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HomeMy WebLinkAbout13528 ORDINANCE NO. 13,528 AN ORDINANCE CREATING THE CITY OF LITTLE ROCK RESIDEN- TIAL HOUSING FACILITIES BOARD PURSUANT TO THE PROVI- SIONS OF ACT NO. 142 OF THE ACTS OF ARKANSAS OF 1975; APPOINTING THE INITIAL MEMBERS THEREOF; PRESCRIBING. OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. W}ER AS;. the City of Little t oc k, A"-kan. as (the "Ci i y" ) ., pursuant to the provisions of Act No. 142 of the Acts of. the General Assembly of the State of Arkansas for the year 1975 (.the "Act" ) , is authorized to establish public facilities boards for the purposes set forth in the Act, which includes assisting in the financing of -residential housing facilities within or near the City, and WHEREAS, the providing of decent, safe and sanitary residential housing facilities will be aided by the creation of a public facilities board to assist in the financing of residential housing facilities, and WHEREAS, funds may be obtained by a public facilities board on such terms and under such conditions as will materially assist persons of low and moderate income to obtain financing of residentialhousing facilities under conditions more favorable than would otherwise be available: NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: Section 1. Findings. The Board of Directors of the City hereby finds and determines : (a) There exists within and near the City a - _.; -=portage of decent, safe and sanitary residential. housing facilities available for rehabilitation, con- struction or purchaseon terms that persons and families of low and moderate income can afford to pay. - i (b) Existing economic conditions including high • rates of interest on residential mortgage loans, and a shortage of funds within lending institutions in the State of Arkansas for residential mortgage loans are operating (i) to further restrict the rehabilitation, construction and purchase of residential housing by .der3oras of low and moderate income at reasonably, afford- able costs, fii) to create unemployment and hardship within the residential construction industry, adversely _ affecting residents of the City and (iii) to reduce and . limit the valueof property within the City, all of which adversely affect the City' s tax revenues and which, if not alleviated, will lead to further urban blight and decay and result in disproportionately large expenditures for services by the City. (c)., The availability of mortgage financing to assist such persons and families in the rehabilitation, conz,tructiory or purchase of decent, safe -and sanitary 'I residentialhousing facilities will be aided by the providing of funds for mortgage financing of residential housing facilities by the creation of a public facilities board pursuant to the provisions of the Act. (d) The providing of financial assistance in order to enable persons and families of low and moderate income to finance the costs of decent, safe and sanitary residential housing facilities is a proper public purpose as declared by the Act, and this determination of the Board of Directors of the City. (e): The public purpose of financing residential housing facilities may best be served by establishing a public facilities board to purchase mortgages on such residential housing facilities or make loans to mortgage lenders to provide financing for residential housing facilities. as providedin the Act. -2- Section 2. Creation of Board. Pursuant to the authority of the Act there is hereby created and established the "City of Little Rock, Arkansas Residential Housing Facilities Board" (hereinafter referred to as the "Board" ) with authority as hereinafter provided to accomplish, finance, contract and make or purchase mortgage loans concerning residential housing facilities, and otherwise act in such manner as may be permitted by the Act to provide de:.:ent, safe and sanitary residential housing facilities within or near the City. Section 3. Members of the Board; Term of Office. The Board shall consist of five persons. The initial members shall be designated by the Board of Directors of the City, and thereupon shall be appointed by the Mayor of the City to serve for terms of one, two, three, four, End five years, • respectively. Successor members shall be selected as provided in the Act. The members of the Board shall be residents of • the City and shall take and file with the City Clerk the oath of office prescribed by the Act. The initial members of the Board, each of whom is a resident of the City, and their respective terms of office shall be: Member Term Ray Metzger, Jr. • One Year E. Ralph Cotham, IV Two Years Cora McHenry Three Years Michael M. Watts • • Four Years A. Jack Reynolds • Five Years As soon as practicable after the enactment of this Ordinance • each member of the Board shall qualify by taking and filing -- with- the City Clerk the oath Of- office as prescribed by the - Act. -3- • Section A. Powers.. The Board is empowered, from time to time, to loan, acquire, construct, reconstruct, extend,- equip, improve, sell, lease, and contract concerning (which shall include- the purchase of mortgage loans and the making of loans to mortgage lenders) residential housing facilities as sha31 he determined by the Board to be necessary to effect the purpose,v of this Ordinance to provide decent, safe and sanitary residential housing facilities within or near the. City. In addition, the Board shall have each of the powers set forth in Section 7 of the Act, as amended, and appropriate tothe purposes for which the Board is created. The Board may enter into such contractual or cooperative agreements with such persons as may, in its discretion, be advisable to accomplish the purposes of this Ordinance, including without limitation, departments, agencies or instrumentalities of the United States of America, the State ofArkansas or the City, e.g. _the Department of Housing and Urban Development, the Federal Housing Administration, the Arkansas Housing Development Agency, and the Little Rock Housing Authority. - Section 5. Issuance of Bonds. The Board is authorized to issue revenue bonds, from time to time, and to use the proceeds, either alone or together with other available funds and revenues, to accomplish the purposes for which the Board is created as the same relates to the providing of decent, safe and sanitary residential housing facilities. Such revenue bondsshall be obligations only of the Board and -shall not constitute an indebtedness for which the faith - _ -4- - and credit of the City or any of its revenues are pledged, and the principal and interest on the bonds shall be payable • from and secured by a pledge of revenues derived from resi- dential . housing facilities financed, in whole or in part, from bond proceeds and as authorized by, - and in accordance with the provisions of the Act, together with such other collateral as may properly be pledged under the Act and as the Board in its discretion may determine. The aggregate principal amount of revenue bonds of the Board outstanding at any one time shall not exceed Seventy-Five Million Dollars ($75, 000, 0001. • Section .6. ' initial Program. Notwithstanding any other provision of this Ordinance, until further authorized by subsequent ordinance of the City the Board is authorized: to engage only in a residential mortgage purchase program for single-family residential housing. The term "single-family residential housing" . as used. herein means a specific work or improvement which provides dwelling accommodations consisting of not moi . -- than four units one of which -must be occupied.-by . the owner.: The Board shall require that for a period of not less than 180 days from the time funds for such program are • available for the purchase of mortgages all such funds be made available for qualified single-family residential housing facilities in the corporate limits of the City as now existing or as may hereafter be extended. The Board shall also require in any event that not less than eighty percent (80%) of the value of all mortgages purchased shall be for qualified single family residential housing facilities in the corporate limits of the City as now existing or as may hereafter be extended and that not more than twenty percent (20%) of the value 'of all mortgages purchased may be for qualified single family residential housing facilities outside such cor- porate limits of the City, which- facilities in any event must be within theterritorial planning jurisdiction of the- City as provided by law. • -5- Section 7. Excess ..Revenues. Any revenues of the Board accu- mulated in excess of the amount necessary to accomplish the purposes for which the Board is created and to comply with all covenants and agreements of the Board in connection with any outstanding bonds or other obligations shall be reported to the Board of Directors. of the City which may direct the payment of such excess revenues into the general fund of the City. Sec:tim 8. Organ.ization; Reports Az. Asoon as practicable - after the adoption of this Ordinance the Board shall meetand elect. such officers as shall be requiredby the Act. The Board may adopt such by-laws and other rules and regulations as shall be necessary for the conduct of its business and consistent with the provisions of the Act. The Board shall cause to be filed with the City Clerk of the City the annual report described in Section 18 of the Act. Section 9. Severability. If any provisions of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applica .ions. of this. Ordinance -which- can be given effect with- out the invalidprovision or application, and. tothis end the provisions of this Ordinance are declared to be severable. Section 10. General Repeal. All Ordinances of the City, or parts thereof, in conflict with this Ordinance are hereby repealed to the extent of such. conflict. Section 11. . Emergency. It is hereby found and determined that there is an immediate and urgent need for the providing of decent, safe and sanitary housing for persons of low and moderate income in or near the City and the providing of financial assistance to such persons, and. that the creation of the Board and the exercise of the duties and powers provided in this Ordinance are necessary to the preservation of the public peace, health and safety. Therefore, an emergency is declared to exist and this Ordinanceshall be in full force and effect from and after its passage. -6- , • PASSED: November 7 , 1978. PROVED: ik riliNpm. an ..A111.....16. Mayor ATTEST: IIP ity Clerk / (SE 72) L) -7- L