appropriation of
such funds by the City Council; and
WHEREAS, the Contract would also allow HC to pass the funding through to a new
partnership entity formed for the Project, of which HC is the general partner or a managing
member; and
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WHEREAS, Article II, Section 16 of the City Charter of Fort Collins empowers the City
Council, by ordinance or resolution, to enter into contracts with governmental bodies to furnish
governmental services and make charges for such services, or enter into cooperative or joint
activities with other governmental bodies; and
WHEREAS,under Section 1-22 of the City Code, intergovernmental agreements and other
cooperative arrangements between the City and other governmental entities are to be submitted to
the City Council for review, unless they fit within one of the exceptions that permit execution by
the City Manager; and
WHEREAS, Section 29-1-203 of the Colorado Revised Statutes provides that governments
may cooperate or contract with one another to provide certain services or facilities when such
cooperation or contracts are authorized by each party thereto with the.approval of its legislative
body or other authority having the power to so approve; and
WHEREAS, the City Council finds that the Project meets the requirements for funding
from the AHCF, and that it is in the best interests of the City to provide the requested funding to
HC for the project.
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 City Manager is hereby authorized to execute a Recipient Contract
with Housing Catalyst on terms consistent with this Resolution, along with such other terms and
conditions 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 set forth herein.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1 Sth
day of May, A.D. 2018.
Mayor ro Tern
ATTEST:
OF FORT.,0
City Cle
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