HomeMy WebLinkAboutC09-378 Multi-Family Housing Facility BondsASSIGNMENT OF ALLOCATION
(Multi-Family Housing Facility Bonds)
This Assignment of Allocation (the "Assignment"), dated this ~~~ day of
September, 2009, is between the County of Eagle, Colorado (the "Assignor") and the
Colorado Housing and Finance Authority (the "Assignee").
WITNESSETH:
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 puipose of
financing qualified residential rental projects for 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 s~ich 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 tmits 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 2009 State Ceiling for the issuance of a
specified principal amount of Private Activity Bonds prior to September 15, 2009, the
"2009 Allocation"); and
WHEREAS, the Assignar has determined that, in order to increase the availability
of adequate affordable rental housing for low- and moderate-income persons and families
within the County of Eagle, Colorado and elsewhere in the State, it is necessary or
desirable to provide for the utilization of all or a portion of the 2009 Allocation; and
WHEREAS, the Assignor has determined that the 2009 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 multi-family rental housing
projects for low- and moderate-income persons and families or, if not feasible or practical
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
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has expressed its willingness to attempt to issue Revenue Bonds with respect to the 2009
Allocation; and
WHEREAS, the Board of County Commissioners of the Assignor has determined
to assign to the Assignee $2,363,640 of its 2009 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 $2,363,640 of its 2009
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
$2,363,640 of Assignor's 2009 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 $2,363,640, in one or more series, and
to make proceeds of such Revenue Bonds available from time to time for a period of two
(2) years from the date of this Assignment to finance multi-family rental housing projects
located in the County of Eagle, Colorado, or, if not feasible, to issue Revenue Bonds for
the purpose of providing single-family mortgage loans to low- and moderate income
persons and families in the County of Eagle, Colorado 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 to
finance single-family housing facilities in the County of Eagle, Colorado.
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 assignment set forth
herein as an allocation for a project with a carryforward purpose.
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 County of Eagle,
Colorado or elsewhere.
6. This Assignment is effective upon execution and is irrevocable.
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IN WITNESS WHEREOF, the parties hereto have duly executed this Assignment
on the date first written above.
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[S E A Lj
By: -X,~,Q~
ATTEST:
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COLORADO HOUSING AND FINANCE
AUTHORITY
[SEAL]
ATTEST:
By:
Assistant Secretary
B y:
3
Executive Directar
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TERM SHEET
1) Requested hearing date: August 25, 2009 or September 1, 2009. Per
Colorado Revised Statutes rules, PAB Volume Cap must be used, carriedforward,
or assigned before September 15 of a given calendar year.
2) Reguestin~ department: Housing and Development
3) Title: ASSIGNMENT OF ALLOCATION (Multi-Family Housing Facility
Bonds)
4) Staff submitting: Jill Klosterman, Assistant Director of Housing &
Development
5) Purpose: On December 22, 2008, Eagle County was notified that Private
Activity Bond Volume Capacity ("Volume Cap") of $2,363,640 had been
allocated to Eagle County. Eagle County must use, carryforward, or relinquish its
Volume Cap prior to September 15, 2009. As Eagle County has not yet utilized
its Volume Cap, staff recommends that Eagle County assign its Volume Cap to
CHFA for a multifamily use. This assignment will allow Eagle County to utilize
the Volume Cap to finance a mt~ltifamily project in the near future should a
suitable project come up. Should a multifamily project not arise, CHFA could use
the Volume Cap to finance single family mortgages. CHFA would attempt to
generate this level of mortgages in Eagle Co~~nty. Finally, the assignment of the
Volume Cap to CHFA gives Eagle County the ability to have some amount of
control over where the Volume Cap is used in addition to the ability to use the
Volume Cap for its own potential multifamily project.
6) Schedule: All agreements must be executed and submitted to CHFA prior to
September 15, 2009.
7) Financial considerations: The assignment of Volume Cap to CHFA will not
have any immediate financial considerations to Eagle Co~inty.
8) Other:
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APP!~O~~ED AS TO FORM
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Eagle ~ounty Rt~rney's Office
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