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2004-069-RES PROGRAM OF NON-PROFIT HOME BUILDING WITHIN THE CITY LIMITS DESIGNATING THE PARTICIPATING NON-PROFIT ENTITIES RESOLUTION NO. 2004-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, APPROVING AND ADOPI'ING A PROGRAM OF NON- PROFIT HOMEBillLDING WITIDN THE CITY LIMITS OF THE CITY OF PARIS; DESIGNATING THE PARTICIPATING NON-PROFIT ENTITIES; PROVIDING FOR A CONTRACT WITH SAID NON-PROFIT ENTITIES SETTING OUT THE TERMS AND CONDITIONS OF SAID PROGRAM; PROVIDING FOR CONTRACTS; PROVIDING FOR TRANSFER OF PROPERTY INTERESTS; AUTHORIZING THE CITY MANAGER TO EXECUTE OTHER DOCUMENTS ASSOCIATED WITH THE PROGRAM; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the continued proliferation of vacant and abandoned lots and structures within the city limits of the City of Paris constitutes a blight on affected neighborhoods, encourages crime and illegal activity, and generally is detrimental to the health, safety, and welfare of the community; and, WHEREAS, in the past, the City of Paris has utilized its own resources to periodically clean up such real property because the owners thereof have failed to meet their obligations as property owners; and, WHEREAS, neglected properties are often properties on which taxes are unpaid, and when foreclosed for delinquent taxes often continue in a blighted condition, whether sold for taxes or not; and, WHEREAS, the City of Paris, as a participant and active supporter in that program known as Keep Paris Beautiful, has already embarked on an ambitious series of ordinance changes to clean up and control junk, litter, substandard structures, waste hauling, and to promote historic preservation, all intended to address blighted conditions and the health, safety, and welfare of the City; and, WHEREAS, as part of said effort, the City of Paris foresees the need for a program for recycling or placing single family residential lots or parcels of real property which have been foreclosed for delinquent ad valorem taxes or for other reasons and have not been redeemed by their owners in accordance with state law, into a pool of lots for use by designated non-profit entities for the construction of new single family residential houses, thereby alleviating said blight, removing said property from the pool of properties maintained by the City, enhancing the tax base for all local taxing entities by fostering the construction of new single family residential homes, and generally improving the health, safety, and welfare of the citizens of the City of Paris; and, -1- WHEREAS, the City of Paris has, pursuant to Chapter 791 of the Texas Government Code, the Interlocal Cooperation Act, previously entered into an agreement styled Interlocal Agreement, Tax Trust Agreement, Limited Power of Attorney by and Among the City of Paris, Lamar County, Paris Independent School District, North Lamar Independent School District and Paris Junior College, whereby the other taxing entities have agreed to designate the City of Paris as Trustee for certain identified lots foreclosed for delinquent tax purposes for use in said program; and, WHEREAS, Section 277.oo1(g) of the Local Government Code authorizes political subdivisions of the State of Texas to acquire or assemble interests in real property and sell, exchange, or otherwise convey said real property interests to individuals, corporations, partnerships, or other legal entities for the development of low or moderate income housing, on such terms and conditions and for such value as shall serve the public interest; and, WHEREAS, Section 253.010 of the Local Government Code authorizes municipalities to provide for the manner in which any real property acquired by a municipality may be sold or transferred to certain non-profit entities engaged in developing housing for low income individuals and families to promote community-based revitalization; and, WHEREAS, Section 253.011 of the Local Government Code authorizes municipalities to transfer real property, without the requirements of notice and bidding, to non-profit organizations in furtherance of a public purpose within the municipality; and, WHEREAS, the City Council of the City of Paris, Texas, does hereby find and determine that the implementation of the aforesaid Non-Profit Home Building Program would be in the best interest of the citizens of the City of Paris, and in furtherance of the health, safety, and welfare of said citizens; and, WHEREAS, the City Council of the City of Paris finds and detennines that the activities authorized in the aforesaid program and in this resolution promote and serve a public purpose; and, WHEREAS, Paris Living, a Community Development Corporation, and Paris Habitat for Humanity, the same being non-profit entities, have indicated an interest in participating in the aforesaid program for construction of new single family residential houses; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. -2- Section 2. For the purposes of this resolution, the following defInitions shall apply: a. Contract with the Taxing Entities shall mean that Interlocal Agreement, Tax Trust Agreement, and Limited Power of Attorney previously entered into by and among the City of Paris, Lamar County, Paris Independent School District, North Lamar Independent School District, and Paris Junior College for the implementation of the program stated herein. b. Lot or Lots shall mean a tract, City lot, or other parcel of real property, whether identified by a formal survey (lot and block in a platted subdivision), or identified by metes and bounds description, or otherwise, which now or subsequent to the date of this agreement: i. Is located within the corporate or city limits of the City of Paris, Texas, as those limits currently exist or shall hereafter be amended; and, ii. Is vacant and if a structure is located thereon the structure is or has been unoccupied and abandoned as the terms vacant and abandoned are defmed under the Texas Tax Code; and, Hi. Is located in an area zoned for single family residential use only pursuant to the Zoning Ordinance of the City of Paris; and, iv. Has been lawfully foreclosed by representatives of the Taxing Entities for delinquent ad valorem taxes pursuant to the Texas Tax Code; and, v. Has been or is eligible to be struck off to a trustee following a Sheriff's Sale in accordance with the Texas Tax Code, and the property has not sold pursuant to Section 34.001 of the Texas Tax Code; and, vi. One (1) calendar year or the maximum period of time for redemption of said property according to the Texas Tax Code, whichever period of time is greater, has passed since the date of the Sheriff's sale. 3. Non-Profit Entities shall mean Paris Living, a Community Development Corporation, and Paris Habitat for Humanity. 4. Taxing Entities shall mean the City of Paris, County of Lamar, Paris Independent School District, North Lamar Independent School District, and Paris Junior College, individually and collectively. -3- Section 3. That there is hereby created a Non-Profit Home Building Program in the City of Paris. The purpose of said program shall be to recycle or place single family residential Lots or parcels of real property which have been foreclosed for delinquent ad valorem taxes or for other reasons, and have not been redeemed by their owners in accordance with state law, into a pool for use by those non-profit entities as designated herein for the construction of new single-family residential houses, thereby alleviating community blight, removing said property from the group of properties maintained by the City, enhancing the tax base for all Taxing Entities by constructing new single family residential homes, and generally improving the health, safety, and welfare of the citizens of the City of Paris. Section 4. That the City shall contract with the Non-Profit Entities for participation in said program. As a minimum, said contract shall include the following terms and conditions: a. As Lots become available to the City through the City's Contract with the Taxing Entities, those Lots shall be placed in a pool. b. Periodically, the City shall notify the N on-Profit Entities as to the location of the Lots. Within sixty (60) days following said notification, Paris Living shall notify the City and Paris Habitat for Humanity in writing as to the Lot or Lots it desires to utilize in its program of construction of new single family residential housing. c. Within thirty (30) days following receipt of said notification by the City, Paris Habitat for Humanity shall notify the City and Paris Living in writing as to any Lot or Lots it desires to utilize in its construction of new single family residential homes. d. Each respective Non-Profit Entity shall agree to begin active construction of new single family residential structures on the Lot or Lots so designated within twelve (12) months of their designation to the City; otherwise those Lots on which construction has not been initiated shall return to the pool of Lots maintained by the City. Each respective Non-Profit Entity may voluntarily return any lot previously designated to the City's pool of Lots by so notifying the City in writing of its request to do so. e. Precedent to initiation of construction of a single family residential structure on a Lot, the Non-Profit Entity shall be responsible for obtaining detailed title infonnation from a reputable title company regarding the title status of the designated Lots, and shall at least fourteen (14) days in advance of the anticipated date to begin construction on said Lot, provide such information to the City. Based on said title information, the City shall assess the quality of title it may approve for said Lot or Lots, and shall as Trustee on behalf of the Taxing Entities convey to the Non-Profit Entity by title deed, up to a special warranty deed, the interests of the Taxing Entities in the property. f. For the period of time during which a Lot or Lots are designated for use by a Non- Profit Entity, that Non-Profit Entity shall be solely responsible for the maintenance of each -4- Lot, including mowing, cleaning, etc. in confonnance with all applicable City ordinances. g. All construction of new homes shall comply with all applicable City codes and ordinances, including but not limited to the City Building Code, Plumbing Code, Electrical Code, Fire Code, Historical Preservation Ordinance, and Zoning Ordinance. h. The term of the aforesaid contract with the respective Non-Profit Entity shall be for a term of five (5) years, provided, however, either party may tenninate said contract following ninety (90) days notice of intent to tenninate. 1. The Non-Profit Entities covenant and agree that the Lots provided to them in accordance with this resolution shall be used and utilized exclusively in a program to construct single family residential houses for purchase by individual property owners, and for no other purpose. Section 5. Houses constructed on the Lots conveyed to the Non-Profit Entities as provided in this resolution shall be subject to the following minimum architectural controls: a. Each structure shall be constructed on a permanent concrete foundation; and, b. Each structure shall be constructed with sloped roofs with a minimum 6 to 12 pitch; and, c. The roof for each structure shall be of composition shingle, unless the prevailing roofing material for existing houses on lots immediately adjacent to the Lot is of other material, in which case the roof for the new structure shall be consistent with the prevailing material for the adjacent lots in the area; and, d. All parking for the new residential structure shall be to the rear or the side of the structure, unless a garage is constructed with a front entry; and, e. All newly constructed houses shall have concrete or asphaltic driveways; and, f. All houses shall have main entrances fronting on the adjacent street or thoroughfare. Section 6. That the City may enhance said program by the adoption of other inducements to construction of new homes as it shall deem appropriate, such as the reduction or waiver of building pennit fees or utility connection fees. Section 7. That this resolution shall be effective from and after its date of passage. -5- PASSED AND APPROVED this 12th day of April, 2004. ATTEST: -6-