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HomeMy WebLinkAbout850699.tiff RESOLUTION RE: APPROVE HOUSING POLICY REPORT UNDER SECTION 103A OF THE INTERNAL REVENUE CODE FOR SINGLE-FAMILY MORTGAGE REVENUE BONDS WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, Weld County, Colorado, (the "County") is authorized by the Colorado County and Municipality Development Revenue Bond Act, constituting Sections 29-3-101 through 29-3-123 , inclusive, Colorado Revised Statutes, to finance, refinance, acquire, own, lease, improve, and dispose of properties to the end that more adequate residential housing facilities for low- and middle-income families and persons may be provided, which promote the public peace, welfare, safety, convenience and prosperity, and WHEREAS, Section 103A of the Internal Revenue Code of 1954 , as amended (the "Code") , sets forth requirements which must be satisfied in order for interest on the bonds issued to finance residential housing facilities to be exempt from federal income taxation, and WHEREAS, the Tax Reform Act of 1984 amended Section 103A of the Code by, among other things, adding Section 103A(j ) (5) of the Code which provides that an issue of bonds to finance residential housing facilities is exempt from federal income taxation if, among other things, the issuer has published (after a public hearing following reasonable public notice) a report by the last day of the year preceding the year in which such bonds are issued and a copy of such report has been submitted to the Secretary of the United States Department of the Treasury on or before such last day, and WHEREAS, the report required by Section 103A(i ) (5) of the Code must include a statement of the policies with respect to housing, development and low-income housing assistance which the issuer is to follow in issuing qualified mortgage bonds and mortgage credit certificates and an assessment of the compliance of such issuer during the preceding one year period preceding the date of the report with the statement of policy on qualified 850t,99 Page 2 RE: POLICY REPORT UNDER SECTION 103A mortgage bonds and mortgage credit certificates and that was set forth in the previous report, if any, and the intent of the Congress that issuers are expected to use their authority to issue qualified mortgage bonds and mortgage credit certificates to the greatest extent feasible (taking into account prevailing interest rates and conditions in the housing market) to assist lower income families to afford home ownership before assisting higher income families, and WHEREAS, there has been prepared a report entitled "Policy Report Under Section 103A" (the Report) setting forth the information required under Section 103A(j ) (5) of the Code and Section 6a. 103A-2 (1) of the Regulations, and WHEREAS, there was published in newspapers of general circulation available to residents of the County a notice to inform residents of the County of a public hearing to be held on December 18 , 1985 , in connection with the meeting of the Board of County Commissioners of the County to consider passage of a Resolution approving the Report, which notice set forth the time and place for the hearing and was published at least fourteen days prior to the date of the public hearing. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado: Section 1 . On December 18 , 1985 , the Board of County Commissioners, at its regular meeting, conducted a public hearing on the Report, at which time the Report was discussed and a reasonable opportunity was afforded to all interested persons to express their views, both orally and in writing, on the Report. Section 2 . The Board of County Commissioners approves the Report and authorizes the Chairman of the Board of County Commissioners to execute the Report on behalf of the County and submit a copy of the Report to the Secretary of the United States Department of the Treasury and to the Commissioner not later than December 31 , 1985 . The officers of the County are authorized to take any other action which is required by Section 103A (j ) (5) of the Code and regulations promulgated thereunder with respect to the Report. Page 3 RE: POLICY REPORT UNDER SECTION 103A Section 3 . This Resolution shall be in full force and effect upon its passage and approval. The above and foregoing Resolution was , on motion duly made and seconded, adopted by the following vote on the 18th day of December, A.D. , 1985. i ,�, 4.2 .v BOARD OF COUNTY COMMISSIONERS ATTEST• (� k WELD COUNTY, OLORADO Weld County Clerk and Recorder and Clerk to the Board cqu ine Jo n on, Chairman EXCUSED A„L.,, , Gene R. Brantner, Pro-Tem eputy County rk APP VED AS TO FORM: C.W. Ki �c C Go do cy o ty At to ey Fn a s c i WELD COUNTY, COLORADO (TIN NO. 84-6000-813) POLICY REPORT UNDER SECTION 103A Dated as of June 30 , 1985 I. PRELIMINARY STATEMENT Pursuant to the County and Municipality Development Revenue Bond Act, constituting Article 3 , Title 29 , Colorado Revised Statutes, Weld County, Colorado (the "County") , is authorized to finance more adequate residential housing facilities for low- and middle-income families and persons. The term "low- and middle-income families and persons" is defined by statute to mean those who "lack the financial ability to pay prices or rentals sufficient to induce private enterprise in such county or municipality to build a sufficient supply of adequate, safe and sanitary dwellings without the special assistance afforded by [the statute] . " Consistent with this statutory authority, the Mortgage Subsidy Bond Tax Act of 1980 and the Tax Reform Act of 1984 , the County intends to issue or participate with other counties within the State of Colorado in the issue of qualified mortgage bonds in 1986 to further the policies and goals described herein. II. HOUSING POLICIES AND GOALS A. The primary goals of the County' s 1986 qualified mortgage bond program (the "program") are: 1 . to assist in providing affordable housing for residents of the County in accordance with expected demand, and 2 . to assist qualified low- and middle-income families and persons to obtain the benefits of home ownership through lower interest rates. B. The proceeds of the qualified mortgage bonds which the County expects to issue or participate in the issuance of in 1986 (the "bonds") are expected to be used to provide financing for the acquisition of residences, rather than to provide financing for home improvement loans or rehabilitation loans. C. The proceeds of the bonds are expected to be used to acquire mortgage loans for both new and existing housing, and to be used to finance the acquisition of detached structures, condominiums and townhouses to be used as residential housing for one family units, provided , however, that mortgage loans will not be financed for the acquisition of duplexes or two-family dwellings, and in each case to be used by the mortgagor as his or her sole place of residence. It is expected that a portion of the proceeds of the Page 1 of 7 Pages bonds will be committed to finance new residences to be sold or financed in part by corporations, partnerships or sole proprietorships which are in the business of constructing single family residences. The names and descriptions of any such "committed allocation" projects, the locations of any such projects and the amounts to be reserved for any such projects will be determined by the County after applications to participate in the program have been received from interested mortgage lenders. D. It is not expected that any particular portion of the proceeds of the bonds will be targeted to new, existing or any other particular class or type of housing, provided that no more than 10% of the aggregate principal amount of mortgage loans acquired with the proceeds of the bonds will be for purchase of condominiums or townhouses. The County has determined that the best method of determining the need and demand for various types of housing is to accept applications for mortgage loans from prospective mortgagors on a first-come first-served basis, except as otherwise provided in Sections III (A) . E. The County is confident that the single-family mortgage bonds thus far issued have served a number of important public policy purposes and have assisted in meeting a number of critical housing program needs. These funds represent an investment in County neighborhoods. They have also provided needed funds for the purchase of homes and stabilization of neighborhoods. These funds have provided individuals and families with the opportunity, at an affordable price, to achieve home ownership. III . DEVELOPMENT POLICIES AND GOALS A. It is expected that for the first nine months after issuance of the bonds, a portion of the lendable proceeds of the bonds will be reserved for the purchase of mortgage loans to finance the purchase of residences located within the County and each, if any, of the counties participating in a qualified mortgage bond issue with the County, provided that no amount is expected to be reserved or remain reserved for any participating county if the amount that would otherwise be reserved or remain reserved is not at least sufficient to purchase one mortgage loan to finance the purchase of a residence located in that county. Page 2 of 7 Pages B. The entirety of Weld County is a "targeted area" and therefore all of the lendable proceeds of the bonds will be reserved for the purchase of single-family residences located in such designated "targeted areas" . C. It is believed that there is a shortage of adequate housing for low- and middle-income housing in all regions of the County. This is evidenced by the fact that the proceeds of the qualified mortgage bond issues in which the County has participated, have been spent very quickly. Consequently, the purpose of the nine month reservation of proceeds for each participating county, if any, as set forth in paragraph III (A) above, is to assure that each participating county is given a fair opportunity to have originated within their respective jurisdictions mortgage loans in amounts equal to their pro rata contributions to the program of the state volume cap, before all the proceeds are otherwise spent. D. The targeted areas as described in paragraph III (B) above are: 1 . the qualified census tracts listed by the United States Department of the Treasury as such, constituting those census tracts within the County in which 70% or more of the families have an income which is 80% or less of the median family income for the State of Colorado, and 2 . the relevant areas of chronic economic distress which have been designated by the State of Colorado and approved as such by the Secretaries of the Department of the Treasury and the Department of Housing and Urban Development. Federal law requires the reservation of bond proceeds for use in the targeted areas set forth in paragraph III (B) above. The use of bond proceeds in such targeted area is consistent with the County' s policies and goals of encouraging the use of bond proceeds because more people of relatively greater need reside in the County and because of the social benefits which accrue as a result of increasing home ownership in such areas of need. Page 3 of 7 Pages E. Proceeds of the Bonds are expected to be available to finance the purchase of both existing housing and new housing, but will not be used for "redevelopment" , i.e. , rehabitation, of existing housing. IV. LOW-INCOME HOUSING ASSISTANCE POLICIES AND GOALS A. No particular portion of the proceeds of the bonds will be targeted to low-income (i.e. , 50% of median income) , moderate-income (i.e. , 80% of median income) , or median income (i.e. , 100% of median income) . State law, however, permits the financing of residences for use as the sole place of residence of only low- and middle-income families and persons, as determined by the County. No bond proceeds will be available to finance the purchase of residences by high income families and persons, i.e. , families and persons with incomes above the limit to be established by the County. B. Because a disproportionately large number of low-, moderate- and median-income (as defined above) families reside in the County, it is expected the availability and use of bond proceeds by such families will be of great benefit in providing affordable housing to such families. V. ASSESSMENT OF THE COMPLIANCE OF WELD COUNTY DURING THE PRECEDING TWELVE-MONTH PERIOD A. The statement of policy on qualified mortgage bonds set forth in the 1985 report of Weld County is substantially the same as this report (see attached copy of 1985 Policy Report Under Section 103A dated November 30 , 1984) . The County of Weld has complied with the intent of Congress by using its authority to issue qualified mortgage bonds to the greatest extent feasible (taking into account prevailing interest rates and conditions in the housing market) to assist lower income families to afford home ownership before assisting higher income families. B. The County of Weld, Colorado issued, in accordance with the State and Federal allocation volume cap, single-family mortgage revenue bonds in conjunction with Larimer County, in order to provide $5 ,600,000 in funds to purchase qualified mortgage loans from participating lenders doing business in Weld County. The following summarizes the main points of the program: Page 4 of 7 Pages 1 . The home buyer may not have a maximum income in excess of $36 ,000 , plus an additional $2 ,000 for each family member of the household who will reside in the residence to be acquired. 2 . Each mortgage loan must be made to obtain financing for a single-family residence, including condominiums, located within the boundaries of Weld County. 3 . The maximum acquisition costs for a new residence (never previously occupied) is $111 ,720 , and the maximum acquisition costs of a previously owned home is $98 ,880 in Weld County. 4 . Each mortgage loan shall be for a term of thirty years with a fixed rate of interest of 10 .50% . 5 . All loans must be made on a conventional basis and loans can be made up to ninety-five percent (95%) of the lesser of the purchase price or the initial appraised value of the residence. 6 . The program, through June 30 , 1985 , had no loans funded out of the $5 ,600 ,000 amount allocated to Weld County. C. Based upon the above program it is the assessment of the Board of County Commissioners that Weld County' s Policy Report Under Section 103A Dated November 30 , 3984 has been fully complied with and Weld County has successfully implemented its policies during the preceding twelve months. WELD COUNTY, COLORADO By'� �t �� ... ����W �.• Ja quel y e John_o , Chairman ard of County ommissioners ATTEST: �07 �' Weld County Clerk and Recorder and Clerk to the Board By. X71 Deputy County erk Page 5 of 7 Pages CERTIFICATION I , the undersigned, hereby certify that I am the duly qualified and acting County Clerk of Weld County, Colorado (the "County") and that: 1 . The County expects to issue or participate in the issue of qualified mortgage bonds in 1986 and the Chairman of the Board of County Commissioners of the County has signed a confirmed copy of this report. 2 . A hearing was held at which a reasonable opportunity for interested individuals to present their views on this report was provided. Notice was published at least 14 days before the hearing in newspapers of general circulation available to residents of the County and the hearing was held in the County seat of the County. 3 . Following the hearing, copies of this report were made available for distribution to the public at the office of the County Clerk and Recorder. Notice that copies of the report could be obtained at such office was included as part of the public notice given of the hearing. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the County this December 18 , 1985 . WELD COUNTY, COLORADO B • J cque 'ne Joh spn, C airman � � /J oard of Count ommissioners ATTEST . + ((1 l2v vA1-4u Weld County Clerk and Recorder and Clerk to the Board Deputy County erk Page 6 of 7 Pages SUMMARY OF COMMENTS ON THE PROPOSED REPORT RECEIVED AT THE PUBLIC HEARING No public comment was offered at this hearing. Page 7 of 7 Pages HEARING CERTIFICATION DOCKET NO. 85-91 RE: HEARING CONCERNING THE POLICY REPORT UNDER SECTION 103A A public hearing was conducted on December 18, 1985, at 10:00 A.M. , with the following present: Commissioner Jacqueline Johnson, Chairman Commissioner Gene Brantner, Pro-Tem - Excused Commissioner C.W. Kirby Commissioner Gordon E. Lacy Commissioner Frank Yamaguchi Also present: Acting Clerk to the Board, Tommie Antuna Assistant County Attorney, Lee D. Morrison Director of Finance & Administration, Don Warden The following business was transacted: I hereby certify that pursuant to a notice dated November 25, 1985, and duly published November 28, 1985, in the Johnstown Breeze, a public hearing was conducted to consider the Policy Report Under Section 103A. Lee Morrison, Assistant County Attorney, made this matter of record, saying that the Policy Report under Section 103A contains housing development and low-income housing assistance policies and goals, which the County will apply in issuing or participating in the issuance of qualified mortgage bonds in 1986. Don Warden, Director of Finance and Administration, explained this item, saying that Section 103A of the IRS Code requires that an approved housing policy report must be filed with the IRS for the upcoming year. After further comments, Mr. Warden explained the assessment of the compliance of Weld County during the preceding twelve-month period. Linda Clark, representing Boettcher and Company, came forward and said that this does not obligate Weld County to issue bonds, it merely preserves the County's option. There was no public comment offered at this hearing. Commissioner Lacy moved to approve the Resolution entitled, "Approve Housing Policy Report under Section 103A of the Internal Revenue Code for Single-Family Mortgage Revenue Bonds"; authorize the Chairman to sign the Report; and authorize staff to submit said Report to IRS prior to December 31, 1985. The motion was seconded by Commissioner Yamaguchi and carried unanimously. This Certification was approved on the 23rd day of December, 1985. APPROVED: I �ytis, '� BOARD OF COUNTY COMMISSIONERS ATTEST: U/► WELD COUNTY, COLORADO \ y�,�.� Weld County Clerk and Recorder I� and Clerk to the B rd acque ne Jo n on, Chairman /291 By: /4444 EXCUSED DATE OF HEARING Deputy County rk Gene R. Brantner, Pro-Tem C.W. Kirby EXCUSED Gordon E. Lacy TAPE 1185-106 /////// DOCKET 1185-91 , _ '9'LV�, LHR 2173 yank c1*t NOTICE OF PUBLIC HEARING DOCKET # 85-91 NOTICE IS HEREBY GIVEN that at the regular meeting of the Board of County Commissioners of Weld County, Colorado, (the "County") to be held on December 18, 1985 in the Board of County Commissioners' Chambers at the Centennial Complex, 915 10th Street, in Greeley, Colorado at the hour of 10:00 a.m. , a public hearing will be held on the "Policy Report Under Section 103A" dated as of November 20, 1985 (the "Policy Report") of the County. The Policy Report contains the housing, development and low-income housing assistance policies and goals which the County will apply in issuing or participating in the issuance of qualified mortgage bonds in 1986. A description, in brief and summary terms, of the contents of the Policy Report follows. The Policy Report sets forth the primary goals of the County's 1986 qualified mortgage bond program, which are to assist in providing affordable housing for residents of the County and to assist qualified low- and middle-income persons to obtain the benefits of home ownership through lower interest rates; recites that the proceeds of the bonds are expected to be used for the acquisition of residences, rather than for home improvement or rehabilitation loans, and for both new and existing housing, including single-family detached structures, condominiums and townhouses for one family units, provided that no more than 10% of the aggregate principal amount of mortgage loans will be available for purchase of condominiums or townhouses, otherwise without targeting to any particular class or type of housing; sets forth the "targeted areas" and provides that while no bond proceeds will be reserved for families and persons of any particular income level, only low- and middle-income families and persons may participate in the program. It is expected that the County will issue or participate with other Colorado counties and municipalities in the issuance of qualified mortgage bonds to finance the single-family mortgage revenue bond program in 1986. All residents of the County and any other interested persons may obtain copies of the proposed Policy Report, both before and after the public hearing, at the office of Mary Ann Feuerstein, the Weld County clerk and Recorder and Clerk to the Board of County Commissioners, in the Centennial Complex, 915 10th Street, third floor, in Greeley, Colorado, during regular business hours. All interested persons are invited to provide written or oral comments at the public hearing at the time and place above specified to comment on the proposed Policy Report. WELD COUNTY, COLORADO BY: MARY ANN FEUERSTEIN County Clerk and Recorder and Clerk to the Board of County Commissioners BY: Tommie Antuna Deputy Dated: November 25, 1985 Published: November 28, 1985 in the Johnstown Breeze NOTICE OF PUBLIC HEARING DOCKET 11 85-91 NOTICE IS HEREBY GIVEN that at the regular meeting of the Board of County Commissioners of Weld County, Colorado, (the "County") to be held on December 18, 1985 in the Board of County Commissioners' Chambers at the Centennial Complex, 915 10th Street, in Greeley, Colorado at the hour of 10:00 a.m. , a public hearing will be held on the "Policy Report Under Section 103A" dated as of November 20, 1985 (the "Policy Report") of the County. The Policy Report contains the housing, development and low-income housing assistance policies and goals which the County will apply in issuing or participating in the issuance of qualified mortgage bonds in 1986. A description, in brief and summary terms, of the contents of the Policy Report follows. The Policy Report sets forth the primary goals of the County's 1986 qualified mortgage bond program, which are to assist in providing affordable housing for residents of the County and to assist qualified low- and middle-income persons to obtain the benefits of home ownership through lower interest rates; recites that the proceeds of the bonds are expected to be used for the acquisition of residences, rather than for home improvement or rehabilitation loans, and for both new and existing housing, including single-family detached structures, condominiums and townhouses for one family units, provided that no more than 10% of the aggregate principal amount of mortgage loans will be available for purchase of condominiums or townhouses, otherwise without targeting to any particular class or type of housing; sets forth the "targeted areas" and provides that while no bond proceeds will be reserved for families and persons of any particular income level, only low- and middle-income families and persons may participate in the program. It is expected that the County will issue or participate with other Colorado counties and municipalities in the issuance of qualified mortgage bonds to finance the single-family mortgage revenue bond program in 1986. All residents of the County and any other interested persons may obtain copies of the proposed Policy Report, both before and after the public hearing, at the office of Mary Ann Feuerstein, the Weld County clerk and Recorder and Clerk to the Board of County Commissioners, in the Centennial Complex, 915 10th Street, third floor, in Greeley, Colorado, during regular business hours. All interested persons are invited to provide written or oral comments at the public hearing at the time and place above specified to comment on the proposed Policy Report. WELD COUNTY, COLORADO BY: MARY ANN FEUERSTEIN County Clerk and Recorder and Clerk to the Board of County Commissioners BY: Tommie Antuna Deputy Dated: November 25, 1985 Published: November / 28, 1985 in the Johnstown Breeze efOTICE OF PUBLIC MARINO AFFIDAVIT OF PUBLICATION DOCKET NO. 85-91 NOTICE IS HEREBY GIVEN that at the regular meeting of the • Board ot County Commissioners THE JOHNSTOWN BREEZE of Weld County, Colorado, (the "County'" to be held on STATE OF COLORADO 1 December 18, 1985 in the Board I SS of County Commissioners' Chambers at the Centennial COUNTY OF WELD I Complex, 915 10th Street, in Greeley, Colorado at the hour of I, Clyde Briggs, do solemnly swear that I 10:00 a.m., a public hearing will am publisher of The Johnstown lire•ezc. be held Section on the "Policydated Rasofrt that thesame is a weekly newspaper Under 2 , 103A" t "Policy of rt") 20, 1985 n printed, in whole or in part, and published Policy Po of t County. The ui Report containsthe in the County of Weld, State of Colorado, housing, dhoulonment and: low- income housing assistance and has a general circulation therein; that policies" and goal3_which the - said newspaper has been published County will apply in issuing or participating in the issuance of continuously and uninterruptedly in said qualified mortgage bonds in County of Weld for a period of more than 1986. A description, in brief and - fifty-two consecutive weeks prior to the summary terms, of the contents first publication of the annexed legal notice of the Policy Report follows. The- or advertisement; that said newspaper has Policy. Report sets forth the primary goals of the County's been admitted to the United States mails as 1988 'qualified mortgage bond will issue or participate with second-class matter under the provision; iii program, which are to assist in other Colorado counties and providing affordable housing for municipalities in the issuance of the Act of March 3, 1879, or all) residents of the County and to qualified mortgage bonds to assist qualified low- and middle- finance the single-family amendments thereof, and that sa 111 income persons, to obtain the mortgage re%enue bond program newspaper is a weekly newspaper duly benefits of home ownership in 1986. through -lower interest rates; qualified for publishing legal notices and recites that the proceeds of the All residents of the County and advertisements within the meaning of the bonds are expected to.be used any other Interested persons for the acquisition of residences, may obtain copies of the laws of the State of Colorado. rather than for home improve- proposed Policy Report, both ment or rehabilitation loans, and before and after the public That the annexed legal notice or advertise- for both new and existing hearing,at the office of Mary Ann inept was published in the regular and housing, including single-family Feuerstein, the Weld County dtached structures,- condomin- Clerk and Recorder and Clerk to entire issue of every number of.s'jaid weekly iums and townhouses for one. the Board of County Commis- newspaper for the period of ...f.. C0I1sL'C'll- family units, provided that no sioners, in the Centennial more than 10%of the aggregate Complex, 915 10th Street third live insertions; and that the first principal amount of mortgage floor,in Greeley,Colorado,during loans will be available ol. regular.business hours. publication of said notice was in the issue of purchase of condominiums or. All interested said newspaper dated /0p7, A.D. 1 bQS townhouses, otherwise without. persons are targeting to"any,particular class Invited to provide written of oral and that time last publica ion of said notice or type of housing;sets forth the• comments at the public hearing. Was in the issue of said newspaper dated "targeted areas" and provides at the time and place above that while no bond proceeds will, specified to comment on the , A.D. 19 be reserved for families and proposed Policy Report. persons of any particular income In witness whereof I have hereunto set level, only low- and middle- WELD COUNTY, COLORADO my hand this ...2. day of „rYl> income a families ten and program. may - ' participate in the program. A.D. 19.g.J BY: It Is expected that the County MARY ANN 'PEUERSTEIN Recorder n Clerk and rd and Clerk s Board of County Commissioners — — _ .... Publisher BY: Tommie Antuna - Deputy DAted: November 25, 1985 Subscribed and sworn to before me, a thPublished:hr stown Breeze 8.1Q85 In Notary Public in and for the Comity of Weld, State of Coloradp, this .10.1.... day of 1\,: \., A.D.p 19 L -Lsa Iii.lrk,vL '< Notarkl Public •Iake/Ia.-- C el{ My commission expires .:-.,ti ' 1 t.a.k" • r • DATE: November 27 , 1985 TO: The Board of County Commissioners Weld County, Colorado FROM: Clerk to the Board Office Commissioners: If you have no objections, we have tentatively set the following hearing for the 18th day of December, 1985 , at 10 :00 A.M. Docket No. 85-91 - Policy Report Under Section 103A OFFICE OFOFjTHE CLER TO THE BOARD BY: 07,071 / V Deputy The above mentioned hearing date and hearing time may be scheduled on the agenda as stated above. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ergAt Hello