HomeMy WebLinkAbout1998 Ordinance No. 027j '
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ORDINANCE NO .;!/_
SERIES OF 1998
BY AUTHORITY
COUNCIL BILL NO . 19
INTRODUCED BY COUNCIL
MEMBER BRADSHAW
AN ORDINANCE ASSIGNING AND TRANSFERRING TO THE CITY AND COUNTY
OF DENVER, COLORADO , THE 1999 CITY OF ENGLEWOOD , COLORADO
ALLOCATION FROM THE STATE CEILING FOR PRN ATE ACTIVITY BONDS TO
FINANCE RESIDENTIAL HOUSING FACILITIES FOR LOW-AND MIDDLE-
INCOME PERSONS AND FAMILIES WITHIN THE CITY AND CERTAIN OTHER
CITIES AND COUNTIES IN THE STATE OF COLORADO ; AUTHORIZING THE
DELEGATION TO THE CITY AND COUNTY OF DENVER, COLORADO OF 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 AND CERTAIN OTHER CITIES AND COUNTIES IN THE STATE OF
COLORADO; APPROVING SUCH BONDS AND 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"), are each authorized by the County and Municipality
Development Revenue Bond Act , constituting article 3 of title 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 persons 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 county or
municipality authority to act on its behalf in the financing of projects 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, all as
provided in such resolution or ordinance; and
WHEREAS , the Issuer proposes to issue single family home mortgage revenue
bonds pursuant to the Act (the "Bonds") to finance residential housing facilities for low-
and middle-income persons 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 necessary to evidence such delegation by the execution and
delivery by the City of a Delegation Agreement (the "Delegation Agreement") between
the City and the Issuer in substantially the form presented at this meeting;
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF [CITY]:
Section l. In order to facilitate the origination of single family mortgage loans
within the boundaries of the City of Englewood, Colorado as part of the Single Family
Mortgage Loan Program, the City of Englewood, Colorado hereby
(i) 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 (ii) approves, and authorizes and
directs the Mayor of the City to sign and deliver and the City Clerk to attest and
deliver and the Delegation Agreement in substantially the forms presented at this
meeting. Copies of the proposed Delegation Agreement is on file in the office of the
City Clerk and is available for inspection by the public.
Section 2. The Council hereby approves the Bonds and the Single Family Mortgage
Loan Program for purposes of Section 147(±) of the Internal Revenue Code of d1986 , as
amended.
Section 3. 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 this
Ordinance, including any agreement or certificate approving the Bonds or the Single
Family Mortgage Loan Program for purposes of Section 147(±) of the Internal Revenue
Code of 1986 , as amended.
Section 4. Nothing contained in this Ordinance or the Delegation Agreement shall
constitute a debt, indebtedness or multiple-fiscal year direct or indirect debt or other
financial obligation of the City within the 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 pecuniary liability of the City or a charge against its general credit or
taxing powers.
Section 5. 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
any such section, paragraph, clause or provision shall not affect any of the remaining
provisions ofthis Ordinance.
Introduced, read in full, and passed on first reading on the 6th day of April, 1998.
Published as a Bill for an Ordinance on the 10th day of April, 1998.
Read by title and passed on final reading on the 20th day of April, 1998 .
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Published by title as Ordinance N~ Series of 1998, on the 24th day of April,
1998 .
ATTEST:
I , Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado , hereby certify
that the above and foregoing is a true copy of the Ordinance passed on final reading
a 'shed by title as Ordinance No ."Jf!Series of 1998. .
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CERTIFICATE OF THE CITY OF ENGLEWOOD, COLORADO
Relating to
CITY AND COUNTY OF DENVER, COLORADO
SINGLE FAMILY HOME MORTGAGE REVENUE BONDS
(METRO MAYORS CAUCUS SINGLE FAMILY MORTGAGE BOND PROGRAM)
1998 SERIES A AND 1998 SERIES B
The undersigned Mayor and City Clerk of the City of Englewood, Colorado hereby
certify that:
1. Ordinance. Attached hereto is a true and correct copy of an Ordinance of
the City Council of the City of Englewood, Colorado (the "Council") that was
adopted by the Council in accordance with applicable law on the date
indicated therein (the "Ordinance"). All meetings of the Council at which
action relating to the Ordinance were properly noticed in the manner and at
the times required by law, were open at all times to the general public and
were attended by a quorum of the Council. The Ordinance has been signed,
attested, sealed and made a permanent part of the records of the Council in
accordance with applicable law; is in full force and effect; and has not been
amended, modified or repealed since its adoption.
2. Delegation Agreement. Attached hereto is a true and correct copy of a
Delegation Agreement dated as of the date indicated therein (the "Delegation
Agreement") between the City of Englewood, Colorado and County of Denver,
Colorado (the "Issuer"). The Delegation Agreement has been duly
authorized, executed and delivered by the City and, upon due authorization,
execution and delivery by the Issuer, will constitute a valid and binding
obligation of the City, enforceable against the City in accordance with its
terms.
3. Approval of Bonds and Project. A public hearing on behalf of the
Council, the City and the Issuer was held in February 20 , 1998 and March
30, 1998, in the Office of Planning and Development for the City and County
of Denver, Denver, Colorado . At such public hearing, all interested persons
were given an opportunity to express their views, both orally and in writing,
on the proposed issuance of the Bonds and the location and nature of the
Single Family Mortgage Loan Program. The Council has received a report of
the hearing. The Mayor of the City of Englewood, as the chief elected
executive official of the City of Englewood acting as such after such public
hearing, hereby approves the Bonds and the Single Family Mortgage Loan
Program, which approval is intended to comply with the provisions of Section
147(f) of the Internal Revenue Code of 1986, as amended.
t.1 , 1998.
~ Vl(JTNESS WHEREOF , we have hereunto set our hands this ~O~ayof
ATTEST:
~ta
Loucrishia A. Ellis, City Clerk
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DELEGATION AGREEMENT
THIS DELEGATION AGREEMENT (this "Delegation Agreement") 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 and the Issuer are each authorized by the County and
Municipality Development Revenue Bond Act, constituting article 3 of this title 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 persons
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 county or
municipality authority to act on its behalf in the financing of projects under t he 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 , all as
provided in such resolution or ordinance ; a nd
WHEREAS, the City desires to delegate to the Issuer the authority of the City of
Englewood to finance and otherwise take action and exercise power under the Act on
behalf of the City of Englewood with respect to the Single Family Mortgage Loan
Program within the City.
NOW THEREFORE , in consideration of the mutual covenants and undertakings
set forth herein, the City and the Issuer hereby agree a~ follows:
Section l. The City of Englewood, Colorado hereby 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.
Section 2. The Issuer hereby accepts the delegation of authority from the City
pursuant to Section 1 hereof and agrees to abide by each of the terms and conditions
of this Delegation Agreement in connection with the use of such delegation. The
Issuer agrees to make available to the City no later than May 1, 1998, a portion of
the proceeds of the Bonds for the origination of home mortgages within the City's
boundaries .
IN WITNESS WHEREOF, the City and the !~have caused this Delegation
Agreement to be executed to be effective as of t?4J , 1998.
[SEAL] CITY OF ENGLEWOOD
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• CITY AND COUNTY OF DENVER
PIANNING oma
A DMSION OF TiiE PL\NNING AND DEVELOPMENT OFFICE
REPORT OF PUBLIC HEARING
$15,000,000
200 West 14th Avenue. •203
Denver, Colorado 80204
Phone: (303) 640-2736
Fax; (303) 572-4636
TTD: (303) 640-2549
CITY AND COUNTY OF DENVER, COLORADO
Single Family Mortgage Revenue Refunding Bonds
Draw Down Series 1998A
A public hearing was held by the City and County of Denver. Colorado on behalf of
itself and cenain participating jurisdictions with respect to the issuance of the above-captioned
bonds (the "Bonds") on Monday, March 30, 1998 at 8:00 A .M. at 200 West 14th Avenue,
Room 203, Denver. Colorado 80204 . Notice of suc:h public hearing in the fonn attached hereto
as Exhibit A was published on Monday, March 16, 1998 in The Rocky Mountain News, a
newspaper of general circulation in the City and County of Denver, Colorado a11d in the
participating jurisdictions.
• No one appeared to speak for or against the plan of finance to be financed with the
proceeds of the Bonds .
The hearing was opened at 8:00 A.M. and was closed at approximately 8: 15 A.M.
IN WITNESS WHEREOF, the undersigned has set his hand as of March 30, 1998 .
CITY AND COUNTY OF DENVER, COLORADO
By_~ ___ 22_~-~--
Stcphcn D. Gordon, Housing Specialist
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• THE ROCKY MOUNTAIN NEWS
DENVER.CO
PUBLJSHfR'S AFFIDAVIT
City and Cu .. •111 of D•nv•r,
STATE OF COLORADO, SS.
Theresa White
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1998 Single-family Mortgage Revenue Bond Issue
Participant
Arvada
Aurora
Boulder
Denver
Lakewood
Westminster
Reauest from Statewide Balance for non-entitlement cities
total dollar amount of Ml~'IC SF-~IRB
A.mount Allocaterl
$100,000
$250 ,000
$1 ,000 ,000
$1 1,500 ,000
$1 ,000 ,000
$250 ,000
$7 ,500.000
$21,600,000.00
We completed and submitted our application for funds from the Statewide Balance on January
23 , 1998 (see attached cover letter). Our next step is to defend our application before the
Bond Allocations Committee on Friday, February 27 . Mayor Parsons has been asked to
present our application on behalf of the Caucus. One factor weighed by the Committee in
making its decision is the level of community support for the proposal. Therefore, the
stronger the mayoral representation at this presentation, the stronger our application will
appear. I cannot emphasize enough the importance of your support. The Department of
Local Affairs (OOLA) has received seventeen proposals requesting allocations from the
Statewide Balance from across Colorado . DOLA only has $29 million available for
disbursement and the total amount requested this year is in excess of 100 million dollars.
The final agenda has not been set for presentations on February 27. However, it is likely that
our presentation will take place in the morning between 9:00 a.m. and 12:00 p.m. Each
presentation is allotted only 15 minutes. When I receive the finalized agenda for the 2'111 , I
will send out a fax with the pertinent information. In the meantime, please reserve space on
your calendar for the morning of the 27tll so you can be present to evidence your support for
this Caucus bond issue.
Fmally, I have attached a list of the Private Activity Bond Allocations Committee for 1998 .
This is the committee to whom we will present ; Jerry Smith, Executive Director of DO~
chairs it. Mr . Smith Will make his final decisions based in part on the recommendations of the
committee .
Aurora
Boulder
Bow Mar
Brighton
Broomfield
Castle Rocle
erry Hills Village
·~1umbine Valley
Commerce Gty
Denver
Edgewater
.glewooo
Erie
Federal Heights
Glendale
Golden
?enwood Village
Lafayette
Lakewood
Littleton
Lone Tree
Longmont
Louisville
Morrison
Northglenn
Parker
.Sher i dan
Thornton
Westminster
Wheat Ridge
Januarv 2.3. 1998
Mr. Pat Coyle
Colorado Depanment of Local Affairs
Division of Housing
1.31.3 Sherman Street
Denver. Colorado 8020.3
Dear Mr. Coyle:
The Metro tvfavors Caucus is oleased to submit this aoolication for $7.500.0 00 of . "' . . . .
Private Activity Bond (PAB) allocation from the Statevvide Balance. We are
requesting this allocation in order to permit our smaller jurisdictions to panicipate
in a metrowide single-family mortgage revenue bond program The dollar amount
requested approximates the amount that our non-entitlement populations
throughout the region would receive if they were considered tog~her as one
community. If approved.. the entire amount of allocation requested from the
Statev .. ide Balance will be set aside for use in our non-entitlement jurisdictions.
The amount received from the Statewide Balance \'vill be supplemented with
approximately $11.500.000 of recycled bond funds from Denver's l 937D multi-
jurisdictional bond issue and a portion of the PA.B allocations from panicipating
entitlement communities v.ithin the Caucus. Bec:mse of availability of their
recyc!ed funds. the City and County of Denver has agreed to issue the bonds on
behalf of the Metro Mayors -Caucus. In August of 1997, the City and County of
Denver orchestrated a similar issuance of single-family mongage revenue bonds
on behalf of itself Lakewood.. Aurora, Thornton. and Boulder County.
The Metro Mayors Caucus represents 31 municipalities in the Denver region.
The Caucus, which meets formally six times per year, serves as a forum where
metropolitan leaders can address a variety of local and regional issues of mutual
concern. Over the last several years. Caucus member jurisdictions have 'Nitnessed
a rapid .and substantial increase in housing prices. The rise in housing prices has
made it difficult for metro area households of low :ind even middle incomes to
find affordable housing. While there are obvious and immediate quality of life
impacts for lower and middle income households. the Caucus also realizes that
the shortage of affordable housing has broader. long-term economic r:imific:itions
for our region. Employers are concerned \vith the av ailability of housing
affordable to their employees :ind as housing prices rise. it bec o mes more difficult
to attract new businesses to our region. Recognizing these trends. in 1996 the Caucus convened
a task force to srudy a variety of policy options. One outcome of the task force· s efforts was the •
creation of a Regional Housing Alliance composed of mayors, representatives from the U.S.
Department of Housing and Urban Development. city technical staff and pmate and non-profit
entities. Over the past year .. the Alliance has developed strategies to overcome barriers to the
creation · and availability of affordable housing. At their December rneetin~. the Caucus agreed
to implement several specific recommendations generated by the Alliance. Among these
recommendations was that the Caucus promote a single-family mortgage revenue bond issue to
serve the metro area. Numerous reasons exist for pursuing a cooperative metrov.ide bond issue,
among them are the following:
1. It is very difficult for first-time homebuyers to purchase homes. A bond issue would
provide additional resources by making funds available at low interest rates ( 1/2% or
more below the market rate} as well as by providing do"Wn-payment assistance of 3% to
4% of the mortgage amount.
2. A bond issue sponsored by the Metro Mayors Caucus will enable the C:mcas to bring
affordable housing to the forefront of issues facing the metro area and enable the Caucus
to present and obtain backing for its entire housing agenda.
3. Because they do not meet the population threshold for a separate allocation. non-
entitlement cities within the Caucus are not able to consistently offer single-family
mortgage revenue bonds and down payment assistance to their residents. However, if
considered on a per capita basis. non-entitlement Caucus cities could benefit from funds
available in the Statewide Balance in the amount of approximately $7,970,000 .
4. A Metro Mayors Caucus bond issue both demonstrates the political vi.,iil in our region to
collaboratively address our shared housing challenges and creates a model for the sharing
of furure PAB allocations that may be used to finance vital housing projects and
programs.
Among the 31 municipalities in the Metro Mayors Caucus. 23 do not receive their own
allocation. These 23 jurisdictions would directly benefit from this bond issue by having the
entire amount received from the Statewide Balance set-aside for at least 120 days for distribution
in their communities. These funds would be leveraged with the entire amount of recycled funds
available from Denver's 1987D bond issue ($11,634,000 available to recycle as of 12-1-97).
Further, Arvada. Aurora, Boulder and Lakewood have each commined a portion of their PAB
allocation to the Caucus single-family MRB. Although the member entitlement cities of
Thornton. Westminster, and Longmont have already committed their 1998 allocations for
housing or other purposes, ways to include them in this bond issue are being pursued.
In closing, the Metro Mayors Caucus requests $7.500 ,0 00 from the Statewide Balance to ~able
our non-entitlement cities to participate in this bond issue and in order to kick-off our housing
agenda. Evidence of the broad community support for this application is found in the attached
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letters signed by Caucus members. We anticipate the prompt issuance of these bonds and have •
established a target date of early Spring 1998. Documentation of the need for this bond issue and
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cooperative action around housing efforts is evidenced by the attached information regarding the
increasing gap between wage~ and housing costs and the consistently low metro area vacancy
rates. We deeply appreciate your t aking the time t o consider this application and look-forn-ard to
, presenting it before the Private Activity Bond Allocations Committee.
Sincerely yours,
Northglenn Mayor Don Parsons
Chair, Regional Housing Alliance
Aurora
Boulder
Bow Mar
Brighton
Broomfield
Castle Rock
rry Hills Village
l umbine Valley
Commerce City
Denver
Edgewater
Englewood
Erie
=ederal Heights
Glendale
Golden
mwood Village
Lafayette
Lakewood
Littleton
Lone Tree
Longmont
Louisville
Morrison
Northglenn
Parker
Sher i dan
Thornton
Westminster
Wheat Ri dge
Bond Allocations Committee
Depanment of Local A.ifairs
1313 Sherman Street. Suite 323
Denver Colorado 80203
January 9, 1998
Ladies and Gentlemen of the Committee:
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We the undersigned mayors of the Metro Mayors Caucus support Denver 's app li cation for
funds from the Statewide Balance on our behalf As the non-entitlement cities ·;.it.:..in the
Caucus, we are interested in panicipating in the proposed single-family mortg::i~e revenue
bond issue (SF-;\-IRB) as described in Denver's application for funds. T ne :Yfe=-o \.fayors
Caucus has consistently identified affordable housing as one of our most pressir.g r egional
challenges . We now have an opportunity to cooperate with our entitleme::r n:e:nber
jurisdictions on a SF-;\-IRB from which we would otherwise be barred dl!e t o the
population requirement for a separate allocation. An allocation of funds from the
Statewide Balance, assigned to Denver and pooled for disbursement to participating
lenders in our jurisdictions, would allow us to attain a number of comp i e~e::uary
objectives .
1. A shared pool of funds for jurisdictions too small to receive our own allocations
allows us to panicipate in a bond issue from which we would othef'.vise be exc!ucetl .
2 . By working together on this application and bond issue we are building not oniy inter-
jurisdictional relationships, but also models of cooperation for our re~on .
3 . By pooling funds we can reduce the impact of the fixed costs of bond issuance while
leveraging individual allocations for optimum benefit to our region.
If there is an allocation of Private Activity Bond authority to Denver for use on o ur behaU:
we commit to taking the official action necessary to delegate our authority t o De::v er.
We deeply appreciate your careful consideration of this request.
Sincerely , 4 t2_A;aUL/ M<i;/~Pars~hglenn Mayor Bill Berens, Broom.fie !d
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• Mayor Tom Burns, Englewood Mayor Phil Stewart, Federal Heights
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or Jack O'Boy le, Lone Tree/
~0r;.~~< 'layor l tc: ~rrum. !:..!ne
y, Commer/e City
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ayor John Fox, Edgewater
J ---n.-ray9r Gretc hen Cervenv, v' . -
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January 20, 1998
Bond Allocations Committee
Department of Loe.al Affairs
1313 Sherman Street, Suite 323
Denver, CO 80203
Ladies and Gentlemen of the Committee:
CITY OF LAKEWOOD
OFF1CE OF THE l\1AYOR
Linda l\'Iorton
445 South Allison Parkway
Lakewood, CO 80226-3105
303-987-7040 V/TDD
F~X 303-987-7063
The City of Lakewood strongly supports Denver's application, on behalf of the Metro i'.\.1ayors
Caucus, for funds from the Private Activity Bond (P AB) Statewide Balance. An allocation from
the Statewide Balance would allow non-entitlement Caucus cities to participate in the proposerl
Metro :'rfayors Caucus single-family mortgage revenue bond (l'v!RB) issue. The bond issue would
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be used to provide below-market financing and down-payment assistance to first-time •
homebuyers throughout the gre:iter Denver metropolitan are:i.
The Metro i'.\.1ayors Caucus has consistently identified affordable housing as one of our most
pressing regional challenges. This year, the City of Lakewood will dir~t its entire $3.45 million
P AB allocation to provide assistance to first-time homebuyers. Lakewood will comm.it one
million dollars in P AB allocation to the metro wide ~!RB described in the Caucus' application.
The balance will be used to promote homeownership in support of other public investment in
certain t:irget areas with.in our own community.
We write you now to both demonstrate our commitment of participation in a pooled bond issue
and to voice support for Caucus' appliC!ltion for funds from the Statewide Balance. The MRB
proposal provides an unusual opportunity for us to leverage available authority for the
ma-<imum benefit to those seeking to buy their first home. In considering the Caucus'
application, I ask that you please bear in mind the substantial impact the MRB would have on
homeownership across the metropolitan are:i. Additionally, I ask that you r~ognize this MRB
issue as an opportunity to rise above parochial interests and forge a new model of regional
cooperation for affordable housing.
Thank you again for your considerntion.
Sincerely,
'71~
Linda Morton
Mayor
*Alternative formats of this document are available upon request.*
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·Hbusing and Human SeMces
9 ty of Boulder
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January 23. 1998
Mr. Steve Gordon
City ofDenvcr
Planning Office
Fax: 572-4636
••'VIA. F.A.X••
Dez-Steve:
°'ildren ~ and M:imlll• CMsioft Q\ildrWn~~
Ycun Sc:rw:e:o
FernikJ ~ Scriocls
~I~ $eMC!'tS DMsion
PoiiQ,j PICIWll9
~~iQl"a
Hi.wrens~ N-.d
I-towing OMstcn
PICM1ng
N'odin~
Oitecr ScMc•
Seni« SeNiccs OiVISlon
ScncrCu=
Cotmui1C,1 Rescun:e5
Ccrcrcc:r s~~
~ & fl.ececeon
On behalf of the Mayor of tile City ofBouldc:', Bob Greenlee, I am providir.g this letter stating
Boulder's intention to allo~ S1 Million of its private activity bond allocation to the City of
Dc."lve: for a metro-wide single fumily issue. Housing for workers is a priority of the City of
Boulde:-and we have focused ei'foru v.ith the private sec:or to puce code:atcly priced
housing that these workers can purc.1ase. The availability offuD.as will fur-...her our cibr.s to rr.ake
a.:fforc!able housing c.1.oic:s-::crailable in our communities.
If you have any questions or require additional information I may be contae:ed at 441-3144.
Thanks for all of your efforts to make this type of~cing available.
Sincerely,
cc: Bob Gree.."llee
Jack.7 Morales-Fer.and
John Tayer
P.O. Box 79 1 Bcu \cer. Co lcrceo 80306 (303) ¥ 1-3 140
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A IT ACH1\.1ENT 9
Other Information specific:illy requested to assist in reviewing the program
1. ls rhis mongage program envisioned ro be multi-year?
The mortgage loans originated under this· program are anticipated to close this year.
The Metro Mayors Caucus . has selected affordable housing as one of their priorities. A
series of actions have been adopted, including developing a metro mortgage loan
program. Should this program be successful, the Caucus may choose to establish an
ongoing program.
2. How will rhe program be markered and adminisrered? Is there a comminnenr ro
the program's overhead?
A press conference with mayors from panicipating cities will initiate the program. The
press conference held in August by the 1997 A local issuers was very successful in
publicizing the program. It was carried by all four TV stations. It generated hundreds
of calls and two of the lenders committed their funds in the first week. A brochure will
be printed , made available to each panicipating jurisdiction, and be widely distributed.
The Boards of Realtors will be contacted and articles made available to them for .their
newsletters. Participating lenders will also be marketing the program.
A Master Servicer/Program Administrator will be selected through a competitive
process to administer the program.
The program overhead will be covered by the net profit from the sale of the
outstanding GNNI.A securities. Should there be insufficient funds to cover all the
overhead and provide an attractive program , the City and County of Denver has up to
$250,000 that can be made available from a previous single family bond issue.
3. Of the participating non-entitlemenr cities , will rhey recei ve a proponional share
of assisrance ? How will this be accomplished ?
The non-entitlement cities will receive a proportional share of assistance. The entire
amount provided by the State will be held for a minimum of 120 days for the nan-
entitlement cities. After 120 days (or mare), the funds will be made available to any
participating jurisdictions including the non-entitlement cities.
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4. 'What ponion of local PAB direct allocations have been assigned to rhis
proposal? Please list rhe communities and amounts assigned .
City and County of Denver -100 % of recycled funds from its 1987D issue
· Lakewood
Arvada
Boulder
Aurora
Thornton
Westminster
· (about Sll,500,000)
Sl,000,000
s 100,000
$1,000,000
$ 250,000
To be determined
To be determined
5. ls there a role for metro mongage bankers & Realtors?
Yes. All metro mortgage bankers meeting minimum requirements will be offered an
opportunity to participate. Five lenders chose to participate in the 1997 A issue. As
described under the marketing section, Realtors will be contacted directly about the
program. Also most mortgage bankers are in close contact with Realtors.
6. Is there su.fficienr affordable housing stock/or sale in the paniciparing
communities?
There is sufficient affordable housing stock available. Given the response to the 1997
issue, there cle:rrly is sufficient housing priced at below the purchase price limit of
Sl24,000 ($144,000 in Boulder County and Longmont). The average purchase price in
the 1997A program was slightly under $100,000 as of December 31 , 1997. Data
provided in Anachment G demonstrates the availability of sufficient homes. For 1997,
approximately 33 % of the homes sold for under $110,000. Another 32 % sold for
between $110,000 and $149,999. There may be some communities that do not have
houses priced below the purchase price limit. However, they will benefit from the
availability of attractive financing for first-time homebuyers in adjacent or nearby
communities.
7. How will the downpaymenr assistance be capitali::.ed?
The funds to provide downpayment assistance will come from the sale of premium
bonds and from the net profits from the sale of the Grnv1A securities. The premiums
will be utilized to establish a down payment and closing cost assistance fund which will
provide grants of 3 % to 4 % of the loan amount in the form of a grant .
8. How will raies on this bond differ from CHFA 's current rates&: tenns?
The precise rates or rate differential with CHF A is subject to market conditions
including the price received for the existing GNMA secunties. However, it is
anticipated that if both pro-grams offered the same down payment grants that the interest
rate on the Metto Mayors Caucus Program will be slightly lower ( 1/8 % to 1/ 4 3).
9. How will this program augment the existing CHFA mongage programs in the
metro area?
Given that CHFA does three or four bond programs a year and that the funds for each
are usually reserved within a few days, there clearly is much more demand than CHF A
can accommodate. Thus, the Metro Mayors Caucus program will address the unmet
demand within Metropolitan Denver. Unlike CHF A, allocations of bond proceeds are
provided to lenders for specific localities. Therefore, lenders will be able to work with
participating communities, including the non-entitlement cities, to generate loans.
CHFA programs typically establish purchase price limits on a statewide basis which are
generally lower than those allowed in the Metro Denver Area. By setting higher
mortgage limits, it will be possible to originate mortgages in some higher cost
communities for first-time homebuyers who could not participate in a CHFA program.
Finally, some unique targeting approaches will be explored to attempt to direct the
funds to those who need them most to qualify to buy a home.
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llhl\-c:.'i -vO 1UC. 10· ! j C.J1\J L C!'jVVLI 1lVu .)u1\J nu in 'nf) l !Vo ,.,uJ 1Q1J;JUJ r . Vl
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FAX TRANSMISSION
• Date: ~ -~+-9 ~
TO : -P~
COMPANY:
FAX: ( ) 1 lad--f) f()g
FROM:~~~~~---~~~~~~~~~~
Englewood Housing Authority
Office (303) 761-6200
Fax: (303) 781-5503
Number of pages (including this cover page): __ _
~~~~~~~~~~~· ___u~~--~~~~~
'i~--
Pfeasa notify us of any errors in this transmission.
I ' ye_ 11.fU\ _-y 'wl\.I l \J~ .. ..,•1 ... ...... ivL..-nvvu ,,\..l uv••l"" \lU'''
. J11i~-23-98 FRI ~0:37 ARAP CTY con SVCS FAK NO. 303J944B71 P. 01
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TO:
I cc:
Janet Grimmett
Englewood Housing
AuthOllfy
!
l
I 0aie 01/23198
Phone
2
Men:y Griffin
Anlpshoe Ccunty HCDS
2009 West Littfeton BNd.
uttfetrm, CO 80120-2024
I• 30~ 730 1183
,.ax Piion• 303 194 487 1 ----
REMARKS: 0 Vlfl8llt
Janet-
D For your revt.w O Reply ASAP D Pie•• Comment
~Income guldefines ror 1998 CDBG and other programs are out. Our faxed copy Is bad,
and I'm not sure if it'IJ even be legible by 1he time you receive It ttirough your fax machine, so
h~·~ l"IOYI ~ b1"9tk down:
Lcwlnccme
1-per3on $31,200
2 person 35,S&l
3 person 40.100
4 per$0n 44,550
5 person 48,100
6 person 61,700
7p~on 55,250
8 pca~n 58,800
OvaniJI mecrum family Income la $55,700.
ThankS • calf if any questions .
Very low lntome
$19,500
22,:300
25,050
27.650
30, 100
32.300
34,550
36,750
' .;; ~I 000.
44, /;CO
s o, f 0..0
65 , ?00
{JQ, ~00
t..4, {p co
{aC\, I 00
'73,500