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HomeMy WebLinkAbout7978`s RESOLUTION NO. 7978 A RESOLUTION APPROVING, CONFIRMING AND RATIFY- ING AN ASSIGNMENT OF ALLOCATION BETWEEN THE CITY OF PUEBLO AND THE COLORADO HOUSING AND FINANCE AUTHORITY RELATING TO THE CITY OF PUEBLO'S 1996 DIRECT ALLOCATION OF PRIVATE ACTIVITY BOND VOLUME WHEREAS, the City Council of the City by Resolution No. 7971 approved the assignment, and assigned the City's 1996 Direct Allocation of Private Activity Bond Volume to the Colorado Housing and Finance Authority (the "Authority "), and WHEREAS, in furtherance of and consistent with the terms and provisions of Resolution No. 7971, the President of the City Council executed and delivered in the name of the City an Assignment Of Allocation dated October 3, 1996 between the City and Authority; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1 The Assignment Of Allocation dated October 3, 1996, a copy of which is attached hereto, having been approved as to form by the City Attorney, and the execution and delivery thereof by the President of the City Council in the name of and on behalf of the City are hereby approved, confirmed and ratified. SECTION 2 This Resolution shall take effect immediately upon its introduction and passage. ATTEST: City Clerk INTRODUCED: October 15 1996 By Samuel Corsentino Councilperson APPROVED: Presi nt of the , ity ouncil Colorado Housing and Finance Authority NOTIFICATION OF ASSIGNMENT OF PRIVATE ACTIVITY BOND CEILING October 16, 1996 Ms. Kate Van Wyhe Colorado Department of Local Affairs 1313 Sherman Street, Room 323 Denver, Colorado 80203 Dear Ms. Van Wyhe: 1981 Blake Street Denver, Colorado 80202 -1272 303 - 297 -2432 Pursuant to Section 24 -32- 1706(2) of the Colorado Private Activity Bond Ceiling Allocation Act, the City of Pueblo ( "City") and the Colorado Housing and Finance Authority ( "Authority") hereby notify you of the City's assignment to the Authority of $2,517,500 of its 1996 allocation of the State's private activity bond ceiling which the City allocated to the carryforward purpose of issuing mortgage revenue bonds. Enclosed for your records is an executed copy of the Assignment of Allocation (the "Assignment "), dated October 3, 1996. Paragraph 1 of the Assignment includes the City's representation that it received no monetary consideration for the assignment. Paragraph 3 of the Assignment contains the City's consent to the Authority's allocation of all or any portion of the $2,517,500 to a project with a carryforward purpose. Very truly yours, David W. Herlinger Executive Director JAR:DWH /kg Enclosures cc: Tom Jagger, Esq., City of Pueblo Stan Raine, Esq. Bill Gorham, Esq. legahbondWanwyl.doc Printed on recycled paper ASSIGNMENT OF ALLOCATION This Assignment of Allocation (the "Assignment ") dated this 3rd day of October, 1996, is between the City of Pueblo, Colorado (the "Assignor ") and the Colorado Housing and Finance Authority (the "Assignee "). WITNESSETH: WHEREAS, the Assignor and the Assignee are authorized and empowered under the laws of the State of Colorado (the "State ") 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 (the "Code "), restricts the amount of tax - exempt bonds ( "Private Activity Bonds ") which may be issued in the State to provide such mortgage loans and for certain other purposes (the "State Ceiling "); and WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act "), providing for the allocation of the State Ceiling among the Assignee and other governmental units in the State, and further providing for the assignment of allocations from such other governmental units to the Assignee; and WHEREAS, pursuant to an allocation under Section 24 -32 -1706 of the Allocation Act, the Assignor has an allocation of the 1996 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to December 31, 1996 (the "1996 Allocation "); and WHEREAS, the Assignor has determined that, in order to increase the availability of adequate affordable housing for low- and moderate - income persons and families with the City of Pueblo, Colorado, and elsewhere in the State, it is necessary or desirable to provide for the utilization of the 1996 Allocation; and WHEREAS, the Assignor has determined that the 1996 Allocation can be utilized most efficiently by assigning it to the Assignee to issue Private Activity Bonds for the purpose of providing single - family mortgage loans to low- and moderate - income persons and families ( "Revenue Bonds "), and the Assignee has expressed its willingness to attempt to issue Revenue Bonds with respect to the 1996 Allocation; and WHEREAS, the City Council of the Assignor has determined to assign to the Assignee $2,517,500 of its 1996 Allocation, and the Assignee has agreed to accept such assignment, which is to be evidenced by this Assignment. NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set forth, the parties hereto agree as follows: 1. The Assignor hereby assigns to the Assignee $2,517,500 of its 1996 Allocation, subject to the terms and conditions contained herein. The Assignor represents that it has received no monetary consideration for said assignment. 2. The Assignee hereby accepts the assignment to it by the Assignor of $2,517,500 of Assignor's 1996 Allocation, subject to the terms and conditions contained herein. The Assignee agrees to use its best efforts to issue and sell Revenue Bonds, in one or more series, and to provide mortgage loans in at least the amount of $2,517,500 to finance single - family housing facilities located in the City of Pueblo, Colorado. 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 proceedings as may be required to implement the terms of this Assignment. 5. Nothing contained in this Assignment shall obligate the Authority to finance mortgage loans in any particular 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 Pueblo, Colorado. 6. This Assignment is effective upon execution and is irrevocable. IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment as of the date first written above. [SEAL] ATTEST: By City Cle �p0 ¢I ANcp, [SEAL] E l l ATTEST: A CITY OF PUEBLO, COLORADO B Preside t, City Council COLORADO HOUSING AND FINANCE AUTHORITY 6 imw"' AN � Executive Director 3 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 carried 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(0(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. 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(f), respectively, of.the Tax Code. 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 30 0 " day of September, 1996. CITY OF PUEBLO, COLORADO (SEAL) Attest: By: LA ity Clerk By: 1 �� /C f, � t �- Z- - --, , - P esident of the City Council -3- P c, "ORMY c COLORADO HOUSING AND FINANCE AUTHORITY cs 0 V B y: 0 G, Z (SEAL) '. y el Executive Director Attest: m -4-