HomeMy WebLinkAboutCC 6 AFFORD HSNG FDS 05-18-81DATE:
FROM:
SUBJECT:
~y 18, 1981
No. 6
5-18-81
Inter-Corn
Honorable ~yor an4 City Council Members
Community Development,Department
Cooperative Agreement for Affordable Housing Funds
DISCUSSION
The City fl~incL1 held a ~lblic hearing on April 20, 1981 regarding
the cooi~-ca~ive agreement with the Orange County Itousing
Authority. ~Z %hat tLme, the Council directed staff to prepare a
resolution authorizing entrance into the Cooperation Agreement.
A resolution h~s been prepared which approv~ the develolznent,
construction and ownership of low-rent housing projects and
approving the form of Cooper:~tion ~greement between 'the City and
the Orang~ County Housing Authority. The n~solutior~ is not for a
specific pro~ect, and the final authority to approve any given
project will still require ~]e consent of the City Council.
Also enclosed is a copy of the Cooperation Agreement.
R~20~.~,B~NDED ACT I ON
Staff recommends that the Council approve Resolution No. 81-55, and
e~ecute the C,~)peration Agr~.~nt bet'~'een the City and the Orange
County Housing Authority.
~(/dat
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RESOLUTION NO. 81-.55
RESOLUTION OF THE CITY COUNCIL OF THE CfTY
OF 'lugrfN APPROVING ~IE DEVE~)PM~W,
~ ~CEEO 5~ OF ~ ~ ~I~ ~ITS [N ~ CITY
OF TUSTIN ~ APPROVD~ '~ FO~{ ~ ~PE~TI~
AG}~EqENT BC~WEEN ~{E CiTY OF '~[N ~ ~IE ~E
H~SI~ AUTUOR[~ A~) AU~IZI~ I~ ~UTI~
~ub:~taad~ird and otb.-~ u:;dF~lq~{te i~qir<,~, t.) ?~'3vent the spre~ of
~%ht~s ~md blight, aud :> ~alize ~s s~ ~ f~a~i,ble the ~1 of a
decent h~ in a suit~b[~ l!vi~l%{ envtro~nt for ~[1 of its
c i t [zens;
WI~iIEAS, under the provi,~ions of the United States Housing Act
of 1937, ~s ~nded. (herein ~]l~ "}~") is autho¢i.z~ ~ provide
financial ~istanc~ to h>c>~! p. blic bousiag ~enctes (herei~fter
~:tl[,~ "I~1 Authority") f, Jr under~.~king a~ c~r~i.ng out the
~le,'~!oymnt ~ad opera, rich of lo.v--~ ~t housing p~jects that will
b,~ developed, ;on~tmlCt~w{, ,r ~[le{ :L' <he [y)~l Authority until
e~ter ~ :1o a C~tt,~ if' ~e,'xmt ,~: :9: th,e ~1 Authority
~ :;~5 ~ .:~ ~ (_~,,' ~ :.:~ :::~:<.: :.,.hi 3::~eLy C~e, th:s
gover:Ln3 ~)dy did on Aprtl :: 1981, :d,)p: ~ Resol,ition authorizing
?':t~ on ia u, n,~ ~:~a:) ..... >f gcn,eml cl -cql. at~o~, nn April 9,
'.~ notle~ of a :~::~2 ;, ~<~tri.:::: t~ b/ i:el:l Apri I. fi:), 1981,
Agr~mt should ~ enl~:~r~i into; and ther,~ h~ ~l ,~u'l,.· available
Ul~e c~[7i,a9 :)= L:t? ~,r,i)OSed Gy~r~ti. or. Agreement for
and
?/HERI{AS, the notic~es fo<' q public hearing have t~en F~blished
~ ab).,',~ pr)vialed, and t::l~s :~ov, mni~:g ~i.' h;.~ held a public
he~ring starting at the hour of 7:30 p.m. on the ~th ~y of
April, 192l, gi~iug ali %~tem~t~ pecso~
he,xr, l ;e~ t<) ~vhe~h-r th.~ prop,)~ed C~[)e~tioa Ag~nt in the fo~
attm,:h~ hereto should b> en~r~ into, which ~[d hmri~ h~ ~n
conclud~ wkth ali rotters ia ~)nnectioa the~ith ~ving ~en
full~ conside~ ~ this
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Resolution No. 81-55
Page
,'F3~,', ~[EREP~)RE, BE IT od~SOLV~) BY THE CITY OOUNCIL OF TILE CITY
OF TUST[N ~%S FO[LOWS:
~,te~.? exists in this locality a need for such low-rent
ho, l$iBg ~{t ~erlts ~[thin the ~an~ of b~w-inco~ families
o~ ~rsor~s.
hereby approve thc develo~nt,
Tht3 governing k~×!.,' af~.~r {~.ving held ~ publLc 'qe~ring and
giving all inCerest+~ persons an opportunity to ~ heard,
hero, by dete~nes, purs4ant to the p~visL,pns of the
California Ho,]sing C~peration ~w (~ing ~.pter 2 of
Pa:r 2 of Division 24 of the California Health ~d Safety
Co_te~, ~ enter int.} ~ C,'~?~,~ion Agr~en~ in
A.:rho~iW. The C,':' CoancL1 Of this g,)verntng ~.ty is
Co3~eracion Agre~n: la the ~ ,.nd ,,~ b,-,'utlf of the
City of Tustla ~4 the Ci=~ Clerk ~s h~reby authoriz~ amd
,:iLr,~g~t to ' ' i,.V~r:~a~ thc, ot'fic~al '.~,~>d. ,)f thi.s
go:er:ling b~-i .. }t t',)acr-.~-' t? ',['n, · Such
Form HUD-52hS1. This form has been prepared by the Department of Housing
a~nd Urban Development for use by a Local Authority as a guide in dz'af~ing
agreements providing for local cooperation, as required by the Housin~ Act
of 1937, and by re,qulations of the Department.
Page 1
COOPERATION
This Agreement entered into this day of
19iLl__, by and between the ORANGE COUNTY HOUSING AUTHORITY
(herein called the "Local Authority") an~ City of Tustin
(herein called the '~4~u~loipality"), wit~-~e~s~h.j
In consideration of the ~tual covenants hereinafter set forth, the
p~rties hereto do agree as follows:
1. %~enever used in this Agreement:
(a) The tex~ '?~oject" shall me~u arj low-rent housing hereafte~
developed or acquired by the Local Authority with financial
assistance of the United States of America acting through the
Secretary of Housing and Urban Development (herein called the
"Goverr~ent"); excluding, however, any ]ow-rent housing project
covered by any contract for lo.ns and mmual contributions
entered into between the Local Authority ~ud the Government, or
its predecessor ~genoies, prior to the date of this Agreement.
(b) The term "TaxkngBod~' shall mean the State or ~uypolitical
subdivision or taxing ttnit thereof in which a Project is situated
and ~ich would have authority to assess or levy real or personal
prope~y taxes or to certif~ such taxes to a t~xing body or public
officer to be levied for ~ts use ~u~ benefit with respect %0 a
Project if it were not exempt from t~×ation.
(c) The term "Shelter Rent" shall mean the total of all
to all tenants of a Project for dwelling rents and nondwelliug
rents (excluding all other insoue of such Projoct), less the
to the Local' Authority of ~11 dwelling and nondwellLng u~ilitiaso
(d) The term "Slum" shall mean m~y area whers dwellings p~edominate
which, by reason of ~ilapidat~on, overcrowding, faulty arranEement
or design, lack of ventilation, light or s~n{tation f~ctlittes, or
~uy combination of these factors, are detri~ental ~o safety, health,
Or ~orals.
2. The Local Authority shall endeavor (a) to secure a contract or con-
tracts with t!~e Government for loans and annual contributions covering one or more
Projects compri$in~ of units of low-rent housing which shall not exceed 5% of
the total dwelling units within the Municipality, and (b) to develop or acquire
~nd adzGinister such Project or Projects, each of which shall be located within
thc corporate limits of the Municipal£ty. Each such project shall be developed,
constructed, financed, or acquired subject to the conditions authorized by the
voters under Measure X of the June 3, 1980 election. The obligations of the
parties shall apply to each such Project.
3. (a) Under the constitution and statutes of the State of California,
all projects are exempt from all real and personal property taxes and special
azsess~aents levied or imposed by any Taxing Body. With respect to any Project,
so long as either (i) such Project is o~ed 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 Projec~ remains in force and effect, or (iii) any
bonds issued in connection with such Project or any monies due to the Government
in connection with such Project remain unpaid, whichever period is the longest,
the Mu~icipalitya~rees that.~t will.not levy or impose any real or ~er$onal
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 (heroin called "Payments in Lieu of Taxes")
Pa~e 2
in lieu of such t~es and special assessments and in payment for the
public services ~nd facilities furnished from time to time without other
cost or charge for or with respect to such Project.
(b) Each such aruuual Payment in Lieu of T~xes shall be made
after the end of the fiscal year established for such Project, and shall
be in an amc%nut 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 per~..itted to be paid by applicable
state law in effect on the 'date such pa~ent is made, whichever amount
is the lower.
(c) The ;':~nicipality shall distribute the Pa)~ments in Lieu of
Taxes ~-u~ong 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 taxation bears to the total real property
t~es '~hich would have been paid to all of the T~.:ing ~odies for such yea~
if the Project were not exempt from t=_xation; Provided, however, That no
payment for any year shall be made to ~ Taxing Body in excess of the
amount of the real property taxes which would have been paid to such Taxing
Body for such year if the Project were not exempt from taxation.
(d) Upon failure of the Local Authozity to m~<e 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
account thereof.
~. During the period commencing with the date of the acquisition of
s~uy pa~t of the site or sites of ~' Project and continuing so long as
either (i) such Project is o%~ed by a public body or governmental agency
~nd is used for low-rent housing purposes, or (ii) ~ny contract between
Local Authority and the Government for loans or annual contributions, or
both, in connection ~ith such Project reuains in force m~d effect, or
(iii) ~uy bonds issued in connection ~ith such Project or any monies due
to the Goverr~ent in connection with such Project remain unpaid, whichever
period is the longest, the Municipality without cost or charge to the
Local Authority or the tensnts of such Project (other th~u the Payments
in Lieu of Taxes) shall:
(a) Yuzmish or cause to be fu~nished to the Local Authority
and the tenants of such Project public services and facilities
of the same character and to the s~me extent as are furnished
from ti~e to time without cost or charge to other dwellings
and ir~abitants in the M%unicipality;
(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 PS~uicipality may have in such vacated areas; ~nd, in so
far as it is lawfully able to do so without cost or expense to
the Local Authorit~ or to the P~muicipality, 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 the ~%uuicipality may lawfully do so, (i) grant
such deviations from the building code of the ~.~nicipa!ity as are
reason[~!o and necessary to promote economy and efficiency in the
development and administration of such Project, and at the same
tire s~feguard health and safety, and (ii) make such ~anges in
any zo~ing of the site ~ud surrounding territory of such Project
as are re%sonable and necessary for the development and protection
of such Project and the surrounding tex~itory;
Page 3
(d) Accept grants of easements necessary for the development
of such Project; and
(e) Cooperate with the Local Authority by such other lawDA1
action or ways as the ~,%unicipality and the Local Authority
may find necessary in conmection with the development and
administration of such Project.
5. In respect to any ProJect the I.~uicipalitY fuz~her 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 strSets,
roads, alleys, and adjacent sidewalks within the area of such
Project, together with all stozm and s~itary sewer mains in
such dedicated areas, after the Local Authority, at its own
expense, has completed the grading, improvement, paving,
installation thereof in accordance with specifications
acceptable to the ~,hznicipality;
(b) It will accept necessary dedications of land for, and
will grade, improve, pave, and provide sidewalks for, all
streets bounding such Project or necessary to provide adequate
access thereto (in consideration whereof the Local Authority
shall pay to the ~,~hmicipality'such amo'~ut as would be assessed
against the Project site for such work if such site were
privately owned); and
(c) It will provide, or cause to be provided, water mains,
and storm ~md s~nita~/ sewer mains, leading to such Project
~nd sea'!nE the bounding streets thereof (in consideration
whereof the Local Authority shall pay to the h%micipality
such smo~mt as would be assessed against the Project site
for such work if such site were privately
6. if by reason of the l.kmicipality~s failure or refusal to fun~.ish or
cause to be fur~i~ked any public settees or facilities which it has
agL~e<-i hereunder to f~ish or to cause to be Da~ished to the Local
~. ............ ~ or to the rent_uts of ~,,m:" Project, the Local Authority inc,~s
s.-.y e:-:~.snse to Obtain such sez~ices or facilities then the Local
Authority may deduct the ~o~t of such expense from a~ Pa~ents in
Lieu of T~es due or to become due to the l.~icipality in respect 2o
a:~:; ~-~o~ ~c~ or ~%~ other low-rent housing projects o%~ed or operated
7. No Cooperation Agreement heretofore entered into between the
E~muicipality and the Local Authority shall be construed to apply to
~O' Project covered by this Ag~eenent.
8. ~c neuter of the governing body of the kkmicipality or m~f other
public official of the ~.hmicipality who exercises any responsibilities
or f~uctions with respect to any Project during his tenure or for
one yes. r thereafter shall have ~ny interest, direct or indirect, in
~ny Project or any property included or planned to be included in
s=j project, or any contracts in cormection with such Projects or
property. If ~kv such governing body member or such other public
official of the ~,Smuicipality involuntarily acquires or had acquired
prior to the beginning of his tenure any such interest, he shall
ir'_nodiately disclose such interest to the Local Authority.
Page
9. So long as any contract between the I,ocal Authority and the Government
for loans (including preliminary loans) or annual Contributions, or both,
in connection with any Project remains in force and effect, or so long as
any bonds issued in connection with ~uyProject or muy monies due to the
Cover~ment in connection with any Project remain unpaid, this Agreement
shall not be abrogated, changed, or modified without the consent of the
Government. The privileges and obligations of the Municipality hereunder
shall remain in full 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 any other public body or governmental agency, including the Government,
authorized by law to engage in the development or a&ministration of low-rent
housing projects. If at any time the beneficial title to, or possession
of, any Project is held by such other public body or governmental agency,
including the Cove.-m~ent, the provisions hereof shall inure to the benefit
of and may be enforced by, such other public body or goverr~uental agency,
including the Goverr~ent.
~¥~T~SS ~'~7~OF the Municipality and the Local Authority have respec-
tively, signed this Agreement and caused their seals to be affixed and attested
as of the day and year first above written.
ATTEST:
.By
(Corporate Name of A'.%UU~c-palzty)
---~-,Type Name and Title)
OPcXNGE COUNTY HOUSii{G AUTiiORITY
(Type Name and Title)
(Co,orate Name 'of Local Authority)
By
(Type Name and Title)
By
Chairman