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RESOLUTIL-o :.?PEGVElG TiiE APPLICATION OF Tn_ AL.AS';A
STATE HOUSIliG AUTHORITY FOR ?ROGRAH RESERVATION A;;D
PRELIMINARY LOAN FOR LOW-RENT HOUSING: APP~OVI~\G
THE DEVELOPMENT, CONSTRUCTION AND OvINERSEI:4,O~J:
Lm-i-RENT HOUSING PROJECT OF NOT TO EXCEED ~ DH LLIliG
UNITS: AND APPROVING THE FORM OF COOPERATION AGREE-
MENT BETWEEN THE CITY OF SEWARD AND THE ALASKA STATE
HOUSING AUTHORITY AND AUTHORIZING ITS EXECUTION.
RESOLUTION NO. q v"V
c/;1
2 ~)J
I 0"
WHEREAS, it is the policy of this locality to eliminate substandard
&~Q 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, the Alaska State Housing Authority (herein called the "Local
Authority") is a public housing agency and will apply to the Public Housing Administra-
tion for a program reservation in connection with the development of low-rent housing;
and
WhEREAS, under the provision of the United States Housing Act of 1937,
as aQcnded, the Public Housing Administration is authorized to provide financial
assistance to local public housing agencies for undertaking and carrying out prelimin-
ary planning of low-rent housing projects that will assist in meeting this goal; and
WHEREAS, the City of Seward desires to further cooperate with the Local
Authority in approving the development, construction and ownership of such low-rent
housing project; and
WHEREAS, pursuant to Section 15(7) (b) of the United States Housing
Act or 1937, as amended, it is necessary that the City of Seward enter into a
Cc~?cration Agreement with the Local Authority providing for local cooperation in
c0;'h.~ction with such low-rent housing project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
__..,. .'-' AS FOLLOWS:
1. There exists in the City of Seward, Alaska, a need for such
low-rent housing at rents within the means of low-income families
or persons.
2. The application or the Local Authority to the Public Housing
~dministration for a progrlmur~~,~~a~~d a preliminary. loan
~n an amount not to exceed ~:;~ OQr"or~rveys and plann~ng
p.S. in connection with low-rent housing projects of not to exceed
~25 dwelling units is hereby approved.
. 3. The City Council does hereby approve the development, construction
and ownership by the Local Authority of the project as defined in
Paragraph l(a) of the Cooperation Agreement.
4. The Mayor is hereby authorized and directed to execute such
Cooperation Agreement in the name and on behalf of the City of
Seward and the City Clerk is hereby authorized and directed to
affix or impress the Official Seal of the City of Seward thereon
and to attest the same. Such Cooperation Agreement shall be in
substantially the form attached hereto as Exhibit "A" and made a
part hereof.
J .PASSED AND ADOPTED BY THE City Council of the City of Seward this )V(~
d.;:y of 4( ~ J' 1964, by the following vote:
AYES:
,
LlJi/
NOES: "-'A-G~
ABSENT:
~
(SEAL)
c~ ~~~
Mayor
AT~EST:
~Le-L [cflC7~
C~ty Clerk
CGOPERATICN AGREEIVIENT
. 7his Agreement entered into this 7//~ day of kiM jJ..VJ
19#! by and between the Alaska State Housing Authority (herein called the
"Local Authority") and Seward, Alaska (herein called the "Munici-
pality"), witnesseth:
In consideration of the mutual covenants hereinafter set forth, the parties
hereto do agree as follows:
1. Whenever used in this Agreerrent:
(a) The term "Project" shall rrean any low-rent housing hereafter
developed as an entity by the Local Authority with financial assist-
ance of the Public Housing Administration (herein called the "PHA");
excluding, however, any low-rent housing project covered by any contract
for loans and annual contributions entered into between the Local Authority
and the PHA, or its predecessor agencies, prior to the date of this
Agreement.
(b) The term "Taxing Body" shall mean the State or any political sub-
division 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 incorre of such Project) ,less the cost to the Local Authority
of all dwelling and nondwelling utilities.
(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 detrirrental to safety, health, or morals.
2. The Local Authority shall endeavor (a) to secure a contract or contracts
with the PHA for loans and annual contributions coverillg one or rr:ore projects
comprising approximately ;s1J units of low-rent housing and (b) to develop and
administer such Project or Projects, each of which shall be located within the
corporate limits of the f1unicipality. 'fhe obligations of the parties hereto shall
apply to each such Project.
3. (a) Under the constitution and statutes of the State of Alaska, all
Projects are exempt fran all real and personal property taxes and special assess-
ments levied or imposed by any Taxing Body. \'lith respect to any proj ect, so
long as either (i) such Project is owned by a public body or governrrental agency
and is used for low-rent housing purposes, or (ii) any contract between the Local
Authority and the PHA for loans or annual contributions, or both, in cormection
with such Project remains in force and effect, or (iii) any bonds issued in
cormection with such Project or any monies due to the PHA in cormection with
such Proj ect 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 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
ti1re to ti1re without other cost or charg.e for or with respect to such Project.
(b) Each such annual Payrr.ent in Lieu of Taxes shall be rrade after the
end of the fiscal year established for such Project, and shall be in an amount
equal to either (i) ten percent (10%) of the 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 (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.
(c) The Municipality shall distribute the Payrrents in Lieu of Taxes among
the Taxing Bodies in the proportion which tre 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
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of the Taxing Bodies for such year if the Project "ere not exempt from taxation;
Provided, However, That no payrrent 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.
Cd) 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.
4. The Municipality agrees that, subsequent to the date of initiation (as
defined 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 PHA, there has been or will be elimination (as approved by the PHA)
by demolition, condemnation, effective closing, or canpulsory repair or improve-
ment, of unsafe or insanitary dwelling units situated in the locality or rretro-
politan 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 accorrmodated therein; and Provided, further,
That this Paragraph 4 shall not apply in the case of (i) any Project developed on
the"site of a Slum cleared subsequent to July 15, 1949, and that the dwelling
units eljminated by the clearance of the site of such Project shall not be counted
as elimination for any other Project or any other low-rent housing project, or (11)
any Project located in a rural nonfarm area.
5. During the period cOlliJTBncing with the date of the acquisition of any part
of the site or sites of any Project and continuing so long as either (i) such
Project is owned by a public body or governmeRtal agency and is used for low-rent
housing purposes, or (ii) any contract between the Local Authority and the PHA
for loans or annual contributicns, 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 PHA in connection with such Project remain unpaid, which-
ever period is the longest, the flIunicipality 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 as are furnished from time to tine 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 rlIunicipality may have in
such vacated areas; and, in so far as it is lawfully able to do so without cost
or expense to the Local Authority or to the rlIunicipality, cause to be removed from
such vacated areas, in so far as it may be necessary, all public or private
utility lines and equipment;
(c) In so far as the Municipality may lawfully do so, (i) grant such
deviations from the building code of the rlIunicipality as are reasonable and
necessary to promote economy and efficiency in the development and administration
of such Project, and at the same tine safeguard health and safety, and (11) 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 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.
6. In respect to any Proj ect the Municipality further agrees that within
a reasonable time after receipt of a written request therefor from the Local
Authority:
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(a) It will accept the dedicaticn 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 specifications acceptable to the
Municipality;
(b) It will accept necessary dedications of land for, and will
grade, irrprove, 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 lIiunicipality 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 Proj ect and serving the bounding streets
thereof ( in consideration whereof the Local Authority shall pay to the Munici-
pality such amount as would be assessed against the Project site for such work
if such site were privately owned).
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 expenses
from any Payment s 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.
8. No Cooperation Agreerrent heretofore entered into between the F'lunicipality
and the Local Authority shall be construed to apply to any Project covered by this
Agreenent .
9. So long as any contract between the Local Authority and the PHA for
loans (including preliminary loans) or annual contributions, or both, in
oormection with any Proj ect remains in force and effect, or so long as any bends
issued in cormection with any Project or any monies due to the PHA in cormection
with any Project remain unpaid, this Agreenent shall not be abrogated, changed,
or modified without the consent of the PHA. The privileges and obligations of
the Municipality 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
Local Authority or by any other public body or goverruJJental agency, including the
PHA, 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 PHA, the provisions hereof shall inure to the benefit of and may be enforced
by, such other public body or governmental agency, including the PHA.
IJ'J LVI'INESS WHEREOF the Municipality a'1d the Local Authority have respectively
signed this Agreement and caused their seals to be affixed and attested as of
the day and year first above written.
-3-
(SEAL)
ATTEST:
YJ,zdu;Z fcaJcdk;
City Clerk
(SEAL )
ATI'EST:
;J!}~
Se retary
CITY OF' SEHARD, ALASKA
by ~~ ./p~
Mayor
ALASKA STA'IE HooS ING AUTHORITY
-J~~c~(~
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