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HomeMy WebLinkAbout8166RESOLUTION NO. 8166 (1997) A RESOLUTION APPROVING THE ASSIGNMENT BY THE CITY OF PUEBLO OF ITS 1997 DIRECT ALLOCATION OF PRIVATE ACTIVITY BOND VOLUME TO THE COLORADO HOUSING AND FINANCE AUTHORITY; APPROVING AN ASSIGNMENT OF ALLOCATION 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. 8050 (the " Resolution "), approved and adopted by the City Council of Pueblo on February 10, 1997, reserved its 1997 allocation of private activity bond volume allocation from the State of Colorado (the "1997 Allocation "), for the purposes set forth in the Resolution; and WHEREAS, the City desires to assign the 1997 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; and WHEREAS, a form of Assignment of Allocation from the City to the Authority has been presented to this meeting; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO: 1. The City hereby approves and authorizes the assignment, and hereby assigns, the 1997 Allocation to the Authority. The form of Assignment of Allocation presented at this meeting is hereby approved and adopted, and the President of the City Council is hereby authorized and directed to execute the Assignment of Allocation in substantially the form presented, but with such changes as are approved by the City Attorney and the President, the execution of the Assignment of Allocation 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 Assignment of Allocation and to attest the President's signature and the seal. 2. 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. 3. This resolution shall take effect immediately upon its introduction and passage. 021112534.1 INTRODUCED, READ, PASSED AND ADOPTED AT A REGULAR MEETING THIS 14th DAY OF July 1997. INTRODUCED: July 14, 1997 BY: Charles Jones Councilperson [SEAL] APPROVED: &",— "' President 4 the c6uncii ATTEST: Rai ..I APPROVED AS TO FORM BY CITY ATTORNEY: By City Atto 021112534.1 ASSIGNMENT OF ALLOCATION This Assignment of Allocation (the "Assignment ") dated this June 24, 1997, 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 1997 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to December 31, 1997 (the "1997 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 within the City of Pueblo, Colorado, and elsewhere in the State, it is necessary or desirable to provide for the utilization of the 1997 Allocation; and WHEREAS, the Assignor has determined that the 1997 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 1997 Allocation; and 02/113775.1 WHEREAS, the City Council of the Assignor has determined to assign to the Assignee the entire amount of its 1997 Allocation, totalling $2,531,300, 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 all $2,531,300 of its 1997 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 $2,531,300 of Assignor's 1997 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 $2,531,300 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. 021113775.1 IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment as of the date first written above. [SEAL] Attest: By City Cler APPROVED AS TO FORM BY CITY ATTORNEY: By t ' City Attorney C . N � / %- �y ATF•. 0 o J P Q O C CITY OF PUEBLO, COLORADO By President, ity Council COLORADO HOUSING AND FINANCE AUTHORITY B Executive Director n+ g=Qf- 3 Colorado Housing and Finance Authority NOTIFICATION OF ASSIGNMENT OF PRIVATE ACTIVITY BOND CEILING September 12, 1997 VIA HAND DELIVERY Ms. Kate Van Wyhe Colorado Department of Local Affairs 1313 Sherman Street, Room 518 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 $2,531,300 of its 1997 allocation of the State's private activity bond ceiling. Enclosed for your records is an executed copy of the Assignment of Allocation (the "Assignment "), dated June 24, 1997. 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 $2,531,300 to a project with a carryforward purpose. Very truly yours, r � David W. Herlinger Executive Director JAR:DWH /kg Enclosures cc: Zna Capritta- Dutcher, City Clerk Stan Raine, Esq. 1ega1\bond \vanwy8.doe Printed on recycled paper f'YJ - E:)� 4441MV OFFICE OF THE CITY ATTORNEY 127 Thatcher Building July 21, 1997 PUEBLO, COLORADO 81003 Colorado Housing and Finance Authority 1981 Blake Street Denver, Colorado 80202 -1272 Gentlemen: I am an attorney duly admitted to practice in the State of Colorado (the "State "). I have acted as counsel for the City of Pueblo, a municipal corporation (the "City "), in connection with the assignment by the City to the Colorado housing and Finance Authority (the "Authority ") of the City's allocation of the ceiling on private activity bonds which may be issued in the State during the period from January 1 to December 31, 1997 (the "1997 Allocation Act "). This assignment is being effected pursuant to a Resolution adopted by the City Council of City on July 14, 1997 and an Assignment of Allocation dated June 24,.1997 (the "Assignment of Allocation "), between the City and the Authority. I have examined, among other things, a copy of the Resolution. I have also examined the Constitution of the State and such statutes and regulations as I deemed appropriate, including, without limitation, the charter of the City, certificates of public officials and of officers and representatives of the City, and such other documents as I have deemed necessary as a basis for the opinions hereinafter expressed. In the course of such examinations, I have assumed the genuineness of all signatures and the authenticity of all documents submitted to me as copies. Based upon the foregoing, it is my opinion that: 1. The City is a City validly existing under the Constitution and the laws of the State. 2. The City has frill legal right, power and authority: (a) to assign its 1997 Allocation, or a portion thereof, in accordance with the Resolution and the Assignment of Allocation, (b) to adopt the Resolution; (c) to execute and deliver the Assignment of Allocation; and (d) to perform its obligations under the Resolution. 3. The adoption or the execution and delivery and the performance of the City of the Resolution and the Assignment of Allocatiaon and the performance of the City's obligations thereunder have been duly authorized by the City, and each have been duly adopted or executed and delivered by the City, and each of them constitute valid and binding obligations of the City in accordance with its terms. 4. The adoption of the Resolution and the execution and delivery of the Assignment of Colorado Housing and Finance Authority July 21, 1997 Page Two Allocation and compliance with the terms, conditions and provisions of each thereof by the City will not conflict with or result in a breach or violation of any of the terms, conditions or provisions of the Constitution or the laws of the State, local ordinances, resolutions, charter, bylaws, or other regulations, or any other governmental authority of any nature whatsoever as now existing, or to the best of my knowledge, any agreement or instrument to which the City is now a party or by which it is bound, or constitute a default thereunder. 5. With respect to the 1997 Allocation, or a portion thereof, being assigned to the Authority pursuant to the Resolution and the Assignment of Allocation, tite City has not: (a) issued private activity bonds; (b) assigned the allocation to another "issuing authority" as such term is defined in the Allocation Act; (c) made a mortgage credit certificate election; or (d) treated the allocation as an allocation for a project with a carryforward purpose. 6. No approval, permit, consent or authorization applicable to the City and not already obtained by the City of any government or public agency, authority or person is required in connection with the adoption of the execution and delivery by the City of, and the pertormance by it of its obligations under, the Resolution and the Assignment of Allocation. This opinion may be relied upon by: (1) the Authority's Bond Counsel in rendering its opinion in connection with the issuance by the Authority of revenue bonds, and (ii) each institution which nlay act as an underwriter of any such revenue bonds. Very truly yours, I homas EU r /J p