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HomeMy WebLinkAbout20242281.tiffRESOLUTION RE: APPROVE DECLARING THE INTENT OF WELD COUNTY, COLORADO, TO ISSUE PRIVATE ACTIVITY BONDS IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE -INCOME FAMILIES OR PERSONS, PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT, AND AUTHORIZE CHAIR TO SIGN ALL NECESSARY DOCUMENTS 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, the County and Municipality Development Revenue Bond Act, Article 3 of Title 29, Colorado Revised Statutes, as amended (the "Act"), and the Supplemental Public Securities Act, Article 57, Title 11, Section 201, et seq., Colorado Revised Statutes, as amended (the "Supplemental Public Securities Act"), authorize the County of Weld, Colorado, a body politic and corporate ("County of Weld"), to finance or refinance one or more projects to the end that residential facilities for low- and middle -income families or persons intended for use as the sole place of residence by the owners or intended occupants may be provided in order to promote the public health, welfare, safety, convenience and prosperity, 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 of Colorado (the "State") to finance private activity projects that qualify under the Code and for certain other purposes, and WHEREAS, pursuant to an allocation under Section 24-32-1706 of the Colorado Private Activity Bond Ceiling Allocation Act, constituting Article 32, Title 24, Part 17, Colorado Revised Statutes, as amended (the "Allocation Act"), County of Weld has an allocation of the 2024 State Ceiling for the issuance of a principal amount of $7,477,340.00 Private Activity Bonds (the "2024 Allocation"), and WHEREAS, County of Weld has determined that, in order to increase the availability of adequate affordable housing for low- and middle -income persons and families within the County of Weld, it is necessary or desirable to provide for the utilization of all or a portion of the 2024 Allocation, and WHEREAS, County of Weld wishes to declare its intention to issue its revenue bonds, in one or more series in connection with financing residential facilities for low- and middle -income families or persons intended for use as the sole place of residence by the owners or intended occupants thereof, which facilities will be located within the boundaries of County of Weld and other participating jurisdictions, and WHEREAS, such revenue bonds to finance single family or multifamily projects are expected to be issued by County of Weld in an amount not to exceed $7,477,340.00 (plus any additional amounts that County of Weld may be awarded from the statewide balance pursuant to the Allocation Act). cc :FS (cr/se /ss), C A (a8 /KM) *VI ati 2024-2281 F10080 DECLARING THE INTENT OF WELD COUNTY, COLORADO, TO ISSUE PRIVATE ACTIVITY BONDS IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE -INCOME FAMILIES OR PERSONS, PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT PAGE 2 NOW, THEREFORE, BE IT RESOLVED by the Board of Weld County Commissioners of County of Weld as follows: 1. In order to benefit the residents of the County of Weld, County of Weld hereby declares its intent to issue its revenue bonds to finance single family or multifamily projects in one or more series (the "Bonds") in an aggregate principal amount not to exceed $7,477,340.00 (plus any additional amounts that County of Weld may be awarded from the statewide balance pursuant to the Allocation Act), which shall be used in connection with financing residential facilities for low- and middle -income families or persons intended for use as the sole place of residence of the owners or intended occupants thereof, which residential facilities shall be located within the boundaries of County of Weld and other participating jurisdictions. 2. In connection with the management and preservation of County of Weld's private activity bond volume cap allocations, County of Weld is hereby authorized to execute any Internal Revenue Service ("IRS") form and to enter into assignment agreements and delegation agreements with other Colorado "issuing authorities" as defined in Section 24-32-1703(12), Colorado Revised Statutes, as amended. The Chair of the Board of Weld County Commissioners is hereby authorized and directed to execute any such IRS form and to execute and deliver any assignment agreements or delegation agreements that are necessary to manage and preserve County of Weld's private activity bond volume cap allocations. It is the specific intent of the Board that this Resolution shall also apply to any amounts that are awarded to County of Weld from the statewide balance pursuant to the Allocation Act. The appropriate officers of County of Weld are hereby authorized to apply for an award from the statewide balance pursuant to the Allocation Act. 3. The Board of Weld County Commissioners hereby finds, determines, recites and declares that the Bonds shall not constitute any multiple- fiscal year direct or indirect debt or other financial obligation whatsoever of County of Weld, the State, or any political subdivision of the State within the meaning of any provision or limitation of the State Constitution or statutes, and the Bonds shall not constitute or give rise to a pecuniary liability of County of Weld or a charge against County of Weld's general credit or taxing powers, or ever be deemed to be an obligation or agreement of any commissioner, officer, director, agent or employee of County of Weld in such person's individual capacity, and none of such persons shall be subject to any personal liability by reason of the issuance of the Bonds. 2024-2281 FI0080 DECLARING THE INTENT OF WELD COUNTY, COLORADO, TO ISSUE PRIVATE ACTIVITY BONDS IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE -INCOME FAMILIES OR PERSONS, PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT PAGE 3 4. The Board of Weld County Commissioners hereby finds, determines, recites and declares that the issuance of the Bonds in connection with financing such residential facilities will promote the public purposes set forth in the Act, including, without limitation, assisting persons or families of low- and middle - income in obtaining adequate, safe and sanitary housing. 5. The Board of Weld County Commissioners hereby finds, determines, recites and declares County of Weld's intent that this Resolution constitutes an official indication of the present intention of County of Weld to issue the Bonds as herein provided. 6. All actions not inconsistent with the provisions of this Resolution heretofore taken by the Board or any officer or employee of County of Weld in furtherance of the issuance of the Bonds, are hereby ratified, approved and confirmed. 7 All prior acts, orders or resolutions, or parts thereof, of County of Weld in conflict with this Resolution are hereby repealed, except that this repealer shall not be construed to revive an act, order or resolution, or part thereof, heretofore repealed. 8. If any section, paragraph, clause or provision of this Resolution shall be adjudged to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining sections, paragraphs, clauses or provisions of this Resolution. 9. All bylaws, orders or resolutions, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency, and, if so repealed, no other bylaw, order or resolution, or part thereof, shall be revived. 10. This Resolution shall be in full force and effect upon its passage and approval. 2024-2281 FI0080 DECLARING THE INTENT OF WELD COUNTY, COLORADO, TO ISSUE PRIVATE ACTIVITY BONDS IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE -INCOME FAMILIES OR PERSONS, PURSUANT TO THE COLORADO PRIVATE ACTIVITY BOND CEILING ALLOCATION ACT PAGE 4 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 28th day of August, A.D., 2024. BOARD OF COUNTY COMMISSIONERS WELD COU COLO O ATTEST: C� J Weld County Clerk to the Board Bk)aiul m • ik)nno.wTde- Deputy Clerk to the Board AP' ' :. ED A County A'�orney Date of signature: ql1 0' 2--"T Kevin D. Ross, Chair Perry L. B Saine Pro-Tem 2024-2281 F10080 Con}�uc-F t3Q BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: Private Activity Bond (PAB) Carryforward Resolution and Notice to DOLA DEPARTMENT: Finance DATE: August 21, 2024 PERSON REQUESTING: Cheryl Pattelli Brief description of the problem/issue: Pursuant to C.R.S. Section 24-32-1706(3)(c), Weld County is required to notify the Department of Local Affairs how the County intends to utilize its 2024 PAB volume cap allocation ($7,477,340). This notification, along with the related carryforward resolution, must occur by September 15, 2024. The County intends to utilize the PAB volume cap allocation for two projects in Firestone that will increase the availability of adequate affordable housing for low- and middle -income persons and families within Weld County. In 2023, the BOCC agreed to provide half of its 2024 PAB volume cap allocation to Dominium and half to Elmington for these projects. Both Dominium and Elmington need to carryforward their portion of the 2024 cap to 2025. The attached documents include the carryforward resolution, the notification letter to DOLA, and a required opinion from Kutak Rock, the County's bond counsel, on the carryforward. What options exist for the Board? 1) Approve the carryforward resolution and notification to DOLA 2) Do not approve the carryforward resolution and notification to DOLA Consequences: If not approved, the 2024 PAB volume cap allocation would not be carried forward for these projects. The cap would then be relinquished to the statewide balance and not available for Dominium and Elmington. Impacts: see above Costs (Current Fiscal Year / Ongoing or Subsequent Fiscal Years): $0 Recommendation: Staff recommends the BOCC move the resolution and DOLA notification letter to the full Board meeting for approval. Perry L. Buck, Pro -Tern Mike Freeman Scott K. James Kevin D. Ross , Chair Lori Saine Support Recommendation Schedule Place on BOCC Agenda Work Session Vt Q email Via email Yta emait Pt - Via errvil Other/Comments: 2024-2281 Karla Ford From: Sent: To: Cc: Subject: I approve. Perry Get Outlook for iOS Perry Buck Thursday, August 22, 2024 8:45 AM Mike Freeman; Karla Ford Lori Saine; Scott James; Kevin Ross Re: PLEASE REPLY - RUSH Pass Around - Private Activity Bond Carryforward Resolution and Notice to DOLA From: Mike Freeman <mfreeman@weld.gov> Sent: Thursday, August 22, 2024 8:07:37 AM To: Karla Ford <kford@weld.gov> Cc: Perry Buck <pbuck@weld.gov>; Lori Saine <Isaine@weld.gov>; Scott James <sjames@weld.gov>; Kevin Ross <kross@weld.gov> Subject: Re: PLEASE REPLY - RUSH Pass Around - Private Activity Bond Carryforward Resolution and Notice to DOLA Approve Sent from my iPhone On Aug 22, 2024, at 7:15 AM, Karla Ford <kford@weld.gov>wrote: This is a RUSH pass -around. Please advise if you support recommendation and to have department place on the agenda. Karla Ford A Office Manager, Board of Weld County Commissioners 1150 0 Street, P.O. Box 758, Greeley, Colorado 80632 :: 970.336-7204 :: kford@weld.gov:: www.weldgov.com **Please note my working hours are Monday -Thursday 7:00a.m.-4:00p.m.** <image001.jpg> Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Cheryl Pattelli <cpattelli@weld.gov> Sent: Wednesday, August 21, 2O24 7:43 PM To: Karla Ford <kford@weld.gov> Cc: Cheryl Hoffman <choffman@weld.gov> Subject: Passaround - Private Activity Bond Carryforward Resolution and Notice to DOLA 1 Karla Ford From: Sent: To: Cc: Subject: Yes - I support - thanks. ** Sent from my iPhone ** Scott James Thursday, August 22, 2024 7:21 AM Karla Ford Mike Freeman; Perry Buck; Lori Saine; Kevin Ross Re: PLEASE REPLY - RUSH Pass Around - Private Activity Bond Carryforward Resolution and Notice to DOLA Scott K. James Weld County Commissioner, District 2 1150 O Street, P.O. Box 758, Greeley, Colorado 80632 970.336.7204 (Office) 970.381.7496 (Cell) Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. On Aug 22, 2024, at 7:15 AM, Karla Ford <kford@weld.gov>wrote: This is a RUSH pass -around. Please advise if you support recommendation and to have department place on the agenda. Karla Ford X Office Manager, Board of Weld County Commissioners 1150 0 Street, P.O. Box 758, Greeley, Colorado 80632 :: 970.336-7204 :: kford adweld.gov :: www.weldgov.com *Please note my working hours are Monday -Thursday 7:00a.m.-4:00p.m. ** <image001.jpg> Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. if you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, 1 Karla Ford From: Sent: To: Subject: Lori Saine Thursday, August 22, 2024 8:55 AM Karla Ford RE: PLEASE REPLY - RUSH Pass Around - Private Activity Bond Carryforward Resolution and Notice to DOLA I guess if we have already agreed in2023 Lori Saine Weld County Commissioner, District 3 1150 O Street PO Box 758 Greeley CO 80632 Phone: 970-400-4205 Fax: 970-336-7233 Email: Isaine@weldgov.com Website: www.co.weld.co.us In God We Trust Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Karla Ford <kford@weld.gov> Sent: Thursday, August 22, 2024 7:16 AM To: Mike Freeman <mfreeman@weld.gov>; Perry Buck <pbuck@weld.gov>; Lori Saine <Isaine@weld.gov>; Scott James <sjames@weld.gov>; Kevin Ross <kross@weld.gov> Subject: PLEASE REPLY - RUSH Pass Around - Private Activity Bond Carryforward Resolution and Notice to DOLA Importance: High This is a RUSH pass -around. Please advise if you support recommendation and to have department place on the agenda. 1 CERTIFICATE REQUIRED BY SECTION 24-32-1709(2)(c) OF THE COLORADO REVISED STATUTES, AS AMENDED As an official of Weld County, Colorado responsible for the supervision of the issuance of its private activity bonds (the "Bonds"), 1 DO HEREBY CERTIFY that Weld County, Colorado will proceed with diligence to insure the issuance of such Bonds within the time period commencing the date hereof and ending December 31, 2027. IN WITNESS WHEREOF, I have hereunto set my hand this 28th day of August , 2024. BOARD OF COUNTY COMMISSIONERS ATTESTWELD COUNTY, COLORADO BY: Clerk to the Board Deputy Clerk to the Bo 4876-8439-1641 2 vin D. Ross, Chair ZOV4s zz\ August 21, 2024 Mr. Andrew Paredes Ms. Natalie Wowk Mr. Wayne McClary Colorado Department of Local Affairs Division of Housing 1313 Sherman Street, Suite #518 Denver, CO 80203 Re: Notification Required Pursuant to Section 24-32-1706 of the Colorado Revised Statutes, as amended ("C.R.S.") Dear Mr. Paredes, Ms. Wowk, and Mr. McClary: Pursuant to C.R.S. Section 24-32-1706(3)(c), Weld County, Colorado (the "County") hereby notifies the Department of Local Affairs that the County's 2024 private activity bond volume cap allocation in the amount of $7,477,340.00 will be utilized for a project which has a carryforward purpose, as such project is described in the attached Resolution. The County desires to treat its 2024 private activity bond volume cap allocation as allocated to such project for such carryforward purpose. The information required follows: ISSUING AUTHORITY NAME/ADDRESS/OFFICER Weld County, Colorado PO Box 758 Greeley, CO 80632 Ryan Rose, Director of Finance and Administration/Chief Information Officer (970)400-2550 LEGAL COUNSEL Kutak Rock LLP 2001 16° Street, Suite 1800 Denver, CO 80202 John A. Henry, Esq. (303) 297-2400 PRINCIPAL AMOUNT OF CARRYFORWARD $7,477,340.00 4859-5633-8393.2 Colorado Department of Local Affairs August 21, 2024 Page 2 NATURE OF PROJECT/BENEFICIARY Qualified Mortgage Bonds and Qualified Residential Rental Projects Low- and Middle -Income Families and Persons in Weld County, Colorado CLASSIFICATION UNDER SECTION 146(0(5)Of' '1.1-1E INTERNAL REVENUE CODE OF 1986, AS AMENDED Qualified Mortgage Bonds and Qualified Residential Rental Projects INFORMATION REQUIRED BY SECTION 146(0)(2) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED Purpose of Carryforward: Qualified Mortgage Bonds/ Qualified Residential Rental Projects Portion for such Purpose: $7,477,340.00 ATTACHMENTS • Inducement Resolution of Weld County Board of County Commissioners • Certificate required by C.R.S. Section 24-32-1709(2)(c) • Preliminary Opinion of Bond Counsel Please be advised that the County intends to issue its qualified mortgage or qualified residential rental revenue bonds in 2024, but if not, a federal election for carryforward on IRS Form 8328 will be filed on or prior to February 15, 2025. Copies of the appropriate documents will be forwarded as filed. Please call me with any questions. Sincerely, Cheryl Pa6ielli CFO and Director of Finance 4859-5633-8393.2 KUTAKROCK August 21, 2024 Colorado Department of Local Affairs Division of Housing 1313 Sherman Street, Room 320 Denver, Colorado 80203 Kutak Rock LLP 1801 California Street, Suite 3000, Denver, CO 80202-2652 office 303.297.2400 Re: Request of Weld County, Colorado for Carryforward Treatment of its 2024 Private Activity Bond Volume Cap Allocation Ladies and Gentlemen: As bond counsel to Weld County, Colorado ("Weld County"), we are submitting this opinion in compliance with the Colorado Private Activity Bond Ceiling Allocation Act, Part 17 of Article 32 of Title 24, Colorado Revised Statutes, as amended (the "Colorado Allocation Act"). Representatives of Weld County have informed us that the Board of County Commissioners of Weld County (the "Board") has adopted on I 1, 2024 an inducement resolution (the "Resolution") stating that Weld County intends to issue up to $7,477,340.00 of qualified residential rental revenue bonds (the "Bonds"), in one or more series, for financing residential facilities for low- and middle -income families or persons, which facilities will be located within the boundaries of Weld County, Colorado (collectively, the "Project"). In connection with the proposed issuance of any Bonds to finance the Project, we are of the opinion that the Bonds would constitute qualified "private activity bonds" within the meaning of Section 141 of the Internal Revenue Code of 1986, as amended (the "Code") and, therefore, require a private activity bond volume cap allocation pursuant to the Colorado Allocation Act prior to their issuance in order to satisfy Section 146 of the Code. Weld County is authorized by the County and Municipality Development Revenue Bond Act, constituting Article 3, Title 29, Colorado Revised Statutes, as amended, and the laws and Constitution of the State of Colorado to issue its Bonds to finance the Project. We are also of the opinion that the Bonds for the Project have a carryforward purpose, as defined in Section 146(0(5) of the Code, which qualifies for carryforward treatment under Section 146(f) of the Code. The scope of our engagement has not extended beyond the examinations and the rendering of the opinions expressed herein. The opinions expressed above are limited to the laws of the State of Colorado and of the United States of America. This letter may not be relied upon by any person other than the addressee hereof for any purpose without our prior written consent. 4881-0375-6505.2 KUTAKROCK August 21, 2024 Page 2 Very truly yours, Kutak Rock LLP 4881-0375-6505.2 Contract Form Entity Information Entity Name* COLORADO DEPARTMENT OF LOCAL AFFAIRS Entity ID* @00003104 O New Entity? Contract Name* Contract ID RESOLUTION DECLARING THE INTENT OF WELD 8656 COUNTY, COLORADO TO ISSUE PRIVATE ACTIVITY BONDS (PABS) IN CONNECTION WITH FINANCING RESIDENTIAL FACILITIES FOR LOW -AND MIDDLE - INCOME FAMILIES OR PERSONS PURSUANT TO THE COLORADO PAB CEILING ALLOCATION Contract Status CTB REVIEW Contract Lead * CPATTELLI Contract Lead Email cpattelli@weld.gov Parent Contract ID Requires Board Approval YES Department Project # Contract Description* WELD COUNTY HAS A 2024 PRIVATE ACTIVITY BOND (PAB) ALLOCATION OF $7,477,340. THIS RESOLUTION ALLOWS FORTH ISSUANCE OF PABS TO INCREASE THE AVAILABILITY OF ADEQUATE ANO AFFORDABLE HOUSING FOR LOW- AND MIDDLE INCOME PERSONS/FAMILIES IN WELD COUNTY. Contract Description 2 THE ALLOCATION IS GOING HALF TO ELMINGTON AND HALF TO DOMINIUM. THERE IS NO FINANCIAL OBLIGATION TO THE COUNTY. INCLUDED IS ALSO AN OPINION FROM BOND COUNSEL RELATED TO CARRYFORWARD TREATMENT OF THE 2024 PAB VOLUME CAP ALLOCATION. Contract Type* Department AWARD FINANCE Amount* $7,477,340.00 Renewable * NO Automatic Renewal Grant IGA Department Email CM- Finance@weldgov.com Department Head Email CM-Finance- DeptHead@weldgov.com County Attorney GENERAL COUNTY ATTORNEY EMAIL County Attorney Email CM- COUNTYATTORNEY@WEL D.GOV Requested BOCC Agenda Date* 08/28/2024 Due Date 08/24/2024 Will a work session with BOCC be required?* NO Does Contract require Purchasing Dept. to be included? If this is a renewal enter previous Contract ID If this is part of a MSA enter MSA Contract ID Note: the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in OnBase Contract Dates Effective Date Termination Notice Period Contact Information Review Date* 08/22/2024 Committed Delivery Date Renewal Date Expiration Date* 12/31/2024 Contact Info Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2 Purchasing Purchasing Approver Purchasing Approved Date Approval Process Department Head Finance Approver Legal Counsel CHERYL PATTELLI CHERYL PATTELLI BYRON HOWELL DH Approved Date Finance Approved Date Legal Counsel Approved Date 08/23/2024 08/23/2024 08/26/2024 Final Approval BOCC Approved Tyler Ref # AG 082824 BOCC Signed Date Originator CPATTELLI BOCC Agenda Date 08/28/2024 Hello