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HomeMy WebLinkAboutOB 2 SUBSIDIZED HSNG 06-01-81DATE: June 1, 1981 OLD BUSINESS Inter eom TO: Honorable P,~yor and City Council Members FROM: Cc~f, mnity Development Department ~ SUBJECT: Cooperation Agreement, Subsidized Housing DISCUSSION Per the request of the City Council, this report discusses the requirements and ramifications of an agreement between the City and the Orange County Housing Authority to allow the construction of subsidized housing. In order to enact the subsidized housing program in keeping with the Federal Government guidelines, specific steps were required. First, an election was held June 3, 1980, in which Measure '~"was passed by the City of Tustin citizens. Next, a resolution authorizing a public hearing on the Cooperation Agreement was approved. A public hearing was then held on the content of the Cooperation Agreement, with an opinion of the City Attorney also required. The final step is to enact the Cooperation Agreement between the City of Tustin and the Orange County Housing Authority. Resolution 81-55 is the document which approves the form of the Cooperation Agreement. An approved resolution and signed Cooperation Agreement is required to enact the program. As a recipient of C~ananity Development Block Grant funds, the City is required Tx) enact a housing assistance plan which identifies the housing needs of the elderly, handicapped and low-to-moderate incom~ households. The enactment of the plan shows a good faith effort by the City to implement the Housing Element, and defends the City from attack from various housing grou~. The Cooperation Agreement with the resolution enacts this plan, but does not approve a specific project. The Council would still be required to pass another resolution and Cooperation Agreement for a specific project to begin the entitlement process. The council may pick and choose which projects would be best for the cc~anity, but it should be noted tha~ competition for these funds is usually intense. There is no ~m_~antee that this City will obtain funds, and given the amount of units allocated and the number of cities attempting to receive funds, the actual chances of securing funds is extremely poor. Cooperation Agreement, Subsidized Housing June 1, 1981 Page T~o ~ED AC~f ION Staff recomnends that the City Council adopt Resolution 81-55, which approves the fora of the Cooperation Agreement and construction of low-to-moderate income housing, and execute the Cooperation Agr~-~cment. EMK/dat 4 5 RESOLUTIO~ OF THE CITY COUNCIL OF ~{$ CITY OF TUSTIN APPROVING %~ DEVELOP,~f, CONSTRUCTION AbD OW~TERSHIP OF LOW-RE~ HOUSI~ PROJECTS, OF NOT TO EXCF~D 5% OF THE TOTAL DW~,LI~K] UNITS IN THE CITY OF TUSTIN /hND APPROVING THE FORM OF COOPERATION AGRE~,{ENT BETW~ THE CITY OF TUSTIN AND ~ ORA~E HOUSIN3 AUTHORITY AND AUTHORIZIN3 ITS EXECUTION 7 i 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 ~/HEREAS, it is the policy of this locality to eliminate substandzrd and other inadequate housing, to prevent the spread of slums and blight, and to realize as soon as feasible the ~oal of a decent home in a suitable living environment for all of its citizens; WI~EAS, under the provisions of the United States Housing Act of 1937, as amended, (herein called "HUD") is authorized to provide financial assistance to local public housing agencies (hereinafter called 'Tocal Authority") for undertaking and carrying out the development and operation of iow-rent housing projects that will assist in meeting this goal; and WHEREAS, Section 34313 of the California Health and Safety Code, as ~mended, provides that no low-rent housing project shall be developed, constructed, or owned by the Local Authority until the governing body of the locality has by resolution approved such projects; and ¥~{EREAS, pursuant to Section 15(7)(b) of the Act, as amended, before }~3D can provide financial assistance to a local low-rent housing project, it is necessary that the local governing body enter into a Cooperation Agreement with the Local Authority providing for local cooperation in connection with such housing project; and YfHEREAS, pursuant to Section 34515 of the California Health and Safety Code express authority is given for local governing bodies to enter into agreements with housing authorities providing for local cooperation withrespect to low-rent housing projects; and 23 24 25 26 27 28 WHEREAS, pursuant to and in compliance with the provisions of Section 34518 of the California Health and Safety Code, this governing body did on April 6, 1981, adopt a Resolution authorizing the publication in a newspaper of general circulation, on April 9, 1981, of a notice of a public hearing to be held April 20, 1981, before this governing body for the purpose of giving all interested persons an opportunity to be heard as to whether such Cooperation Agreement should be entered into; and there has been made available at least three copies of the proposed Cooperation Agreement for inspection by interested persons prior to the mentioned public hearing; and 29 3O 31 32 WHEREAS, the notices for a public hearing have been published as above provided, and this governing body has held a public hearing starting at the hour of 7:30 p.m. on the 20th day of April, 1981, giving all interested persons an opportunity to be heard as to whether the proposed Cooperation Agreement in the form attached hereto should be entered into, which said hearing has been concluded with all matters in connection therewith having been fully considered by this body: 2 3 4 § 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 3O 31 32 NOW, THEREFORE, BE IT RESOLVED BY ~IE CITY OOUNCIL OF %~HE CITY OF TUSTIN AS FOLLO%~S: There exists in this locality a need for such low-rent housing at rents within the means of low-income families or persons. The City of Tustin does hereby approve the development, construction and ownership by the Local Authority of the projects as defined in Paragraph l(a) of the Cooperation Agreen~nt. This governing body after having held a public hearing and giving all interested persons an opportunity to be heard, hereby determines, pursuant to the provisions of the California Housing Cooperation Law (being Chapter 2 of Part 9. of Division 9.4 of the California Health and Safety Code), to enter into a Cooperation Agrccment in substantially the form attached hereto with the Local Authority. The City Council of this governing body is hereby authorized and directed to execute such Cooperation Agreement in the nar~ and on behalf of the City of Tustin and the City Clerk is hereby anthorized and directed to affix or impress the official seal of this governing body thereon and to attest the same. Such Cooperation Agreement shall be in substantially the form of the agreement attached hereto. PASSED AND ADOPTED This Resolution shall become effective in~nediately, day of 1981. ATTEST: Jslnes B. Sharp, Mayor r~ary E. Wynn City Clerk Form HUD-~2hS1. This form has been prepared by the Department of Housing and Urban Development for use by a Local tuthority as a guide in drafting agreements providing for local cooperation, as required by the Housing Ao~ pf 1737, nnd by regulations of the Department. Page 1 COOPERATION ~.C~. -.~ This Agree=ent entered into this day of 19J~L__, by and between the ORANGE COUNTY HOUSING AUTHORITY ' (herein cs.lled the "Local Authority") and City of Tus{in (herein called the '~nioipality"), witn-~s~h.[' - In consideration of the mutual covenants hereinafter set forth, the parties hereto do ag~'ee as follows: 1. ~enever used in this Agreement: (a) The tez~ 'q>~oject" shall me~n any low-rent housing hereafter developed or acquired by the Local Authority with financial assistance of the United States of America acting through the Secreta~j of Housing and Urb~an Development (herein called the "Goverr~ent"); excluding, however, any low-rent housing p~oject covered by any contract for lo$~ns and amual contributions entered into between the Local Authority e~d the Government, or its predecessor agencies, prior to the date of this Agreement. (b) The term "TaxingBod~' shall mean the State or anypolitical subdivision or taxing unit thereof in which a Project is situated ~_ud which would have authoriiy to assess or !e~ real or personal p~operty taxe~ or to certify su~b taxe~ to ~ ~-ng~ body or public officer to be levied for its use and benefit with respect lo a Project if it were not exempt fro~ taxation. (c) The term "Shelter Rent" shall mean the total of all ch~ges to all tenants of a Project for dwelling rents and nondwelling rents (excluding all other income of such Project), less the cost to th~ Lo,a! Authority of all dwelling smd nondwellLug utilities. (d) The tek~ "Slum" shall mean ~j area where dwellings predominate which, by reason of dilapidation, overcrowdlqg, faulty s_r~angement or design, lack of ventilation, lig~nt or sanitation facilities, or amj coubination of these factors, are detrimental to safety, health, 2. The Lozal Authority shall endeavor (a) to secure a contract or con- tracts with the =~.=rnment for loans and annual contributions covering'one .Dr more Projects comprisinp of .units of iow-rent housing which shall not exceed 5% of the total dwel!in~ units within the ~,~unicipality, and (b) to develop, or acquire and a~ainister such Project or Projects, each of which shall be located within the corporate limits of the Municipality. Each such project shall be developed, constructed, financed, or acquired subject to the conditions authorized by the voters unde~ Measure X of the June 3, 1980 election. The obligations of parties shall apply to each such Project~ 3. (a) Under the constitution and statutes of the State of California, all projects ~re exempt from all rea]. and personal property taxes and special assessments levied or imposed by any Taxing Body. with respect to any Project, so long as either (i) such Project is owned by a public body or governmental agency and is used for low-rent housing purposes, or (ii) any contract between the Local Authority and the Government for loans or annual contributions, or both, in connection with such Project remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the Govern~.ent in connection with such Project remain unpaid, whichever period is the longest, the ~.~unicipality agrees that it will not levy or impose any real or personal property taxes or special assessments upon such Project or upon the Local Authority with respect thereto. During such period, the Local Authority shall make annual payments (herein called "Payments in Lieu of Taxes") Page 2 in lieu of such to~es and special assessments and in payment for the public services mud facilities furnished from time to time without other cost or charge for or with respect to such Projest. (b) Each such ar~nual Payment in Lieu of Tmxes shall be made after the end of the fiscal year established for such Project, and shall be in an amount equal $o either (i) ten percent (10%) of the Shelter Rent charged by the Local A~thority in respect to such Project during such fiscal year or (ii) the amount permitted to be p~id by applicable state law in effect on the 'date such pa~ent is made, ~hichever ar. cunt is the lower. (c) The ]'?~nicipality shall distribute the Pavements in Lieu of Taxes among the T~xing Bodies in the proportion which the real property ta~es which would have been paid to each Taxing Body for such year if the Project were not exempt from t~ation bears to the total real property t~es ~5~ich would have been paid to all of the T~,~ing 3edits for such year if the Project were not exempt from taxation; Provided, however, That no pas~ent for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Bod~- for such year if the Project were not exempt from taxation. (d) Upon failure of the Local Authority to make any Payment in Lieu of Taxes, no lien against any Projec~ or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach on acco,~u~ thereof. 4. During the period commencing with the date of the acquisition of any part of the site or sites of any Project and continuing so long as either (i) such Project is o%~ed by a public body or govez~.~ental agenc3 ~ud is used for low-rent housing purposes, or (ii) any contract between the Local Authority and the Goverr~ent for loans or mmnual contributions, or both, in correction with such Project remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the Goverr~ent in connection with such Project remain unpaid, whichever period is the longest, the I,k~nicipality without cost or charge to the Local Authority or the ten.uts of such Project (other th~u the Payments in Lieu of T~es) shall: (a) Fuz~ish or cause to be furnished to the Local Authority and the tenants of such Project public services and facilities of t}~e sa~e character and to the s~e extent as are furnished fro~ ti~e to time without cost or charge to other dwellings and ir~habitants in the ~uicipa!ity: (b) Vacate such streets, roads, and alleys within the area of such Project as may be necessary in the development thereof, and convey without charge to the Local Authority such interest as the M~uicipality may have in such vacated areas; and, in so far as it is lawfully able to do so without cost o~ expense to the Locml Authority or to the Municipality, cause to be removed from such vacated areas, in so far as it may be necessary, all public or private utility lines and equipment; (c) In so far as %he ~uicipality may lawi%xlly do so, (1) g~ant such deviations from the building code of the ~.~muicipality as are reasono~!e and necessary to promote economy and efficiency in the development and administration of such Project, and at the sane time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of such Project as are reasonable and necessary for the development and protection of such Project, and the surrotunding tex~itcry; Page (d) Accept grants of easements necessary for the development of such Project; and (e) Cooperate with the Local Authority by such other lawful action or ways as the }~%uaicipality and the Local Authority may find necessary in connection with the development and administration of such Project. 5. In respect to s-uyProJect the M,~uicipality further agrees that within a reasonable time after receipt of a written request therefor from the Local Authority: (a) It will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of such Project, together with all steam and s~nita~y sewer mains in such dedicated areas, after the Local Authority, at its own expense, has completed the grading, improvement, paving, and installation thereof in accordance with specification~ acceptable to the Municipality; (b) It will accept necessary dedications of Is-nd for, s_ud will ~r. ade, improve, pave, and provide side'~alks for, all streets bounding such Project or necessam~- to provide adequate access thereto (in consideration whereof 'the Local Authority shall pay to the ~.~nicipality'such smou~nt as would be assessed against the Project site for such work if such site were pn~a~e~ owned); s_nd ~ (c) It will provide, or cause to be provided, water mains, and sto~ and sanit.~~ry sewer main~, leading to such Project ~u~:d se~"~'in~ the bo%u~ding streets thereof (in consideration whereof -~he Local Authority shall pay to the kkunicipality such amo~u~t as would be assessed against ~he Project site for su~h work if such site were privately o'.~ed). 6. If by reaso.~-~ of the ~k~nicipality's failure or refusal to furnish or cause to be fuz~nished any public services or facilities which it has a&u~e<~d hereunder to fum~ish or to cause to be furnished to the Local Authority or to the tens-uts of any Project, the Lo~'a! Authority incurs any ezpense to obtain such services or facilities then the Loc~.l Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to become due tc the ~.5~nicipaiity in respect to ~:~y ?rojec~ or ~_~ other low-rent housing projects o;~.-~ed or operated by the Local Authority. 7. No Cooperation Agreemeut heretofore entered into between the M"~nicipality ~ud the Local Authority shall be construed to apply to ~Uy Project covered by this Agreement. 8. ~o me~oer of the governing body of the P~kuni¢ipality or any other public official of the ~.kuuicipality who exercises any responsibilities or f~uctions with respect t~ any Project during his tenu~'e or for one year thereafter shall have any interest, direct or iudirect, in any Project or any property included or planned to be included in ~ny project, or ~Q- contracts in connection with such Projects or property. If ~ such governing body member or such other public official of the ~.~uicipality involu~utarily acquires or had acquired prior to the beginning of his tenure ~]y such interest, he shall i.m~uediatoly disclose such interest to the Local Authority. Page 9- So long as any contract between the Local Authority and the Government for loans (including preliminary loans) or ar~nual Contributions, or both, in connection with any Project remains in force ~nd effect, or so long as any bonds issued in connection with a~ Project or~y monies due to the Government in connection with any Project rem~inunpaid, this Agreement shall not be abrogated, changed, or modified without the consent of the Goverr~uent. The privileges and obligations of the Municipality hereunder shall remain in ~ull Torc$ and effect with respect to each Project so long as the beneficial title to such Project is held by the Local Authority or by ~uy other public body or governmental agency, including the Government, authorized by law to engage in the development or a~inistration of low-rent housing projects. If at ~uy time the beneficial title to, or possession of, ~ny Project is held by such other public body or governmental agency, including the Goverr~ent, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the Govezr~ent. E~ ~T~SS ,'}~0~ the Kunicipality and the Local Authority have respec- tively-signed this Agreement and caused their seals to be affixed ~ud attested as of the day and year first above written. AT-TEST: (Corporate I;ame of Municipality) ( ...... Title) ,~.,,~ Na~e and HOUSING AUTHORITY an4 Title) (Corporate .~L~ ~of Local Authority) ~y Chairmmn (Type Name and Title)