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RESOLUTION: 2003-63
SUBJECT: Assigning and transferring to the Lakewood Housing Authority a portion
of the City of Lakewood's 2003 private activity bond volume allocation.
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 the Cliffs at Lakewood will receive substantial
upgrades and remain affordable.. Staff recommends approval.
SUMMARY AND BACKGROUND OF SUBJECT MATTER: 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. State law 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 allocation 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 has already assigned $4,399,100 of its 2003 allocation to the Lakewood Housing Authority and now proposes to assign the remaining $1,000,000 from the 2003 allocation.
Approval of the attached Resolution will assist the Lakewood Housing Authority in issuing the bonds with respect to the Cliffs at Lakewood project.
Nothing in the Resolution constitutes a debt, indebtedness, or multiple year fiscal obligation of the City of Lakewood.
PROJECT DESCRIPTION: The Cliffs at Lakewood Apartments are located at 1388 Garrison Street in the City of Lakewood. The property consists of 200 units in 9 two and a half story garden style buildings and one Clubhouse/Leasing/Recreation building located on over 9 acres. The Cliffs at Lakewood was built in 1972 and is currently operated as a non-traditional affordable housing community, but without the proposed plan there is no guarantee that the 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 Cliffs At Lakewood over the next 18 months. The Lakewood Housing Authority's
objectives are as follows:
· Maintain permanent affordability for 100% of the units.
· Engage in a substantial overhaul/rehabilitation for each building,
each unit, and all other facilities on the site.
· Receive 25% of available cash from the project on an ongoing basis.
· The Lakewood Housing Authority is to receive development fees of approximately
$100,000.
Because of the involvement of Lakewood Housing Authority, the project will be structured as an affordable rental community serving a wide range of resident profiles with a mix of incomes. The Cliffs at Lakewood will also provide an important source of affordable rental housing to serve the retail employees of the new Colorado Mills mall and Super Wal-Mart.
It is expected that the project will be financed via bonds issued by the LHA through PAB allocations from the City of Lakewood ($1,000,000), the State of Colorado ($4,000,000) and Jefferson County ($8,000,000).
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: August 25, 2003
ATTACHMENTS: Resolution 2003-63
Assignment Agreement
ORIGINATED BY: Larry Dorr, Finance & Treasury Analyst, Department of Finance
Bill Lunsford, Housing Development Manager, Department of Housing and Family
Services
STAFF PERSON RESPONSIBLE: Larry Dorr, Finance & Treasury 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 Director
Tami Fischer, 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 25th day of August, 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 LAKEWOOD HOUSING AUTHORITY, 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 $1,000,000, 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 August 25, 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 $1,000,000 (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.
CITY OF LAKEWOOD, COLORADO
By
Mayor
Attest:
City Clerk
Approval:
Finance Director
Approval as to form:
City Attorney
LAKEWOOD HOUSING AUTHORITY
By
Name
Title
Attest:
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