HomeMy WebLinkAbout2009 Resolution No. 067•
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RESOLUT ION NO. li
SERJES OF 2009
.CONTRACTN O, 11 -~oof
A RESOLUTION AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND
FINANCE AUTHORITY OF A PRJV ATE ACTIVITY BOND ALLOCATION OF THE CITY
OF ENGLEWOOD, ARAPAHO E COUNTY, CO LORADO PURSUANT TO TH E
COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATI ON ACT.
WHEREAS , the City of Englewood, Co lorad o is authorized and empowered under th e law s of
the State of Colorado lo issue revenue bonds for the purpose of pro viding single-family mortgage -~
loans to low and mod erate in co me persons and famili es; and
WHEREAS, the Internal Revenue Code of 1986, as amended , restricts the amount of tax·
exempt bonds which may be iss ued in the State to provide such mortgage loans and for certain
c ,ther purposes ; and
WHEREAS , pursuant lo the Code, the Colorado Legislature adopted the Colorado Pri vate
Activity Bond Ceiling Allocation Act, Part 17 of Article 24, Colorado Revised Statutes (the
"All,:,cat ion Act''), providing for the allocation of the State Ceiling among the Colorado Housing
and Finance Authority ("Authority") and other governmental units in the State, and furt.~er
providing for the assignment of such allocations from such other governmental units to th-,
Authority; and
WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the
City of Englewood, Colorado has an allocation of the 2009 State Ceiling for the issuance of a
specified principal amount of Pri vate Activity Bonds prior to September 15, 2009 (the "2009
Allocation"); and
WHEREAS , th e City of Eng lewood, Co lorado has determined that the 2009 Allocation, or a
portion thereof, can be utilized most efficien tly ,y assigning it to the Authority to issue Private
Acti vity Bond s for the pu!J>Ose of pro vi dir1g single-family mortgage loans to low and moderat e
income persons and familie s; which ass ib'IIJllent is to be evidenced by an Assignment of
Allocation between the City of Englewood and the Authority;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO, THAT :
Section I . The assignment to Ute Authority for $1,456,8 75 of the City of Englewood,
Co lorad o's 2009 Allocation sha ll be and hereby is approved .
Secti on 2 . The form and substance of the Assignment of Allocation are approved ; provided,
however, that the Englewood City Council is authorized to make such techni cal variatio ns,
additions or deletions in or to such Assignment of Allocation as they shall deem neces sary or
appropriate and not inconsistent with the appro val thereof by thi s Res olution .
Section 3. The Mayor and the City Clerk fo r the City of Englewood, Co lorado are authorized
to execute and deli ver th e Ass ignm en t of All ocation on behalf of the City of Eng lew ood and to
take such other steps or ac ti ons as ma y be necessa ry , use ful or co nvenient to effect th e aforesaid
ass ignmen t in accord ance wi th the intent of thi s Reso lution .
Sect ion 4. If any sec tion, paragraph , clause or provision of this Resolution shall for any reason
be held lo be invalid or unenforceable, the invalidity or unenforceability of such section
paragrap h, clause, or provision shall not affect any of the remaining provisions of thi s Resolution .
Section 5. This Resolution shall be in full force and effect upon its passage and approval or as
otheiwi ae required by the Englewood Home Rule Charter .
ADOPTED AND APPROVED thi s 8th day of September, 2009 .
I, Loucri shia A. Elli s, City Clerk for ~~ity of Eng lewoo
above is a tru e co py of Reso luti on No . .Jl]_, Seri es of 200 .
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COUNCIL COMMUNICATION
Date : I Agenda Item: I Subject:
Sep tember 8, 2009 11 Ci 2009 Priva te Activity Bond Cap All oca tion
Initiated By: Staff Source:
Communi ty D evelopment Department Darren Hollingsworth,
Economic Deve lopment Coordinator
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
• Council discussed th e annual Pri vate Activity Bond (PAB ) assig nment at the August 17,
2009 Ci ty Council Meeting.
• Council considers assigning the PAB Cap A ll oca tion annually.
• Council adopted Roadmap Englewood : 2003 Englewood Comprehensive Plan . Th e
Housin g elemen t includes Objective 2-1 : "encouraging home ownership.'
RECOMMENDED ACTION
The attached Resolutio n authorizes assignment of Engiewood's 2009 Private Activity Bond (PAB)
Cap All ocation to th e Colorado Housing and Finance Authority (C HFA) for home ownershi p
programs.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The State of Colorado allocates Private Activity Bond (PAB) Cap to jurisdiction s eli gible to receive
more than one milli o n dollars of PAB . Engl ewood was allocated $1 ,456,875 for 2009. Englewood
became an entitlement community for an allocation for the first tim e in 2002. Prior to tha~
Englewood was eli gi ble to apply to the State of Colorado for PAB .
In 200 2 through 2008, Englewood assigned its PAB allocation to th e Colorado Housing and
Finance Authority for home owners hip pro gram s. For many years prior to tha~ Englewood applied
to the State to ass ign its share of PAB allocation to th e Metro Mayo rs Caucus mortgage bond
program administered by the City of Denver. That program also provided home loa ns. The Metro
Mayors Cau cus program has no t been abl e to issue home mortgage bonds du e to market
conditions.
Th e City typicall y does not assign th e PAB until mid-year, close to the State's Se ptem ber 15
dead line so th at the PAB may be available for an eligible loca l proj ect. No PAB eli gib le projec ts
have b een prop ose d i n Englewood ye t this year .
FINANCIAL IMPACT
The Reso l u ti on ass igns En glewood's entire 2009 PAB all ocati on of $1 ,456,875 to CH FA fo r H ome
Ownership programs. If th e Coun cil takes no action, th e PAB all oca ti oo would rever t to th e
Colorado Departm ent of Loca l Affairs for ass ignm ent to eli gib le state a6enci es.
LI ST Of ATTAC HME NTS
Reso luti on
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