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