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RESOLUTION: 2005-53
SUBJECT: Assigning and transferring to the Colorado Housing and Finance Authority ("CHFA") a portion of the City of Lakewood's 2005 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 of allocation 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 CHFA. 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 Panorama West 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 2005 is a total of $5,738,160. 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 of Lakewood is being asked to assign $4,738,160 of its PAB allocation to CHFA, who is the issuing authority for the Panorama West bonds.
Nothing in the Resolution constitutes a debt, indebtedness, or multiple year fiscal obligation of the City of Lakewood.
PROJECT DESCRIPTION: Panorama West Apartments, constructed in 1973, is a 204-unit apartment community located at 184 South Zang Way in Lakewood. Situated just south of West 6th Avenue, the property has excellent access to all parts of the Denver metropolitan area and major employment centers. Panorama West is currently a 100% affordable community consisting of all units at or below 60% of Area Median Income (AMI), but there is no guaranty that affordability will be maintained in the future. The involvement of CHFA 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 McDermott
Properties, a local developer of both market rate and affordable rental housing,
have acquired and will be engaging in an extensive rehabilitation and modernization
of the Panorama West Apartments. The LHA'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 25% 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 families with a mix of incomes.
This joint venture between the Lakewood Housing Authority and McDermott Properties 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: September 12, 2005
ORIGINATED BY: Larry Dorr, Director, Department of Finance
Bill Lunsford, Housing Development Manager, Department of Housing and Family
Services
STAFF PERSON RESPONSIBLE: Larry Dorr, Director, Department of Finance, 303-987-7601
Bill Lunsford, Housing Development Manager, Department of Housing and Family
Services, 303-987-7581
DOCUMENTS ATTACHED: Resolution 2005-53
Assignment of Allocation
SUBMITTED BY:
Larry Dorr, Director, Department of Finance
Tami Fischer, Director Department of Housing and Family Services
REVIEWED BY:
Joni Inman, Director, Mayor and City Manager's Office
Michael J. Rock, City Manager
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