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RESOLUTION: 2003-6
SUBJECT: Assigning and transferring to the Lakewood Housing Authority a portion
of the City of Lakewood's 2003 private activity bond allocation. This transfer
will help finance a residential housing facility for low-and middle-income persons
and families within the City of Lakewood. This Resolution authorizes the execution
and delivery of an assignment agreement and other documents in connection therewith.
RECOMMENDATION: Approval of the Resolution as drafted will provide the City
of Lakewood with an opportunity to participate in a cooperative effort with
the Lakewood Housing Authority. In utilizing a portion of the City's current
private activity bond allocation a residential housing facility for low and
middle-income persons known as Mountain View Village will remain affordable
for years to come. Staff recommends approval.
SUMMARY AND BACKGROUND OF SUBJECT MATTER: State statute established the State of Colorado's Private Activity Bond (PAB) allocation program (24-32-1701 et seq., C.R.S.) to provide for the allocation of the State's PAB ceiling under the Federal Tax Reform Act of 1986. Fifty percent (50%) of the state ceiling is allocated to local governments throughout the State of Colorado. Cities that warrant allocations of $1,000,000 or more receive direct allocation. The City of Lakewood's PAB for 2003 is a total of $5,399,100. In addition to the City allocation, there is a statewide balance that can be used for approved projects throughout the State of Colorado. The City will be assigning to the Authority $4,399,100 from its 2003 allocation.
Approval of the attached Resolution will delegate authority to the Lakewood Housing Authority to issue the bonds with respect to the Mountain View Village project.
Nothing in the Resolution constitutes a debt, indebtedness, or multiple year fiscal obligation of the City of Lakewood.
PROJECT DESCRIPTION: Mountain View Village Apartments (MVV) is a 252-unit multi-family rental community located on the north side of 6th Avenue and just west of Simm's Landing in Lakewood. MVV was constructed over 31 years ago. Mountain View is currently affordable to seniors and families, but there is no guaranty that that affordability will be maintained in the future. The involvement of the Housing Authority in this project will help to ensure that the project continues to be affordable for the citizens of Lakewood for the long term.
The Lakewood Housing Authority (LHA), in partnership with Fairfield Communities,
a well-known national developer of both market rate and affordable rental housing,
will be acquiring and engaging in an extensive rehabilitation and modernization
of the Mountain View Village Apartments over the next 18 months. The Housing
Authority's objectives are as follows:
· Maintain permanent affordability for 100% of the units.
· Engage in a complete rehabilitation for each building, each unit, and
all other facilities on the site.
· Receive 30% of available cash from the project on an ongoing basis.
Because of the involvement of LHA, the project will be structured as an affordable rental community serving seniors and families with a mix of incomes. Mountain View Village will also provide an important source of affordable rental housing to serve the retail employees of the new Colorado Mills mall in west Lakewood. Commute time from MVV to Colorado Mills will be approximately 5 minutes.
This joint venture between the Lakewood Housing Authority and Fairfield Communities is an important step in providing quality, well-maintained and well-located affordable housing for the citizens of Lakewood for years to come.
RESOLUTION ADOPTION DATE: January 13, 2003
ATTACHMENTS: Resolution 2003-6
Assignment Agreement
ORIGINATED BY: Larry Dorr, Financial Analyst, Department of Finance
Bill Lunsford, Housing Development Manager Department of Housing and Family
Services
STAFF PERSON RESPONSIBLE: Larry Dorr, Financial Analyst, Department of Finance,
303-987-7668
Bill Lunsford, Housing Development Manager Department of Housing and Family
Services, 303-987-7581
SUBMITTED BY:
Jacque Wedding-Scott, Finance
Tami Fischer, Director Director of Housing and Family Services
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Mike Rock, City Manager
ASSIGNMENT AGREEMENT
This Assignment Agreement (the "Assignment"), dated as of the first
day of January, 2003, is by and between the CITY OF LAKEWOOD, COLORADO, a home
rule city and municipal corporation of the State of Colorado (the "Assignor")
and the HOUSING AUTHORITY OF THE CITY OF LAKEWOOD, COLORADO, a Colorado housing
authority (the "Assignee");
RECITALS:
WHEREAS, the Assignor has been awarded approximately $5,399,100 (the "2003
Allocation") of the bond ceiling for the State of Colorado and its issuing
authorities (the "State Ceiling") computed under Section 146(d) of
the Internal Revenue Code of 1986, as amended (the "Code"), under
the Colorado Private Activity Bond Ceiling Allocation Act, constituting Part
17 of Article 32 of Title 24, Colorado Revised Statutes, as amended (the "Allocation
Act"), for use in the issuance of private activity bonds; and
WHEREAS, subject to the terms and conditions set forth herein, the Assignor
desires to assign and transfer to the Assignee, and the Assignee desires to
accept, a portion of the Assignor's 2003 Allocation in an amount equal to $4,399,100,
which the Assignor and Assignee agree to commit and reserve for the issuance
of such private activity bonds; and
WHEREAS, the private activity bonds will be issued by the Assignee pursuant
to the provisions of Sections 29-4-201, et seq., Colorado Revised Statutes,
as amended (the "Act") and the Supplemental Public Securities Act,
constituting Title 11, Article 57, Part 2, Colorado Revised Statutes, as amended
(the "Supplemental Act") and such bonds will be used for a purpose
which qualifies as a "project" as described in the Act and Supplemental
Act;
ASSIGNMENT:
In exchange for the agreements set forth herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:
1. In accordance with action taken by the governing body of the Assignor on
January 13, 2003, the Assignor hereby assigns and transfers to the Assignee,
a portion of the Assignor's 2003 Allocation from the State Ceiling for private
activity bonds in an amount equal to $4,399,100 (the "Assigned Amount").
In addition, the Assignor hereby consents to the election by the Assignee, if
the Assignee in its discretion so decides, to treat the Assigned Amount as an
allocation for a project with a carryforward purpose and/or to make a mortgage
credit certification election, thus avoiding reversion of the Assigned Amount
to the statewide balance under the Allocation Act.
2. The Assignor represents that is has received no monetary consideration for
the assignment set forth above.
3. The Assignee hereby:
(a) Accepts the assignment of a portion of the Assignor's 2003 Allocation from
the State Ceiling described above;
(b) Agrees to abide by each of the terms and conditions of this Assignment in
connection with the use of the Assignor's 2003 Allocation.
4. This Assignment shall terminate on November 15, 2003. However, the Finance
Director or other appropriate official of the Assignor shall have the discretion
to extend the term of this Assignment for any period of time. Subject to any
such extension of this Assignment, the Assigned Amount of the Assignor's 2003
Allocation shall revert back to the Assignor upon the termination of this Assignment.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this instrument to be executed to be effective as of the date and year first written above.
[SEAL] CITY OF LAKEWOOD, COLORADO
By
Mayor
Attest:
City Clerk
Approval:
Finance Director
Approval as to form:
City Attorney
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