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1995-03 Entering into a "Cooperation Agreement" with the Kodiak Island Housing Authority.KODIAK ISLAND BOROUGH RESOLUTION NO. 95 -03 Introduced by: Mayor Selby Requested by: Kodiak Island Housing Authority Drafted by: Kodiak Island Housing Authority Introduced: 02/16/95 Adopted: 02/16/95 A RESOLUTION ENTERING INTO A "COOPERATION AGREEMENT" WITH THE KODIAK ISLAND HOUSING AUTHORITY WHEREAS, the Kodiak Island Housing Authority (herein called the "Authority ") is an Indian Housing Authority and will apply to the U.S. Department of Housing and Urban Development for a program reservation in connection with the development of lower income housing in Larsen Bay and Port Lions; and WHEREAS, pursuant to sections 4(e)(2) and 6(d) of the United States Housing Act of 1937, as amended, it is necessary that the local governing body of the Kodiak Island Borough, Alaska enter into a Cooperation Agreement with the Authority providing for local cooperation in connection with such lower income housing project; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The borough mayor is hereby authorized and directed to execute such Cooperation Agreement in the name and on behalf of the Kodiak Island Borough. Section 2: The borough clerk is hereby authorized and directed to affix or impress the seal of the Kodiak Island Borough hereon and to attest the same. Section 3: Such Cooperation Agreement shall be in substantially the form attached hereto as "Exhibit A" and made a part hereof. ATTEST: Mary A. Monroe, Presiding Officer Kodiak Island Borough, Alaska ADOPTED BY THE KODIAK ISLAND BOROUGH ASSEMBLY THIS SIXTEEN DAY OF FEBRUARY, 1995 KODIAK ISLAND BOROUGH Donna F. Smith, CMC, Borough Clerk Resolution No. 95 -03 Page 1 of 8 WITNESSETH: 1. Whenever used in this agreement: Exhibit A COOPERATION AGREEMENT THIS AGREEMENT, made this day of , 199_, by and between the KODIAK ISLAND HOUSING AUTHORITY (herein called the "Authority ") and the KODIAK ISLAND BOROUGH (herein called the "Borough "). In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: (A) The term "Project" shall mean any low -rent housing hereinafter developed or acquired by the Authority 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 low -rent housing project covered by any contract for loans and annual contributions entered into between the Authority and 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; and (C) The term "Shelter Rent" shall mean the total of all charges to all tenants of a Project for dwelling rents and non - dwelling rents (excluding all other income of such Project), less the cost to the Authority of all dwelling and non - dwelling utilities. 2. The Authority shall endeavor to secure a contract or contracts with the Government for loans and annual contributions covering one or more Projects in Larsen Bay, Alaska and Port Lions, Alaska consisting of approximately ten �u administer (iv) units. The Authority Shall pied, develop Or acquire, and awn ter ult: Project or Projects, which shall be located within the corporate limits of the Borough. The obligation of the parties hereto shall apply to each such Project and the Borough shall have no contractual responsibility with respect to the Project other than as expressly provided in this Agreement. Kodiak Island Borough. Alaska Resofution No. 95 -03 Page 2 of 8 3. (A) Under the Constitution and laws of the State of Alaska, the Project is exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. So long as either (i) the Project is owned by a public body or governmental agency and is used for low -rent housing purposes; or (ii) any contract between the 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 Government in connection with such Project remain unpaid, whichever period is the longest, the Borough agrees that it will not levy or impose any real or personal property taxes or special assessment upon such Project or upon the Authority with respect thereto. During such period, the Authority shall make annual payments (herein called "Payments in Lieu of Taxes ") in lieu of such taxes and special assessments and in payment for the public services and facilities furnished from time to time without other cost or charge for or with respect to such Project. (6) 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 either (i) ten percent [10 %1* of the Shelter Rent charged by the Authority in respect to such Project during such fiscal year or (11) the amount permitted to be paid by applicable State law in effect on the date such payment is made, whichever amount is the lower. (C) The Borough shall distribute the Payments 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 bear 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 for taxation. No payment for any year shall be made to the Borough in excess of the amount of the real property taxes which would have been paid to the Borough for such year if the Project were not exempt from taxation. (D) Upon failure of the Authority to make any Payment in Lieu of Taxes, no lien against any Project or assets of the Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. 4. During the period commencing with the date of the acquisition of any part of the site nr cites of any Prniort and rnntini,inn en Inns as Hither lit such Project •.. �.� v . v .� v r ..r J , .J�J and JJ...... . so long as either 1,, JVV.I IV)GVl *Note: A percentage of less than ten [10%] may be inserted if agreed to by the Borough and the Authority. Kodiak Island Borough, Alaska Resolution No. 95-03 Page 3 of 8 is owned by a public body or governmental agency and is used for low -rent housing purposes; or Ili) any contract between the 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 Government in connection with such Project remain unpaid, whichever period is the longest, the Borough, without cost or charge to the Authority or the tenants of such Project (other than the Payments in Lieu of Taxes), shall: (A) Furnish or cause to be furnished to the Authority and the tenants 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 Borough; (B) Notwithstanding the date of acquisition, the Borough 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 Authority, such interest as the Borough may have in such vacated areas; and insofar as the Borough is lawfully able to do so without cost or expense to the Authority or to the Borough, cause to be removed from such vacated areas, insofar as it may be necessary, all public or private utility lines and equipment; (C) Insofar the Borough may lawfully do so, (i) grant such deviation from the building code as are reasonable and necessary to promote economy and efficiency in the development and administration of such Project, and at the same time, safeguard health and safety; and (ii) 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 surrounding territory; (D) Accept grants of easements necessary for the development of such Project; and (E) Cooperate with the Authority by such other lawful action or ways as the Borough and the Authority may find necessary in connection with the development and administration of such Projects. 5. In respect to any Project, the Borough further agrees that within a reasonable time after receipt of a written request therefor from the 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 mains in such dedicated areas after the Authority or its Developer has completed the grading, improvements, paving and installation thereof, in accordance with specifications acceptable to the Borough; Kodiak Island Borough, Alaska Resolution No. 95-03 Page 4 of 8 (B) It will 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 Authority or its Developer shall pay to the Borough such amounts as would be assessed against the Project site for such work if such site were privately owned); and (C) It will provide, or cause to be provided, water mains and storm and sanitary sewer mains, leading to such Project and serving the bounding streets thereof (in consideration thereof the Authority or its Developer shall pay to the Borough such amounts as would be assessed against the Project site for such work if such site were privately owned). 6. If by reason of the Borough'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 Authority or to the tenants of any Project, the Authority incurs any expense to obtain such services or facilities, then the Authority may deduct the amount of such expenses from any Payment in Lieu of Taxes due or to become due to the Borough in respect to any Project or any other low -rent housing projects owned or operated by the Authority. 7. The Borough agrees to exempt the tenants of the project and the Authority from the payment of Sales Taxes in conjunction with rents. 8. No Cooperation Agreement heretofore entered into between the Borough and the Authority shall be construed to apply to any project covered by this Agreement. 9. No member of the governing body of the Borough or any other public official of the Borough who exercises any responsibilities or functions with respect to any Project during his tenure or for one (1) 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 contracts in connection with such Projects or property. If any such governing body member or such other public official of the Borough involuntarily acquires or had acquired prior to the beginning of his tenure any such interest, he shall immediately disclose such interest to the Authority. 10. So long as any contract between the Authority and the Government for loans (including preliminary loans) or annual contribution, 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 the Government in connection with ar, Project remain unpaid, this Agreement shall not be abrogated, any Project rernain u ,w V, this ,ma rccmen� shall nVt be pU1 Vt�glCU, changed, or modified without the consent of the Government. The privileges and obligations of the Borough hereunder shall remain in full force and effect with respect to each Project so long as the beneficial title to such Project is held by the Authority or by any other public body or governmental agency, including Kodiak Island Borough, Alaska Resolution No. 95 -03 Page 5 of 8 the Government, authorized by law to engage in the development or administration of low -rent housing projects. If at any time the beneficial title to, or possession of, any Project is held by such other public body or governmental agency, including the Government, the provision hereto 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 Borough and the Authority have respectively signed this Agreement and cause their seals to be affixed and attested as of the day and year first above written. ATTEST: Borough Clerk ATTEST: Secretary- Treasurer KODIAK ISLAND BOROUGH Borough Mayor KODIAK ISLAND HOUSING AUTHORITY Executive Director Kodiak Island Borough, Alaska Resolution No. 95 -03 Page 6 of 8 ATTEST: SEAL Mary A. Monroe, Presiding Suzanne J. Hancock Jack L. McFarland Gary Stevens AYES Donna F. Smith, CMC Borough Clerk CERTIFICATE I, Donna F. Smith, CMC, the Borough Clerk of the Kodiak Island Borough, Alaska do hereby certify as follows: 1. That on , 1995, when the Assembly of the Kodiak Island Borough adopted the attached Resolution No. 95 -03, it was composed of the following qualified members: 2. That the attached Resolution No. 95 -03 is a true, correct, and conformed copy of the original resolution on file in the Clerk's Office and was adopted by the following vote of the Borough Assembly: NOES ABSENT John Burt Robin Heinrichs Michael R. Milligan 3. That such Resolution No. 95 -03 was adopted at a regular meeting of the Assembly of the Kodiak Island Borough, held at Kodiak, Alaska, on the _ day of , 1995, at the hour of 7:30 p.m. in accordance with the provisions of KIBC 2.17.070, a true copy of which is also attached hereto. IN WITNESS WHEREOF, I have unto set my hand and affixed the official seal of the Kodiak Island Borough, Alaska, this day of , 1995. Kodiak Island Borough, Alaska Resolution No. 95 -03 Page 7 of 8 Date: SAMPLE FORM LETTER OF SUPPORT - KIHA APPLICATION FOR NEW HOUSING UNITS AND REQUEST FOR PLANNING FUNDS Address to: Administrator (Submit on Government Letterhead) The acknowledges that the Kodiak Island Housing Authority is submitting an application for new housing units for Federal Fiscal Year 1995. ' The government acknowledges that there is a need for the housing assistance applied for and that there is or will be available public facilities and services adequate to serve the proposed housing in Larsen Bay, Alaska and Port Lions, Alaska. In making this determination, we have considered applicable housing plans. Support for this proposed housing is further evidenced by the attached letters from various organizations (if available) that will provide utilities and services to the housing units. Access road needs will (or have been) be identified by resolution and, subject to government requirements, will be entered on the road prioritization schedule used for resource allocation. It is the policy of the government to eliminate substandard and other inadequate housing and to provide its citizens with an opportunity to have decent, safe, and sanitary housing. There exists a need for such lower income housing because this need is not being met by private enterprise. In the IHA's application for new housing units, the IHA may apply for planning funds consistent with 24 CFR 905.220(d). Accordingly, the application and request for planning funds for the development is hereby approved. 'Signed by the Chief Executive Officer) Kodiak Island Borough, Alaska Resolution No. 95 -03 Page 8 of 8