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HomeMy WebLinkAbout2004 Resolution No. 084' .. • • • RESOLUTION NO .fl/ SERIES OF 2004 -- CONTRAcr NO, '/b-).,l)D'f- A RESOLUTION AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF ENGLEWOOD, ARAPAHOE COUNTY , COLORADO PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CE ILING Al.LOCATION ACT . WHEREAS, the Cit y of Eng lewood, Colorado is au thori zed and emp owe red under the laws of th •: State of Colorado to issue revenue bonds for the purpo se of providing si ngle-family mongage loans to low and moderate inc ome persons and families ; and WHEREAS, the Internal Re ve nue Code of 1986, as ame nded restricts the amount of tax- exempt bonds which may be issued in the State to provide such mortgage loan s and for certain other purposes ; and WHEREAS, pursuant to the Code, the Co lorado Legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act, Pan 17 of Anicle 24, Colorado Revised Statutes (the "Allocation Act"), providing for the all ocatio n of the State Ceiling among the Colorado Housing and Finance Authority ("Authority") and other governmenta l units in the State, and funher providing for the as signment of suc h all ocati ons from suc h other governmen tal units to lhc Authority; and WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the City of Eng lewood , Co lorado has an all ocation of the 2004 State Cei ling fo r the issuance of a spec ified principal amount of Private Activity Bonds prior to September 15 , 2004 (the "2004 Allocat,on"); and WHEREAS, the City of Eng lewood , Co lorado has detennined that the 2004 Allocation, or a portion th ereof, can be utilized most efficient ly by assigning it to the Authority to issue Private Activity Bonds for the purpose of providing single -fami ly mongage loan s to low and moderate income persons and families; which assignment is to be evidenced by an Assi gnment of Allocation between the City of Englewood and the Authority; NOW , THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOO D, COLORADO, THAT : Section I. The assignme nt to the Authority for $1,360 ,320 .00 of the City of Eng lewood, Co lorad o's 2004 Allocation shall be and hereby is approved. Section 2. The form and substance of th e Assignment of Allocation are approved ; provid ed, howe ve r, tha t the Eng lewood City Co un cil is au thori ze d to make such technica l varia tions, ad ditions or deletions in or 10 such Assignment of Allocation as they shall deem ne cessary or nppropriate and not inconsi stent with the approval thereof by this Reso lut ion . ~-The Mayor and the City Clerk fo r the Ci ty of Englewood, Co lorado are aut horized 10 execu te and delive r the Assignme nt of All ocatio n on behalf of the City of Englewood and 10 take such other steps or actio ns as may be necessary, useful or co nvenient to effec t the aforesaid assignmen t in accordance with th e int ent of this Reso lu1ion. Sectio n 4. If any section , parag rap h, clause or provision of this Resolution shall for any reason be held 10 be invalid or unenforceable, the in validity or unenforceability of suc h sec tio n paragraph, clause, or provi sion sha ll not affect any of the remaining provisions of this Resol uti on. Section 5. This Resolution shall be in full fon:e and effect upon its passage and ap proval or as ot herw ise requi red by the Englewood Home Rule Chaner. ADOPTED AND APPROVED thi s 16th day of August, 2004. I, Loucrishia A. Ell is, City Cleril.fq the City of En above is a true copy of Reso luti on No . ye , Series of20 •• I • • • • • • COUNCIL COMMUNICATION Date : Augu st 16, 2004 Initiated By: I Agenda Item: 11 Ci Communi ty D evelopm e nt D epart m ent I Subject : 2004 Pr iva te Ac tivity Bo nd Ca p A ll ocati on I Staff Source: Mark Grah a,11, Senior Plann er COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Co un<.il es tablish ed goa ls for enhancin g housi ng options including home ow nersh:p in Engl ewood. RECOMMEI 1::>ED ACTION Staff recomm ends th at Coun ci l adopt the Resolut io n authorizing ass ign ment of Englewood's 2004 Pri vate Acti vity Bond (PAB) Cap Allocati on to th e Colorado H ousin g and Fin ance Autho rity (CHFA) fo r home owne rship prog rams . BACKGROUND, ANALYS IS, AND ALTERNATIVE S IDENTIFIED Th e State o f Co lorado all oca tes Pri va te Acti vity Bond (PAB ) Cap to jurisdictio ns eligible to rece ive more th an one milli on doll ars o f PAB . En glewood wa s all ocated $1,306,320 for 2004. Engl ewoo d b -am e an entitl em ent community for an all oca ti on for the fi rst tim e in 20 02. Prio r to that , Engl e• wood was eligible to apply to th e state for PAB . In 2002 an d 2003, Engl ewood ass igned its PAB to th e Colo rado H ousini, Finarxe Au th ority for home ownership program•,. Fo r many yea rs pri o r to that , En gl ewood appli ed to the State t o assig n its shar e of PAB to th e Metro Mayors Ca ucus mortga ge bond program adm iniste red by the City of Denve r. The City typica ll y does not assign the PAB unti l cl ose to th e State's Sep ten ,o er d•,adli ne so th at th e PAB may b e avai lable for an eligible l ;cal proj ec t. No PAB eligible proj ec t, ha v,, b ee n proposed. FIN ANC IAL IMP ACT Th e Reso lu ti on assigns En glewood 's entire 2004 PAB, $1 ,306,3 20, to CHFA fo r Home Ownership programs. If th e Council takes no ac tion, th e PA B reve rts to th e Colorado Depa rtment of Loca l Af- fairs for ass ignmen t to eli gib le state age ncies. LI STOF ATTACHMENTS Reso luti on • • • l /02 ASSIGNMENT OF ALLOCATION This Assignmen; of Allocat ion (the "Assignment"), dated this ~ay of August 2004, is between the City of Englewood , Colorado (the "Assignor") and the Colorado Housing and Finance Authority (the "Ass ign ee"). WITNESS ETH : WHEREAS, the Assignor and the Assign ee are authorized and empowered und er the laws of the State of Colorado (the "State") to issue revenue bonds for the purpose of providing single -family mongage loans to low -and moderate-income persons and families; and WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"), restricts the amount of tax-exempt bonds ("Private Activity Bonds") which may be issued in the State to provide such mongage loans and for cenain other purposes (the "State Ceiling"); and WHEREAS, pursuant to th, Code, the Colorado legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act, Pan 17 of Anicle 32 ofTitle 24, Colorado Revised Statutes (the "Allocauon Act"), providing for the allocation of the State Ceilin g among the Assignee and oJ.ber governmental units in the State, and further providing for the assignment of allocrations from such other governmental units to the Assignee; and WHEREAS, pursuant 10 an allocation under Section 24-32-1706 of the Allocation Act, the Assignor has an allocation of the 2004 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September I 5, 2004 (the "2004 Allocation"); and WHEREAS, the Assignor has determined that, in order to increase the availability of ad equate affordable housing for !ow -and moderate-income persons and families within the City of Englewood and elsewl.ere in the State , it is necessary or desirable to provide for the utilization of all or a ponion of the 2004 Allocation ; and WHEREAS, the Assignor has determined that the 2004 Allocation, or a ponion thereof, can be utilized most efficiently by assigning it to the Assignee to issue Private Activity Bond s for the purpose of providing single -family mongag e !oms lo low-and mo derate-income persons and familie s ("Revenue Bonds"), and the Assignee has express d it s willingn es s to auempt to issue Revenu e Bonds with respect lo the 2004 Allocation; and • • • WHEREAS, the Englewood City Council by Resolution ~ , Series of 2004 of the Assignor has detennined to assi gn to the Assignee $1 ,306,320 .00 of its 2004 Allocation, and the Assignee has agreed to accept such assignment, which is to be evidencecl by this Assignment. NOW, THEREFORE , in consideration of :he premises and the mutual promises hereinafter set forth, the parties hereto agree as fo:lows: I. The Assignor hereby assigns tn the Assignee $ l ,306,320 .00 of its 2004 Allocation, subject to the tenns and conditions contained herei n. The Assignor re presents that it has received no monetary consideration for said assignment. 2. The Assignee hereby accept s the assignment to it by the Assignor of $1,306,320 .00 of Assignor's 2004 Allocation, subject to the terms and conditions containr.d herein . The Assignee agrees to use its best efforts to issue and sell Revenue Bonds, in one or more series, and to make proceeds of such Reven ue Bonds available from time to time during the period of two (2) years from the date of this Assignment for the purchase of mortgage loans in at least the aggregate amount of $1,306,320 .00 to finance single-family hous ing facilities located in the City of Englewood . Unless otherwise agreed to in writing, the mortgage loans will be subject to all applicable current requirements of Assignee's mortgage revenue bond program , including Assignee's income and purchase price limits. 3. The Assignor 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 su ch further proceedings as may be requ ired to implement the terms of this Assignment. 5. Nothing co111:.i 01ed in this Assignment shall obligate the Assignee to finance mortgage loans in an; ,,articular amount 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 effective upon execution and is irrevocable . H:\G RO UP\Dcvdopmml ProJCCI Scc11on \P AO\l004\2CXM AlJ.OCI 072604 .IX>C • IN WITNESS WHEREOF , the parties hereto have duly executed this Assignment on the date first WI :tt an above. [SEAL] ATTEST: By: Assistant Secretary C*WMOO By: ---: Title : /H JyOI?_ COLORADO HOUSING AND FINANCE AUTHORITY By:----------- Executiv,: Director H:\O ROUP\Dm:lopmcn l Project Scction\PAB\l004\:l004 ALLOCI 072604 .00C • • • C '' T y 0 F E N G L E V 1 0 0 D 0 F F I C 0 F T 1-1 C August 17, 2004 Co lorado Housin g and Finan ce Auth ority I 981 Blake Stree t Denve r, Colorado 80202-1272 Gent lemen: T y ATTORNEY I am an anorney dul y admi ned to prac ti ce in the State of Co lorado (th e "S tate"). I have ac ted as co un sel fo r the Cit y of Engl ewood, Co lor,1do (the "Ci ty") in co nn ec tion wi th th e as signment by the Cit y to the Co lorado Housi ng and Finan ce Auth ority (t he "Authorit y") of th e Ci ty's all oca ti on of the ceil in g on pri va te act ivit y bonds whi ch may be issued in the State durin g the peri od fr om January I to Decem ber 3 1, 2004 (t he "2004 Allocation "), under Part 17 of Article 32 of Titl, 24 of the Co lorad o Re vised Stat ut es (thi: "A ll oca ti on Act"). Thi:, as sign ment is being effec ted pursuant 10 a Reso luti on adopted by the Englewo od Cit y Co un cil on Augus t 16, 2004 , and an Assignme nt of Allo ca ti on dated August 16, 2004 (the "As signment o f Allo cation"), bet wee n th e Cit y an d the Authorit y. I ha,·c exami ned . among ot her th ings. a co py of the Rc so lUli on. I ha ve al ,o exa mined th e Co nstitut ion of th e State an d such statut es and re gul ati ons, as I de emed appropria te. including . without limit ation. the Charter of th .: City of Englewood , cc nifi cat es of pub lic oflicials and of ofliecrs and rep,ese nt ative s of th e Ci ty, and such oth er document s, as I have dee med nec essary as a basis for the opini ons hereinaft er expre ss ed . In th e co ur se of su,~h exami nati ons, I have ass umed th e ge nuinen ess of all sig natu res and the au th enticit y of all docu ment s sub mitt ed to me as co pies . Base d upon th ..: fo rego ing . it is my opini on that: I . The Cit y of Englewood is .1 Ci ty va lid ly exis tin g und er the Consti tu tion and th..: laws of th e State. 2. Th e Ci'y ha s full lega l right. powe r and auth orit y: (a) lo assig n it s 2004 Alloc ati on. or a po rti on th ereof. in ac co rd ance wi th th e Re so lu ti on and th e Assig nm ent of All oca ti on: (b) 10 ado pl the Re so luti on; (c) to exe cute and deli ve r th e Ass ignm en t of All oc ation : and (d) to perform ilS obliga tions unde r th e Re solut io n . D,1 niel L. Brot 1.m,in , Ci ly 1\ll u rn cv Nanq• N . R~td, A~m1;in1 C 11r ,\UOf nt.?}' Dug;m S. Comer, ,\~s,~1.1n1 C l!\ .o\11 o rnc y (h,HIL•) H . R1th Ill, t\))ISl,1111 C 11y t\Uornc}' 1000 Englewood P,1rkw,1y Englewoo d, Co lorJdo Htll 10 Ph on • JQJ -i6l·23~0 FAX J0J -iH3-6H'J2 \\WW c1 cn.:lt.'•,,ood co u~ • • 3. The adoption or the execullon and delive ry and the 1erformance o r th e Ci ty or th e Re soluti on and the A,signm cnt or All ocat io n and th e performance or the Cit y's obligation s there un der ha ve be en dul y au thoriz ed by the Cit y, and each ha ve been duly adopted or exec ut ed and deli vered by the City , and esch or th em con stitute valid and binding ob li gation s or th e Ci ty enforceable in ac cord ance wit h it s term s. 4 . Th e adopti on or the Resolution and the execu tion and delive ry of th e Assignmen t of All ocali on and co mpliance wi th th e term s, co ndi tion s and provi sions or each thereof by th e City will not conflict with or result in a breac h or viola tion or any of the terms , condi tio ns or provisions of th e Constitution or th e laws of the State, loca l ordina nces , resolut io ns, cha rter, bylaw s, or other regu lations , or any ot l1 cr go vernm enta l authority of any nature whatsC1cve r as now exis ting , or to th e be st of my know ledge, any agreement or instrume nt lo which the Ci ty is now a pa rt y or by whic h it is bound , or con stitu te a defau lt there 1 .. ndcr . 5. Wit h re spect 10 th e 2004 Alloealion, or a portion thereor, being assigned to th e Auth orit y pursuan t lo th e Reso lut io n and th e Ass ignment or Alloca ti on, the Ci ty has not: (a) issued pri vatr. activity bonds ; (b) assigned th e all ocation to anot her 11 issui ng au th ority" as such term is defined in th e Alloca tion Act ; (c) made a mortgage credi t certifica te electi on; or (d) trea ted the all ocation as an allocation fo r a projec t wi th a carry forwar d purpose. 6 . No approval , permit , co nse nt or authorization applicable to th e Cit y an d not already o~taincd by th e C ty or any government or public age nc y, auth ori ty or person is required in connection wi th the ado pti on of 1h c exec uti on and delivery by th e Ci ty or, and the perfo rm ance by .1 or its obl iga ti ons und er, th e Re solution and the Assignment or Allocation . This op in io n may be relied up on by: (i) th e Authorit; 's Bond Co un se l in rendering its opi nion in co nn ec tion wi th th e issuance by the Authorit y of re ve nu e bonds ; and (ii) cac i1 in stitut ion whic h may ac t as an underwriter of any sur h revenue bonds .