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5579 RESOLUTION NO. 5,579 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A MEMORANDUM OF AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF LITTLE ROCK; FOR CLOSE-OUT OF THE NEIGHBORHOOD DEVELOPMENT PROGRAM; AND FOR OTHER PURPOSES BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS. SECTION 1. The Mayor and City Clerk are hereby authorized and directed to execute a Memorandum of Agreement with the Little Rock Housing Authority, and concurred in by the United States Department of Housing and Urban Development for close-out of the Neighborhood Development Program No. ARK A-9, which Memorandum Agreement is in form and substance as follows: • MEMORANDUM OF AGREEMENT This Agreement, made and entered into this day of , 1976, by and between the City of Little Rock, Arkansas, hereinafter referred to as "City" and the Housing Authority of the City d' Little Rock, Arkansas, hereinafter referred to as the "Authority" and concurred in by the United States Department of Housing and Urban Development, herein- after sometimes called "Government" or "HUD" or "Department". WITNESSETH: WHEREAS, the Authority has heretofore entered into that certain Neighborhood Development Program Funding Agreement dated March 31 , 1970, as amended, with the United States of America, providing for financial assistance to the Authority under Title I of the Housing Act of 1949, as amended, identified as Neighborhood Development Program Funding Agreement No. ARK A-9 (LG), Project No. ARK A-9; and WHEREAS, pursuant to the terms of such Agreement, and a cooperation agreement between the City and Authority, the City is obligated to pay one- third of the net project cost through the furnishing of local grants-in-aid;and WHEREAS, the City and Authority contend it has become necessary, due to the substantial completion of neighborhood development activities insofar as same may be completed from a practical and financial standpoint, to close out the project; and WHEREAS, it has become necessary to evaluate further the continued carrying out of the urban renewal project, hereinafter called "project" or "projects"; and WHEREAS, the City is willing to assume additional obligations respecting the carrying out of certain necessary duties and responsibilities imposed upon the Authority by the Funding Agreement relating to the disposal of project lands presently under the control of the Agency; NOW, THEREFORE, the Authority and the City do hereby mutually agree and represent as follows: 1 . The City and Authority concur in the use of unearned grant funds from Project No. ARK A-9, in an amount totaling $146,900.00 to pay for the value of unsold land in the subject project. Parcels remaining unsold are identified in Attachment A, attached hereto and made a part hereof. 2. All of the land identified hereinabove remains subject to covenants under the provisions of which: a. The use of the property by the Authority, City or its assignees shall be in accordance with the Urban Renewal Plan for Project No. ARK A-9, b. Any improvements on such property required by the Urban Renewal Plan shall be begun within a reasonable time after property is acquired for redevelopment by the City or its assignees. • c. Any proposed reconveyances of such property by the Authority or the City for purposes of redevelopment shall be subject to the public disclosure requirements already applicable to local public agencies in the disposition of project land to redevelopers under Section 105(e) of Title I of the Housing Act of 1949, as amended;and d. Discrimination upon the basis of race, color, religion, sex, or national origin in the sale, lease or rental or in the use or occupancy of such land or any improvements erected or to be erected thereon shall be prohibited and the Authority, City and the United States shall be beneficiaries of and entitled to enforce such covenant. 3. Title in the property identified in Attachment A shall be retained by the Authority. 4. All proceeds from the sale or lease of property identified in Attachment A shall be treated as program income of the City under the provisions of 24 CFR 570.506, provided however, that such proceeds may be applied to the reimbursement of any funds of the City, other than funds made available under 24 CFR 570.800 et seq. , or cash local grants-in-aid required on the basis of incurred net project costs, which were used for the payment of temporary loans for the project. After all obligations are fulfilled under this Agreement, the balance of unearned grant funds (estimated as $441 ,964.67) accruing from the Neighborhood Development Program, Project ARK A-9 shall be transferred to the City as additional program income under the City's Community Development Block Grant Program. 5. The Authority represents to the City that two lawsuits remain outstanding in connection with the project as follows: a. Roland B. Holder vs. Chicago, Rock Island & Pacific Railroad Company vs. Housing Authority of the City of Little Rock,Arkansas. b. Capital Savings and Loan Association of Little Rock vs. Marshall Pearlstein, et al, and Housing Authority of the City of Little Rock, Arkansas. The City hereby agrees to set aside a total of $45,000.00 in unearned grant to cover any amount that might be incurred or awarded in connection with the two cases, $40,000.00 for the Holder case and $5,000.00 for the Capital Savings and Loan case. 6. The Authority further agrees that HUD may conduct audits and in- spection of books, papers, certifications, accounts and all other documents with respect to the administration of the operating account and completion of all activities and to establish requirements for proper certifications with respect to the administration of said operating account and completion of all activities. 7. During the life of Project No. ARK A-9, a total of 129 dwelling units were demolished. All low and moderate income housing required to be provided due to demolition or renewal or residential structures with project funds pursuant to Section 105 (h) of Title I of the Housing Act of 1949, as amended, have been provided. A description of dwelling units provided is given in the legend supporting the map attached hereto and made a part hereof as Attachment B. Such units have been identified as to general location on said map, Attachment B. Housing not provided would be incorporated and identified in the City's Housing Assistance Plan. 8. With respect to the low and moderate income housing requirements required in predominately residential projects obligated pursuant to Section 105 (f) of Title I of the Housing Act of 1949, as amended, the Neighborhood Development Program application for the project, in our interpretation, shows a total of 112 units planned for redevelopment for residential purposes. Of that total, 7 have been redeveloped for low and moderate income as 235 housing. The 7 units provided are identified as to general location on said map included as Attachment B hereto. All such housing remaining to be provided, 105 units, shall be incorporated and identified in the City's Housing Assistance Plan and any change in housing obligations or in previously approved land usages affecting housing obligations, shall require prior written approval of the Secretary of HUD as long as the area remains predominately residential under the provisions of the applicable Urban Renewal Plan. 9. In the event that the City should succeed the Authority with respect to any duties, activities, obligations or otherwise connected with completion or carrying out of the project the City hereby agrees to be bound by the terms of this Agreement and to perform the Authority's duties, obligations and activities to the same extent as the Authority is herein obligated. 10. Any costs or obligations incurred in connection with the project with respect to claims which are disputed, contingent, unliquidated or unidentified and for the payment of which insufficient project funds have been reserved under the financial settlement, shall be borne by the City. Such additional expenses may be paid from funds made available from Community Development Block Grant Funds under 24 CFR 570. et seq. 11 . Obligations under this Agreement are made specifically subject to the program management requirements of Subpart (J) of 24 CFR 570.900 , et seq. 12. It is specifically understood and agreed that the concurrence of this Agreement by the United States Department of Housing and Urban Development shall not constitute a waiver of the terms of the Neighborhood Development Program Funding Agreement and Amendments thereto with the Agency. IN WITNESS WHEREOF, the parties by these presents have executed the Agreement on the date hereinabove shown. Attest: HOUSING AUTHORITY OF THE CITY OF LITTLE ROCK, ARKANSAS By Secretary Chairman Attest: CITY OF LITTLE ROCK, ARKANSAS By Secretary Mayor Concurred in : UNITED STATES OF AMERICA Secretary of Housing and Urban Development By Assistant Regional Administrator for Community Planning and Development - 3 - -2- SECTION 2 . This Resolution shall be in full force and effect from and after its adoption. ADOPTED: August 17, 1976 ATTEST: 1/'L4 APPROVED: City Cle k May s: 1/1/4#1:1414117