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HomeMy WebLinkAbout2006 Ordinance No. 026• • • ORDINANCE NO . 2iP SERIES OF 2006 -- BY AUTHORITY CONTRACI: NQ, 7 7-:J.. 00 fo COUNCIL BILL NO. 30 INTRODUCED BY COUNCIL MEMBER WOODWARD AN ORDINANCE AUTHORIZING THE DELEGATION TO THE CITY AND COUNTY OF DENVER, COLORADO THE AUTHORITY OF THE CITY OF ENGLEWOOD, COLORADO WITH RESPECT TO THE ISSUANCE OF SINGLE FAMILY HOME MORTGAGE REVENUE BONDS (THE "BONDS") TO FINANCE RESIDENTIAL HOUSING FACILITIES FOR LOW AND MIDDLE INCOME PERSONS AND FAMILIES WITHIN THE CITY OF ENGLEWOOD, COLORADO AND CERTAIN OTHER CITIES AND COUNTIES IN THE STATE OF COLORADO; APPROVING SUCH BONDS AND A SINGLE FAMILY MORTGAGE LOAN PROGRAM ; AND AUTHORIZING THE EXECUTION AND DELIVERY OF A DELEGATION AGREEMENT AND OTHER DOCUMENTS IN CONNECTION THEREWITH . WHEREAS, the City of Englewood, Colorado (the "City"/, and the City and County of Denver, Colorado (the "Issuer''), arc each authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3 of Tille 29 , Colorado Revised Statutes , as amended (the "Act"), to finance projects as defined in the Act , including residential housing facilities for low and middle income pe~ons and families ; and WHEREAS, Section 29-3-104(2) of the Act provides that a county or r,1unicipality may delegate by resolution or ordinance, as the case may be , to any ,,ther county or municipality authority to act on its behalf in the financing of projec,s under the Act and that any such delegation may be general or limited in scope and time and may be irrevocable for the term or terms of any financing agreement or bond issue, oil as provided in such resolution or ordina.~ce ; and WHEREAS, contingent upon the receipt of private activity bond volume cap allocation ("Allocation") from the State of Colorado (the "State") for use in the Single Family Mortgage Loan Program (as hereafter defmed), the Issuer proposes to issue single family borne mortgage revenue bon ds punuant to the Act (the "Bonds") to fmance residential housing facilities for low and middle income pe~ns and families within the City and other cities and counties in the State of Colorado (the "Single Family Mortgage Loan Program"); and WHEREAS , the City desires to delegate to the Issuer the authority of the City to finance and otherwise take action and exercise power under the Act on behalf of the City with respect to the Single Family Mortgage Loan Program within the City ; and WHEREAS, it is necessuy to evidence such delegation by the execution and delivery by the City of a Delegation Agreement (the "Delegation Agreement") attached as Exhibit A; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: -1- 9 b I ~. In order to facilitate the origination of single family mortgage loans within the boundaries of the City as part of the Single Family Mortgage Loan Program , the City hereby (a) delegates to the Issuer the authority of the City to finance and otherwise take action and exercise power under the Act on behalf of the City with respect to the Single Family Mortgage Loan Program within the City and (b) approves , and authorizes and directs the Mayor of the City to sign and the City Clerk 10 attest and deliver the Delegation Agreement in substantially the form presented at this meeting. A copy of the Delegation Agreement is on file in the office of the City Clerk and is available for inspection by the public . ~-The Council hereby approves the Bonds and the Single Family Mortgage L~:.i, Program for purposes of Section 147(1) of the Internal Revenue Code of 19>16, as .uncoded . ~-The Mayor of the City is hereby authorized and directed to execute and deliver and the City Clerk is hereby authorized and directed to attest and deliver such other agreements and certificates and to take such other actions as may be necessary or convenient to carry out and give effect to the Delegation Agreement and thi s Ordinance, including any agreement or certificate approving the Bonds or the Single Family Mortgage Loan Program for purposes of Section 147(1) of the Internal Revenue Code of 1986, as amended . ~4. Noth ing contained in this Ordinance or the Delegation Agreement shall constilllte a debt, indebtedness or multiple-fiscal year direct or indirect deb! or other financial obligation of the City within the meaning of the Constillltion or sla!Utes of the State of Colorado or the home rule charter of any political subdivision thereof, nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers . ~-The participation of the City in the Single Family Mortgage Loan Program is contingent upon the receipt of Allocation for the Single Family Mortgage Loan Program from the State . In the event the State does nut award Allocation for the Single Family Mortgage Loan Program, this Ordinance , the Delegation and Participation Agreement , and all duties, obligations and rights of the City under this Ordinance and Participation Agreement shall terminate immediately. ~-If any section, paragraph, clause or provision of this Ordinance shall for any reason be held to be invalid or unenforceable , the invalidity or unenforccability of any such section, paragraph, clause or provision shall not affect any of the remaining pro visions of this Ordinance . Introduced , read in full , and passed on first reading on the 24th day of July , 2006 . -2- • • • • • • Published u a Bill for an Ordinance on lhe 281h day of July , 2006. Read by title and passed on final reading on lhe 7'' day of August, 2006 . Published by title u Ordinance No .'2.4?, Series of 2006 , on lhe I lib day of August , 2006 . A~• ,,,,. ~~ I, Loucris~ia .~ r.,1is, City Clerk of lhe City of Englewood, Colorado, hereby cenify lhat t~ abo ,. and foregoing is a true copy of lhe Ordi e passed on final reading and i,ll l>lished by title as Ordinance No . 2,'1, Series o -3- • • • DELEGATION AGREEMENT THIS DELEGATION AGREEMENT (this "Delegation Agreell!eot") is between CITY OF ENGLEWOOD, COLORADO, a home rule municipal corporation and political subdivision of the State of Colorado (the "City"), and the CITY AND COUNTY OF DENVER, COLORADO, a home rule city and a municipal corporation of the State of Colorado (the "Issuer"). RECITALS: WHEREAS, the City nnd '· e Issuer are each auth orized by the County and Municipality Development Revenue Bond •,,t, constituting article 3 of this title 29, Colorado Revised Statutes, as amended (the"/,,,'), to finance projects as defined in the Act, including residential housing facilitie ; 'vr lo,:-and middle-income persons and families ; and WHEREAS , Section 29-3-104(2 ) of the Act proviJes that a county or municipality may delegate by resolution or o•oin ance, os the case may be, to any other c ,unty or municipality authority to act on its beha,. :, the !i nancing of projects under the Ac, and that any such del egation may be general or li,,1.ire.\ in scope and time and may be irrevo cable for the term or terms of any fi nan cing agreem ent or bond iss ue, all as provided in such resolution or ordinance ; and WHEREAS, contingent upon the receipt c " pri vate activity bond volume cap allocation ("Allocation") from the State of Colorado (the "State") for use in the ,ingle Far;.ily Mongagc Loan Program (as hereinafter defined), the Issuer proposes to iss ue single family home mongage revenue bonds purs uant to the Act and its home rule charter (the "Bonds") 10 finance residentiRI housing fa cilities for low anrl middle income persons and families within the City and other ci ties and counties in the State (the "Single Family Mongage Loan Program"); and Whereas, the City wishes to participate it, the Single Family Mongage Loan Program; and WHERE AS, the Chy desires to delegate to the Iss uer th e authority of the City of Englewoo d to finance and 0U1erwise take action and exercise power uuder the Act on behalf of the Ci .~ of Englewood with respect to the Single Family Mongage Loan Program within the City. NOW THEREFORE, in consideration of the mutual covenants and undenakings set fonh ~•rein , the City and the Issuer hereby agree as follows : ~. The City of Englewood, Colorado hereby delegates to the Issuer the authority of the City to finance 1, !cc ac tion and exercise power under the Act on beh•lf of the City with respect to the Sing,e Family Mongage Loan Program within the City . ~-The Issuer hereby accept s the delegation of authority from the City pursuant to Sectitn I hereof and agrees to abide by each of the terms and conditions of this Delegation Agreement in connection v.ah the use of such delegation. The Issuer agrees to make available to the City, a po'1ion of the proceeds of the Bonds for the origination of home mongages within the City 's boundaries . ~-The panicipation of the City in the Single Family Mongage Loan Program, and all undenakings, obligations, duties and rights of the City and the Issuer under this Delegation and Participation Agreement, are contingent upon the award from the State of Allocation for the Single Family Mongage Loan Program. ~-In the event that the State does not award Allocation fo r use in the Sin~le Family Mongage Loan Program, this Delegation and Participation Agreement, and all duties, obligations and rights of the Issuer and the City hereunder, shall tenninate. If the State does not award Allocation for use in the Single Family Mongage Loan Program, the City agrees to hold the Issuer harmless for any costs or any other liabilities incurred by the City with respect to the adoption e.nd approval of this Delegation and Participation Agreement , the Ordinance of the City adopted with respect to the Single Family Mortgage Loan Program, or any other City actions related thereto. IN WITNESS WHEREOF, the City and the Issuer have caused this Delegation Agreement to be executed to be effective as of _________ , 2006 . [SEAL] ATTEST : By ______ =------ Loucrishia A. Ellis , City Clerk [SEAL] ATTEST: BY----------,----,---,--Clerk and Recorder Approved as to form : BY ____________ _ Assistant City Attorney Countersigned: By _________ _,,, __ _ Auditor CITY OF ENGLEWOOD By __________ _ Olga Wolosyn, Mayor CITY AND COUNTY OF DENVER, COLORADO , as Issuer By __________ _ Mayor • • • • • COUNCIL COMMUNICATION Date: Agenda Item: Subject: July 24, 2006 9 a i Metro Mayors Caucus Single-Family Mortgage Bond Program Private Activity Bond Cap Allocation Initiated By: Community Deve lopment Department I Staff Source: Mark Graham, Senior Planner COUI\ICIL GOAL AND PREVIOUS COUNCIL ACTION • Council es tablished goals for enhar,cing housing options including home ownership i n Englewood. RECOMMENDED ACTION Staff recommends that Council adopt a Bill for an Ordinance authorizing participation in the Metro M ayors Cau c us Single Famil y Mortgage Bond Pr ogram without assigning any 2006 Private Activity Bond (PAB) cap all ocation . BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED The State of Colorado allocates Pri va te Ac tivity Bond (PAB) Cap to jurisdictions eligible to receive more than one million dollars of PAB . Engl ewood became an entitlement community for a PAB allocati on in 2002 . Prior to that, Englewood w as eligible to apply to the state for PAB . Englewood was allocated $1 ,299,640 fo r 2006. Between 1996 and 2002, Engle wood applied to the State to assign its share of PAB to the Metro Mayors Caucus (MMC) mortgage bond program administered by the City of Denve r. The MMC suspend ed their program in 2002 when interest rates were in flu x, and it became difficult for their lenders to get the money loaned. Since 2002, Englewood has assigned its PAB to the Colorado Housinp F•nance Authority for home ownership programs. MMC is funding a portion of their current m ortgage loan program with funds that have been repaid . Some of those recycled funds were originally assigned to MMC by Englewood. Beginning in 2004- 2005, MMC has offered to cities that previously contributed the option of participating in their si ngle-family mortgage loan program without any current year ass ignment of PAB. It Is sti ll necessary for Council to pass a Bill for an Ordinance to participate and to authorize execution of the required documents. The MMC program provides the following: • • 30 year fixed rate home mortgages to residents purchasing homes In participating cities. • below market interest rates . • 4% down payment assistance grant. • Income limits -Families of 2 or fewer $71 ,700 ; families of 3 or more $62,455 , • Purchase price limits • $365 ,000 maximum purchase price In 2006 . FINANCIAL IMPACT Adopting the Bill for an Ordinance authorizes participation in the MMC Si ngle Family Mortgage Bond Program without contributing any of Englewood 's 2006 PAB . LIST Of ATTACHMENTS Bill for an Ordinance • • •