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85-3782 Low-Rent HousingD 1 1 RESOLUTION NUMBER 85-3782 A RESOLUTION PROVIDING FOR COOPERATION IN DEVELOPMENT AND OPERATION OF LOW -RENT HOUSING PROJECTS. Kansas: BE 1T RESOLVED by .the Governing Body of the City of Salina, Section 1. Whenever used in this Resolution: (a) The term "Municipality" and the term "Local Authority" shall mean respectively, the City of Salina, Kansas, and the Housing Authority of the City of Salina, Kansas. (b) The term "Project" shall mean any low -rent housing hereafter developed as an entity by the Municipality acting by and through the Local Authority with financial assistance of the UNITED STATES OF AMERICA (herein called the "Government"); excluding however, any low -rent housing project covered by any contract for loans and annual contributions entered into between the Local Authority and the Government or its predecessor agencies prior to the date of this Ag reement. (c) 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. (d) 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 Local Authority of all dwelling and nondwelling utilities. (e) The term "Slum" shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement of design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals. Section 2. The Municipality acting through the Local Authority shall endeavor TaT). to secure a contract or contracts with the Government for loans and annual contributions covering one or more Projects comprising approximately 100 units of low -rent housing for Elderly and/or Handicapped occupants and (b) to develop and administer such Project or Projects, each of which shall be located within the corporate limits of the Municipality. It is hereby determined that all of said low -rent housing units are necessary to house eligible low income families under .the Kansas Municipal Housing Law. The provisions of this Resolution shall 'apply to each such Project. . Section 3. (a) Under the Constitution and Statutes of the State of Kansas, all Projects are exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. With respect to any Project, so long as either (1) each Project is owned by a public body or governmental agency and is used for low -rent housing purposes, or (2) any contract between the Municipality of the Local Agency 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 monies due to the Government in connection with such Project remain unpaid, whichever period is the .longest, the Municipality agrees that it will not levy 1 1 u or impose any real or personal property taxes or special assessments upon such Project or upon the Local Authority with respect thereto. During such period, the Local 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. (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 either (1) ten percent (10%) of the aggregate Shelter Rent actually collected but in no event to exceed ten percent (10%) of the Shelter Rent charged by the Local Authority in respect to such Project during such fiscal year, or (2) the amount permitted to be paid by applicable State Law in effect on the date such payment is made, whichever amount is lower. (c) The Municipality 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 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 Payment in Lieu of Taxes, no lien against any Project or assets of the Local Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof. Section 4. . The Municipality agrees that, subsequent to the date of initiation as de ined in the United States Housing Act of 1937, as amended) of each Project and within five years after the completion thereof, or such further period as may be approved by the Government, there has been or will be eliminated (as approved by the Government), by demolition, condemnation, effective closing, or compulsory repair or improvement, of unsafe or insanitary dwelling units situated in the locality or metropolitan area in which such Project is located, substantially equal in number to the number of newly constructed dwelling units provided by such Project; Provided, that, where more than one family 'is living in an unsafe or insanitary dwelling unit, the elimination of such unit shall count as the elimination of units equal to the number of families accommodated therein; and Provided, further, ' that this paragraph 4 shall not apply to the case of (1) any Project developed on the site of a Slum cleared subsequent to July 15, 1949, and that the dwelling units eliminated by the clearance of the site of such Project shall not be counted as elimination of any other Project or any other low -rent housing project, or (2) any Project located in a rural nonfarm area. Section 5. During the period commencing with the date of the acquisition o 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 Municipality or the Local Authority 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 Government in connection with such Project remain unpaid, whichever period is. the longest, the Municipality without cost or charge to the Local 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 Local Authority and the tenants of such Project public services and facilities of the same character and to the same extent 1 fl 1 as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; (b) 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 areas, and, insofar as it is lawfully able to do so without cost or expense to the Local Authority or to the Municipality, cause to be removed from such vacated areas, insofar as it may be necessary, all public or private utility lines and equipment; (c) Insofar as the Municipality may lawfully do so (1) grant such deviations from the building code of the Municipality 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 (2) make such changes in any zoning of the site and surrounding (in territory of such Project as are reasonable and necessary for the development and protection of such Project and the surrounding territory; amount as would (d) Accept grants of easements necessary for the development of such Project; and (e) Cooperate with the Local Authority by such other lawful action or ways as the Municipality and the . Local Authority may find necessary in connection with the development and administration of such Project. Section 6. In respect to any Project the Municipality further agrees that within a reasonable time after receipt of a written request therefor 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 mains in such dedicated areas, after the Local Authority, at its own expense, has completed the grading, improvement, paving, and installation thereof in accordance with the specifications acceptable to the Municipality; (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 Local Authority shall pay to the Municipality such amount 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 whereof the Local Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned) . Section 7. 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 to cause to be furnished to the Local Authority or to the tenants of any Project, the Local Authority incurs any expense to obtain such services or facilities then the Local Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to become due to the Municipality in respect to any Project or, any other low -rent housing projects owned or operated by the Local Authority. 1 1 1 Section 8. No Cooperation Resolution heretofore passed by the Municipality shaTF be construed to apply to any Project covered by this Resolution. Section 9. So long as any contract between the Municipality and the Government for moans (including preliminary loans) or annual contributions, 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 to the Government in connection with any Project remain unpaid, this Resolution shall not be repealed, modified or amended without the consent of the Government. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to each Project as long as the beneficial title to such Project is held by the Municipality, the Local Authority or by the Government, or by any other public body or governmental agency 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 the Government, other public body or governmental agency, the provisions hereof shall inure to the benefit of any may be enforced by the Government, such other public body, or governmental agency. Section 10. That this resolution shall take effect immediately. Adopted by the Board of Commissioners and signed by the Mayor this 20th day of May, 1985. [SEAL] ATTEST: D. L. Harrison, City Clerk G Merle o e ayor