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HomeMy WebLinkAbout20251854.tiffResolution Approve Declaring 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 Any 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 2025 State Ceiling for the issuance of a principal amount of $7,907,795 Private Activity Bands (the "2025 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 2025 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 $7,907,795 (plus any additional amounts that County of Weld may be awarded from the statewide balance pursuant to the Allocation Act), cc: FZ(CPts. ss) CANEs/KH) 0$ /06 /2S 2025-1854 FI0082 Declaring 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 County Commissioners of County of Weld, as follows: 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 $7,907,795 (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. 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, 2025-1854 F 10082 Declaring Irrtent 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 without limitation, assisting persons or families of low- and middle -income in obtaiiing adequate, safe and sanitary housing. 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 Be it further resolved by the Board that the Chair be, and hereby is, authorized to sign any necessary documents. 2025-1854 FI0082 Declaring 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 Board of County Commissioners of Weld County, Colorado, approved the above and foregoing Resolution, on motion duly made and seconded, by the following vote on the 30th day of June, A.D., 2025: Perry L. Buck, Chair: Aye Scott K. James, Pro-Tem: Aye Jason S. Maxey: Aye Lynette Peppier: Aye Kevin D. Ross: Excused Approved as to Form: Bruce Barker, County Attorney Attest: Esther E. Gesick, Clerk to the Board 2025-1854 F 10082 ConivaC+ lI)OVP3 BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: Private Activity Bond (PAB) Carryforward Resolution and Notice to DOLA DEPARTMENT: Finance DATE: June 25, 2025 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 2025 PAB volume cap allocation ($7,907,795). This notification, along with the related carryforward resolution, must occur by September 15, 2025. The County intends to utilize the 2025 PAB volume cap allocation for two projects — one in Firestone and one in Johnstown- that will increase the availability of adequate affordable housing for low- and middle -income persons and families within Weld County. In 2025, the BOCC agreed to provide half of its 2025 PAB volume cap allocation to Big Red Development, LLC and half to Kentro Group for these projects. Both Dominium and Elmington need to carryforward their portion of the 2025 cap to 2026. In addition, the Board agreed to provide half of the 2024 allocation that was given back to the County to Big Red Development, LLC. 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 2025 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 Big Red Development, LLC and Kentro Group. 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. Support Recommendation Schedule Place on BOCC Agenda Work Session Other/Comments: Perry L. Buck Scott K. James Jason S. Maxey Lynette Peppier Kevin D. Ross 4 2025-1854 W50 rionz 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"), I 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, 2028. 11 IN WITNESS WHEREOF, I have hereunto set my hand this day of )I), Xkf , , 2025. WELD COUNTY, COLORADO Perry L : uck, Chair Attest: ,,e.,, X.''e.1 Esther E. Gesick, Clerk to the Board By: Deputy Clerk to the Board 4899-2878-0610.1 July 14, 2025 Ms. Elisa Blakeny 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 Ms. Blakeny 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 2025 private activity bond volume cap allocation in the amount of $7,907,795 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 2025 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 Cheryl Pattelli, CFO (970) 400-2550 LEGAL COUNSEL Kutak Rock LLP 2001 le Street, Suite 1800 Denver, CO 80202 John Bales, Esq. (303) 297-2400 PRINCIPAL AMOUNT OF CARRYFORWARD $7,907,795 NATURE OF PROJECT/BENEFICIARY Qualified Mortgage Bonds and Qualified Residential Rental Projects Low- and Middle -Income Families and Persons in Weld County, Colorado 4935-3588-1538.1 Colorado Department of Local Affairs July 14, 2025 Page 2 CLASSIFICATION UNDER SECTION 146(0(5) OF THE 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: $7,907,795 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 2025, but if not, a federal election for canyforward on IRS Form 8328 will be filed on or prior to February 15, 2026. Copies of the appropriate documents will be forwarded as filed. Please call me with any questions. Sincerely, Cheryl Pattelli, 4935-3588-1538.1 KUTAKROCK July 14, 2025 VIA ELECTRONIC MAIL EMAIL RECEIPT REQUESTED Ms. Elisa Blakeny Mr. Wayne McClary Colorado Department of Local Affairs Division of Housing 1313 Sherman Street, Room 320 Denver, CO 80203 Re: 2025 Weld County Carryforward Materials Kutak Rock LLP 2001 16th Street, Suite 1800, Denver, CO 80202 office 303.297.2400 John H.T. Bales joh n.bales@kutakrock.com Dear Lisa and Wayne: Enclosed please find the following executed Weld County Carryforward Materials, for your records: 1. Weld County Carryforward Notice to Colorado Department of Local Affairs, Division of Housing, dated June 30, 2025; 2. Certificate required by C.R.S. 24-32-1709(2)(c) from Weld County, Colorado to the Colorado Department of Local Affairs, Division of Housing, dated June 30, 2025; 3. 2025 Weld County Carryforward PAB Volume CAP Allocation Opinion, dated July 14, 2025; and 4. Resolution 2025-1854, Declaring the Intent of Weld County, Colorado to Issue Revenue Bonds in Connection with Financing Residential Facilities for Low- and Middle -Income Families or Persons. Please feel free call me with any questions. Sincerely yours, enclosures H.T. Bales 4905-8302-6498.1 KUTAK ROCK July 14, 2025 Colorado Department of Local Affairs Division of Housing 1313 Sherman Street, Room 320 Denver, CO 80203 Kutak Rock LLP 2001 16th Street, Suite 1800, Denver, CO 80202 office 303.297.2400 Re: Request of Weld County, Colorado for Carryforward Treatment of its 2025 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 June 30, 2025 an inducement resolution (the "Resolution") stating that Weld County intends to issue up to $7,907,795 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 canyforward 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. Very truly, yours, KUTAK ROCK LLP 4917-2407-3282.1 _. LLI° A^ 0.. IFP•trof COLORADO Department of Local Affairs Division of Housing Private Activity Bond Direct Allocations - 2025 Statewide Population in 2023 5,901,339 Private Activity Bond Cap available in 2025 $767,174,070 Per Capita Multiplier $130 Table 1: Allocations to Designated Local Issuing Authorities Local Issuer Private Activity Bond Cap Population Po ulation as % olf State Population Denver $46,714,547 715,636 12.18% Colorado Springs $31,865,865 488,164 8.31% Aurora $25,743,930 394,380 6.71% Douglas County $15,344,854 235,073 4.00% El Paso County $14,739,412 225,798 3.84% Jefferson County $13,227,402 202,635 3.45% Fort Collins $11,184,752 171,343 2.92% Lakewood $10,116,429 154,977 2.64% Thornton $9,425,799 144,397 2.46% Arapahoe County $8,886,811 136,140 2.32% Arvada $7,946,818 121,740 2.07% Weld County $7,907,795 121,142 2.06% Adams County $7,601,831 116,455 1.98% Westminster $7,555,091 115,739 1.97% Greeley $7,341,179 112,462 1.91% Pueblo $7,334,977 112,367 1.91% COLORADO Department of Local Affairs Division of Housing Local Issuer Boulder Private Activity Bond Cap $6,974,975 Population 106,852 Population as % of State Population 1.82% Centennial $6,955,326 106,551 1.81% Larimer County $6,866,420 105,189 1.79% Longmont $6,415,747 98,285 1.67% Mesa County $5,955,352 91,232 1.55% Castle Rock $5,284,171 80,950 1.38% Loveland $5,196,504 79,607 1.35% Broomfield $5,016,731 76,853 1.31% Grand Junction $4,465,271 68,405 1.16% Commerce City $4,403,780 67,463 1.15% Parker $4,144,239 63,487 1.08% Garfield County $4,094,305 62,722 1.07% Boulder County $3,778,038 57,877 0.98% Pueblo County $3,724,705 57,060 0.97% Eagle County $3,551,789 54,411 0.93% Littleton $2,901,627 44,451 0.76% Brighton $2,755,798 42,217 0.72% Windsor $2,612,124 40,016 0.68% Northglenn $2,460,746 37,697 0.64% La Plata County $2,413,618 36,975 0.63% Erie $2,316,811 35,492 0.60% Englewood $2,183,254 33,446 0.57% Fremont County $2,150,227 32,940 0.56% Wheat Ridge $2,080,116 31,866 0.54% Delta County $2,074,376 31,778 0.54% Lafayette $1,989,055 30,471 0.52% Summit County $1,987,100 30,441 0.52% Fountain $1,970,777 30,191 0.51% Morgan County $1,929,525 29,559 0.50% Elbert County $1,879,653 28,795 0.49% SO COLORADO Department of Local Affairs Division of Housing Local Issuer Montezuma County Private Activity Bond Cap $1,733,954 Population 26,563 Population as % of State Population 0.45% Routt County $1,636,104 30,441 0.52% Teller County $1,607,840 24,631 0.42% Evans $1,496,344 22,923 0.39% Montrose County $1,487,076 22,781 0.39% Montrose $1,396,014 21,386 0.36% Logan County $1,345,166 20,607 0.35% Chaffee County $1,344,577 20,598 0.35% Golden $1,332,564 20,414 0.35% Louisville $1,277,471 19,570 0.33% Durango $1,271,465 19,478 0.33% Johnstown $1,262,196 19,336 0.33% Firestone $1,211,606 18,561 0.32% Otero County $1,182,495 18,115 0.31% Park County $1,181,580 18,101 0.31% Canon City $1,137,060 17,419 0.30% Gunnison County $1,130,666 17,321 0.29% Frederick $1,126,681 17,260 0.29% Alamosa County $1,086,732 16,648 0.28% Pitkin County $1,086,342 16,642 0.28% Grand County $1,042,542 15,971 0.27% Total $370,846,127 5,681,118 96.68% These calculations for municipalities and counties use population estimates from 2023, as this is the most recent year for which these estimates are available. The population of the state in 2023 was 5,901,339. Total cap available to the Statewide Balance $12,740,908 AGO COLORADO Department of Local Affairs Division of Housing Total cap available to designated local issuing authorities and the statewide balance $383,587,035 State Issuing Authority PAB Cap Colorado Housing and Finance Authority $376,587,035 Colorado Agricultural Development Authority $7,000,000 Total $383,587,035 Total cap allocated to all issuing authorities (not including the Statewide Balance) $754,433,162 tract Form Entity Information Entity Name COLORADO DEPARTMENT OF LOCAL AFFAIRS Entity ID* @00003104 ❑ New Entity? Contract Name* Contract ID PRIVATE ACTIVITY BOND INDUCEMENT RESOLUTION 9693 AND CERTIFICATE Contract Status CTB REVIEW Contract Lead* CPATTELLI Contract Lead Email cpattelli@weld.gov Parent Contract ID Requires Board Approval YES Department Project # Contract Description* RESOLUTION DECLARING THE INTENT OF WELD COUNTY, COLORADO TO ISSUE PRIVATE ACTIVITY BONDS AND CERTIFICATE REQUIRED BY SECTION 24-32-1709(2)(C) OF THE COLORADO REVISED STATUTES, AS AMENDED Contract Description 2 Contract Type* Department AGREEMENT FINANCE Amount* $0.00 Renewable* NO Automatic Renewal Grant IGA Department Email CM-Finance@weld.gov Department Head Email CM-Finance- DeptHead@weld.gov County Attorney GENERAL COUNTY ATTORNEY EMAIL County Attorney Email CM- COUNTYATTORNEY@WEL D.GOV If this is a renewal enter previous Contract ID If this is part of a MSA enter MSA Contract ID Requested BOCC Agenda Due Date Date* 06/26/2025 06/30/2025 Will a work session with BOCC be required?* HAD Does Contract require Purchasing Dept. to be included? 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 Contact Info Review Date 06/25/2025 Committed Delivery Date Renewal Date Expiration Date* 09/15/2025 Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2 Purchasing Purchasing Approver Purchasing Approved Date Approval Process Department Head CHERYL PATTELLI DH Approved Date 06/25/2025 Final Approval BOCC Approved BOCC Signed Date BOCC Agenda Date 06/30/2025 Finance Approver CHERYL PATTELLI Legal Counsel BYRON HOWELL Finance Approved Date Legal Counsel Approved Date 06/25/2025 06/26/2025 Tyler Ref # AG 063025 Originator CPATTELLI Hello