HomeMy WebLinkAbout06878ORDINANCE NO. 6878
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 PROVIDING SINGLE - FAMILY
MORTGAGE LOANS, 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 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 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 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 2002' State Ceiling for the issuance of a specified principal amount of
Private Activity Bonds prior to September 15, 2002 (the "2002 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 2002 Allocation; and
WHEREAS, the City has determined that the 2002 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 providing single - family mortgage loans to low- to moderate - income persons and
families; and
WHEREAS, the City Council of the City of Pueblo has determined to assign $3,829,538 of
its 2002 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 $3,829,538 of the City's 2002 Allocation be and hereby
is approved.
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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 12, 2002
BY Al Gurule
Councilperson
APPROVED:
resident of City Council
ATTEST:
City C
PASSED AND APPROVED: August 26, 2002