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ORDINANCE NO. 9033
AN ORDINANCE AUTHORIZING ASSIGNMENT TO THE
COLORADO HOUSING AND FINANCE AUTHORITY OF A
PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF
PUEBLO PURSUANT TO THE COLORADO PRIVATE ACTIVITY
BOND CEILING ALLOCATION ACT
WHEREAS, the City of Pueblo is authorized and empowered under the laws of the State
of Colorado (the "State") to issue revenue bonds for the purpose of financing qualified residential
rental projects for low- and moderate-income persons and families; and
WHEREAS, the City of Pueblo is 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; 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 Colorado Housing
and Finance Authority (the "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 Pueblo has an allocation of the 2016 State Ceiling for the issuance of a specified principal
amount of Private Activity Bonds prior to September 15, 2016 (the "2016 Allocation"); and
WHEREAS, the City of Pueblo 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 and elsewhere in the State, it is necessary or desirable to provide for the utilization of
all or a portion of the 2016 Allocation; and
WHEREAS, the City of Pueblo has determined that the 2016 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 financing one or more multi-family rental housing projects for low- and
moderate-income persons and families or to issue Private Activity Bonds for the purpose of
providing single-family mortgage loans to low- and moderate-income persons and families
("Revenue Bonds") or for the issuance of mortgage credit certificates; and
WHEREAS, the City Council of City of Pueblo has determined to assign $5,408,850 of its
2016 Allocation to the Authority, which assignment is to be evidenced by an Assignment of
Allocation between the City of Puebloand the Authority (the "Assignment of Allocation").
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The assignment to the Authority of $5,408,850 of the City of Pueblo's 2016 Allocation be
and hereby is approved.
SECTION 2
The form and substance of the Assignment of Allocation be and hereby are approved;
provided, however, that the City Manager be and hereby is authorized to make such technical
variations, additions or deletions in or to such Assignment of Allocation as he shall deem
necessary or appropriate and not inconsistent with the approval thereof by this Ordinance.
SECTION 3
The President of City Council of the City of Pueblo be and hereby is authorized to execute
and deliver the Assignment of Allocation on behalf of the City of Pueblo 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 Ordinance.
SECTION 4
If any section, paragraph, clause, or provision of this Ordinance 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 Ordinance.
SECTION 5
The officers of the City are directed and authorized to perform any and all acts consistent
with the intent of this Ordinance and to effectuate the policies and procedures described herein.
SECTION 6
This Ordinance shall become effective upon final passage and approval.
INTRODUCED: August 22, 2016
BY: Ed Brown
PASSED AND APPROVED: September 12, 2016
City Clerk’s Office Item #
S-2
Background Paper for Proposed
ORDINANCE
COUNCIL MEETING DATE:
August 22, 2016
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Ada Clark, Director of Housing and Citizen Services
SUBJECT: AN ORDINANCE AUTHORIZING ASSIGNMENT TO THE COLORADO
HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND
ALLOCATION OF THE CITY OF PUEBLO PURSUANT TO THE COLORADO
PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT
SUMMARY:
This Ordinance will allow the City of Pueblo to assign to the Colorado Housing and Finance
Authority (CHFA) $5,408,850, awarded to the City pursuant to the Colorado Private Activity Bond
Ceiling Allocation Act. These funds will be used to finance multi-family or single-family mortgage
loans to and for low- and moderate-income persons and families within Pueblo County and
throughout the state.
PREVIOUS COUNCIL ACTION:
None.
BACKGROUND:
The Ordinance continues the practice of assigning to CHFA the City’s Private Activity Bond (PAB)
allocation for use in multi-family and single-family Mortgage Revenue Bonds (MRB). For the
period 2015-2016, CHFA issued $29.8 million in single-family housing loans in the City. The
average loan amount for the same period was $117,917.
FINANCIAL IMPLICATIONS:
The City has not identified any eligible projects for these funds. If no projects are identified the
funds revert to the Statewide Balance. By assigning the allocation to CHFA, the City provides
additional mortgage funding to this community without incurring costs.
BOARD/COMMISSION RECOMMENDATION:
Not applicable for this Ordinance.
STAKEHOLDER PROCESS:
Not applicable for this Ordinance.
ALTERNATIVES:
If the Ordinance is not approved, the funds are not assigned to CHFA and a project is not
identified, the allocation reverts to the Statewide Balance.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
2016 Assignment of Allocation
2016 PAB Attorney Certification
CERTIFICATE OF THE CITY OF PUEBLO, COLORADO
CONCERNING ASSIGNMENT OF
PRIVATE ACTIVITY BOND VOLUME CAP ALLOCATION
I, the undersigned, hereby certify that I am a duly chosen, qualified and City Attorney of
the City of Pueblo, Colorado (the "City"), and that:
1. The City is a public body politic and corporate, duly organized and existing under the
constitution and laws of the State of Colorado.
2. The City has been previously notified that, pursuant to Section 24-32-1706 of the
Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado
Revised Statutes (the "Allocation Act"), it has an allocation of the State ceiling (as defined in the
Allocation Act)for 2016 in the amount of$5,408,850 (the "2016 Allocation").
3. Attached hereto as Exhibit A is a true and correct copy of an Ordinance (the
"Ordinance") authorizing the assignment to the Colorado Housing and Finance Authority (the
"Authority") of all or a portion of the 2016 Allocation in an amount equal to $5,408,850 (the
"Assigned Allocation"), and authorizing the execution and delivery of an Assignment of Allocation
dated as of September 12, 2016 (the "Assignment of Allocation") between the City and the
Authority in connection therewith, which Ordinance was duly adopted by the City Council of the
City (the "City Council") at a meeting thereof held on September 12, 2016, at which meeting a
quorum was present and acting throughout and which Ordinance has not been revoked,
rescinded, repealed, amended or modified and is in full force and effect on the date hereof.
4. The meeting of the City Council at which action has been taken with respect to the
Assignment of Allocation was a regular meeting properly called and open to the public at all times.
5. With respect to the Assigned Allocation, the City has not heretofore: (a) issued private
activity bonds; (b) assigned the Assigned Allocation to another "issuing authority," as defined in
the Allocation Act; (c) made a mortgage credit certificate election; or (d) treated the Assigned
Allocation as an allocation for a project with a carryforward purpose, as defined in the Allocation
Act.
6. The Assignment of Allocation, attached hereto as Exhibit B, is in the form presented to
and approved by the City Council at the meeting thereof held on September 12, 2016.
7. On or before the date hereof, counterparts of the Assignment of Allocation were officially
executed by the President of the City Council and the City Clerk of the City. On the date of such
signing, such persons were the duly sworn, qualified and acting officers of the City authorized to
execute the Assignment of Allocation and holding the offices of the President of the City Council
and City Clerk, respectively.
•
8. The City has authorized the execution, delivery and due performance of the Assignment
of Allocation, and the execution and delivery of the Assignment of Allocation and the compliance
by the City with the provisions thereof, will not, to the best of my knowledge, conflict with or
constitute on the part of the City a breach of or a default under any existing Colorado law, City
ordinance or resolution, court or administrative regulation, decree or order or any agreement or
other instrument to which the City is subject or by which it is bound.
9. To the best of my knowledge, there does not exist any action, suit, proceeding or
investigation pending, or threatened against the City, contesting (a) the corporate existence of
the City, (b) the title of its present officers or any of them to their respective offices, including,
without limitation, the members of the City Council, (c)the validity of the Assignment of Allocation
or (d) the power of the City to execute, deliver or perform the Assignment of Allocation.
10. No referendum petition has been filed concerning the Ordinance and to the best of my
knowledge none is being circulated or planned for circulation.
WITNESS my hand and the seal of the City this 12th day of September, 2016.
Daniel C. Kogovsek
City Attorney
Exhibit B
assignment of allocation - city
g
Multifamily Housing Facility Bonds/Single Family Mortgage Revenue Bonds
This Assignment of Allocation (the "Assignment"), dated this 12th day of September, 2016, is
between the City of Pueblo, Colorado (the "Assignor" or the "Jurisdiction") 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 financing qualified
residential rental projects for low- and moderate-income persons and families; and
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 finance such
projects 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 2016 State Ceiling for the issuance of a specified principal amount of
Private Activity Bonds prior to September 12, 2016, (the "2016 Allocation"); and
WHEREAS, the Assignor has determined that, in order to increase the availability of adequate
affordable rental housing for low- and moderate-income persons and families within the
Jurisdiction, Colorado and elsewhere in the State, it is necessary or desirable to provide for the
utilization of all or a portion of the 2016 Allocation; and
Exhibit B
WHEREAS, the Assignor has determined that the 2016 Allocation, or a portion thereof, can be
utilized most efficiently by assigning it to the Assignee to issue Private Activity Bonds for the
purpose of financing one or more multifamily rental housing projects for low- and moderate-
income persons and families or 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 2016 Allocation assigned herein; and
WHEREAS, the City Council of the Assignor has determined to assign to the Assignee all or a
portion of its 2016 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 $5,408,850 of its 2016 Allocation [the "Assigned
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 the Assigned Allocation,
subject to the terms and conditions contained herein. The Assignee agrees to use its best
efforts to issue and sell Revenue Bonds in an aggregate principal amount equal to or greater
than the Assigned Allocation, in one or more series, and to make proceeds of such Revenue
Bonds available from time to time for a period of two(2)years from the date of this Assignment
to finance multi-family rental housing projects located in the Jurisdiction, or to issue Revenue
Bonds for the purpose of providing single-family mortgage loans to low-and moderate income
persons and families in the Jurisdiction.
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 Assigned Allocation as an allocation for a project
with a carryforward purpose or to make a mortgage credit certificate election, in lieu of issuing
Revenue Bonds.
4. The Assignor and Assignee each agree that it will take such further action and adopt such
further proceedings as may be required to implement the terms of this Assignment.
5. Nothing contained in this Assignment shall obligate the Assignee to finance any particular
multi-family rental housing project located in the Jurisdiction or elsewhere or to finance single-
family 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 or
mortgage credit certificates to finance single-family housing facilities in the Jurisdiction,
Exhibit B
provided that any Revenue Bond proceeds attributable to the Assigned Allocation shall be
subject to paragraph 2 above.
6.This Assignment is effective upon execution and is irrevocable.
IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment on the date first
written above.
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