HomeMy WebLinkAbout2020-052-06/02/2020-AUTHORIZING THE ASSIGNMENT OF THE CITY'S PRIVATE ACTIVITY BOND ALLOCATION FOR 2020 TO HOUSING CATALY[Draft – June 2, 2020]
ASSIGNMENT OF ALLOCATION
THIS ASSIGNMENT (the “Assignment”), dated ________ , 2020 is between the
City of Fort Collins, Colorado, a municipal corporation (the “Assignor”), and Housing Catalyst,
a body corporate and politic (the “Assignee”).
RECITALS
A. The Assignee intends to finance (i) the construction of 44 new units of rental
housing and rehabilitation of 40 additional units at Village on Swallow/CARE Swallow, located
at 1303 and 1403 West Swallow Road, and (ii) the construction of 78 new units of rental housing
at 140 Oak Street, all for households with incomes ranging from 0% to 60% of area median
income (the “Projects”.) The Projects will each 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 Projects.
C. The Assignee has requested that the Assignor assign to the Assignee $3,885,119
of the Assignor’s 2020 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 Projects.
D. Subject to the terms and conditions set forth herein, the Assignor desires to assign
to the Assignee, and the Assignee desires to accept, $3,885,119 of the Assignor’s 2020 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 $3,885,119 of the
Assignor’s 2020 Allocation from the State Ceiling for private activity bonds. The Assignor and
the Assignee understand that such assigned allocation shall automatically be 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, 2020, or (b) Section 24-32-1706(3)(c),
C.R.S., applies.
2. The Assignor represents that it has received no monetary consideration for the
assignment set forth above.
EXHIBIT A
2
3. The Assignee hereby:
(a) accepts the assignment of $3,885,119 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 Projects; 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 a project with a carryforward purpose.
5. This Assignment shall not constitute a 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.
[The remainder of this page is intentionally left blank]
[Draft – June 2, 2020]
[Signature Page to Assignment of Allocation]
S-1
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, COLORADO,
as Assignor
____________________________________
Wade O. Troxell, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________________ ____________________________________
City Clerk Assistant City Attorney
____________________________ _______________________________
(print name) (print name)
HOUSING CATALYST, as Assignee
By: ________________________________
Its: ________________________________
ATTEST:
By: ________________________________
Its: ________________________________
[Draft – June 2, 2020]
ASSIGNMENT OF ALLOCATION
THIS ASSIGNMENT (the “Assignment”), dated ________ , 2020 is between the
City of Fort Collins, Colorado, a municipal corporation (the “Assignor”), and Mercy Housing
Mountain Plains, a Colorado nonprofit corporation(the “Assignee”).
RECITALS
A. The Assignee intends to finance the construction of 84 new units of rental housing
at Northfield, for households with incomes ranging from 30% to 70% of area median income
(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 Projects.
C. The Assignee has requested that the Assignor assign to the Assignee $5,000,000
of the Assignor’s 2020 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 Projects.
D. Subject to the terms and conditions set forth herein, the Assignor desires to assign
to the Assignee, and the Assignee desires to accept, $5,000,000 of the Assignor’s 2020 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 $5,000,000 of the
Assignor’s 2020 Allocation from the State Ceiling for private activity bonds. The Assignor and
the Assignee understand that such assigned allocation shall automatically be 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, 2020, or (b) Section 24-32-1706(3)(c),
C.R.S., applies.
2. The Assignor represents that it has received no monetary consideration for the
assignment set forth above.
3. The Assignee hereby:
EXHIBIT B
2
(a) accepts the assignment of $5,000,000 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 a project with a carryforward purpose.
5. This Assignment shall not constitute a 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.
[The remainder of this page is intentionally left blank]
[Draft – June 2, 2020]
[Signature Page to Assignment of Allocation]
S-1
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, COLORADO,
as Assignor
____________________________________
Wade O. Troxell, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________________ ____________________________________
City Clerk Assistant City Attorney
____________________________ _______________________________
(print name) (print name)
MERCY HOUSING MOUNTAIN
PLAINS, as Assignee
By: ________________________________
Its: ________________________________
ATTEST:
By: ________________________________
Its: ________________________________