HomeMy WebLinkAboutresolution.council.105-04RESOLUTION NO.
(Series of 2004)
A RESOLUTION OF THE CITY OF ASPEn, COLORADO DECLARING ITS OFFICIAL
INTENT TO 'ESTABLISH A RESERVE FOR THE PURPOSE OF PURCHASING DEED-
RESTRICTION UNITS UNDER TH~AT ,OF FoRECLO~ THERE~Y,.
GUARANTEEING THEIR DEED-RESTRICTED STATUS
WHEREAS, The City of Aspen (the "City"), in the County of Pitkin and the State
of Colorado (the "State"), is a municipal corporation duly organized and existing
pursuant to constitution and laws of the State; and
WHEREAS, the City Council of the City (the "Council") is the governing body of
the City; and
WHEREAS, the City has determined that it is in the best interest of the City to
establish a reserve to aid the Aspen/Pitkin County Housing Authority (the "APCHA") in
exercising their right-of-first refusal to purchase deedrmstricted residential housing units
at the time of foreclosure to prohibit the deed-restrictions from being lifted;
WHEREAS, the City hereby desires to declare its official intent to establish a
foreclosure reserve to prohibit deed-restricted units from becoming freermarket units by
lending funds to APCHA, when needed, until such time as said unit shall be sold through
the lottery process and the City reimbursed. -.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ASPEN, COLORADO, THAT:
Section 1. The City shall establish a foreclosure reserve, beginning with the
initial contribution of $200,000 from the Housing Development Fund. Such reserve shall
be maintained by the City within the Housing Development fund (Fund #150 of the City
of Aspen, Colorado) as a restricted reserve. The sole purpose of this fund shall be to
provide a source of funds for APCHA to use in exercising its right of first refusal in
purchasing deed-restricted units that would otherwise become flee-market units through
the statutory foreclosure process. Upon application from APCHA, the City may lend
APCHA funds up to the available balance from the foreclosure reserve, for this purpose.
At such time as said unit is sold through the lottery process the City shall be reimbursed
the full amount of the loan and such funds redeposited to the foreclosure reserve for
future use.
Section 2. The City shall allow the APCHA to request the funds on an as needed
basis.
Section 3. All other resolutions of the Council or parts of resolutions,
inconsistent with this Resolution are hereby repealed to the extent of such inconsistency.
Section 4. This Resolution shall take effect immediately upon its passage.
INTRODUCED, READ AND ADO.~ff?..by the City Council of the City of Aspen on
the o~~C day of ~ ,2004.
[SEAL]
CITY OF ASPEN, COLORADO
Attest: