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HomeMy WebLinkAbout24-80 Authorizing Assignment to the Colorado Housing & Finance Authority of Private Activity Bond Allocation 08-28-2024RESOLUTION NO. 24-80 A RESOLUTION OF THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE COLORADO AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE TOWN OF FIRESTONE PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT WHEREAS, the Town of Firestone ("Town') is authorized and empowered under the laws of the State of Colorado ("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 Town is also authorized and empowered under the laws of 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 ("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 ("Allocation Act"), providing for the allocation of the State Ceiling among the Colorado Housing and Finance Authority ("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 C.R.S. See. 24-32-1706 of the Allocation Act, the Town has an allocation of the 2024 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2024 ("2024 Allocation"); and WHEREAS, the Town has determined that, in order to increase the availability of adequate affordable housing for low -and moderate -income persons and families within the Town and elsewhere in the State, it i`s desirable to provide for the utilization of the 2024 Allocation; and WHEREAS, the Town has determined that the 2024 Allocation, can be utilized most efficiently by assigning it to the Authority to issue Private Activity Bonds for the purpose of financing one or more multi -family rental housing projects for low -and moderate -income persons and families or to issue Private Activity Bonds for the purpose of providing single-family mortgage loans to low -and moderate -income persons and families ("Revenue Bonds") or for the issuance of mortgage credit certificates; and WHEREAS, the Town's Board of Trustees desires to assign the entirety of its 2024 Allocation to the Authority, which assignment is to be evidenced by an Assignment of Allocation between the Town and the Authority ("Assignment of Allocation"). NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FIRESTONE, COLORADO I . The assignment to the Authority of $1,135,070.00, which is the entirety of the Town's 2024 Allocation is hereby approved. 1 The Assignment of Allocation is approved in substantially the same form as the copy attached hereto as Exhibit A and made a part of this resolution and the Mayor is authorized to execute the Assignment of Allocation on behalf of the Town, provided, however, that the Town's Director of Economic Development & Firestone Urban Renewal Authority (TURA") is authorized to make such technical variations, additions or deletions in or to such Assignment of Allocation as necessary or appropriate and not inconsistent with the approval thereof by this resolution. 3. The Town's Director of Economic Development & TURA is hereby authorized and directed to deliver the Assignment of Allocation to the Authority on behalf of the Town and to take such other steps or actions as may be necessary, useful or convenient to affect the aforesaid assignment in accordance with the purposes of this resolution, INTRODUCED, READ AND ADOPTED this I /day of August 2024. M qir any Wi6 t Ma G o z a I e `ownz,�Clerk - TOWN OF FIRESTONE, COLORADO a Assignment of Allocation — Town of Firestone 3 pages Docusign Envelope ID: D6ADC26D-953A-4CED-A31A-2CC791A286B8 Ar AV cnra,, assignment of allocation - town Multifamily Housing Facility Bonds/Single Family Mortgage Revenue Bonds This Assignment of Allocation (the "Assign mentl% dated thIS 28th day of_ 20241 is between the Town of Firestone Colorado (the "Assignor" or the "Jurisdiction") and the Colorado Housing and Finance Authority (the "Assignee"). MINNOW I "m Lt Ina or. 1 a L= III DO 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 finance such 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 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 2024 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2024, (the "2024 Allocation"); and WHEREAS, the Assignor has determined that, in order to increase the availability of adequate affordable rental housing for low- and moderate -income persons and families within the Jurisdiction, Colorado and elsewhere in the State, it is necessary or desirable to provide for the utilization of all or a portion of the 2024 Allocation; and WHEREAS, the Assignor has determined that the 2024 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 or 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 2024 Allocation assigned herein; and Docusign Envelope ID: D6ADC26D-953A-4CED-A31A-2CC791A286B8 WHEREAS, the Town Board/Council of the Assignor has determined to assign to the Assignee all or a portion of its 2024 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 $ 1,135,070.00 of its 2024 Allocation (the "Assigned 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 the Assigned Allocation, subject to the terms and conditions contained herein. The Assignee agrees to use its best efforts to issue and sell Revenue Bonds in an aggregate principal amount equal to or greater than the Assigned Allocation, in one or more series, and to make proceeds of such Revenue Bonds available from time to time for a period of one (1) year from the date of this Assignment to finance multifamily rental housing projects located in the Jurisdiction, or to issue Revenue Bonds for the purpose of providing single-family mortgage loans to low- and moderate income persons and families in the Jurisdiction. 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 Assigned Allocation as an allocation for a project with a carryforward purpose or to make a mortgage credit certificate election, in lie'U of issuing Revenue Bonds. 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 any particular multi -family rental housing project located in the Jurisdiction or elsewhere or to finance single- family 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 or mortgage credit certificates to finance single-family housing facilities in the Jurisdiction, provided that any Revenue Bond proceeds attributable to the Assigned Allocation shall be subject to paragraph 2 above. 6. This Assignment is effective upon execution and is irrevocable. 7. Counterparts. This Assignment may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Assignment by electronic image scan transmission will be effective as delivery of a manually executed counterpart of the Assignment. Docusign Envelope ID: D6ADC26D-953A-4CED-A31A-2CC791A286B8 IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment on the date first written above. Town of, Firestone , Colorado By: / �.j Title: Mayor By:r signed by: Name: Heather Schell Title: General Counsel