HomeMy WebLinkAbout06726ORDINANCE NO. 6726
AN ORDINANCE AUTHORIZING ASSIGNMENT
TO THE COLORADO HOUSING FINANCE
AUTHORITY OF A PRIVATE ACTIVITY BOND
ALLOCATION OF THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, FOR THE
PURPOSE OF FINANCING MULTI - FAMILY
RENTAL HOUSING, PURSUANT TO THE
COLORADO PRIVATE ACTIVITY BOND
CEILING ALLOCATION ACT.
WHEREAS, the City of Pueblo, a municipal corporation (the "City ") is
authorized and empowered under the laws of the State of Colorado (the "State ") to issue
revenue bonds for the purpose of financing multifamily rental housing projects for 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 rental housing 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 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 has an allocation of the 2001 State Ceiling for the issuance of a
specified principal amount of Private Activity Bonds prior to September 15, 2001 (the
"2001 Allocation "); and
WHEREAS, the City has determined that, in order to increase the availability of
adequate affordable housing by low- and moderate - income persons and families within
the City and elsewhere in the State, it is necessary or desirable to provide for the
utilization of all or a portion of the 2001 Allocation; and
WHEREAS, the City has determined that the 2001 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 rental projects for low- to
moderate - income persons and families; and
WHEREAS, the City Council of the City of Pueblo has determined to assign
$718,594 of its 2001 Allocation to the Authority, which assignment is to be evidenced
by an Assignment of Allocation between the City and the Authority (the "Assignment
of Allocation "), attached hereto as Exhibit A. NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The assignment to the Authority of $718,594 of the City of Pueblo's 2001
Allocation be and hereby is approved.
SECTION 2.
The form and substance of the Assignment of Allocation be and hereby is
approved: provided, however, that the President of the City Council be and hereby is
authorized to make such technical variations, addition 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 the 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.
This ordinance shall be in full force and effect upon its passage and approval.
INTRODUCED: August 13, 2001
f • - ll.
ATTEST:
Gina utcher
City Clerk
PASSED AND APPROVED: August 27 2001
Councilperson
��LF
Background Paper for Proposed
ORDINANCE
AGENDA ITEM #
DATE: AUGUST 13, 2001
DEPARTMENT: HOUSING AND CITIZEN SERVICES/TONY BERUMEN
TITLE
AN ORDINANCE AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING
FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE
CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR THE PURPOSE OF
FINANCING MULTI - FAMILY RENTAL HOUSING, PURSUANT TO THE
COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT.
ISSUE
This Ordinance will allow the City to assign to the Colorado Housing Finance Authority
(CHFA) $718,594, which represents part of the PAB awarded to the City pursuant to the
Colorado Private Activity Bond Ceiling Allocation Act. These bonds will be used for the
financing of multi - family rental housing for low -to — moderate - income families.
RECOMMENDATION
Approve the Ordinance, thus authorizing CHFA to administer on behalf of the City of
Pueblo its part of the bond allocation in the amount of $718,594 for multi- family rental
housing.
BACKGROUND
The City and County Housing Departments have held public forum meetings to receive
input on the needs of the Pueblo residents. Safe and decent affordable rental housing
continues to be a need as expressed by our citizens. In an effort to meet this need, the
City wishes to use part of its PAB allocation, to facilitate the financing of projects. The
City will issue a Notice of Funding Availability (NOFA) for these set -aside funds. If
there is no response to the NOFA then the City has the option to assign the funds for use
in single - family MRBs.
FINANCIAL IMPACT
By assigning the allocation to CHFA, the City provides additional funding to this
community without incurring costs. CHFA administers the bonds free of charge to the
City of Pueblo.
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ASSIGNMENT OF ALLOCATION
This Assignment of Allocation (the "Assignment "), dated this 13' day of August
2001, is between the City of Pueblo, A Municipal Corporation (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
financing multifamily rental housing projects for 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 2001 State Ceiling for the issuance of a specific
principal amount of Private Activity Bonds prior to September 15, 2001 (the "2001
Allocation "); and
WHEREAS, the Assignor has determined that, in order to increase the availability
of adequate affordable housing by 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 2001 Allocation; and
WHEREAS, the Assignor has determined that the 2001 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 ( "Revenue Bonds "), and the
Assignee has expressed its willingness to attempt to issue Revenue Bonds with respect to
the 2001 Allocation; and
WHEREAS, the City Council of the Assignor has determined to assign to the
Assignee $718,594. of its 2001 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 $718,594. of its 2001
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
$718,594. of Assignor's 2001 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 make a mortgage loan to qualified respondents of a proposed
Request For Proposal process to finance multi - family rental housing for low- to
moderate- income individuals and families with special needs, located in the City of
Pueblo, Colorado. In the event Assignee is unable to finance the project or other
multifamily rental housing projects located within Assignor's boundaries on or prior to
December 31, 2002, Assignee agrees to use its best efforts to use the 2001 Allocation
hereby assigned in connection with the issuance of Revenue Bonds to finance one or
more other multifamily rental housing projects anywhere within the State, as it may in its
discretion determine.
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 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 the project or to use the allocation hereby assigned it to finance any other
multifamily rental housing project located in the City of Pueblo.
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.
CITY OFJ PUEBLO,
[SEAL]
ATTEST: By:
of the City Council
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COLORADO HOUSING FINANCE AUTHORITY
By:
Executive Director
Assistant Secretary