HomeMy WebLinkAbout2008 Resolution No. 068• RESOLUTION NO . .!tf?
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SERIES OF 2008
A RESOLUTION AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND
FINANCE AUTHORITY OF A PRJV A TE ACTIVITY BOND ALLOCATION OF THE CITY
OF ENGLEWOOD, ARAPAHOE COUNTY, COLORADO PURSUANT TO THE
COLORADO PRJV ATE ACTIVITY BOND CEILING ALLOCATION ACT .
WHEREAS , the City of Englewood, Colorado is authorized and empowered under the laws of
the State of Colorado to issue revenue bonds for the purpose of providing single-family mortgage
loans to low and moderate income persons and families; and
WHEREAS, the Internal Revenue Code of 1986, as amended, restricts the amount of tax-
exempt bonds which may be issued in the State to provide such mortgage loans and for certain
other purposes ; and
WHEREAS, punuant to the Code, the Colorado Legislature adopted the Colorado Private
Activity Bond Ceiling Allocation Act, Part 17 of Article 24, Colorado Revised Statutes (the
"Allocation Act''), providing for lhe allocation of lhe State Ceiling among lhe Colorado Housing
and Finance Aulhority ("Authority'') and other governmental units in the State, and further
providing for the assignment of such allocations from such other governmental units to lhe
Authority; and
WHEREAS, purauanl to an allocation under Section 24-32-1706 of the Allocation Act, the
City of Englewood, Colorado has an allocation of the 2008 State Ceiling for lhe issuance of a
specified principal amount of Private Activity Bonds prior to September IS, 2008 (the "2008
Allocation''); and
WHEREAS, the City of Englewood, C'.olorado has determined !hat the 2008 Allocation, or a
portion tbcrcof, csn be utilized most efficiently by assigning it to the Authority to issue Private
Activity Bonds for the purpose of providing single-family mortgage loans to low and moderate
income persons and families ; which assignment is to be evidenced by an Assignment of
Allocation between the City of Englewood and lhe Aulhority;
NOW, TIIEREFORE, BE IT RESOLVED BY THE CITY COUNCil. OF THE CITY OF
ENGLEWOOD, COLORADO, THAT:
~-The assignment to lhe Aulhority for $1,368,118 of lhe City of Englewood,
Colorado's 2008 Allocation shall be and hereby is approved .
~-The form and substance of lhe Assignment of Allocation are approved; provided,
however, !hat the Englewood 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 wilh the approval thereof by this Resolution .
Section 3. The Ma yo r and th e Cit) Clerk for the Cit y of Englewood, Co lora do are au th orized
to execute and deliver the Ass ignment of All oca ti on on behalf of the City of Englewood and to
take such oth er steps or act ion s as may be necessary, use fu l or co nvenient to effec t th e aforesaid
ass ign ment in ac co rdance wi th th e int ent of th is Reso luti on.
Sectio n 4. If any secti on , para gra ph , clause or provisio n of tltl s Reso luti on shall for any reaso n
be held to be inv ali d or unen forceab le, the inva li di ty or un enforcea bilit y of such sect ion
paragraph , clau se, or provis ion sha ll not affect any of the remainin g provisions of this Resoluti on.
Section 5. This Reso luti on shall be in full force and effect up on its pessage and approva l or as
otherwi se required by th e Engl ewood Home Rule Charter.
ADOPTED AND APPROVED thi s 2 1st day of July, 2008 .
I, Loucrishia A. Elli s, Ci ty Clerk fo~ity of Englewood, C
above is a tru e co py of Reso lu tion No . , Series of 2 8.
o do, hereby certify the q_
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COUNCIL COMMUNICATION
Dale :
Jul y 21, 2008
Initiated By:
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Agenda Item :
11 C i
Co mmun ity Developm ent Depar tm ent
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Subject:
2008 Private Activity Bond Cap All oca ti on
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Staff Source :
Mark Graham, Sen i'lr Pl ann er
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
• Co un ci l dis cussed th e annu al Private Acti vity Bond (PAS) assig nmen t at a Stud y Sessio n on
Jul y 7, 20C8 .
Council co nsi ders assignin g the PAS Cap Allocalion annu all y.
• Coun cil adopted Roadmap En glewood: 2003 En glewood Co mprehensive Pl an. The
Hous in g element includes Objective 2-1: "enco uraging home ownership ."
RECOMMENDW ACTION
Staff recomine nd ~ th at Council adopt a Reso luli on au th ori zi ng assignment 0 1 Englewood 's 2008
Private Activi ty Bond (PA S) Cap All oca ti on to the Co lorado Housing and Finan ce Authority (C HFA)
for hom e ownership pro gram s.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The State of Colorado allo ca tes Privat e Acti vity Bond (PAS) Cap to jurisdictions eligibl e to receive
more th an one milli on doll ars of PAS . Englewood was allocate d $1 ,368,118 for 2008. Englewood
became an entitl ement co mmunity for an all oca ti on for th e first tim e in 2002 . Pri or to th at,
Englewood was eli gi bl e to app ly to the Stat e fo r PAS.
In 2002 through 2007, En glewood assigned its PAS to th e Co lorado Housin g Fin ance Auth ori ty for
home ow nership programs . For many ye.irs prior to th at, Engl ewood app li ed to th e State to assign
it s share of PAB to th e Metro M ayo rs Cau cus mort gage bo nd program ad mini stered by th e City of
Denver. Th at program also prov id ed home loans .
The City typicall y does not assign th e PAS until mid-year, dose to th e Sta te's Sept emb er 15
dea dline so th at th e PAS may be available fo r an eligible loca l proje ct. No PAB eli gible proj ec ts
have been propos ed in Englewood yet this year .
FINANCIAL IMPACT
The Reso luti on ass ign s Englewood's entire 2008 PAS, $1 ,3 68,11 8 to CHFA fo r Home Ownership
pro grams . If the Cou nci l takes no ac ti on, the PAS would reve rt to th e Co lorado Depa rtm ent of
i. ~ca l Affairs for assignm ent to eli gibl e State ag encies.
UST OF ATTACHMENTS
Assig nm en t of All oca ti on
Reso lution
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ASS IGNM ENT OF ALLOCAT ION
Th is Ass ignm ent of All oca ti on (t he "Ass ignme nt "), dated thi s __ dny of Aug ust
2008 , is b,twec n th e City of Englewood, Colorad o (t he "Ass ignor") and th e Colorado Housin g
and Fin ance Aut horit y (the "A ss ignee").
WITNESSETH :
WHEREAS , th e As signor and th e Assign ee are .iuth orized and empowered un de r the
laws of the Sta le of Co lorado (t he "S tal e") to iss ue reven ue bo nd s for th e pu rpose of providing
sing le-famil y mortgage loa ns to low-and moderate-income pe rsons and fami lie s; and
WHEREAS, the Int ernal Revenue Code ., 1986, as an1e nded (the "Code"), restri cts the
amount of tax-exempt bo nd s ("Private Activity "•mds") whi ch may be issued in the Stale to
provi de such mortga ge loa ns and for ce rtain otlit, 1,urposes (the "State Ce ilin g"); and
WHEREAS , pursuant to the Code, tl10 Colorado legislature adopted the Co lorado Private
Activity Bond Ceiling Allocation Act, Part 17 nf Article 32 ofTitle 24 , Co lorado Rev i$e~
Statutes (the "All oca tion Act"), providing fo r ,i,o Rllocatio n of the Stale Ce iling among the
Ass ignee and oth er governmental units in the, ~ta «. ""d further providing for the assignment of
allocations from such other governmental units to 1!., Assignee; and
WHEREAS , pursuant 10 an allocation under Section 24-32 -1706 of the Allocation Act ,
th e Ass ignor has an all ocation of the 2008 State Ceiling for th e iss uance of a specified principal
amount of Privat e Activity Bonds pri or to September 15, 2008 (the "2008 Allocation"); and
WHEREAS , th e Assignor has determin ed th at, in order to increase th e availability of
adequate affordab le hou sing for low-and moderat e-in come persons and families within the City
of Engle wood and elsewhere in t!,e State, it is necessary or desirab le to provid e fo r th e utilization
of all or a porti on of th e 2008 Allocati on; and
WHEREAS, th e As signor has determin ed that the 2008 Alloc ation , or a portion thereo f,
can be ut ilized most effic iently by assigning it to th e Assignee to issue Pri'lale Activity Bon ds for
the pu rpose of providing sin gle-fa mily mortgage loa ns 10 low-and moderate-income person s and
families ("Rev enu e Bonds"), and th e Ass ignee has exp ressed its willingness to attempt to iss ue
Reven ue Bond s with rcsl"-"t to th e 2008 All ocat ion ; and
WH EREAS , the Eng lewood Ci ty Coun cil by Ordin ance __ , Series of 2008 of the
Ass ignor has dclennined to ass ign to th e Assignee $1,368 ,118 .00 of its 200 8 All ocation , and lh e
Assignc~ has agre ed to accep t such ass ignm ent , wh ich is to be ev iden ce d by this Ass ignment.
NO W, THEREFORE, in consideration of th e premi ses and the mutu al promises
here in after set fo rth , th e parti es hereto agree as fo ll ows :
I. The Ass ignor hereby ass igns to the Assignee $1 ,368 ,118 .00 of its 2008
All ocat ion, su bject lo the term s and conditions contai ned herei n. The Assignor represents that ii
has rece ived no monetary considerati on fo r said ass ignm ent.
2. The Ass ignee hereby acce pt s th e ass ignm ent to it by th e Ass ignor of •
$1,368 .118 .00 of Ass ignor's 20 08 All ocat ion, subjcc 1 10 lh e 1enn s nnd co ndi1i o11s co 111nined
herein. Th e Assignee ag ree s 10 use it s bes t effort s to iss ue and se ll Reven ue Bond s, in one or
more seri es , and to mak e proceed s of such Reven ue Bond s ava il able fr om time to time durin g th e
pe ri od of two (2) years from th e dale of thi s Assignm ent fo r th e purchase of mortgage loa ns in ot
least the aggre ga le am oum of$! ,368 , I I 8.00 to fin ance single-family housin g facilitie s located in
the City of En glewood. Un less oth erwi se agreed to in writin g, the mortgage loo ns will be subj ec t
to oil ap plicable current requirements of Ass ignee's mortgage revenu e bo nd program, in cludin g
Ass ignee's income and purch ase price limits.
3. The Ass ignor hereby consents to th e elec tion by the Ass ignee , if the Assignee in
its discreti on so decides, to treat all or any portion of the assignm ent set forth herein as on
all ocation for a project wi th a carry forw ard purpose.
4 . The Ass ignor and Ass ignee each agree that it will take such further act ion and
adopt such further proceedin gs as moy be required to imp lement the term s of this Ass ignment.
5. Nothing contained in :.hi s Assignment shall obli gate the Assignee to finance
mortgage loans in any particular amount or at any parti cu lar interest rate or to use any particular
percenta ge of the proceeds of its Revenue Bond s to provide mor tgale loon s to finance single-
family housing facilit ies located in th e City of En glewood.
6. This Ass ignment is effecti ve upon exec uti on and is irrevocable.
IN WITNESS WHEREOF, the parties hereto hove duly execute i this Assignment on the •
date first written above .
CITY OF ENGLEWOO .), COLORADC
[SEAL]
ATTEST :
By : ------------
Louc ri shia A. Ellis, City Clerk
[SEAL]
ATTEST :
ily: ---------
As sistant Secretary
By: ----------
James K. Woodward , Mayor
CO LORADO HOUSING AND FINAN CE
AUTHORITY
By : ----------
Executive Director
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