HomeMy WebLinkAbout2006 Ordinance No. 027•
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ORDINANCE NO. z._ 1
SERIES OF 2006 --
.CONTRACl:NCI, L.Cj-.,?.ool:.
BY AUTHORITY
COUNCIL BILL NO . 33
INTRODUCED BY COUNCIL
MEMBER WOODWARD
AN ORDINANCE AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND
FINANCE AUTHORITY, A PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY
OF ENGLEWOOD, ARAPAHOE COUNTY , COLORADO PURSUANT TO THE
COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCA TJON ACT.
WHEREAS , the City of Englewood, Colorado is authorized and empo,vercd under the laws
of the State ol r:olorado to issue revenue bonds for the purpose of providin g ,in ~l ~-family
mongage loans to low and modr •ate income persons and families; and
WHEREAS, the Internal Revenue Code of 1986, as amended, restricts tho amount of tex-
exempt bonds ("Private Activity Bonds ") which may be issued in the State to provide such
mongagc loans and for ccnain other i;urposes; and
WHEREAS , pursuant to the Code, the Colorado Legislature adopted the Lo lu .-,•do Priva te
Activity Bond Ceiling Allocation Act , Pan 17 of Aniclc 24 , Colorado Revised Sta tutes
(the "Allocation Act"), providing for the allocation of the State Ceiling among the Co lo rado
Housing and Finance Authority ("Authority") and other gove rnmental units in the State , and
funher providing for the assignment of such allocations frcm rn cb other governmental units
to the 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 2004 State Ceiling for the issuance
of a specified principal amount of Private Activity Bonds prior to September 15 , 2006 (the
"2006 Allocation "); and
WHEREAS , the City of Englewood, Colorado has determined that the 2006 Allocation,
or a ponion thereof, can be utilized most efficiently by assigning it to the Authority to issue
Private Activity Bonds for the purpose of providing single-family mongage loans to low and
moderate in me persons and families; which assignment is to be evidenced by an Assignment
of Allocation between the City of Englewood and the Authority ;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO , AS FOLLOWS:
~I. The assignment tc th e Authority fo r $1,299,640 .00 of the City of Englewood,
Colorado 's 2006 Allocation shall be and hereby is approved .
~-The form and substance of the Assignment of Allocation arc approved ;
provided, however, that the Er.glewood City Council is authorized to make such technical
variations, additions or deletions in or to such Assignment of Allocation, as they shall deem
necessary or appropriate and not inconsistent with the approval thereof by this Ordinance .
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~-The :.layor and the City Clerk for the City of Englewood, Colorado are
authorized to eKecute and deliver the Assignment of Allocation on behalf of the City of
Englewood and to take such other steps or actions as may be necessary, useful or convenient
to effect the aforesaid assignment in accordance with the intent of this Ordinance .
~4. If any section, paragraph, clause or provision of this Ordinance shall for any
reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
section paragraph, clause, or provision shall not affect any of the remaining provisions of
this Ordinance .
Introduced, read in full, and passed on first reading on the 24 th day of July, 2006 .
Published as a Bill for an Ordinance on the 28th day of July , 2006.
Read by title and passed on final reading on the 7th day of August, 2006 .
Published by title as Ordinance No . '2-1, Series of 2006 , on the 11th day of August, 2006 .
I, Loucrishia A. Ellis, City Clerk of the City of Englewovd, Colorado , hereby certify that
the above an d foregoing is a true copy of the Ordinance passe n final reading and published
by title as Ordinance No2..J.., Series of 2006 .
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ASSIGNMENT OF ALLOCATION
This Assignment of Allocation (the "Assignment"), dated this __ day of
August 2006, is between the City of Englewood, Colorado (the "Assi gnor") and the
Colorado Housing and Finance Authority (the "Assi gnee").
WITNESSETH:
WHEREAS, the Assignor and the Assignee are authorized and '"npow r. cd under
the laws of the State of Colorado (the "State") to issue revenue bond s fot ·he u:pose of
providing single-family mortgage loans to low-and moderate-inc ome per~nns and
families; and
WHEREAS , the Internal Re ve nue Code of 1986, as am ,,,d · (the "Co de "),
restricts the amount of tax-exempt bonds ("Private Acti vity Bonds ") which may be iss ued
in the State to provide such mortgage loans and for certain other purposes (the "State
Cei ling"); 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
Re vised Statutes (the "Allocation Act"), providing for the allocation of the Slate 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 Assigt •ee; and
WHEREAS, pursuant to an allocation und er Section 24-32-1706 of the Allocat io n
Act, the Assignor has an allocation of the 2006 Stale Ceiling for the is suance of a
specified principal amount of Pri vate Activity Bonds pri or to September 15 , 2006 (the
"2 006 Allocation"); and
WHEREAS, the Assignor has determined that , in order to increase the availability
of adequate affordable housing for low-and moderate-income · persons and families
within the City of Englewood and elsewhere in the State, it is necessary or desirable to
provide for the utilization of all or a portion of the 2006 Allocation ; and
WHEREAS , the Assignor has determined that the 2006 Allocation , or a portion
thereof, can be utilized most efficiently by assigning it to the Assignee to issue Private
Activity Bonds for the purpose of providing single-family mortgage loans to low-and
moderate-income person s and families ("Revenue Bonds"), and the Assignee has
expressed its willingness to attempt to issue Revenue Bonds with respect to the 2006
Allocation; and
WHEREAS , the Englewood City Counc, !ly Ordinance _, Series of 2006 of
the Assignor has determined to assign to th e Ass ignee $1 ,299 ,640.00 of its 2006
Allocition , and th Assignee has agreed tc ace r.µ'. such assignment, which is to be
evid t.nced by this Ass ignment.
NO W, THEREFORE , in consideration of the premise s and the mutual promises
here inafter set forth , the parties hereto agree as follo ws:
I. The Assignor hereby assigns to the Assignee SI ,2 99,640.00 of its 2006
Allocation, subject to the terms and conditions contained herein . The Assignor represents
that it has received no monetary consideration for sa,d assignment .
2. The Assignee hereby accepts the ll!l signment to it by the Assignor of
S 1,299 ,640 .00 of Assignor's 2006 Allocation , subject to the terms and conditions
contained he~ein. The Assignee agrees to use its !)est efforts to issue and sell Revenue
Bonds, in one or more se ries , and to make proce,,ns of such Revenue Bond s available
from time to time during the period of two (2) year. i!'ll m the date of this Assignment for
the purchase of mortgage loans in at least the aggregate amount of $1 ,299,640 .00 to
finance single-family housing facilities located in the City of Englew oo d. Unless
otherwi se agreed to in writing, the mortgage loans will be subject to ail applicable current
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requirements of Assignee's mortgage re venue bond program , including Assign ·.-e 's •
income and purchase price limits.
3. The Ass ignor 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.
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 mortgage loans in any particular am ount or at any particular interest rate or to use
any particular percentage of the proceeds of its Revenue Bonds to provide mortgage loans
to finance single-family housing facilities located in the City of Englewood.
6. This Assignment is effect ive upon execution and is irrevo cable .
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• IN WITNESS WHEREOF, the p811ies hereto have duly executed this Assignment
on the date first written above .
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[SEAL] CITY OF ENGLEWOOD , COLORADO
ATTEST: By: -""0"'1-=g=-a•w:;:o:-;1-=o-=s::y-=n-----
By :
Loucrishia A. Ellis
TW= City Clerk
[SEAL]
ATTEST:
By:
Ass istant Secretary
Title : Mayor
COLORADO HOUSING AND FINANCE
AUTHORITY
By: -=----:--=:-:--------Executive Director
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• COUNCIL COMMUNICATION
Date:
July 24, 2006 I
Agenda Item:
9 a ii I
Subject :
2006 Private Activity Bond Cap Allocation
Initiated By:
Community Development Department I
Staff Source:
Mark Graham, Senior Planner
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
• Council established goals for enhancing housing options including home ownership in
Englewood.
RECOMMENDED ACTION
Staff recommends that Council adopt a Bill for an Ordinance authorizing assignment of
Englewood's 2006 Pri vate Activ ity Bond (PAB) Cap Allocation to th e Colorado Housing and
Finance Authority (CHFA) for home ownershi p programs .
• BACKGROUND, ANALYSIS, AND Al TERNA TIVES IDENTIFIED
The State of Colorado all ocate s Private Activity Bond (PAB ) Cap to jurisdictions eligible to re ceive
more than one million dollars of PAB. Englewood was allocated $1 ,299,640 for 2006 . Englewood
became an ent itlemen t community for an allocation for the first lime in 2002 . Pri or lo th at,
Englewood was eligibl e to apply to the stale for PAB .
In 2002 through 2005, Englewood assigned its PAB lo th e Colorado Housing Finance Authority for
home ownership programs . For many years prior lo that, Englewood applied lo the Stale to assign
its share of PAB lo the Metro Mayors Caucus mortgage bond program administered by the City of
Den ver. That program also provided home loans .
The City typically does not assign the PAB until mid-year, close to the State 's September deadline so
that the PAB may be avail able for an eligible local project. No PAB eligible projects have be en
proposed in Englewood ye t this year .
FINANCIAL IMPACT
The Bill for an Ordinance assigns Englew oo d's entire 2006 PAB, $1 ,2 99,6 40, to CHFA fo r Hom e
O wners hip programs . If the Council takes no action, the PAB would revert to the Colorado
Department of Loca l Affairs for assignm ent to eligible state agencies.
• LIST OF ATTACHMENTS
Bill for an Ordinance