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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, 204 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 70 rD V) R, c x v o 0 co � rn ^' 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. N 3. (a) Under the constitution and statutes of the State of California, 00 all projects are exempt from all real and personal property taxes and special CIJ o rn•r- •r - assessments levied or imposed by any Taxing Body. With respect to any Project,a L }' X n w 0 so long as either (1) such Project is owned by a public body or governmental Of 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 -2- -3- 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 CD such Project public services and facilities of the same character and to the 0 X -v same extent as are furnished frau time to time without cost or charge to wother dwellings and inhabitants in the Municipality; (b) Vacate such streets, roads, and alleys within the area of such N 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 -3- 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 cli site for such work if such site were privately owned); and „ CO (c) Provide, or cause to be provided, water mains, and storm and '130'.9-- •r 41:3 a x � sanitary sewer mains, leading to such Project and serving the bounding streets LU N thereof (in cons iderat ion whereof the OCHA shall pay to the Municipality v 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 -4- 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, N m including the Government, authorized by law to engage in the development or C x v r 211 o 0- ID administration of lar -rent housing projects. If at any time the beneficial co c' 7 title to, or possession of, any such Project is held by such other public rn ^' 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 -5- (-"\, � Ma ORANGE COUNTY HOUSING AUTHORITY Chairman