05-F thru H Homestead Program
AGENDA INFORMATION SHEET
SUBJECT:
Approval of an Ordinance, Interlocal Agreement and draft resolutions implementing
certain clean-up initiatives, including programs to provide lots foreclosed for tax delinquency for use
in constructing new single family homes.
BACKGROUND:
The City of Paris has since its inception been an active participant and strong
supporter of the Keep Paris Beautiful Program. Indeed, former Mayor Charles Neeley was one of
the co-founders of this effort.
Besides providing financial support, and active participation by City staff members, the City
has adopted several ordinances as part of a comprehensive program of addressing various clutter,
litter, and substandard structural problems throughout the City. By way of review, the City has
progressively adopted the following ordinances:
1.Ordinance No. 2000-020, adopted April 10, 2000, which implemented a
comprehensive new program to control weeds, junk and litter throughout the City;
2.Ordinance No. 2000-058, adopted November 13, 2000, which implemented new
ordinance provisions regulating and controlling junk vehicles;
3.Ordinance No. 2000-067, adopted December 11, 2000, which established a new
program for regulating commercial and industrial solid waste collection and
collectors, including provisions to control waste on the streets of the City;
4.Ordinance No. 2002-027, adopted May 13, 2002, which implemented a new program
authorizing issuance of administrative search warrants in support of the City's various
litter control programs;
5.Ordinance No. 2002-032, adopted June 10, 2002, which adopted a new
comprehensive program for regulation of substandard and dangerous buildings and
structures;
6.Ordinance No. 2002-033, adopted June 17, 2002, which adopted a new program of
historic preservation; and,
7.Ordinance No. 2003-019, adopted May 8, 2003, which amended the City's Zoning
Ordinance to implement the requirements of the new Historic Preservation Ordinance.
In addition, the City has adopted numerous amendments to these ordinances to clarify and
improve their implementation.
One of the problems identified through the process of considering ordinance initiatives was
the fact the City under its prior programs was mowing and cleaning up numerous lots throughout the
City, but was doing so at a cost which actually made the City competitively superior to property
owners doing the mowing themselves. Because this kind of mowing and cleanup activity is really not
a core City activity, the new weed, junk, and litter ordinance changed the situation by making the
City, through the implementation of a $220 plus administrative fee in addition to the actual cost of
the mowing and cleanup, and by requiring the filing of liens for collection of those amounts, a much
less desirable option for property owners in terms of cost of cleaning up the property.
However, even though the recidivism in the number of lots maintained by the City has
diminished as a result of this program, there continue to be many lots throughout the City which are
not only a strain on City resources because the property owners themselves are not maintaining them,
but those very same lots are usually lots for which taxes are not paid.
As a consequence, the next and most logical step in the progression of ordinances and
programs adopted by the City in support of the cleanup effort is to identify a way to redirect
ownership of these lots into programs where new homes could be built on those lots. With such a
program, the taxing entities where the properties are located will see an increase in their tax base,
qualified individuals who can participate in such programs have the opportunity to own their own
home, and the lots on which their homes are built no longer become a long term maintenance problem
for the City of Paris.
The problem is identifying and creating a program which will accomplish this desired goal.
Already, the City has been blessed with the successful efforts of Paris Living, a Community
Development Corporation, and Paris Habitat for Humanity, building new homes for low and
moderate income buyers. In addition, the City has for a number of years participated in various grant
programs to assist potential low and moderate income home buyers with their down payments and
other costs associated with building new homes.
As part of this agenda, the City Council is being presented an ordinance and three resolutions
associated with the effort to accomplish this potentially culminating stage in the implementation of
the clean-up program.
DESCRIPTION:
Initiatives being presented to City Council for their consideration to culminate the
various programs associated with the Keep Paris Beautiful effort consist of one new ordinance and
three resolutions.
The Ordinance is a logical extension of the City's current ongoing cleanup efforts. The
ordinance change would require those parties who obtain demolition permits, either because they are
compelled to do so under the City's substandard building ordinance, or because they do so on their
own initiative, to provide evidence to City Code Enforcement Inspectors and the Community
Development Department that the materials which have been generated through their demolition
efforts have been properly disposed of, especially where those materials are required to be disposed
in a state licensed landfill.
The three resolutions contained in this package may be loosely referred to as implementation
of the City's Homestead Program. The City Council has previously received briefings on the nature
of this over-all program. The program may be broken down into the following components:
1.The first resolution would authorize an interlocal agreement by and among the City
of Paris, the County of Lamar, Paris Independent School District, North Lamar
Independent School District, and Paris Junior College. The purpose of the interlocal
agreement would be to designate the City of Paris as sole trustee, empowered through
a limited power of attorney, to act on behalf of the other taxing entities in utilizing lots
foreclosed for delinquent tax purposes in two new programs intended to create
opportunities for low and moderate income individuals to build houses on those lots.
The lots are identified generally as those lots zoned for single family purposes which
have been foreclosed and passed through a sheriff's sale for delinquent ad valorem
taxes, and have not been redeemed by any property owner or the delinquent tax payer.
The interlocal agreement obligates the City of Paris, as sole trustee, through the
limited power of attorney, to restrict its trsuteeship of those lots to use in two
designated programs intended to make those lots available for single family home
construction.
2.The second resolution would authorize the implementation of one of the new
programs intended to funnel the identified lots to qualified home buyers. This
resolution, identified as the non-profit home building resolution, would authorize the
City, as sole trustee, to make the identified lots available to Paris Living, the
Community Development Corporation, and Paris Habitat for Humanity, at their
discretion and selection, in their ongoing programs of home building. Obviously not
all the lots will fit the profiles these two organizations are using in their programs, and
there will be a number of lots still remaining.
3.The third and final resolution will adopt another program, identified as the homestead
program, currently to be run by the City of Paris through its Community Development
Department, which will take applications for identified low and moderate income
home buyers to select lots located throughout the City, enter into an earnest money
contract with the City for that lot, and approach lenders and title underwriters with
an earnest money contract granting them a lot by special warranty deed as part of the
collateral for them to obtain a loan to build a house. In addition, these individuals
may qualify for other home building incentives, such as the City's current down
payment assistant grant program.
Ultimate adoption of the three resolutions associated with the Homestead Program will not
by any means put the program into immediate action. First, all the other affected taxing entities will
have to approve the interlocal agreement before the program can be effective. It would be the City
staff's intention to approach the governing bodies of each of the taxing entities during the next month
seeking their approval of the interlocal agreement to begin the program.
In addition, separate agreements between the City and Paris Living and between the City and
Paris Habitat for Humanity will be a necessary component of finally implementing the program.
There will be many other actions necessary to fully implement the program. the City will need
to train its staff with regard to the application process for the Homestead Program and generate the
necessary forms associated with that program. The City's tax attorneys will have to assist in
identifying the current inventory of lots which meet the profile for such lots as defined in the interlocal
agreement and the two program resolutions.
These proposed documents have been reviewed not only by the City staff, but by the City's
tax attorneys, representatives of local title companies, and various local attorneys who specialize in
real estate transactions.
If all the taxing entities approve the proposed interlocal agreement, there will still be a great
deal to do to refine the program, to publicize the program, and to educate other entities, such as
banks, real estate agents, home builders, etc. as to the nature of the program.
Finally, if the program is approved by the other taxing entities, the City Council may want to
consider additional inducements to the programs, such as waiver or reduction of building permit fees
and/or sewer and water tap fees.
RECOMMENDED ACTION:
Consideration of the proposed ordinance requiring proof of proper
disposal of demolition materials, and the agreement and resolutions required to implement the home
building programs.
STAFF CONTACT:
City Attorney Larry W. Schenk, Assistant City Attorney John Lestock, and
Community Development Director Lisa Wright.
SCHEDULE:
Consideration for endorsement and possible approval at City Council's April 12,
2004, regular Council Meeting, and if not fully approved, then final approval at City Council's May
2004 regular Council Meeting.
COST:
The costs associated with implementation of this program primarily will be the internal
costs of staff time in implementing the various initiatives.
LOCATION:
The lots which would ultimately be utilized in this program are located throughout
the City.
SUPPLEMENTARY MATERIALS:
See proposed ordinance, interlocal agreement, and
implementing resolutions included in the agenda packet.
COUNCIL DATE:
First consideration of the package at City Council's April 12, 2004, Council
Meeting.