HomeMy WebLinkAbout11031Docusign Envelope ID: FAA 1CDA1-FCEO-4123-AEO1-D9AFA797419D
City Clerk's Office Item # R1
COUNCIL MEETING DATE: September 8, 2025
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Melissa Cook, Director Department of Housing & Citizen Services
SUBJECT: AN ORDINANCE AUTHORIZING THE CITY OF PUEBLO, A COLORADO
MUNICIPAL CORPORATION TO CARRY OVER $7,334,977.00 IN
PRIVATE ACTIVITY BOND ALLOCATION, EXPRESSING INTENT OF
THE CITY OF PUEBLO TO ISSUE ITS PRIVATE ACTIVITY BONDS AND
AUTHORIZING THE MAYOR TO EXECUTE PRELIMINARY ACTIONS IN
CONNECTION THEREWITH
SUMMARY:
This Ordinance will allow the City of Pueblo, a Colorado Municipal Corporation to carry
over $7,334,977.00 in Private Activity Bonds to 2026, previously awarded to the City
pursuant to the Colorado Private Activity Bond Ceiling Allocation Act, C.R.S. 24-32-1701
et seq. This ordinance also expresses intent of the City to issue these bonds in 2026 to
the Tava Square Apartments.
PREVIOUS COUNCIL ACTION:
Not applicable to this Ordinance.
BACKGROUND:
Each year, Pueblo receives a federal tax-exempt bond volume cap, Private Activity
Bonds (PABs), based on our population. Unused cap may be carried forward to build
sufficient capacity for larger developments. The City plans to apply this $7.33 million
carryforward to finance the Tava Square Apartments, a new 105-unit affordable
multifamily housing project proposed on Pueblo's West Side.
FINANCIAL IMPLICATIONS:
The Private Activity Bond is "private" in nature and not for governmental use, so there is
no cost associated with assigning or carrying over the bonds. Financial benefits come
to the City through sales tax derived from material sales on PAB construction projects,
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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 bond cap will revert to the State of Colorado on
September 15, 2025, to be used for affordable housing developments statewide.
RECOMMENDATION:
The Department of Housing and Citizen Services recommends approval of the
Ordinance.
ATTACHMENTS:
1. Carryforward Election of Unused PAB Volume CAP 2025
2. Pueblo 2025 allocation letter signed
3. Updated 2025 City Attorney Certification - Private Activity Bond Carryoever
4. Diligence Certification
5. City of Pueblo 2025 PAB Carryforward
6. Redline-Bkground and Tava Square PAB Allocation-4915-0550-1796-v1 and
Bkground and Tava Square PAB Allocation-4915-0550-1796-v2
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ORDINANCE NO. 11031
AN ORDINANCE AUTHORIZING THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION TO CARRY OVER
$7,334,977.00 IN PRIVATE ACTIVITY BOND ALLOCATION,
EXPRESSING INTENT OF THE CITY OF PUEBLO TO ISSUE ITS
PRIVATE ACTIVITY BONDS AND AUTHORIZING THE MAYOR
TO EXECUTE PRELIMINARY ACTIONS IN CONNECTION
THEREWITH
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 affordable housing opportunities; 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 projects 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 private activity bond volume cap allocation
(the "State Ceiling") among the Colorado Housing and Finance Authority (the "Authority") and
other governmental units in the State; and
WHEREAS, pursuant to Section 24-32-1706 of the Allocation Act, the City of Pueblo has
been awarded a portion of the 2025 State Ceiling in the amount of $7,334,977 (the "2025
Allocation") for the issuance of a specified principal amount of Private Activity Bonds prior to
September 15, 2025 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 2025 Allocation by carrying forward a portion, or all, of such 2025 Allocation
in accordance with the provisions of the Allocation Act; and
WHEREAS, in order to carry forward the City's 2025 Allocation, the City wishes to declare
its intention to issue single family or multifamily revenue bonds, in one or more series, in
connection with 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 thereof,
which facilities may include Tava Square Apartments, and which facilities will be located within
the boundaries of the City and other participating jurisdictions; and
WHEREAS, the City of intends to issue single family or multifamily revenue bonds, in one
or more series, in an amount not to exceed $7,334,977 of its direct private activity bond volume
cap allocation for 2025 (plus any additional amounts that the City may be awarded from the
statewide balance pursuant to the Allocation Act); NOW, THEREFORE,
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BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The City hereby approves the carryforward of its 2025 Allocation and in connection
therewith declares its intent to issue its revenue bonds to finance single family or multifamily
projects in one or more series (the "Bonds") in an aggregate principal amount not to exceed
$7,334,977 (plus any additional amounts that the City may be awarded from the statewide
balance pursuant to the Allocation Act), which shall be used in connection with financing
residential facilities for low- and middle -income families or persons intended for use as the sole
place of residence of the owners or intended occupants thereof, which facilities may include Tava
Square Apartments, and which facilities will be located within the boundaries of the City and other
participating jurisdictions.
SECTION 2.
In connection with the management and preservation of the City's private activity bond
volume cap allocations, the City is hereby authorized to execute any Internal Revenue Service
("IRS") form and to enter into assignment agreements and delegation agreements with other
Colorado "issuing authorities" as defined in Section 24-32-1703(12), Colorado Revised Statutes,
as amended. The Director of Budget and Finance or an authorized representative of the City is
hereby City Council of the City (the "Council") that this Ordinance shall also apply to any amounts
that are awarded to the City from the statewide balance or other issuing authorities pursuant to
the Allocation Act. The appropriate officers of the City are hereby authorized to apply for an award
from the statewide balance pursuant to the Allocation Act.
SECTION 3
The Council hereby finds that:
(a) the Bonds shall not constitute any multiple -fiscal year or indirect debt or other
financial obligation whatsoever of the City or the State or any political subdivision of the
State within the meaning of any provision or limitation of the State Constitution or statutes,
and the Bonds shall not constitute or give rise to a pecuniary liability of the City or a charge
against the City's general credit or taxing powers, or ever be deemed to be an obligation
or agreement of any Council member, officer, director, agent or employee of the City in
such person's individual capacity, and none of such persons shall be subject to any
personal liability by reason of the issuance of the Bonds;
(b) the issuance of the Bonds in connection with financing such residential facilities
will promote the public purposes set forth in the Act, including, without limitation, assisting
persons or families of low- and middle -income in obtaining adequate, safe and sanitary
housing;
(c) it is the City's intent that this Ordinance constitutes an official indication of the
present intention of the City to issue the Bonds, as herein provided.
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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 effectuate the transactions
described therein, including but not limited to the City Attorney's signature of the 2025 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 August 25, 2025.
Final adoption of Ordinance by City Council on September 8, 2025. DocuSignedby:
auff
President of City Council
Action by the Mayor:
E� Approved on
❑ Disapproved on
9/10/2025 1 8:44 AM MDT
based on the following objections:
Mayor
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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 5Do,w,
cuSPgnedby:
City Clerk
COLORADO
Department of Local Affairs
January 15, 2025
Bryan Gallagher
Acting Director, Dept. of Housing Et Citizen Services
Pueblo
Re: Private Activity Bond Allocation of $7,334,977
Dear Bryan 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 2025 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 Lisa Blakeney (720) 557-2112 or dola_pab@state.co.us.
Sincerely,
Jk
dia De Cambra
Exe�'utive Director
Governor .fared S. Polis k Maria De Carmbra, Executive Mrector f Alison George, Director
1111 1herman St., Room 111, Denver, Co 60201 P 303.96-4 7'710 F 1111,86,1,7719
%m%v.dWa.colorado.gov hull
Stren®thcemng Coforaxdo Commumbes
EQUAL HOUSING
OPPORTUNITY
Kutak Rock LLP
2001 16th Street, Suite 1800, Denver, CO 80202
office 303.297.2400
September 8, 2025
Colorado Department of Local Affairs
Division of Housing
1313 Sherman Street, Room 320
Denver, CO 80203
Re: Request of the City of Pueblo, Colorado for Carryforward Treatment of its 2025
Private Activity Bond Volume Cap Allocation
Ladies and Gentlemen;
As bond counsel to the City of Pueblo, Colorado ("Pueblo"), we are submitting this opinion in
compliance with the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of
Title 24, Colorado Revised Statutes, as amended (the "Colorado Allocation Act").
Representatives of Pueblo have informed us that the City Council (the "Council") of Pueblo
has adopted an inducement ordinance (the "Ordinance") on September 8, 2025 stating that Pueblo
intends to issue up to $7,334,977 of qualified mortgage or qualified residential rental revenue bonds
(the "Bonds"), in one or more series, for 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
thereof, which facilities may include Tava Square Apartments, and which facilities will be located
within the boundaries of the City (collectively, the "Project").
In connection with the proposed issuance of any Bonds to finance the Project, we are of the
opinion that the Bonds would constitute qualified "private activity bonds" within the meaning of
Sections 141 and 143 of the Internal Revenue Code of 1986, as amended (the "Code") and, therefore,
require a private activity bond volume cap allocation pursuant to the Colorado Allocation Act prior to
their issuance in order to satisfy Section 146 of the Code. Pueblo is authorized under the laws and
Constitution of the State of Colorado to issue its Bonds to finance the Project. We are also of the
opinion that the Bonds for the Project have a carryforward purpose, as defined in Section 146(f)(5) of
the Code, which qualifies for carryforward treatment under Section 146(f) of the Code.
The scope of our engagement has not extended beyond the examinations and the rendering of
the opinions expressed herein. The opinions expressed above are limited to the laws of the State of
Colorado and of the United States of America. This letter may not be relied upon by any person other
than the addressee hereof for any purpose without our prior written consent.
Very truly yours,
Mario Trimble
4935-6051-6197 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 2025 in the amount of $7,334,977 (the "2025 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 Carry over and expressing intent to issue
of all or a portion of the 2025 Allocation in an amount equal to $7,334,977 (the "Assigned
Allocation") to the Tava Square Apartments, and authorizing the execution and delivery of an
Assignment of Allocation dated as of September 8, 2025 (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 8,
2025, 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) previously
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 8, 2025.
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 , 2025.
(SEAL)
(t y Attorney
2
EXHIBIT A
ORDINANCE
Em
EXHIBIT B
ASSIGNMENT OF ALLOCATION
Ral
ROCKY MOUNTAIN
Rocky Mountain Communities
225 East 16t" Ave.
Denver, CO 80203
August 18, 2025
Melissa Cook, Director of Housing and Citizen Services
City of Pueblo
2631 East 0'
Pueblo, CO 81001
Subject: Diligence Certification
To whom it may concern,
Rocky Mountain Communities confirms its intent to proceed with the development of the
apartments at Tava Square Village in Pueblo, CO. The planned development will be comprised of
108 units and seeks Low-income housing tax credits. As such, the project will need Private Activity
Bonds to support the project, and we anticipate the timeline needed for bond issuance by August
2027.
Thank you for your consideration,
' I I
Jd'A"
, F
As[deigh Wi�s
Senior Devebpment Manager
Rocky Mountain Communities
X
Authorizefd Si er, itv of Pueblo
225 East 16th Avenue, Suuute 600 Denver, Cdoirado 8020
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