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2004-070-RES ADOPTING A PROGRAM OF POOLING LOTS FOR CONSTRUCTION OF NEW SINGLE FAMILY HOUSING ENTITLED THE HOMESTEAD PROGRAM RESOLUTION NO. 2004-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS, APPROVING AND ADOPTING A PROGRAM OF POOLING LOTS FOR CONSTRUCTION OF NEW SINGLE FAMILY HOUSING, ENTITLED THE HOMESTEAD 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 to afford qualified low and moderate income individuals the opportunity to obtain said lots, participate in other grant and loan programs, and construct new houses thereon, thereby alleviating said blight, removing said property from the pool of properties maintained by the City, enhancing the tax base for the 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 Homestead 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 fmds and detennines that the activities authorized in the aforesaid program and in this resolution promote and serve a public purpose; and, WHEREAS, the City Council of the City of Paris has previously approved prior Resolution No. 2004- _ to create a program of non-profit home building by non-profit entities Paris Living, a Community Development Corporation, and Paris Habitat for Humanity, utilizing the aforesaid lots; and, WHEREAS, the City Council of the City of Paris, Paris, Texas desires to create a new program to utilize those lots remaining unutilized by the aforesaid non-profit entities; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: -2- Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. For the purposes of this resolution the following deftnitions 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 fonnal 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, iii. 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. c. Non-Profit Entities shall mean Paris Living, a Community Development Corporation, and Paris Habitat for Humanity. d. 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 program for recycling single family residential Lots as described herein, the aforesaid program to be designated as the City of Paris Homestead Program (the Homestead Program). 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, and which have not been utilized under a similar program by the Non-Profit Entities defined herein, into a pool for use by the City to afford qualified low and moderate individuals the opportunity to obtain said Lots, participate in other grant and loan programs, and construct new houses thereon, 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 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. Section 4. That the City of Paris Homestead Program shall be administered by the City of Paris Community Development Department. The Director of said department shall be in charge of and have immediate responsibility for implementation of said program. Section 5. That the opportunity to participate in the Homestead Program shall be extended to low and moderate income individuals in accordance with the income criteria established for the City's current Homebuyer Assistance Program, as those criteria currently exist or shall be hereafter amended. For purposes of this resolution, the initial income criteria are attached hereto as Exhibit A and for all purposes incorporated herein. The City will insure that all applicants for the Homestead Program qualify as moderate or below households. To qualify the combined annual (gross) income of the applicant and all persons in the household over the age of 18 years cannot exceed 80% of the area median income, adjusted for the family size as defined in 24 CFR Part 813 (Section 8 Housing Program). The income status must be valid at the time of initial certification by the City. Section 6. That the following rules and regulations shall apply to implementation of the Homestead Program: a. Application for participation in the Homestead Program shall be made to the Director of Community Development, or the director's designee. Forms associated with such application process shall be prepared by the Director. b. Participation in the Homestead Program shall be restricted solely to construction of single family residential dwellings to be constructed on Lots as defmed herein. c. The Lots eligible for use in the City's Homestead Program shall be those Lots remaining after Lots are designated for use in the City's Non-Profit Home Building Program. -4- d. Following approval of an application by the Director, the applicant shall be provided with a list of available Lots and, following review of said Lots, shall designate a Lot which the applicant desires for use in construction of a new home. Thereafter, the applicant shall enter into an earnest money contract, in such form as the City shall specify, which will authorize the applicant to receive a special warranty deed to the property from the City of Paris as Trustee for the remaining Taxing Entities, on the condition that the applicant shall file for a loan with a reputable lender acceptable to the City to pay the cost of construction of the aforesaid home. Upon approval of said loan application, and funding of the loan, the City shall convey the Lot to the applicant subject to such lien interests as the lender shall require. The earnest money contract shall require the applicant to complete construction of a single family residential home, otherwise in compliance with the requirements of this resolution, within one (1) year of approval and funding of the loan. e. Approval for participation in the Homestead Program shall not preclude the applicant from participating in other applicable loan assistance or other programs for which the applicant may be qualified. f. All construction of new homes shall in all things 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. g. Precedent to the transfer of the title deed to the applicant, the City shall obtain detailed title infonnation from a reputable title company regarding the condition of the title to the designated Lot, and if the City is unsatisfied with the condition of the title to said Lot, the City shall notify the applicant accordingly, and said Lot shall be disqualified for use by the applicant and the applicant shall be entitled to select another Lot from the pool. If, however, the title to the Lot is satisfactory to the City, the City shall transfer ownership of the property as provided herein, provided, however, as part of the closing cost of the said transaction, the City shall be reimbursed for all title expenses incurred. h. For all Lots transferred to the City by the Taxing Entities pursuant to the Homestead Program and this resolution, the City shall be solely responsible for the maintenance of said lots, including mowing, cleaning, etc. 1. Should the applicant fail to obtain the necessary financing for construction of the home within ninety (90) days of execution of the earnest money contract with the City, said contract shall terminate and become null and void and the City shall no longer be obligated under said contract. Section 7. Houses constructed on the Lots conveyed to the qualified applicants pursuant to this resolution and the Homestead Program shall be subject to the following minimum architectural controls: -5- a. Each structure shall be constructed on a pennanent 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 8. 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 9. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 12th day of April, 2004. Curtis Fendley, May r C- ,,/, " / -- ~ "..-^' C'" / '~' \ ,/-- Iv~Jz." _' ATTEST: ~~"'.'~'''<''''''' .~~ Mattie Cunningham, City Clerk APPROVED AS TO FORM: -6-