HomeMy WebLinkAboutResolution 2011-0027CITY OF WHEAT RIDGE, COLORADO
RESOLUTION NO. 27
Series of 2011
TITLE: A RESOLUTION AUTHORIZING ASSIGNMENT TO THE
COLORADO HOUSING AND FINANCE AUTHORITY OF A
PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF
WHEAT RIDGE PURSUANT TO THE COLORADO PRIVATE
ACTIVITY BOND CEILING ALLOCATION ACT
WHEREAS, the City of Wheat Ridge 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 Wheat Ridge has an allocation of the 2011 State Ceiling for the
issuance of a specified principal amount of Private Activity Bonds prior to September
15, 2011 (the "2011 Allocation"); and
WHEREAS, the City of Wheat Ridge 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 Wheat Ridge and elsewhere in the State, it is necessary
or desirable to provide for the utilization of all or a portion of the 2011 Allocation; and
WHEREAS, the City of Wheat Ridge has determined that the 2011 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-
and moderate-income persons and families; and
WHEREAS, the City Council of the City of Wheat Ridge has determined to
assign $1,506,083 of its 2011 Allocation to the Authority, which assignment is to be
evidenced by an Assignment of Allocation between the City of Wheat Ridge and the
Authority (the "Assignment of Allocation"),
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat
Ridge as follows:
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1. The assignment to the Authority of $1,506,083 of the City of Wheat Ridge's 2011
Allocation be and hereby is approved.
2. The form and substance of the Assignment of Allocation be and hereby are
approved; provided, however, that the Mayor 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 resolution.
3. The City Council of the City of Wheat Ridge be and hereby is authorized to
execute and deliver the Assignment of Allocation on behalf of the City of Wheat
Ridge 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 resolution.
4. If any section, paragraph, clause, or provision of this resolution 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 resolution.
5. This resolution shall be in full force and effect upon its passage and approval.
ATTEST:
tiLUI.i-/A1flllL, l>~v~
Michael D. Snow, City Cl rk
[SEAL]
ATTEST:
By:--,----:,--...,....---
Assistant Secretary
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COLORADO HOUSING AND FINANCE
AUTHORITY
By:
~E~x-ec-u~t~iv-e~0~ir_e_ct~o-r------------
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EXHIBITS
ASSIGNMENT OF ALLOCATION
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ASSIGNMENT OF ALLOCATION
(Single Family Mortgage Revenue Bonds)
This Assignment of Allocation (the "Assignment"), dated this 12th day of
September, 20ll, is between the City of Wheat Ridge (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
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 (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 2011 State Ceiling for the issuance of a
specified principal amount of Private Activity Bonds prior to September 15, 2011, the
"20I1 Allocation"); and ·
WHEREAS, the Assignor 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 Wheat Ridge and elsewhere in the State, it is necessary or desirable to
provide for the utilization of all or a portion of the 20Il Allocation; and
WHEREAS, the Assignor has determined that the 2011 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 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 20 II
Allocation; and
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WHEREAS, the City Council of the Assignor has determined to assign to the
Assignee $1,506,083 of its 2011 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 $1,506,083 of its 2011
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
$1,506,083 of Assignor's 2011 Allocation, subject to the tenns 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 proceeds of such Revenue Bonds available from time to
time during the period of two (2) years from the date of this Assignment for the purchase
of mortgage loans in at least the aggregate amount of$1,506,083 to finance single-family
housing facilities located in the City of Wheat Ridge. Unless otherwise agreed to in
writing, the mortgage loans will be subject to all applicable current requirements of
Assignee's mortgage revenue bond program, including Assignee's income and purchase
price limits.
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
fmance 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
to finance single-family housing facilities located in the City of Wheat Ridge.
6. This Assignment is effective upon execution and is irrevocable.
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IN WI1NESS WHEREOF, the parties hereto have duly executed this Assignment
on the date first written above.
[SEAL]
A TrEST:
By: i54f4L~, ~vty
Title: ~cf<.t ~
[SEAL]
ATTEST:
By:
Assistant Secretary
COLORADO HOUSING AND FINANCE
AUTHORITY
By: -=~=------:-:-:-::::----
ChiefFinancial Officer
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CERTIFICATE OF THE CITY OF WHEAT RIDGE, COLORADO
CONCERNING ASSIGNMENT OF
PRIVATE ACTMTY BOND VOLUME CAP ALLOCATION
I, the undersigned, hereby certify that I am a duly chosen, qualified and City Attorney of
the City of Wheat Ridge, 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 20ll in the amountof$1,506,083 (the "20ll Allocation'').
3. Attached hereto as Exhibit A is a true and correct copy of a resolution and the
related minutes thereto (the "Resolution") authorizing the assignment to the Colorado Housing
and Finance Authority (the "Authority") of all or a portion of the 2011 Allocation in an amount
equal to $1,506,083 (the "Assigned Allocation"), and authorizing the execution and delivery of
an Assignment of Allocation dated as of September 12, 2011 (the "Assignment of Allocation")
between the City and the Authority in connection therewith, which Resolution was duly adopted
by the City Council of the City (the "City Council") at a meeting thereof held on September 12,
2011, at which meeting a quorum was present and acting throughout and which Resolution 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,
2011.
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.
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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 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 Resolution; 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 1~?;~ • , 2011.
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(SEAL)
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EXHIBIT A
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