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1984-69 Approving An Application For A Preliminary Loan For A Low-Income Housing Project.WHEREAS, the Kodiak Island Housing Authority (herein called the i "Local Authority ") is a public housing agency and is applying to the Govern- ' ment for a preliminary loan to cover the costs of surveys and planning in r connection with the development of low- income housing. II I t 2. KODIAK ISLAND BOROUGH RESOLUTION NO. 84 -69 -R A RESOLUTION OF THE KODIAK ISLAND BOROUGH APPROVING AN APPLICATION FOR A PRELIMINARY LOAN FOR A LOW - INCOME HOUSING PROJECT. WHEREAS, it is the policy of this locality to eliminate substandard and other inadequate housing, to prevent the spread of slums and blight, and to realize as soon as feasible the goal of a decent home in a suitable living environment for all of its citizens; and WHEREAS, under the provisions of the United States Housing Act of 1937, as amended, the United States of America, acting through the Secretary of Housing and Urban Development (herein called the "Government "), is author- ized to provide financial assistance to local public housing agencies for undertaking and carrying out preliminary planning of low- income housing projects that will assist in meeting this goal; and WHEREAS, the Act provides that there shall be local determination of need for low- income housing to meet needs not being adequately net and that the Government shall not make any contract with a public hosing agency for preliminary loans for surveys and planning in respect to any low- income housing projects unless the governing body of the locality involved has by resolution approved the application of the public housing agency for such preliminary loan; and NOW, THEREFORE, Borough as follows: 1. That there exists in the area of Kodiak Island Borough a need for such low- income housing; That the application of the Local Authority to the Government for a preliminary loan in an amount not to exceed $82,980 for surveys and planning in connection with low - income housing projects of not to exceed approximately 30 dwelling units is hereby approved; and That the Local Authority certifies to proceed with the project as an acquisition of existing housing or rehabilitation as required by Section 6(h) of the Act, if it is determined by the Government, as a result of BE IT RESOLVED by the Assembly of the Kodiak Island its review of the local housing market, that rehabilitation or acquisi- tion existing housing will cost less than new construction or that sufficient existing housing is available. NOW, THEREFORE, BE IT FURTHER RESOLVED that the Kodiak Island Borough Assembly authorizes the borough manager to enter into a cooperative agreement with the Kodiak Island Housing Authority for the purposes of secur- ing a preliminary loan for a low- income housing project. PASSED AND APPROVED this �4 day of 1984. KODIAK ISL BOROUGH ATTEST: By Borough Cle Resolution 84 -69 -R Page 2 Borough 44eaagak, Acting Authority; C(tfPER7, }toN AQREEMENT RRrWRP.Y THE. .. . SOD/AR ISLAND BORDUnR AND EODIAK r,Sr•ANn HOUSING AUTRORITS Tht!"rodiak Island Borough and the Kodiak Island Arousing Authority enter into the following Agreement this day of " , 1984. WIINNgg£T In consideration of the mutual covenants herein, the parties agree as follows: 1. Whenever used in this agreement: (a) 'Local Authority means the Kodiak Island Housing (b) 'Municipality' means the Kodiak Island Borough be deve loped ) within 3 the + Municipality by the m Local s Authority with financial assistance of HUD; excluding any low- income housing project covered by any contract for loans and annual contributions entered into between the Local Authority and HUD, or its predecessor agencies, prior to the date of this Agreement; (d) subdivision or taxing g unit y thereof in which e the Project 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 the Project if the Project were not exempt from taxation; (e) 'Shelter Payment" means the total of all charges to all homebuyers of the Project for dwelling payments and non - dwelling payments (excluding all other income of the Project), leas the cost to the Local Authority of all dwelling and non - dwelling utilities; (f) 'HUD' means the United States Department of Housing and Urban Development. 2. The Local Authority shall endeavor to secure a contractor contracts with HUD for loans and annual contributions to support a Project of up to 30 units. The Local Authority shall plan, develop, and administer the Project. The Municipality shalt how no contractual responsibility with respect to the Project othet than as expressly provided in this Agreement. 3. (a) Under the laws of the State of Alaska, the Project is exempt from all real and personal property taxes and Bpec±tk assess ments levied or imposed by any Taxing Body. So long aft either (1) the Project is owned by a public body or governmennjti agency and is used for low- income housing purposes, or (ii) pmt, contract between the Local Authority and HUD for loans or annmra contributions or both, in connection with such Project oc ' any monies due to HUD in connection with such Project remain unpaid, whichever period 1s the longest, the Municipality . aerie* that it will not levy or impose any real or personal. .ptopertg & ., taxes or special ass upon such Project oL upon the Lo - Authority with respect thereto_ °wring e..nh' -A tha rn Authority shall make annual payments (herein called •PSymenterfin,' Lieu of Taxes in lieu of such taxes and special assessments .r in payment for the public services and facilities furnished f time to time without other cost or charge for or with respettkteL such Project. 1 . 0 0 r( n A 6 s •! (b) Each annual Payment in Lieu of Taxes shall be made year the end of the fiscal ear established for such Project, .and hall be in an amount equal to either (i) ten percent (lOt) of the Hheltet.flyment actually collected, but in no event to exceed ten percent (108) of the Shelter Payment charged by the Local uthority in respect to such Project during such fiscal year, o (ii) the amount permitted to be paid by applicable State law in effect on the date such payment is made, whichever amount is the lower irrespective of the number of Taxing Bodies having a ooperation Agreement for the Project. (c) The Municipality shall distribute the Payments in ieu 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 property taxes which 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 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. (d) Upon failure of the Local Authority to make any . ayment in Lieu of Taxes, no lien against the Project or assets of the Local Authority shall attach, nor shall any interest or enalties accrue or attach on account thereof. 4. During the period commencing with the date of the acquisition of the finished Project and continuing so long as either (i) such Project is owned by a public body or governmental agency and is used for low- income housing purposes, or (ii) any contract between the Local Authority and HUD for loans or annual contributions, or both, in connection with such Project or any . monies due to HUD in connection with such project remains in force and effect, (iii) any bonds issued in connection with such Project or any monies due to HUD in connection with such Project remain unpaid, whichever period is the longest, the Municipality without cost or charge to the Local Authority or the homebuyers such Project (other than the Payments in Lieu of Taxes,) shall: (a) Furnish or cause to be furnished to the Local uthority and the homebuyers of such Project public services and- . facilities of the same character and to the same extent as are - furnished from time to time without cost or charge to other dwellings and inhabitants in the area; (b) Notwithstanding the date of acquisition, the unicipality shall 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 Municipality may have in such vacated ;.,and insofar as the Municipality is lawfully able to do so without: cost ✓ expense to the Local Authority or to the Municipality as. the ower of the Municipality to do so may appear by statute, rdinance or otherwise cause to be removed from vacated ' aread> -' insofar as it may be necessary, all public or private utility lines and equipment; (c) Notwithstanding the date of acquisition, the unicipality may (i) grant such deviations from tha•b;rildieg code • are reasonable and necessary to promote economy and fffi,ctamct. in the development and administration of such Project,. ant-at thee• ame time. safecuard health and safety; and (ii) make such chances in any zoning of the site and surrounding territory of,such Project as are reasonable and necessary for the development and • p rotection of such Project and the surrounding territory; ()operation Agreement age 2 1 I 0 0 ,1 1 I 5 , (d) The Municipality shall accept grants and easements necessary for the development of such Project; and Cooperate lawful action or wa with ysas theMunicipality Local ojecin with the development and 5. In respect to the Project, the Municipality further agrees , that within a reasonable time after receipt of a written request therefore 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 storm and sanitary sewer and water d mains in such dedicated areas, after the Local Authority's Developer has completed the grading, improvements, paving and installation thereof, in accordance with specifications acceptable to the Municipality. 6. If by reason of the Municipality's failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or cause to be furnished to the Local Authority or to the homebuyers of the Project, the Local Authority incurs an expense to obtain such services or facilities, then the Local Authority may deduct the amount of such expenses from any payment in Lieu of Taxes due or to become due to the Municipality in respect to the Project. 7. The Municipality agrees to exempt the homebuyers of the Project and the Local Authority from the payment of Sales Tax on payments for dwelling units in the Project. 8. the Municipality Cooperation Agreement entered yandtheLocal Authority shallbeonstruedttoea apply to the Project covered by this Agreement. 9. So long as any contract between the Local Authority and HUD for loans (including preliminary loans) or annual contributions, or both, in connection with the Project remains in force and effect, or so long as any bonds issued in connection: with the Project remain unpaid, this Agreement shall not be abrogated, changed, or modified without the consent of HUD. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to the Project so long as the beneficial title to such Project is held by the Local Authority or by any other public body or government agency, including HUD, authorized by law to engage in the development or administration of low- income housing projects. If, at any time, the beneficial title to, or possession of, the Project is held by such other public body or governmental agency, including HUD, the- provisions hereto shall inure to the benefit of and may be enforced by such other public body or governmental agency, including HUD. 10. No member of the governing body of the Municipality of 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 contracts in. • connections with such projects or property. If any such governing body member or such other public official of the Municipality g involuntarily acquires or had ac uired o- the � .inning his tenure any such interest, he shall immediatelydisclosensuch interest to the Local Authority. Cooperation Agreement Page 3 IN WITNESS WHEREOF, the Municipality and the Local Authority have respectively signed this Agreement on the day and year firE above written. ATTEST: Mwiler ;BOROUGH ERR Cooperation Agreement Page 4 ' 1 i .. KODIAK ISLAND BOROUGH KODIAK ISLAND HOUSING AUTHORITY EXECUTIVE DIR TOR