HomeMy WebLinkAbout23-90 Authorizing Assignment CHFA Activity Bond Allocation Colorado Private Activity Bond Ceiling Allocation Act 09-13-2023RESOLUMON NO. 23-90
A RE"SOLUTION OF THE"BOARD OF TRSIT A'S Of"HIETOWN OFFIT E'STONE
COLORADO Au'rilORIZING ASSIGN M1-..,NTT0'Ff4 E CC: LORADO HOUSING AND
FINANCE ALF1440RITY 01-A PRIVATU" AcriVITY BOND ALLOCATION OF THL'
TOWN OFF-1111iSTONE' PURSUAN171-0 "Ti ll-ECOLORADO PRIVATE ACTIVITY
BOND CEILING ALI-OCATION ACT
WFIU'REAS, the Town of Firestone ("ToNvii") is aLuhOrized and empowered under
the laws of the State of Colorado ("State") to issue revenue bonds for the purpose of
financing qualified residential rental prqjJects for low -and moderate-incorne persons and
t-'amilies-, 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-incorne persons and families; and
kVIIEREADS, the Internal Revenue Code of 1986, as amended ("Code"), restricts
the arnount of tax-exempt bonds ("Private Activity Bonds") which nlay be issued in the
State to provide such mortgage loans and tar certain other purposes; and
WHERE"AS, pursuant to the Code, the Colorado legislature adopted the Colorado
Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Color."Ido
Revised Statures ("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 frorn such other governtriental units to the Authority; and
WHERt""AS, pursuant to an allocation under C.R.S. Sec. 24-32-1706 of the
Allocation Act, Firestone has an allocation ofthe 2023 State Ceiling for the issuance of a
specified principal amount of private Activity Bonds prior to Septettiber 15, 2023 C'22023
Allocation"),and
WI I ER1.1"AS, the Town has determined that, in order to increase the availability of
adequate aft"ordable housing for low -and moderatc-incorne Persons and families within
the Town and elsewhere in the State, it is desirable to provide for the utilization of the
2023 Allocation, and
'III. REAS, the Town has determined that the 2023 Allocation, can be utilized
roost efficiently by assigming it to the Authority to issue Private Activity Bonds or the
purpose of financing one or more multi-ftimily rental housing , prc)jcets for low -and
moderate-inconic persons and fainilies or to issue Private Activity, Bonds l"or the purpose
of providing sin gle-fimuly inortgage loans to low -and moderate-incorne persons and
farnilies ("Revenue Bonds") or t*(,)r the issuance ol'itiortgage credit certificates; and
WHEREAS, the Board of Trustees of" the Town of„ irestone desires to assign the
entirety cif" its 2023 Allocation to the Authority, which assignitient is to be evidenced by
an Assignment of Allocation between the Town and the Authority ("Assignment of
Allocation").
N 0 W, TI 11'R E FORE, BE' 11' R ES () I VED 13Y THE' BOARI) 01"TRUSTEES 01-'
T111"i TOWN OF FIRESTONE, COLORADO
I , The assignment to the Authority of S 1,036,838.00, which is the entirety of
the 'Vown of Firestone's 2023 Allocation is hereby approved.
2. The Assignt'rient of Allocation is approved in substantially the sarne forni
as the copy attached hereto as Fxhibit A andinade a part of this resolution and the Mayor
is authorized to execute tire Assignment (.,)f Allocation on behalf of tire Town; provided,
however, that the Town's Director of E`conornic Development & 1{ URA 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 resolutiorl.
3'fire Town's Director of Economic Developirrent & FURA is hereby
authorized and directed to deliver the Assignment of Allocation on behalf of theTown of
F'restone and to take such other steps or actions as may be necessary, L s o-
I . � I effil I
convenient to effect tire aforesaid assignment in accordance with tire purposes of this
resolution.
INTRODUCLI). READ AND A,Dop,rt.:.t) tiris day of September 2023
K. Basho"r, CMC,Town Clerk
TOWN Of," HRES-I'ONE, COLORADO
Of
Drew Alan Peterson, Mayor
APPROVE'D ASTO "' RM:
William 11, tlayaslii, Town Attorney
I
Assignment of'Allocation Town
pages
DocuSign Envelope ID: D9DA07BO-FAEO-4789-B67F-B638AF886AB1
chta, assignment of allocation - town
Multifamily Housing Facility Bonds/Single Family Mortgage Revenue Bonds
This Assignment of Allocation (the "Assignment"), dated this lMh day of September
2023, is between the Town of Firestone Colorado (the "Assignor" or the
"Jurisdiction") and the Colorado Housing and Finance Authority (the "Assignee").
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 financing qualified
residential rental projects for low- and moderate -income persons and families; and
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 2023 State Ceiling for the issuance of a specified principal amount of
Private Activity Bonds prior to September 15, 2023, (the "2023 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 2023 Allocation; and
WHEREAS, the Assignor has determined that the 2023 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 -in corne persons and families ("Revenue Bonds"),
and the Assignee has expressed its willingness to attempt to issue Revenue Bonds with respect
to the 2023 Allocation assigned hereim and
DocuSign Envelope ID: D9DA07BO-FAEO-4789-B67F-B638AF886AB1
WHEREAS, the Town Board/Council of the Assignor has determined to assign to the Assignee all
or a portion of its 2023 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 s 1,036,838,00 of its 2023 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 lieu 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: D9DA07BO-FAEO-4789-B67F-B638AF886AB1
IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment on the date first
written above.
Town of Hrestone Colorado
By:
Name: Drew Alan Peterson
Title: mlycll
COLORADO HOUSING AlD FINANCE
AUTHORITY
DocuSigned by:
By:
Name: Heather Schell
Title: General Counsel