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Home My WebLink AboutPH 1 AFFORDABLE HSNG 04-20-81DATE: April 20, 1981 Inter- Com TO: Honorable Mayor and City Council Members FROH: Community Development Department SUBJECT: Cooperative Agreement for Affordable Housing Funds DISCUSSION On June 3, 1980 voters for the City of Tustin gave approval to Measure X., thus giving referendum authority for publicly assisted low-rent housing projects to be constructed within the city. Prior to any application for future low-rent housing projects to be funded, a cooperation agreement must be completed. At the April 6, 1981 meeting of the Council, a resolution was passed requesting a public hearing to consider the cooperation agreement. The Cooperation Agreement with OCHA details the provisions of public services for any low-rent housing projects. The Agreement provides that OCHA would make annual payments ("Payments in Lieu of Taxes") in lieu of taxes or special assessments and in payment for the public services and facilities furnished by the City of Tustin. The amount would equal ten percent (10%) of the shelter renu charged by OCHA in respect to a specific project during a fisr~! year. The Cooperation. Agreement can be executed prior to development of specific projects and can apply to more than one project. ConsequenL!y, the proposed Agreement specified a total nu~er of unius net to exceed five percent (5%) of the total dwelling units within Uhe C£t~£ of Tustin. In addition, the proposed Agreement staces that all prc~ects will be developed, constructed, financed, or acquired subject to the conditions authorized by the June 3, 1980 referendum, ~ ' ~== %zz!i preclude the submittal of any future applica- tion to HUD witkout public notice. At this time, the City Attorney is reviewing the Cooperation Agree- ment, and he will render a written opinion on its contents. The Cooperation Agreement submitted to'the City Attorney is enclosed as Exhibit A. Any. testimony concerning the Cooperation Agreement should be received at this public hearing. RECOMMENDATION Staff recommends that the Council conduct a public hearing, take public testimony and close the hearing. Staff further recommends that the Council direct staff to prepare a resolu- tion authorizing entrance into the Cooperation Agreement, plus a copy of the executed Agreement for the next regular scheduled meeting of the Council. Form HUD-~2~81. This form has been prepsred by the Department of Housing and U~san Development for use bye Local Authority as a guide in drafting agreements provfdingfor local cooperation, as required by the Housing of 1~3~, m~d by regulationa of the Department. Page 1 EXHIBIT A COOP~-~QATION This Agreenent entered into %his day of 19~Li_, by and between the ORANGE CO6NTY HOUSING AUTHORITY ' (herein called the "Local Authority") aud. :~ity of T~stin (herein called the '%ku~iotpality"), witnesseth: In consideration of the ~atual covenants herei~mfter set for%h, ~he patsies hereto do agm'ee as follows: 1. %~enever used in this Agreement: (a) The term '~oject" shall mean any low-rent housing hereafter developed or acquired by the Local Authority with financial assistance of the United States of America acting throu~the' Secretary of Housing and Urban Development (herein c~lled the "Governnent"); excluding, however, any low-rent housing project covered by any contract for lo~us and annual contributions entered into between the Local Authority and the Government, or its predecessor agencies, prior to the date of this Agreement. (b) The tera "Taxing Bod~' shall mean the State or any political subdivision or taxing'unit thereof in which a Project is situated and which would have authority to assess or levy real or personal property t~xes or to certify such taxes to a t~xingbodyor public officer to b= levied for its use and benefit ~ith'respect to a Project ~ ~ =. ~ were not exempt from taxation. (c) The tern "Shelter Rent" shall mean the total of all ch~_vges to all ten~uus cf a P~oJect for dwelling rents and nondwelling rents (ax2l"~!ng all other income of such Pro~ect), less fao to the L~c-n2 Authority of a/1 dwelling and nondwelling utilities. ~._~ __= ..... shall mean ~uyarea ~ners dwelling~ predominate w~_~h, h_ ~=-~ of dilapidation, overcrowding, faulty ~r~_angement or~±~-, lack of ventilation, light or s~u{tation facilities, or ~- c~uh~£zn of these factors, are detrinental to safety, health, ~. The Local Authority shall endeavor (a) to secure a contract or con- *~=--= ~ith tke C~over~ent for loans and annual contributions covering one or more Projects ---~-~~ of units of low-rent housing which shall not exceed 5% of the total dwe!!in~ ~n±ts within the Municipality, and (b) to develop or acquire and a~uinister such Project or Projects, each of which shall be located within the corporate !L~its of the Municipality. Each such project shall be developed, constructed, financed, or acquired subject to the conditions authorized by the voters under Measure 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 ~ssessments levied or imposed by any Taxing Body. Nith 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 Governmen~ in connection with such Project remain unpaid, whichever period is the longest, the Municipality agrees that it will not levy or impose any real or persona~ 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 taxes 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 Project. (b) Each such annual Payment in Lieu of T&xes shall be ~ade 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 such fiscal year or (ii) the amoun~ in respect to such Project during permitted to be paid by applicable state law in effect on the 'date such pa~ent is made, whichever ~-uount is the lower. (c) The l'2~nicipality shall distribute the Pa~ents in Lieu of Taxes among the Taxing Bodies in the proportion which the real property taxes 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 prope~y tmxes '~ich would have been paid to all of the Taxing Bodies for such year if the Project were not exempt from taxation; Provided, however, That no payment for any year shall be made to at. 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 Authority to n~e any Pa~ent in Lieu of Taxes, no lien against sny Projec~ or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach o~ accomut thereof. 4. During the period commencing with the date of the acquisition of any part of the site or sites of ~yProject 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) any contract between the Local ;~uthority ~nd the Government for lo~ns or annual contributions, or both, in comuection with such Project remains in force and effect, or (iii) m~* bonds issued in comnection with such Project or any monies due to the &orerr=.ent in ccr_nection with such Project remain ~npaid, whichever periol i~ the !once,t, the I~nicipality without cost or charge to the Local Authority or the ten=uts of such Project (other th~u the Payments in Lieu. ~£ T~xes) sh~!!: kay ?~--_~i~h cr c-ause to be furnished to the Local Authority -~-n~- uhe ~e_-.kn~s of such Project public services e-nd facilities of th_= z~e ~haracter and to the ss_~e extent as are furruished -to ..... ~o ~=e without cost or charge to other dwellinga mud i~£u=_bit~_nts in the l. kunicipality; (b) Vacate such streets, roads, and alleys within the area of such Project as may be necessary in the development thereof, ~ud convey without charge to the Local Authority such interest as the M~uicipality may have iu such vacated areas; ~ud, in so far as it is lawfully able to do so without cost or e×~ense to the Local Authorit~ or to the Municipality, cause to be removed from such vacated ~reas, in so far as it may be necessary, all public or private utility limes and equipment; (c) In so far as the ~i~nicipality may lawDully do so, (i) grant such deviations from the building code of the ~.~3nicipa!ity as are reasonable and necessary to promote economy mud efficiency in the development and administration of such Project, and at the sane time safeguard health and safety, and (ii) n~<e such changes in any zoning of the site mud surrounding territory of such Project as are reasonable and necessary for the development ~_nd protection of such Project and the surrotunding te~Titory; Page 3 (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 ~nicipality and the Local Authority may find necessary in connection with the development ~ud administration of such Project. 5- In respect to any Project the I'~mnicipality further agrees that within a reasonable time after receipt of a written request therefor from%he 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 storm and sanitary se~er 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 l~A~nicipality; (b) It will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding such Project or necessaz~- to provide adequate access thereto (in consideration whereof the Local Authority shall pay to the h%uuicipality'such amount as would be assessed against the Project site for such work if such site were privately o~ed); and ' (c) It will provide, or cause to be provided, water mains, and sto~ ~ud s~uitarysewer mains, leading to such Project and se~;inE the bounding streets thereof (in consideration whereof the Local Authority shall pay to the ~kunicipality such auo~ut ~ would be assessed against the Project site for such work if such site were privately reason ~£ .'--he ].D_nicipality's failure or refusal to furnish or be _~nrr_ds'n-~5 =_uy public se~ices or facilities which it has ...... o ~--~s~ cr %o cause ~o be ~ished %o the Local ~*ns_ ~ ~- ~a~h se~ices or facilities then the Local nzi ~'~ uk, ~o~t of such e~ense from ~ Pa~ents in ~T~ez iu~ ~r ~ become due to the ~.~icipality in respect %o r-~o~t__.~_~ or ~ni ouker low-rent housing projects o,~ed or operated 7- ~:~ Cooperation Agreement heretofore entered into between th~ ! ...... ~=_m,y ~.c the Local Authority shall be construed to apply to ~ Project covered by this Agreement. 8. ~:o member of the governing body of the hTunicipality or ~uy other public official of the M%~nicipality who exercises any responsibilities or f~uctions with respect to any Project during his tenure or for one year thereafter shall have any interest, direct or indirect, in a~j Project or any property included or planned to be included in ~uy project, or any contracts in connection with such Projects or property. If ~uy such governing body member or such other public official of the ~.kuuicipality involuntarily acquires or had acquired prior to the beginning of his tenure any such interest, he shall jm~ediate!y disclose such interest to the Local Authority. Page 9- So long as ar~. contract between %he Local 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 any Project or any monies due to the Government in connection with any Project remain unpaid, this Agreement shall not he abrogated, changed, or modified without the consent of %he Government. The privileges and obligations of the ~.k~nicipality 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 any other public body or governmental agency, including the Government, authorized by law to engage in the development or administration of low-rent housing projects. If at any time the beneficial title %o, or possession of, any Project is held by such other public body or governmental agency, including the Goverp~ent, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the Goverp~ent. IN%,~T~SS %~2-~--~REOF the ~.iunicipality and the Local Authority have respec- tively-signed this Agreement and caused their seals to be affixed an~ attested as of the dayand year first above written. AT~EST: Title) (Corporate Name of ~.kmicipality) OP~NGE COUNTY HOUSING AUTHORITY (Type Name and Title) '(Corporate Name 'of Local Authority) ATT£EU: By (Type Name and Title) By Chairman