HomeMy WebLinkAbout10216
ORDINANCE NO. 10216
AN ORDINANCE AUTHORIZING ASSIGNMENT OF A PRIVATE
ACTIVITY BOND ALLOCATION FROM THE CITY OF PUEBLO TO
THE COLORADO HOUSING AND FINANCE AUTHORITY
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
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 2022 State Ceiling for the issuance of a specified principal
amount of Private Activity Bonds prior to September 15, 2022 (the "2022 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 2022 Allocation; and
WHEREAS, the City of Pueblo has determined that the 2022 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 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 the City of Pueblo has determined to assign $6,185,143.00
of its 2022 Allocation to the Authority, which assignment is to be evidenced by an Assignment of
Allocation between the City of Pueblo and the Authority (the "Assignment of Allocation"); Now,
Therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Assignment of Allocation, a copy of which is attached hereto and made a part hereof
by reference, by and between the City of Pueblo, a Municipal Corporation, and the Colorado
Housing and Finance Authority, after having been approved as to form by the City Attorney, is
hereby accepted and approved; provided, however, that the Mayor is hereby 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 2
The Mayor of the City of Pueblo is hereby 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 affect the aforesaid assignment in accordance with
the intent of this Ordinance, and any execution by electronic signature is hereby attributable to
the Mayor and the City of Pueblo.
SECTION 3
The assignment to the Authority of $6,185,143.00 of the City of Pueblo's 2022 Allocation
be and hereby is approved.
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 and staff of the City are authorized to perform any and all acts consistent with
the intent of this Ordinance and the Assignment of Allocation to implement the transactions
described therein, including but not limited to the City Attorney’s signature of the 2022 Private
Activity Bond Attorney Certification.
SECTION 6
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on June 27, 2022 .
Final adoption of Ordinance by City Council on July 11, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on July 13, 2022 .
□ Disapproved on based on the following objections:
_
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
City Clerk
City Clerk’s Office Item # R-5
Background Paper for Proposed
ORDINANCE
COUNCIL MEETING DATE: June 27, 2022
TO: President Heather Graham and Members of City Council
CC: Nicholas A. Gradisar, Mayor
VIA: Marisa Stoller, City Clerk
FROM: Bryan Gallagher, Director of Housing and Citizen Services
SUBJECT: AN ORDINANCE AUTHORIZING ASSIGNMENT OF A PRIVATE ACTIVITY
BOND ALLOCATION FROM THE CITY OF PUEBLO TO THE COLORADO
HOUSING AND FINANCE AUTHORITY 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) $6,185,143.00 in Private Activity Bonds, previously awarded to the City
pursuant to the Colorado Private Activity Bond Ceiling Allocation Act, C.R.S. 24-32-1701 et seq.
These funds will be used to finance multi-family or single-family mortgage loans for low- and
moderate-income persons and families within Pueblo County and throughout the state.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
The Ordinance assigns to the Colorado Housing Finance Authority (CHFA) the City’s Private
Activity Bond (PAB) allocation for use in multi-family and single-family Mortgage Revenue Bonds
(MRB). The allocation is to be reserved for multi-family projects in the city for the next 12-months.
If no project is identified within that that timeframe, the allocation will revert to single-family
mortgage capital for use in the city. Last year CHFA provided capital for 166 First Step loans in
the city for a total of $34,871,036.00. The household median income of the loans was $55,838.00,
or approximately 85% of area median income.
FINANCIAL IMPLICATIONS:
The Private Activity Bond is “private” in nature and not for governmental use, so there is no cost
associated with assigning the bond to CHFA. Financial benefits come to the City through sales
tax derived from material sales on PAB construction projects, by increased economic activity in
the real estate employment sector, and in retail sales from furnishings and other end user activity
associated with a new home purchase.
BOARD/COMMISSION RECOMMENDATION:
Not applicable for this Ordinance.
STAKEHOLDER PROCESS:
Not applicable for this Ordinance.
ALTERNATIVES:
If the Ordinance is not approved, the funds will not be assigned to CHFA and the allocation will
revert to the State of Colorado on September 15, 2022.
RECOMMENDATION:
The Department of Housing and Citizen Services recommends approval of the Ordinance.
ATTACHMENTS:
Proposed Ordinance
2022 Assignment of Allocation
2022 Private Activity Bond Attorney Certification
2022 Private Activity Bond Allocation notification from the State of Colorado
chfa. assignment of allocation - city
Y
Multifamily Housing Facility Bonds/Single Family Mortgage Revenue Bonds
This Assignment of Allocation (the "Assignment"), dated this 13th day of July
2022, is between the City of Pueblo , Colorado (the "Assignor" or the
"Jurisdiction") and 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 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 2022 State Ceiling for the issuance of a specified principal amount of
Private Activity Bonds prior to September 15, 2022, (the "2022 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 ora portion of the 2022 Allocation; and
WHEREAS, the Assignor has determined that the 2022 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 2022 Allocation assigned herein; and
WHEREAS, the City Council of the Assignor has determined to assign to the Assignee all or a
portion of its 2022 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 $ 6,185,143 of its 2022 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 one (1) year 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, 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.
7. Counterparts. This Assignment may be executed in one or more counterparts, each of which
will be deemed an original, but all of which together will constitute one and the same instrument.
Delivery of an executed counterpart of a signature page of this Assignment by electronic image
scan transmission will be effective as delivery of a manually executed counterpart of the
Assignment.
2
IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment on the date first
written above.
City of Pueblo , Colorado
BY: Xea/ lAY-06. '
Name: Nicholas A. Gradisar
Title: Mayor
COLORADO HOUSING AND FINANCE
AUTHORITY
By: N.
Name:
Title: 6601ik(_kid C ,Lv '
3
EXHIBIT A
ORDINANCE
A-1
ORDINANCE NO. 10216
AN ORDINANCE AUTHORIZING ASSIGNMENT OF A PRIVATE
ACTIVITY BOND ALLOCATION FROM THE CITY OF PUEBLO TO
THE COLORADO HOUSING AND FINANCE AUTHORITY
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
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 2022 State Ceiling for the issuance of a specified principal
amount of Private Activity Bonds prior to September 15, 2022 (the "2022 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 2022 Allocation; and
WHEREAS, the City of Pueblo has determined that the 2022 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 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 the City of Pueblo has determined to assign$6,185,143.00
of its 2022 Allocation to the Authority, which assignment is to be evidenced by an Assignment of
Allocation between the City of Pueblo and the Authority (the "Assignment of Allocation"); Now,
Therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The Assignment of Allocation, a copy of which is attached hereto and made a part hereof
by reference, by and between the City of Pueblo, a Municipal Corporation, and the Colorado
Housing and Finance Authority, after having been approved as to form by the City Attorney, is
hereby accepted and approved; provided, however, that the Mayor is hereby 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 2
The Mayor of the City of Pueblo is hereby 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 affect the aforesaid assignment in accordance with
the intent of this Ordinance, and any execution by electronic signature is hereby attributable to
the Mayor and the City of Pueblo.
SECTION 3
The assignment to the Authority of$6,185,143.00 of the City of Pueblo's 2022 Allocation
be and hereby is approved.
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 and staff of the City are authorized to perform any and all acts consistent with
the intent of this Ordinance and the Assignment of Allocation to implement the transactions
described therein, including but not limited to the City Attorney's signature of the 2022 Private
Activity Bond Attorney Certification.
SECTION 6
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on June 27, 2022 .
Final adoption of Ordinance by City Council on July 11, 2022 .
op'
Presiders of City Council
Action by the Mayor:
El Approved on July 13, 2022.
❑ Disapproved on based on the following objections:
264416 xeit1104;t4
Mayor
Action by City Council After Disaoaroval by the Mayor:
❑ Council did not act to override the Mayor's veto.
❑ Ordinance re-adopted on a vote of , on
❑ Council action on failed to override the Mayor's veto.
President of City Council
ATTEST
Cit lerk
EXHIBIT B
ASSIGNMENT OF ALLOCATION
B-1
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 2022 in the amount of$6,185,143.00 (the"2022 Allocation").
3. Attached hereto as Exhibit A is a true and correct copy of an ordinance and the
related minutes thereto(the"Ordinance")authorizing the assignment to the Colorado Housing and
Finance Authority (the "Authority") of all or a portion of the 2022 Allocation in an amount equal
to $6,185,143.00 (the "Assigned Allocation"), and authorizing the execution and delivery of an
Assignment of Allocation dated as of July 13, 2022 (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 July 11, 2022, 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 July 11, 2022.
7. On or before the date hereof, counterparts of the Assignment of Allocation were
officially executed by the Mayor 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 Mayor and City Clerk, respectively.
1
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, 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 July 13, 2022.
City Attorney/
(SEAL)
2
COLORADO
CO Department of Local Affairs
Division of Housnig
January 12, 2022
Bryan Gallagher
Director of Housing Et Citizens Services
City of Pueblo
2631 East 4th Street
Pueblo, CO 81001
Re: Private Activity Bond Allocation of $6,185,143
Dear Mr. Gallagher:
I hereby certify that the above amount will be allocated to the respective local government for
the purpose of issuing Private Activity Bonds (PAB) in 2022 under the state ceiling imposed by the Internal
Revenue Code of 1986, as amended.
In accordance with the provisions of C.R.S. 24-32-1709.5, a fee on bonds issued is due to DOLA for
the portion of each issuance that originated from a direct allocation. The amount of this fee is subject
to revision, but is currently 0.027% of bonds issued. This fee is also due within five working days of the
bond closing. In the event that the full allocation amount is not issued, or the fee rate changes, the fee
will be recalculated to reflect the actual amount issued and the rate in effect at the time of closing.
If you have any questions, please contact Wayne McClary at (303) 864-7819 or wayne.mcclary@state.co.us.
Sincerely
mo, i.
44"44-4:4---"
Rick M. Garcia
Executive Director