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HomeMy WebLinkAbout7971RESOLUTION NO. 7971 (1996) A RESOLUTION APPROVING THE DELEGATION AND ASSIGNMENT BY THE CITY OF PUEBLO OF ITS 1995 AND 1996 DIRECT ALLOCATIONS OF PRIVATE ACTIVITY BOND VOLUME TO THE COLORADO HOUSING AND FINANCE AUTHORITY; APPROVING A DELEGATION AGREEMENT IN CONNECTION THEREWITH, AND AUTHORIZING ITS EXECUTION; AND PROVIDING THE EFFECTIVE DATE OF THIS RESOLUTION. WHEREAS, the City of Pueblo, Colorado (the "City "), pursuant to Resolution No. 7574 (the "1995 Resolution "), approved and adopted by the City Council of Pueblo on March 6, 1995, reserved its 1995 allocation of private activity bond volume allocation from the State of Colorado (the " 1995 Allocation "), for the purposes set forth in that 1995 Resolution; and WHEREAS, the City of Pueblo, Colorado (the "City), pursuant to Resolution No. 7952 (the "1996 Resolution "), approved and adopted by the City Council of Pueblo on September 9, 1996, reserved its 1996 allocation of private activity bond volume allocation from the State of Colorado (the "1996 Allocation "), for the purposes set forth in that 1996 Resolution; and WHEREAS, the City desires to delegate the 1995 Allocation and to assign the 1996 Allocation to the Colorado Housing and Finance Authority (the "Authority ") for use as part of a consolidated issue of single family mortgage revenue bonds for the purpose of financing residential facilities for low- and middle - income families or persons intended for use as the sole place of residence by the owners or intended occupants, without, however, the reservation restrictions stated in the 1995 Resolution and the 1996 Resolution; and WHEREAS, a form of Delegation Agreement between the City and the Authority has been presented to this meeting; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO: 1. The form of Delegation Agreement presented at this meeting is hereby approved and adopted, and the President of the City Council is hereby authorized and directed to execute the Delegation Agreement in substantially the form presented, but with such changes as are approved by the City Attorney and the President, the execution of the Delegation Agreement to constitute conclusive proof of such approval, and the City Clerk is hereby authorized and directed to attach the seal of the City to the Delegation Agreement and to attest the President's signature and the seal. 2. The City hereby approves and authorizes the assignment, and hereby assigns, the 1996 Allocation to the Authority for use in the same program as the 1995 Allocation, without, however, the reservation restriction contained in clause (ii) of Section 1 of the 1996 Resolution. 02/112534.1 3. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invality or unenforceability of any such section, paragraph, clause or provision shall not affect any of the remaining provisions of this resolution. 4. This resolution shall take effect immediately upon its introduction and passage. INTRODUCED, READ, PASSED AND ADOPTED AT A REGULAR MEETING THIS 23RD DAY OF SEPTEMBER, 1996. INTRODUCED: September 23, 1996 BY: Al Gurule Councilperson APPROVE • . Pre 'dent of the Council ATTEST: City Clerk 02/112534.1 DELEGATION AGREEMENT This Delegation Agreement is between the City of Pueblo, Colorado (the "City "), a municipal corporation and political subdivision duly organized and existing under the Constitution and laws of the State of Colorado (the "State ") and the Colorado Housing and Finance Authority (the "Authority "), a body corporate and a political subdivision of the State. 1. Preliminary Statement Among the matters of mutual inducement which have resulted in the execution of this Delegation Agreement are the following: (a) The City and the Authority are authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3 of Title 29, Colorado Revised Statutes (the "Project Act ") and by the Colorado Housing and Finance Authority Act, constituting Title 29, Article 4, Part 7, Colorado Revised Statutes (the "Authority Act "), respectively, to finance properties to the end that more adequate residential housing facilities for low- and middle- income families and persons may be provided, to issue bonds evidencing such financing. (b) The Project Act and Part 2 of Article 1 of Title 29, Colorado Revised Statutes, provide, in effect, that any county or municipality may by resolution or ordinance delegate to any other county, municipal authority or political subdivision its authority under the Project Act to finance projects under the Project Act. (c) Pursuant to the Private Activity Bond Ceiling Allocation Act, constituting Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act "), the City was allocated an amount of the state ceiling (as defined in the Allocation Act) for the year 1995, of which the City carved forward 52,500,000 for use in future years in the manner prescribed by the Allocation Act and by Section 146(f) of the Internal Revenue Code of 1986, as amended (the "Tax Code "), for purposes described in Section 146(f)(5)(B) of the Tax Code. (d) The City desires to delegate to the Authority its powers under the Project Act to issue revenue bonds to be used to finance properties to the end that more adequate residential housing facilities for low- and middle- income families and persons may be provided. (e) The Authority desires to accept such delegation. (f) Additionally, the City has assigned to the Authority pursuant to the Allocation Act $2,517,500 of the state ceiling allocated to the City for the year 1996. (g) Neither the execution and delivery of this Delegation Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Delegation Agreement conflicts with or results in a breach of any of the terms, conditions or provisions of any legal restriction or any agreement or instrument to which the City or the Authority is now a party or by which the City or the Authority is bound, or constitutes a default under any of the foregoing. 2. Delegation by the City Pursuant to the Project Act and Part 2 of Article 1 of Title, 29, Colorado Revised Statutes: (a) The City hereby delegates to the Authority all authority of the City with respect to the issuance of $2,500,000 principal amount of bonds to be used to finance properties to the end that more adequate residential housing facilities for low- and middle- income families and persons may be provided. The City acknowledges that, for federal income tax purposes, it will be the "issuer" of such bonds, and authorizes the Authority to act as its agent and representative in effecting the issuance of such bonds and to take all necessary or desirable action towards accomplishing that purpose, including without limitation completing, executing and filing any IRS Form 8038s required. The City and the Authority intend that the City not be treated as an "issuer" of such bonds for federal or state securities law purposes. (b) The City agrees that it will take such further action and adopt such further proceedings as may be required to implement the terms of this Delegation Agreement; provided, that the City shall not be required to take any action which, in the reasonable judgment of the City and its attorneys, would be detrimental to the City or expose the City to liability. Such further action will include, but is not necessarily limited to, the execution of Federal Tax Exemption Certificates in connection with the issuance of the tax- exempt revenue bonds described in paragraph (a) above. In executing such Certificates, the City will be entitled to review and exclusively rely upon the corresponding Federal Tax Exemption Certificates of the Authority. 3. Acceptance of Delegation by the Authority Pursuant to the Authority Act: (a) The Authority hereby accepts the delegation granted to it by the City, subject to the terms and conditions herein contained. (b) The Authority hereby agrees that it will issue obligations for the purposes described above. (c) The Authority agrees that it will take such further action and adopt such further proceedings as may be required to implement the terms of this Delegation Agreement. 4. Mortgage Loan Set - Aside (a) In consideration of the City's delegation to the Authority as described above and the assignment of the City's 1996 state ceiling to the Authority as described above, the Authority hereby agrees that in connection with the next series of its single family mortgage revenue bonds issued after October 1, 1996, an amount equal to $5,017,500 shall be made available solely for the purchase of mortgage loans on residences located within the City. The amount reserved for such purpose shall be made available beginning on the second day that amounts are made available for the purchase of mortgage loans on residences located anywhere within the State (including the City), and for nine additional business days thereafter. The City agrees and acknowledges that any such reserved amount that is not used for such purpose within such period will be made available for the purchase of mortgage loans on residences located anywhere within the -2- State (including the City) after the end of such period. Additionally, however, if any such reserved amount is not used for such purpose within such period, an amount equal to the unused reserved amount shall be reserved in connection with each subsequent series of the Authority's single family mortgage revenue bonds until reserved amounts in the aggregate equal to $5,017,500 shall have been used to purchase mortgage loans on residences located within the City. The purchase of mortgage loans on residences located within the City either before or after the reservation period described above shall not reduce the amount required to be reserved for such purpose pursuant to this Section 4. (b) The "purchase price" and "income" limitations applicable with respect to mortgage loans purchased with respect to residences located within the City during the reservation period described in paragraph (a) of this Section 4 shall be not less than nor greater than the maximum applicable "purchase price" and "income" limitations under Sections 143(e) and 143(0, respectively, of.the Tax Code. 5. General Provisions (a) This Delegation Agreement is hereby declared irrevocable during the terms of any agreements to be entered into by the Authority in connection with the revenue bonds described above, and this Delegation Agreement shall terminate upon the termination of all of such agreements. (b) This Delegation Agreement shall not constitute the debt or indebtedness of the Authority or the City within the meaning of the Constitution or laws of the State, nor give rise to a pecuniary liability or a charge against the general credit or taxing powers of the Authority or the City. IN WITNESS WHEREOF, the parties hereto have entered into this Delegation Agreement this 3� day of September, 1996. CITY OF PUEBLO, COLORADO (SEAL) Attest: By: City Clerk B Y , J�- /S P esident of the City Council -3- 0 4 -o (SEAL) Atte A ml COLORADO HOUSING AND FINANCE