HomeMy WebLinkAbout2011 Resolution No. 077RESOLUTIONNO. fl'l
SERIES OF 2011 --
A RESOLUTION AUTHORIZING THE REVERSION OF THE CITY OF ENGLEWOOD,
COLOR.ADO PIUV ATE ACTIVITY BOND ALLOCATION TO THE COLORADO
DEi' ARTMEN'f OF LOCAL AFFAIRS .
WHEREAS, t•·~ Slate of Co lorado allocales Private Aclivily Bond Cap to jurisdictions eligible
:o receive more 1.,an $1 million do.Jars of 1'1iva1c Activity Bond (PAB); and
WHEREAS, !he Cily of Englewood wns allocated $1,6 I 0,01 3 for the year 2011; and
WHEREAS, the City of Englewood first became an enutlemenl community for au allocation
in 2002, prior to that Englewood was eligible 10 apply to the Slate of Colorndo for PAB; and
WHEKEAS. from 2002 through 2010, Englewood 2ssigned its :'AB allocat,on to the Colora do
:-lousing Finance Authority (CHAFA) for home ownership prob'Tams; and
WHEREAS, prior to 2002 Engl:wood appl,d lo th e State to us;igr. its share of PAB 10 the
Met.Jo Mayors Caucus morlgagc bond program .i1d1 i!i nis1.-:rcJ :'v the City of Denver, which als o
provided home loa,:s: and
WHEREAS, this year, CHAF A and U,e Metro Mayor's Caucus md,catcd that the market
conditions are not fovoral,lc for tax exempt bond financing and they arc, therefore, not interested
,n receiving PAB Cap assignments from munic,palities; and
WHEREAS, a PAB eligible µrojccl has nol been propo sed in Eng lewood and assig1u11ent to a
local project is not practica l for this year; an d
WHEREAS, !he passage of this Resolubon allows Englewood's cnure 2011 PAfJ allocation to
revert to the Colorudo Department of Local Affairs (DOLA) for aosignment to eligible State
agencies; and
WHEREAS, if an eligiulc project COUICS forward in the City of Euglewoou the City cau app ly
directly to the DOLA for PAB resource.,:
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLOR.ADO, THAT:
fu,clion I. The City Council of the Ci ty of Englewood, Colorado hereby authorizes
Eng;ewood 's 2011 Private Activity Bond Cap Allocation of $1,610,013 to reve!l lO the Colorado
!)epanmcnl of Local Affairs (DOLA) for assignment lo eligibl: State agencies.
fu.!ai.2.u..2 . This Resolution shall be in full fo rce and cffccl upon ils passi ,gc a11d approval or as
othcowise required by the E.~glewood Home Rule Charter.
ADOPTED AND APPROVED this 6"' day of September, 2011.
~-\{. 1 1 ) c~~.,.,,6 / (~J .,amcs K. Woodwnrd, Mnyor _.,,)
I, I ,lllcrishia A. Ellis, City Clerk fo: .J4rfity of En~lewood, Colo
uhovc is u true copy ofRcsolution No . 'J:f-• Series of 2011.
COUNCIL COMMUNICATION
DATE : AGENDA ITEM SL.:BJECT: 2011 Private Activity Bond
Cap Allocation
September 6, 2011 9 CI
INlflAIW 6Y STAFF SOURCE :
Community De ve lopment Departmen t Darren Hollingsworth, Economic De ve lopm~'1t
Coordinator
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION :
• C~uncil discussed the annua l Pri vate Activity Bond (PAB) assignment at the August I 5,
201 1 Study Session
• Co uncil considers assigning lh e PAB allocation annually.
RECOMMENDED ACTION:
The attached Resolulion aulho rize~ Englewood 's 2011 Pr ivale Ac tivi ty Bond (PAB) Cap allocation
to revert back to the Colorado Departrr.ent of Local Affairs .
BACKGROUND. ANALYSIS, AND ALTERNATIVES IDENTIFIED:
The State of Colorado allocates Private Activity Bond Cap to jurisdictions eligible 10 receive more
than $1 million dollars of PAB . Englewood was allocated $ I ,6 10,01 J for 201 I. Englewood first
became an entitlement community for an allocation in 2002. Prior to that, En glewood was eligi ble
to appl y to the State of Colorado fo r PAS .
From 2002 through 1010, Engle wood assign ed its PAB all ocat ion to the Colorado Housing Financ e
A~thority (CHAFA) for home ownership programs . Prior to 2002 Englewood applied to the State to
assign its share o i PAB to the Metro Mayors Caucus morlgage bond program administered by the
City of Denver, which also provided home loans.
Thi s yea r, CHAFA and the Metro Ma yor Caucu s indicated that tlie market c onditions are not
favorable ior tax exemp t bond finan ci ng and th e\' are , th e refo r~, not interested in receivi ng PAS
Cap assignments from mun ic ipalities . T.,e City :y pic ally does not assign the PAB until mid-year,
close to the State's September 15 deadl ine so tha t the PAS may be available fer an el igible lo cal
project. This year, a PAB eligible project has not been proposed in Englewo od and as sig nment to a
local proie c t 1s not practical.
FINANCIAL IMPACT:
The Reso lution allows Englewood 's entire 2011 $1,610,013 PAS allocation to re vert back to the
Colo,ado Depa rlrne11t oi Lucal AH•i1> (DOLA) Co, assignment lo eligible Slate agencies . If an el igi -
ble project comes fo rwa rd in Englewood th e City can alwa ys apply directly 10 the DOLA for PAS
resou rces.
LIST OF ATTACHMENTS:
Resolution