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Home My WebLink AboutResolution-2004-0019 CITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. 19-2004 A FORM OF 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 authonzed and empowered under the laws of the State of Colorado (the "State") to Issue revenue bonds for the purpose of providing smgle- family mortgage loans to low- and moderate-mcome 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 m the state to provide such mortgage loans and for certam other purposes; and WHEREAS, pursuant to the Code, the Colorado legislature adopted the Colorado Private ActiVity Bond Ceilmg AllocatIOn Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes (the "Allocation Act"), provldmg for the allocatIOn of the State Ceilmg among the Colorado Housmg and Finance Authonty (the "Authority") and other governmental umts m the State, and further providing for the assignment of such allocations from such other governmental umts to the Authonty; 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 2004 State Cetlmg for the Issuance of a speCified pnnclpal amount of Pnvate Activity Bonds pnor to September IS, 2004 (the "2004 AllocatIOn"): and WHEREAS, the City of Wheat Ridge has determmed that, m order to increase the aVallablltty of adequate affordable housing of low- and moderate-mcome persons and famlhes Within the City of Wheat RIdge and elsewhere in the State, It IS necessary or deSirable to provide for the utIhzatlon of all or a portion of the 2004 AllocatIOn, and WHEREAS, the City of Wheat Ridge has determmed that the 2004 Allocation, or a portion thereof, can be utiltzed most efficiently by assigning It to the Authority to Issue Pnvate ActiVity Bonds for the purpose of providing single-family mortgage loans to low- and rnoderate- mcome persons and famlhes; and WHEREAS, the City Council of the City of Wheat Ridge has determmed to assign $1,292,640 of ItS 2004 Allocation to the Authority, which assignment IS to be evidenced by an AssIgr[ffient of AllocatIOn between the City of Wheat Ridge and the Authority (the "AssIgr[ffient of AllocatIOn") NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat Ridge as follows, RDF\53027\448221.2 I. The assIgnment to the Authonty of $1 ,292,640 of the City of Wheat Ridge's 2004 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 authonzed to make such techmcal variatIOns, additIOns or deletions III or to such ASSignment of Allocation as he shall deem necessary or appropnate 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 dehver 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 m accordance with the mtent of this resolution. 4 If any sectIOn, paragraph, clause, or prOVISion of this resolutIOn shall for any reason be held to be mvahd or unenforceable, the mvahdlty or unenforceabllity of such sectIon, paragraph, clause, or provIsion shall not affect any of the remammg proVisions of this resolutIOn. 5. ThiS resolutIOn shall be in full force and effect upon Its passage and approval. DONE AND RESOLVED this ::2 ~{~'~ay of (:, ';(f .~ ,2004 ATTEST. RDF\53027\448221 1 Resolution No. 19.2004 2 ASSIGNMENT OF ALLOCATION - --J ThIs Assignment of AllocatIon (the" Assignment"), dated thIs '1 ~' , day of ,~ (,; \ j,,)/ r , 2004, 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 authonzed and empowered under the laws of the State of Colorado (the "State") to Issue revenue bonds for the purpose of provldmg smglc.-family mortgage loans to low- and moderate-income persons and families; and WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"), restncts 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 Ceilmg"); 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 umts m the State, and further provldmg for the assignment of allocations from such other governmental umts 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 2004 State Cellmg for the issuance of a specified principal amount ofPnvate ActiVity Bonds pnor to September 15, 2004 (the "2004 AllocatIOn"), and WHEREAS, the ASSignor has determmed that, m order to mcrease the avallablhty of adequate affordable housing for low- and moderate-mcome persons and familtes Within the City of Wheat Ridge and elsewhere m the State, It IS necessary or deSirable to provid~ for the utihzatlOn of all or a portIOn of the 2004 Allocation; and WHEREAS, the Assignor has detem1ined that the 2004 AllocatIon, or a portion thereof, can be utIltzed most efficiently by assigning it to the ASSignee to Issue Private ActIVity Bonds for the purpose ofprovldmg single-famtly mortgage loans to low- and moderate-mcome persons and families ("Revenue Bonds"), and the ASSIgnee has expressed ItS willingness to attempt to Issue Revenue Bonds With respect to the 2004 AllocatIOn; and WHEREAS, the City Council of the ASSignor has determined to assign to the ASSignee $1,292,640 of its 2004 Allocation, and the ASSignee has agreed to accept such asslgrtment, which IS to be eVidenced by thiS Assignment. NOW, THEREFORE, m consideratIon of the premises and the mutual promises hereInafter set forth, the parties hereto agree as follows: I{LJ~ 5302T44X212.1 1 The Assignor hereby assigns to the ASSignee $1,292,640 of ItS 2004 AllocatIOn, subject to the terms and conditions contamed herem. The ASSignor represents that It has received no monetary consideration for said assignment. 2. The ASSignee hereby accepts the asslgrtment to it by the ASSignor of $1,292,640 of Assignor's 2004 Allocation, subJect to the terms and conditIOns contamed herein. The ASSignee agrees to use ItS best efforts to issue and sell Revenue Bonds, m one or more series, and to make proceeds of such Revenue Bonds available from time to time during the penod of two (2) years from the date of this Assigrtment for the purchase of mortgage loans m at least the aggregate amount of $1 ,292,640 to finance smgle-family housmg facilttIes located in the City of Wheat Ridge. Unless otherwise agreed to m wrItmg, the mortgage loans will be subject to all applicable current requirements of ASSignee's mortgage revenue bond program, mcluding Assignee's mcome and purchase pnce ltmlts. 3 The Assignor hereby consents to the election by the Assignee, If the ASSignee m ItS discretIOn so decides, to treat all or any portion of the asslgrtment 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 AssIgrtment. S Nothmg contamed in thiS ASSignment shall obligate the ASSignee to finance mortgage loans m any particular amount or at any particular mterest rate or to use any particular percentage of the proceeds of ItS Revenue Bonds to provide mortgage loans to finance single- family housmg faclhties located m the City of Wheat Ridge. 6 This AssIgrtment is effective upon execution and IS Irrevocable. Mayor [S E A L] ROF,.5302T448212.1 2 - . >,,'::~~ ..,j.1'r\0Ai7-:::"'~ ,:- ,~~:"1 f:.~;;'0(~'~\ ,.:Ar" .. ';; " .,,' . . .{ (q~ .\') C..... :0 "'W :0(, IS E A. L1 , >,~..'~!{I ATrES!: ! 1 /,-~.'.....- / By:;. " ,( ASSist t Secretary j '-~~ ~"/I IZflf'5J\l2TA4'<12 \2.\ ----- COLORADO HOUSING AND FINANCE AUTHORfry By: CI'1iiJ'-1~- Executive Dlrector 3 -- \