HomeMy WebLinkAbout81-62 - Approving Agreement with OCHA, Orange County Housing Authority203
RESOLUTION NO. 81-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA, CALIFORNIA, APPROVING THE FORM OF
COOPERATION AGREEMENT BETWEEN THE CITY OF COSTA
MESA AND THE ORANGE COUNTY HOUSING AUTHORITY
(OCHA) RELATIVE TO SUCH LOW RENT HOUSING PROJECTS
AS MAY BE APPROVED AND AUTHORIZING ITS EXECUTION.
WHEREAS, it is the policy of this locality to realize as soon as
feasible the goal of a decent home in a suitable living environment for
all it citizens; and
WHEREAS, under the provisions of the United States Housing Act of
1937, as amended, (hereinafter called the "Act"), the Department of
Housing and Urban Development (hereinafter called "HUD") is authorized
to provide financial assistance to local public housing agencies such
as the Orange County Housing Authority (hereinafter called "OCHA") for
undertaking and carrying out the development and operation of low -rent
housing projects; and
WHEREAS, Section 34313 of the California Health and Safety Code,
as amended, provides that no low -rent housing project shall be develop-
ed, constructed, or owned by the OCHA until the governing body of Costa
Mesa has by resolution approved the project; and
WHEREAS, pursuant to Section 15(7)(b) of the Act, as amended
before HUD 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 OCHA providing for local cooperation in
connection with such housing project; and
WHEREAS, 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 with respect to low -rent housing projects; and
WHEREAS, pursuant to and in compliance with the provision of Sec-
tion 34518 of the California Health and Safety Code, this governing
body did on September 2, 1980, and on May 18, 1981, adopt a Resolution
authorizing the publication in a newspaper of general circulation, on
September 5 and 12, 1980, and on June 5, 1981, of a notice of a public
hearing to be held October 6, 1980, and June 15, 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 inter-
ested persons prior to the mentioned public hearing; and
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 6:30 p.m. on the 15th day of June, 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;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COSTA MESA AS FOLLOWS:
1. There exists in this locality a need for housing within the
means of low-income families or persons.
2. The City Council will consider for approval the development,
construction and ownership by the OCHA of the projects as
defined in Paragraph 1(a) of the Cooperation Agreement.
3. This governing body after having held a public hearing and
giving all interested persons an opportunity to be heard,
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hereby determines, pursuant of the provisions of the California
Housing Cooperation Law (being Chapter 2 of Part 2 of Division
24 of the California Health and Safety Code), to enter into a
Cooperation Agreement in substantially the form attached
hereto with the OCHA. The Mayor of this governing body is
hereby authorized and directed to execute such Cooperation
Agreement in the name and on behalf of the City of Costa Mesa
and the City Clerk is hereby authorized 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.
4. This Resolution shall become effective immediately.
PASSED AND ADOPTED this 6th day of July, 1981.
Mayor -7-5e t e ity oCosta esa
ATTEST:
ty Clerk of the City of Costa M a
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS
CITY OF COSTA MESA
I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City
Council of the City of Costa Mesa, hereby certify that the above and
foregoing Resolution No. 81-62 was duly and regularly passed and adopted
by the said City Council at a regular meeting thereof, held on the 6th
day of July, 1981.
IN WITNESS WHEREOF I have hereunto set my hand and affixed the Seal
of the City of Costa Mesa this 7th day of July, 1981.
CiTy-
Clerk and ex -officio
Clerk o
the
City
Council of the City
of Cost
Mesa
COOPERATION AGREEMENT
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THIS AGREEMENT entered into this day of , 1981, by and
between the ORANGE COUNTY HOUSING AUTHORITY (herein "OCHA") and the CITY OF
COSTA MESA (herein called the "MUNICIPALITY"),
W I T N E S S E T H
In cons iderat ion of the mutual covenants hereinafter set forth, the
parties hereto do agree as follows:
1. Whenever used in this Agreement:
(a) The term "Project" shall mean any low -rent housing project approved
by separate resolution of the City Council of the City of Costa Mesa and there-
after developed in said city or acquired by the OCHA with financial assistance
of the United States of America acting through the Secretary of Housing and
Urban Development (herein called the "Government"); excluding, however, any
law -rent housing project covered by any contract for loans and annual contribu-
tions entered into between the OCHA arra the Government, or its predecessor
agencies, prior to the date of this Agreement.
(b) The term "Taxing Body" 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 taxes or to
certify such taxes to a taxing body or public officer to be levied for its
use and benefit with respect to a Project if it were not exempt from taxation.
(c) The term "Shelter Rent" shall mean the total of all charges to
all tenants of a Project for dwelling rents and nondwelling rents (excluding
all other income of such Project), less the cost to the OCHA of all dwelling
and nondwel l ing utilities services to the Project.
(d) The term "Slum" shall mean any area where dwellings predominate
which, by reason of dilapidation, overcrowding, faulty arrangement or design,
lack of ventilation, light or sanitation facilities, or any combination of
these factors, are detrimental to safety and health.
2. The OCHA my endeavor (a) to secure a contract or contracts with
the Government for loans and annual contributions covering one or more
Projects comprising units of law -rent housing which shall not exceed 5% of
the total dwelling units within the Municipality, and (b) to develop or
acquire and administer 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 condi-
tions authorized by the voters of the Mun is ipal ity under Measure J of the
June 3, 1980, election, and no project shall be undertaken until and unless
the Municipality approves it by resolution pursuant to Section 34313 of the
California Health and Safety Code. The obligations of the parties shall
apply to each such Project.
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3. (a) Under the constitution and statutes of the State of California,
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all projects are exempt from all real and personal property taxes and special
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assessments levied or imposed by any Taxing Body. With respect to any Project,a
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so long as either (1) such Project is owned by a public body or governmental
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agency and is used for low -rent housing purposes, or (2) any contract between
the OCHA and the Government for loans or annual contributions, or both, in
connection with such Project remains in force and effect, or (3) any bonds
issued in connection with such Project or any monies due to the Goverrunent
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 personal
property taxes or special assessments upon such Project or upon the OCHA
with respect thereto. During such period, the OCRA shall make annual payments
to the Municipality (herein called "Payments in Lieu of Taxes") in lieu of
such taxes and special assessments.
(b) Each such annual Payment in Lieu of Taxes shall be made after
the end of the fiscal year established for such Project, and shall be in an
amount equal to ten percent (108) of the Shelter Rent charged by the OCHA in
respect to such Project during such fiscal year.
(c) The Municipality shall distribute the Payments in Lieu of Taxes
among the Taxing Bodies in the same proportions applicable as if the funds were
actual levies from a non -tax-exempt entity; provided, however, that no
payment 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 Body
for such year if the Project were not exempt from taxation.
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
(1) such Project is owned by a public body or governmental agency and is
used for low -rent housing purposes, or (2) any contract between the OCHA and
the Government for loans or annual contributions, or both, in connection
with such Project remains in force and effect, or (3) any bonds issued in
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connection with such Project or any monies due to the Government in connec-
tion with such Project remain unpaid, whichever period is the longest, the
Municipality may do any of the following under the same terms and conditions
and at the Municipality's sole discretion as if the project were a non -tax-
exempt project:
(a) Furnish or cause to be furnished to the OCHA and the tenants of
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such Project public services and facilities of the same character and to the
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same extent as are furnished frau time to time without cost or charge to
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dwellings and inhabitants in the Municipality;
(b) Vacate such streets, roads, and alleys within the area of such
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Project as may be necessary in the development thereof, and convey to the
OCHA such interest as the Municipality may have in such vacated areas; and,
in so far as it is lawfully able to do so without cost or expense to the
OCHA or to the Municipality, cause to be removed frau such vacated areas, in
so far as it may be necessary, all public or private utility lines.
(c) In so far as the Municipality may lawfully do so, (1) grant
such deviations from the building code of the Municipality as reasonable
and necessary to promote economy and efficiency in the development and admin-
istration of such Project, and at the same time safeguard health and safety,
and (2) 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 surrounding territory;
(d) Accept grants of easements necessary for the development of
such Project; and
(e) Cooperate with the OCHA by such other lawful action or ways as
the Municipality and the OCHA may find necessary in connection with the
development and administration of such Project.
5. In respect to any Project the Municipality further agrees that
within a reasonable time after receipt of a written request therefor frau
the OCHA the Mun is ipal ity may do any of the following under the same terms
and conditions and at the Municipality's sole discretion as if the project
were a non -tax-exempt project:
(a) Accept the dedication of all interior streets, roads, alleys,
and adjacent sidewalks within the area of such Project, together with all
storm and sanitary sewer mains in such dedicated areas, after the OCHA, at its
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own expense, has completed the grading, improvement, paving, and installation
thereof in accordance with spec if icat ions acceptable to the Municipality;
(b) 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 OCHA shall
pay to the Municipality such amount as would be assessed against the Project
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site for such work if such site were privately owned); and
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(c) Provide, or cause to be provided, water mains, and storm and
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sanitary sewer mains, leading to such Project and serving the bounding streets
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thereof (in cons iderat ion whereof the OCHA shall pay to the Municipality
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such amount as would be assessed against the Project site for such work if
such site were privately owned).
6. If by reason of the Municipality's failure or refusal to furnish
or cause to be f urnished any public services or facilities regarding any
Project pursuant to paragraph 4(a) above and the OCHA incurs any expense to
obtain such services or facilities, then the OCHA may deduct up to the amount
of such expense from the Payments in Lieu of Taxes due or to become due to
the Municipality for the particular Project denied the services or facilities
for so long as the denial exists.
7. No Cooperation Agreement heretofore entered into between the
Municipality and the OC RA shall be construed to apply to any Project covered
by this Agreement.
8. No member of the governing body of the Municipality or any other
public official of the Municipality who exercises any responsibilities or
functions with respect to any Project during his tenure or for one year
thereafter shall have any interest, direct or indirect, in any Project or
any property included or planned to be included in any project, or any con-
tracts in connection with such Projects or property. If any such governing
body member or such other public official of the Mun is ipal ity involuntarily
acquires or had acquired prior to the beginning of his tenure any such interest,
he shall immediately disclose such interest to the OCHA.
9. The term of this Agreement shall be two years from the date of its
approval by the Municipality, except that with respect to any Projects approved
by the Municipality during the five year term, so long as any contract between
the OCHA and the Government for loans (including preliminary loans) or annual
contributions, or both, in connection with any such Project remains in force
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and effect, or so long as any bonds issued in connection with any such
Project or any monies due to the Government in connection with any such
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 rem in in full force and effect with
respect to each such project so long as the beneficial title to such Project
A is held by the OCHA or by any other public body or governmental agency,
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m including the Government, authorized by law to engage in the development or
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o 0- ID administration of lar -rent housing projects. If at any time the beneficial
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title to, or possession of, any such Project is held by such other public
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^' body or governmental agency, including the Govenmient, the provisions hereof
shall inure to the benefit of and may be enforced by, such other public body
or governmental agency, including the Government.
IN WITNESS WHEREOF the Municipality and the OCHA have respectively
signed this Agreement and cause their seals to be affixed and attested as of
the day and year first above written.
ATTEST: CITY OF COSTA MESA
City Clerk
ATTEST:
APPROVED AS TO FORM:
City Attorney
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ORANGE COUNTY HOUSING AUTHORITY
Chairman