HomeMy WebLinkAbout928 - AUTHORIZING the City of Boulder to sign a Line of Credit Facility Agmt w/Fannie MaeRESOLUTION NO. 928
A RESOLUTION AUTHORIZING THE CITY OF BOULDER TO SIGN
A LINE OF CREDIT FACILITY AGREEMENT WITH FANNIE MAE
A RESOLUTION authonzing and providmg for (a) the City of Boulder, Colorado
(the "City") to enter mto a Revolvmg Credrt Facil~ty Agreement (the "Agreement")
providmg a Credrt Facilrty m the amount of Three Million Dollars ($3,000,000) (the
"Credrt Facility") with Fanme Mae, a corporahon orgamzed and existmg under the laws
of the Unrted States of America ("Fannie Mae"), (b) the Crty to enter mto a Letter of
Credit Agreement with Bank One (the "Bank") pursuant to which the Bank will issue a
letter of cred~t m favor of Fannie Mae m the stated amount of $750,000 to secure the
City's obl~gations under the Revolvmg Credit Facility Agreement and (c) the approval of
expendrtures out of the Crty's Affordable Housing Fund to make payments pursuant to
the Cred~t Facility Agreement and the I,etter of Credit ~lgreement.
RECITALS
WHEREAS, the City desires to develop certam affordable housmg projects
withm rts boundaries; and
WHEREAS, C~ty has applied to Fanme Mae for a credit facil~ty m the amount of
Three Million Dollars ($3,000,000) (the "Credit Facility");
WHEREAS, Fannie Mae has agreed to provide the Credrt Facil~ty to the City
pursuant to a Revolvmg Credit Facility Agreement between Fannie Mae and the C~ty (the
"AgreemenY'), sub~ect to the Crty providmg the Letter of Credit, appropriatmg sufficient
funds for payments due under the Agreement in fiscal year 2003, and agreemg, sub~ect to
appropriation of funds for fiscal years after 2003 to make all payments required under the
Agreement, and
WHEREAS, the Bank has agreed to provide the Letter of Credit pursuant to the
L.etter of Credit Agreement.
NOW THEREFORE, BE TI' RESOLVED THAT THE CTI'Y COUNCIL OF THE
CTI'Y OF BOULDER, THAT
1. The Ciry ~s hereby authorized to enter into the Agreement with Fannie
Mae m substantially the form on file with this Council, and to execute any and all
documents required by Fannie Mae m connection wrth the Agreement;
2. Thc City ~s hereby aathorized to ent~r mro the L.etter cf Credit Agreement
with the Bank m substant~ally the form on file w~th this Council and to execute any and
all documents required by the Bank in connecUon with the L.etter of Credrt Agreement
and the Bank's issuance of the Letter of Credit.
3. Funds m the amount of Twenty Thousand Dollars ($20,000.00) for fiscal
year 2003 have been appropriated from the City's Affordable Housing Fund and pledged
and destgnated to be used solely for the repayment of the Credit Facility;
4. Funds m the amount of Ten Thousand Seven Hundred Thirty-three Dollars
($10,733 00) for fiscal year 2003 have been appropriated from the City's Affordable
Housing Fund and pledged and designated to be used solely for the payments required by
the City under the better of Credit Agreement;
5. The City's obligation to make payments pursuant to the Agreement will
constitute a moral obhgaUon of the City arising from an essential governmental function
of the City.
INTRODUCED, READ, PASSED AND ADOPTED THIS _ day of August, 2003.
,f-~,r,.~~ .-~ J
Wtlliam R. Toor, Mayor
Attest:
~ry ~~ /
_ .GG1le.. ~ <v'S
Crty Clerk on behalf of the