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HomeMy WebLinkAbout1239 - AUTHORIZING Assignment to the Colorado Housing and Finance Authority of a Private Activity Bond Allocation of the City of Boulder, Colorado Pursuant to the Colorado Private Activity Bond Ceiling Allocation Act RESOLUTION NO. 1239 AUTHORIZING ASSIGNMENT TO THE COLORADO HOUSING AND FINANCE AUTHORITY OF A PRIVATE ACTIVITY BOND ALLOCATION OF THE CITY OF BOULDER, COLORADO PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT WHEREAS, the City of Boulder, Colorado (the "City of Boulder") is 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 City of Boulder 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 Boulder has an allocation of the 2018 State Ceiling for the issuance of a specified principal amount of Private Activity Bonds prior to September 15, 2018 (the "2018 Allocation"); and WHEREAS, the City of Boulder 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 Boulder and elsewhere in the State, it is necessary or desirable to provide for the utilization of all or a portion of the 2018 Allocation; and WHEREAS, the City of Boulder has determined that the 2018 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 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. The Authority will use its best efforts to issue bonds in an amount up to the Assigned Cap (as defined below) to finance a portion of the costs of a qualified residential rental project in the City of Boulder, Colorado and known as Golden West Senior Living (the "Project"); provided such project receives tax credits and the financing for the Project, in CHFA's sole judgement is likely to close prior to December 31, 2018; and WHEREAS, the City Council of the City of Boulder ("City Council") has determined to assign$1,658,923 of its 2018 Allocation(the"Assigned Cap")to the Authority,which assignment is to be evidenced by an Assignment of Allocation between the City of Boulder and the Authority (the "Assignment of Allocation"); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Boulder as follows: 1. The assignment to the Authority of $1,658,923 of the City of Boulder's 2018 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 City Council be and hereby are authorized to make such technical variations, additions or deletions in or to such Assignment of Allocation as they shall deem necessary or appropriate and not inconsistent with the approval thereof by this resolution. 3. The City Council of the City of Boulder be and hereby are authorized to execute and deliver the Assignment of Allocation on behalf of the City of Boulder 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. INTRODUCED, READ, PASSED AND ADOPTED this tkday of September, 2018. CITY OF BOULDER, COLORADO 00 Mayor ' [SEAL] ATTEST: Cit k