HomeMy WebLinkAbout2005 Ordinance No. 010•
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ORDINANCE NO . /Q_
SERIES OF 2005
BY AUTHORITY
CONTRACT NO '-1/-.J.oo ~
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COUN CIL BI LL NO . 5
INTRODUCED BY COUNC IL
MEMBER WOLOSYN
AN ORDINANCE AUTHORIZING THE DELEGATION TO THE CITY AND
COUNTY OF DENVER, COLflRADO THE AUTHORITY OF THE CITY OF
ENGLEWOOD, COLORADO WITH RESPECT TO THE ISSUANCE OF SINGLE
FAM ILY 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 ;
APPROV ING SUCH BONDS AND A SINGLE FAMJLY MORTGAGE LOAN
PROGRAM; AND AUTH u RIZING THE EXECUTION AND DELIVERY OF A
DELEGATION AGREEMENT AND OTHER DOCUMENTS IN CONNECT ION
THEREWITH.
WHEREAS, the City of Englewood, Colorado (the "C ity"), and the City and Co unty
of Denver, Colorado (the "Issuer"), arc each authorized by the Co un ty and
Municipality Development Revenue Bond Ac t, constituting Article 3 of Title 29,
Co lorado Rev ised Statutes, as amended (the "Act"), to finance projects as defined in the
Act, including residential hou sing faci liti es for low wid middle income person s and
families ; and
WHEREAS, Section 29-3-104(2) of the Act provides that a county or municipality
may delegate by resolution or ordinance , as the case may be , to any other co unty or
mun icipa lity authority to act on its behalf in th e finan cing of projects under the Ac t
an d that any such de legation may be genera l or limited in scope and time and may be
irrevocable for the term or terms of any financing agreement or bond issue , all as
provided in such resolution or ordinance ; and
WHEREAS , the Is suer proposes to iss ue single family home mortgage revenue bonds
pursuant to the Act (the "Bonds") to finance re side nt ial housing facilities fo r low and
midd le ir1~o mc person s and families within the City and oth er citi es and counties in the
State of Co lorado (the "Single Family Mortgage Loa n Program "); and
WHERE AS, the City de sires to delegate to the Issuer the authority of the City to
fi na nce and otherwise take action and e rcisc power under th e Ac t on beh alf of the
City with respect to the Single Family J,;o rtgage Loan Program within the City; and
WHEREAS, it is necessary to evidence such de legation by the execution and
delivery by the City of a Delegation Agreement (the "De legation Agreement")
attache d as Exhibit A;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS :
~. In order to facilita te the origination of single fami ly mortgage loans
within th e boundaries of the City as part of the Single Family Mortgage Loan Program,
the Ci ty hereby (i) delegate s to th e Is suer th e authority of the Ci ty to fin ance and
otherwise take action and exercise powe r und er the Act on bcbalf of the City with
re spec t to the Single Family Mortgage Loan Progra m within the Ci ty and (ii) approve s,
and auth orizes and directs th e Ma yor M the City to sig n and the City Clerk to attest
and deliver the Delegati on AgrN' t 'i:1 11 in substantially the fo rm pre sen ted at this
me eting . A copy of the Delegat ion Agreement is on fil e in the office of th •J City Clerk
and is avai lable for inspection by the public .
~-Th e Council hereby approve s the Bonds and Ute Si11slc Fa mily Mo rtgage
Loan Program for purposes of Section 147(1) of the Internal Reve nue Code of : 986, as
amended.
~-The Mayo r of the City is hereby authorized an d directed to 01.c, •• ·:c and
deliver and the City Clerk is hereby authorized and directed to atte:,t and dcii\'C r ,uch
other agreements and certificates and to take such other actions as may i;;c nece ~1 .. ary or
convenient to carry out and give effect to the Delegation Agrcemtut and this
Ordinance, including any agreement or certificate approving the Bond s or the 3i ng 1~
Family Mortgage Loan Program for purposes of Section 147(1) of th e In te rnal Revenue
Code of 1986, as amended.
~-Nothing contained in this Ordinance or the Delegation Agreement shall
constitute a debt, indebtedness or mull i~lc -fiseal year direct or indirect debt or other
financial obligation of the City wilhit , • , e meaning of the Constitution or statutes of
the State of Colorado or the home rule charter of any political subdivision thereof, nor
give rise to a ,>ccuniary liability of the City or a charge against its general credit or
taxing powers .
~-If any sec tion, paragraph, clause or provision of this Ordinance sh all for
any reason be held to be in va lid or unenforceable, the invalidity or unenforccability of
any such section, paragraph , claase or provision shall not affect any of the remaining
provi sions of this Ordinance.
Introduced , read in full, and pas se d J n firs! reading on the 7th day of March, 2005 .
Published • , Bill for an Ordinan · ·.,. I \1h day of March, 2005.
RcaJ by title and pa sse d on final re s.ding on the 21st da y cf March , 2005 .
Publi shed by title as Ordinance No/tJ . Series of 2004, on the 25th day of
Mar ch, 20054 .
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I, Loucrishia A. Elli s, City Clerk of !he Cily of Englewoo d, Colorado , hereby
certify that th e abo ve and fo regoing is a true CUJJY, of the Ordinance passed on final
re adin g and published by titl e as Ordinance No .LQ, Series o f 2 .
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DELEGATION AGREEMEl'ff
THIS DELEGATION AGREEME 'T (this "De lega ti on Agrrnne nt "} is between
CITY OF ENGLE WO OD , COLORADO , a home rnle muni cipal corpora ti on and
political subdi visio n of the Stat e o r Co lorado (th e "City ''}, and the !TY AND
COU TY OF DENV ER, COLORA DO , a home ntlc ci ty, a po liti cal subdi vision and a
municipal corporation and a politi cal sub divi sion or th e Stat e of Co lorado (the
"Issuer"}.
RECIT ALS:
WHEREAS, the City and the Issue r arc each authorized by the Co unt y and
Municipality Development Revenue Bond Act, constituti ng Art ic le 3 or Title 29,
Co lorad o Revised Statute s, as amended (t he "Act '}, to linancc projects as defined in
th e Act, including re side ntial housing facilit ies for low and middle inc ome pc r'i ons and
ramilics; and
WHEREAS , Section 29-3-104(2) of the Ac t provides that a coun ty or
muni cipality may delegate by reso luti on or ordin ance, as the case may be, to any
other coun ty or muni cipa lit y authority to act on its behalf in the financing of
projects und er the Ac t and th at any such delegation may be genera l or limit ed in
sco pe and time and may be irrevocable for the term or tcnns of any financing
agreemen t or bond issue , all as pro vided in suc h rcso lu1i on or ordin ance ; and
WHEREAS , the City wis he s to participate in the Single Family Mongage Loan
Program ; and
WHERE AS , the Cit y de sires to delegate to th e Issuer th e authority of the City to
finance and otherwise lake ac li on and exe rcise power under the Acl on behalf of rh e
Ci ty wi th rc socct to th e Sin gle Family Mortgage Loan Program wit hin th e Ci ty;
NO W THEREF ORE , in consideration of the mutua l covenants and undert aki ngs se t
fort h herein , th e City and th e Iss uer hereby agree as fo ll ows:
~I . The City hereby delcgat -s to th e Issuer th e au th or it y of th e City to
finance and otherwise iake action and exercise power under th e Act on beh alf of the
City wi th respec t to the Single Famil y Mortgage Loan Program within th e Ci ty.
~-The Iss uer hereby accepts the de lega ti on of au th orit y from th e City
pur suant to Section I hereof and ag ree s to abide by eac h of the terms and condi ti ons
of thi s Delegati on Agreemen t in coi1n-.:ction wit l! the use of such delegation. The
Issue r agrees to make avail ab le to the Ci ty a portion of th e proceed s of th e Bonds for
th e origina ti on of home mort ~agcs within th e Ci ty's boundar ies .
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IN WITNESS WH ERE OF , the Cit y and the Iss uer have cause d th is Delega ti on
Agreement lo be exec uted to be effective as of __________ , 200 5.
[S EAL]
ATTEST :
By----:----,-,-,--,--,=-,::---=----,--
Loucrishi a A. Ellis, City Clerk
[SEAL]
ATTEST:
By:----------
Clerk and Recorder
App rove d as to form :
By _________ _
Assistan t City Allomey
Countersig ned :
By _________ _
Auditor
CITY OF ENGLEWOOD , COLO RADO
By ------c:::-----,-----0:------:--,------
Dougl as Garrell , Mayo r
CITY AND COUNTY OF DENVER,
COLORADO , as Issuer
By ___________ _
, Mayor
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COUNCIL COMMUNICATION
DATE: AGENDA ITEM: SUBJ ECT:
March 7, 1005 11 a ii Metro Mayors Cauet1 s, Single-Fam il y H o m e
Mortgage Prog ram and 2005 Private Activity Bond
INITIATED BY: I STAFF SOURCE :
Commu nit y Deve lopment Mark Grah am, Senior Plann er
PREVIOUS COUNCIL ACTION / COUNCIL GOALS
• For the past three years, since Eng lewood has received a direct all oca tion of Private Activi ty
Bond (PAB), the Engl ewood City Co un ci l ha s assig ned its PAB to th e Colorado Housing and
Finance Authority (CHF A) fo r h ome ownership programs.
• Prior to receiving a direc t all ocation of PAB in 1999, 2000 and 200 1, th e En glewood City
Council requested th at the Colorado Departm ent of Local Affai rs assign Eng lewood's pro-
ra ta sha re o f PAS to th e M etro May0rs Ca ucus for home ownership programs.
• The Engl ewood City Counci l supports home ownership and programs for down-payment
assistance.
RECOMMENDED ACTIO/,i
Staff re com mends th at Counc il ad 0pl a Bill fo r an Ordinance ent ering into an Inter-Governmental
Agree ment (!G A) with Metro M ayo rs Cau cus (MMC) so th at prospec tive Englewood ho mebuyers
ma y acce ss the MMC program offering dow n pa yment assis tance and be low-mark et int erest rate
finan c ing fo r si ngle-family ho me m ort gages.
Staff re co mmends th at Coun cil defe r th e decis ion to ass ign the PA B until mid summ er to prese rv e
th e opti on to fund oth er eligible projects as l ong as p oss ibl e. If Council does not ass ign th e annual
all oca ti on in advance of th e September statutory dea dline, th e PAB would reve rt to des ignated s:,11e
programs .
BAC KGRO UND ANO ANALYSIS
The City of D enve r has ag reed to ,ssu e lax fr ee bo nd s o n behalf of MMC. Th e b onds provide
mortga ge fi nancing for low and moderate in co me pe ople in th e parti cipa tin g jurisdi cti ons to
purchase homes. With the tax fr ee bonds, MMC is able to offer b orr owers b elow mark et rate
int erest and dow n payment as sistance . MMC suspend ed issui ng new loans between 2002 and
2005. O ve r tha t period ma n \ loa ns were repaid and since new loa ns were n ot generated, the loa n
fund grew. Approximately $20 milli o n is currently avai labl e for home mortgages and down
pa yment assistan ce. Low and moderate inco me Eng lewoo d horne bu ye rs ma y benefi t from
Englewood's par ti cipa tion in the 2005 program .
The Ci ty o f Denver pl edged an addi ti o nal S IO millio n for De11ve r reside nt s in 2005, a11d MMC
wo uld be please d to rece ive addi tional PAB assig nm ent s fr om oth er dire ct allocalton Citi es.
Eng lewood has 11 01 rece ived an y o th er requ est s for PAB for eligible projec ts in 2005. Over th e pa st
few yea rs, City fi 11anci al advisors have recommended tha t Englewood de fe r the decision to assign
E11g lewood's direct l'AB all ocati o n un til mid surnm er, to preserve the ,1bi lity to finan ce PAB eligible
Eng lewood projects . If requests for PAB are no t received by mid year, th en it can be assig ned to a
ho m ebuyer p rogram suc h as those o ffered by MMC and CHF A.
FINANCIAL IMPACT
Th e Sta te of Colora do has certified th at Englewood has a 2005 Pri va te Ac ti vity Bo nd all oca ti o n o f
$1 ,2 96,400. Engl ewood could assign some or all of th at allocation to the MMC pro gram. For
2005, I-IMC is o ffering to all ow Englewood ho mebuye rs to pa rticipate in th eir 2005 Sin gle-Family
Home tv: 3e Progra m wheth er o r not Engl e,·:ood assigns any PAB t MMC.
ATTACHMENTS
Bill for Ordinance.
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