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HomeMy WebLinkAbout1097 - DECLARING the intent of the city to assign the 2011 private activity bond allocation to the Housing Authority RESOLUTION NO. 1097 A RESOLUTION DECLARING THE INTENT OF THE CITY OF BOULDER, COLORADO TO ASSIGN THE CITY'S PRIVATE ACTIVITY BOND ALLOCATION FOR 2011 TO THE HOUSING AUTHORITY OF THE CITY OF BOULDER, PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT WHEREAS the city of Boulder ("City") and the Housing Authority of the City of Boulder, d/b/a/ Boulder Housing Partners, established pursuant to Section 29-4-201 et seq., C.R.S., a Colorado housing authority ("BHP") are authorized and empowered under the laws of the state of Colorado (the "State") to issue revenue bonds for the purpose of financing or refinancing multifamily residential rental projects for low- and moderate-income families located within the boundaries of the City; 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 financing 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, C.R.S. (the "Allocation Act"), providing for the allocation of the State Ceiling among governmental units in the State, and further providing for the assignment of such allocations from one such governmental unit to another governmental unit; and WHEREAS pursuant to the Allocation Act, the City has received a direct allocation of the State of Colorado's Private Activity Bond Ceiling in the amount of $4,854,975 ("2011 Allocation"); and WHEREAS, BHP has requested that the City assign the 2011 Allocation to BHP pursuant to Section 24-32-1706 of the Allocation Act, to be used to issue bonds to finance or refinance multifamily residential rental projects for low- and moderate-income families located within the boundaries of the City, and WHEREAS, the City Council of the city of Boulder (the "City Council") has determined to assign $4,854,975 of its 2011 Allocation to BHP, which assignment is to be evidenced by an Assignment of Allocation ("Assignment") between the city of Boulder and BHP attached hereto as Exhibit A, to finance or refinance multifamily residential rental projects for low- and moderate-income families located within the boundaries of the City: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BOULDER: 1. The City Council hereby authorizes the Assignment of the 2011 Allocation to BHP for use as described above. 2. The form, terms, and provisions of the Assignment hereby are approved and the City Manager hereby is authorized and directed to execute and deliver the Assignment, with such technical variations, additions, or deletions therein as the City Manager may deem necessary or appropriate and not inconsistent with the approval thereof by this Resolution. The execution of the Assignment shall be conclusive evidence of the approval by the City of such document in accordance with the terms hereof. 3. The City Council hereby finds, determines, recites and declares that neither such Assignment, this Resolution nor the executing of the Assignment shall constitute any multiple- fiscal year direct or indirect debt or other financial obligation whatsoever of the City, and the Private Activity Bonds issued by BHP shall not constitute or give rise to a pecuniary liability of the City or a charge against the City's general credit or taxing powers, or ever be deemed an obligation or agreement of any city council member, officer, director, agent or employee of the city. 4. The officers of the City shall take such other steps or actions necessary or reasonably required to carry out the terms and intent of this Resolution and the Assignment. 5. 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. 6. All actions not inconsistent with the provisions of this Resolution heretofore taken by the City Council and the officers of the City directed toward the assignment of the 2011 Allocation and the authorization of the Assignment hereby are ratified, approved, and confirmed. 7. This Resolution shall be in full force and effect as of August 2011. Passed and adopted this day of 2011. ~AY ATTEST: crry CLERK