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HomeMy WebLinkAbout20222575.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 law- 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"), the County of Weld has an allocation of the 2022 State Ceiling for the issuance of a principal amount of $8,574,904.00 Private Activity Bonds (the "2022 Allocation"), and WHEREAS, the 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 2022 Allocation, and WHEREAS, the 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 the 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 the County of Weld in an amount not to exceed $8,574,904.00 (plus any additional amounts that the County of Weld may be awarded from the statewide balance pursuant to the Allocation Act). CC: FI(Dw/cP) ADCRR),CA(I5 q /12/22 2022-2575 FI0076 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, the 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 $8,574,904.00 (plus any additional amounts that the 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 the County of Weld and other participating jurisdictions. 2. In connection with the management and preservation of the County of Weld's private activity bond volume cap allocations, the 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 the 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 the County of Weld from the statewide balance pursuant to the Allocation Act. The appropriate officers of the 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 the 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 the County of Weld or a charge against the 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 the 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, without limitation, assisting persons or families of low- and middle -income in obtaining adequate, safe and sanitary housing. 2022-2575 FID076 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 5. The Board of Weld County Commissioners hereby finds, determines, recites and declares the County of Weld's intent that this Resolution constitutes an official indication of the present intention of County of the 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 the 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 the 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. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 12th day of September, A.D., 2022. BOAR OF COUNTY COMMISSIONERS WELI�COUfNTY, COLORADO ATTEST: G/.GR%�W/ .Jr�lo•� Scott K. James, Chair Weld County Clerk to the Board ounty Attorney Date of signature: °I /12/22_ 2022-2575 FI0076 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 ensure the issuance of such Bonds within the time period commencing the date hereof and ending December 31, 2025. IN WITNESS WHEREOF, I have hereunto set my hand this 12th day of September, 2022. WELD COUNTY, COLORADO By Scott K. James, Chair, Board of Weld County Commissioners 2022-2575 4883-9399-2240.2 OFFICE OF FINANCE & ADMINISTRATION PHONE (970) 400-4218 FAX: (970) 352-0242 1150 O STREET PO BOX 758 GREELEY, COLORADO 80632 September 12, 2022 Mr. Andrew Paredes Mr. Wayne McClary Colorado Department of Local Affairs Division of Housing 1313 Sherman Street, Room 320 Denver, Colorado 80203 Re: Notification Required Pursuant to Section 24-32-1706 of the Colorado Revised Statutes, as amended ("C.R.S.") Dear Mr. Paredes 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 2022 private activity bond volume cap allocation in the amount of $8,574,904 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 2022 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 Donald D. Warden, Director of Finance and Administration (970) 400-4218 LEGAL COUNSEL Kutak Rock LLP 1801 California Street, Suite 3000, Denver, CO 80202-2626 John A. Henry, Esq. (303) 297-2400 PRINCIPAL AMOUNT OF CARRYFORWARD $8,574,904 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(f)(5) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED Qualified Mortgage Bonds and Qualified Residential Rental Projects INFORMATION REQUIRED BY SECTION 146(O(2) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED Purpose of Carryforward: Qualified Mortgage Bonds/ Qualified Residential Rental Projects Portion for such Purpose: $8,574,904 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 make a mortgage credit certificate election or issue its qualified mortgage or qualified residential rental revenue bonds in 2022, but if not, a federal election for carryforward on IRS Form 8328 will be filed on or prior to February 15, 2023. Copies of the appropriate documents will be forwarded as filed. Please call me with any questions. Since'fely, ack Donald D. Warden Director of Finance and Administration Private Activity Bonds 2022 DOLA letter KUTAKROCK Colorado Department of Local Affairs Division of Housing 1313 Sherman Street, Room 320 Denver, Colorado 80203 Kutak Rock LLP 1801 California Street, Suite 3000, Demer, CO 80202-2652 office 303.297.2400 September 12, 2022 Re: Request of Weld County, Colorado for Carryforward Treatment of its 2022 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 September 12, 2022, an inducement resolution (the "Resolution") stating that Weld County intends to issue up to $8,574,904 of qualified residential rental revenue bonds (the "Bonds"), in one or more series, for financing residential facilities that substantially benefit persons of low income, 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. Very truly yours, KUTAK ROCK LLP 4859-8980-5872.2 Hello