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HomeMy WebLinkAbout2015 Resolution No. 089• RESOLUTION NO.~ SERIES OF 2015 A RESOLUTION AUTIIORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTIIORITY OF A PRN ATE ACTIVITY BOND ALLOCATION OF THE CITY OF ENGLEWOOD, ARAPAHOE COUNTY, COLORADO PURSUANT TO THE COLORADO PRN 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 oftax- exempt bonds which may be issued in the State to provide such mortgage loans and for certain other purposes; and WHEREAS, pursuant 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 the allocation of the State Ceiling among the Colorado Housing and Finance Authority ("Authority'') and other governmental units in the State, and further providing for the assignment of such allocations from such other governmental units to the Authority; and WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Allocation Act, the City of Englewood, Colorado has an allocation of the 2015 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2015 (the "2015 Allocation''); and WHEREAS, the City of Englewood, Colorado has determined that the 2015 Allocation, or a portion thereof, can 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 the Authority; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, THAT: Section 1. The assignment to the Colorado Housing and Finance Authority of$1,583,800 from the City of Englewood, Colorado's 2015 Private Activity Bond Allocation shall be and hereby is approved. Section 2. The form and substance of the Assignment of Allocation are approved; provided, however, that the Englewood City Council is authorized to make such technical variations, additions or deletions in or to such Assignment of Allocation· as they shall df em necessary or appropriate and not inconsistent with the approval thereof by this Resolutio~ Section 3. The Mayor and the City Clerk for the City of Englewood, Colorado are authorized to execute and deliver the Assignment of Allocation on behalf of the City of Englewood and to take such other steps or actions as may be necessary, useful or convenient to effect the aforesaid assignment in accordance with the intent of this Resolution. Section 4. If any section, paragraph, clause or provision of this Resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section paragraph, clause, or provision shall not affect any of the remaining provisions of this Resolution. Section 5. This Resolution shall be in full force and effect upon its passage and approval or as otherwise required by the Englewood Home Rule Charter. ADOPTED AND APPROVED this 8th day of September, 2015. I, Loucrishia A. Ellis, City Clerk for the City of Englewood, Col above is a true copy of Resolution No . .J!/-• Series of 2015. .. , COUNCIL COMMUNIC ATION DATE: September 8, 2015 AGE N DA ITEM SUB JECT: 2015 Private Activity Bond 11 ci As signment to Colorado Housing and Finance Authority INITIATED BY STAFF SOURCE: Community Development Department Darren Hollingsworth, Economic Deve lopment Manager PREVIOUS COUNCIL ACTION : ■ Council discussed the annual Pri vate Activity Bond (PAB) assignment at the July 27, 2015 Study Session. ■ Coun ci l cons i ders assigning the PAB Allocation annually. ■ Counci l adopted Roadmap Englewood: 2003 Englewood Comprehensive Plan. The Housing element includes Objective 2-1: "encouraging homeownership." RECOMMENDED ACTION : The attached Resolution authorizes assignment of Englewood's 2015 Private Activity Bond (PAB) all ocation to the Colorado Housing and Finance Au th ority (CHFA) for homeownership programs. BACKGROUND. ANALYSIS. AND ALTERNATIVES IDENTIFIED: Staff has worked with representatives from the CHFA to strengthen our relationship in furthe rance of our goals to su pport homeownership programs. This effort will result in increased ma rk eting and awareness of CHFA's homeownership programs through collaborative marke t ing efforts. The amount of activity in Englewood will not be lim ited to the City's assignment of $1,583,800. Participants may benefit from CHFA's large financial resou rces and this is not necessa ri ly capped by our 2015 allocat ion assignment. The State of Co lorado allocates Private Act ivity Bond (PAB) Cap to j urisdictions eligible to receive more than $1 m ill ion dollars of PAB. Englewood was allocated $1,583,800 for 2015. Englewood first became an entitlement community for an allocation in 2002. From 2011 th rough 2014, CHFA did not request PAB CAP from muni cipalities due to the bond market, so Englewood allowed its bond CAP to revert back to the statewide pool. From 2002 through 2010, Englewood assigned its PAB to the Colorado Housi n g Finance Au th o rity for homeownersh ip programs. Prior to 2002 Englewood app lied to the State to assign its share of PAB to the Metro Mayors Ca ucus mortgage bond p rogram administered by the City of D enver, which also p rovided home loans. The City typically does not assign the PAB until m id-year, close to the State's Sep t ember 15 dead line so that the PAB may be availabl e for an eligib le local proj ect. A PAB eligible project has not been proposed in Englewood this year. FINANCIAL IMPACT: The Resolution assigns Eng lewood's entire 2015 $1,583,800 PAB allocation to CHFA for homeownership programs. If Council takes no action, the PAB reverts to the Colorado Department of Local Affai rs for ass ignment to eligib le State agencies.