Res 91-084
RESOLUTION NO.
91-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF FEDERAL WAY, WASHINGTON, AUTHORIZING THE
EXECUTION OF A COOPERATION AGREEMENT WITH THE
KING COUNTY HOUSING AUTHORITY PERMITTING THE
ACQUISITION OF UP TO FIVE (5) UNITS OF
FEDERALLY ASSISTED LOW-INCOME HOUSING AND
DECLARING A NEED FOR THE KING COUNTY HOUSING
AUTHORITY TO FUNCTION WITHIN THE CITY OF
FEDERAL WAY.
WHEREAS, the city of Federal Way encourages an increase
in housing affordable to persons and families of low income; and
WHEREAS, the King County Housing Authority has secured
funding pursuant to the U.S. Housing Act of 1937 as amended, for
the purpose of acquiring and operating eighteen (18) additional
units of low-income housing for families; and
WHEREAS, the King county Housing Authority has proposed
that five (5) of the eighteen (18) additional units of low-income
housing be located within the city of Federal Way; and
WHEREAS, RCW 35.82.070(11) requires that the city declare
a need for the Housing Authority to function within the city in
order for the Housing Authority to carry out its programs; and
WHEREAS, the U.S. Housing Act of 1937, requires that a
cooperation
Agreement
be
executed
into
between
the
Housing
Authority and the municipality in which federally assisted housing
is located; and
WHEREAS,
RCW 35.83,
the
Housing
Cooperation
Law,
expressly allows a city to enter into agreements with a housing
authority
for
the
purpose
of
aiding
and
cooperating
in
the
planning, .undertaking,
construction or operation of low income
housing within a city; NOW, THEREFORE,
COpy
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON,
DOES HEREBY RESOLVE AS FOLLOWS:
RESOLVED, the City Council hereby declares a need for the
King County Housing Authority to function within the city and
authorizes the City Manager to enter into a Cooperation Agreement
for the purpose of assisting in the acquisition and operation of up
to five (5) units of existing low-income housing.
The Cooperation
Agreement
shall
substantially
conform
with
the
form
of
the
agreement attached hereto as Exhibit "A".
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, this ~ day of
October
, 1991.
CITY OF FEDERAL WAY
Ç)(¡/~~/ ß?
MAYOR, DEBRA ERTEL
APPROVED AS TO FORM:
\TTg~~~
DRISCOLL
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
RESOLUTION NO. 91-84
October 9, 1991
October l5, 1991
LAIBF\RESI91-0212,LIH
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Exhibit "A"
FEDERAL WAY-KING COUNTY HOUSING AUTHORITY
COOPERATION AGREEMENT
This Agreement entered into this ------ day of
19---, by and between King County Housing Authority (herein called
the "Local Authority") and Federal Way, Washington, (herein called
the "Municipality"), witnesseth:
In consideration of the mutual covenants hereinafter
set
forth, the parties hereto do agree as follows:
1.
Whenever used in this Agreement:
(a)
The term
"Project"
shall mean up to
five
(5)
existing single-family housing structures for low-rent
housing to
be acquired by the Local Authority with
financial assistance of the United states of America
acting
through
the
Secretary
of
Housing
and
Urban
Development (herein called the "Government"); excluding,
however,
any low-rent housing project covered by any
contract for loans and annual contributions entered into
between the Local Authority and the Government, or its
predecessor
agencies,
prior
to
the
date
of
this
Agreement.
(b)
The term "Taxing Body" shall mean the state or any
political subdivision or taxing unit thereof in which a
project is situated and which would have authority to
assess or levy real or personal property taxes or to
certify such taxes to a taxing body or public officer to
be levied for its use and benefit with respect to a
Project if it were not exempt from taxation.
(c)
The term "Shelter Rent" shall mean the total of all
charges to all tenants of a Project for dwelling rents
and nondwelling rents (excluding all other income of such
Project), less the cost to the local Authority of all
dwelling and nondwelling utilities.
2.
The Local Authority shall
endeavor
(a)
to
secure
a
contract or contracts with the Government for loans and annual
contributions
covering
one
or
more
Projects
comprising
approximately five (5) units of low-rent housing and (b) to develop
or acquire and administer such Project or Projects, each of which
shall be located within the corporate limits of the Municipality.
The obligations of the parties hereto shall apply to each such
proj ect.
3.
(a)
Under the constitution and statutes of the city of
Federal Way, all projects are exempt from all real and personal
property taxes and special assessments levied or imposed by any
Taxing Body.
with respect to any Project, so long as either (i)
such Project is owned by a public body or governmental agency and
is used for low-rent housing purposes, or (ii) any contract between
the
Local
Authority
and
the
Government
for
loans
or
annual
contributions, or both, in connection with such Project remains in
force and effect, or (iii) any bonds issued in connection with such
project or any monies due to the Government in connection with such
Project
remain
unpaid,
whichever
period
is
the
longest,
the
Municipality agrees that it will not levy or impose any real or
personal property taxes or special assessments upon such Project or
upon the Local Authority with respect thereto.
During such period,
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the Local Authority shall make annual payments
(herein called
"Payments in Lieu of Taxes")
in lieu of such taxes and special
assessments and in payment for the public services and facilities
furnished from time to time without other cost or charge for or
with respect to such Project.
(b)
Each such annual Payment in Lieu of Taxes shall be
made after the end of the fiscal year established for such Project,
and shall be in an amount equal to either (i) ten percent (10%) of
the Shelter Rent charged by the Local Authority in respect to such
Project during such fiscal year or (ii) the amount permitted to be
paid by applicable state law in effect on the date such payment is
made, whichever amount is the lower.
(c)
The Municipality shall distribute the payments in
Lieu of Taxes among the Taxing Bodies in the proportion which the
real property taxes which would have been paid to each Taxing Body
for such year if the Project were not exempt from taxation bears to
the total real property taxes which would have been paid to all of
the Taxing Bodies for such year if the Project were not exempt from
taxation; Provided, however, That no payment for any year shall be
made to any Taxing Body in excess of the amount of the real
property taxes which would have been paid to such Taxing Body for
such year if the Project were not exempt from taxation.
(d)
Upon failure of the Local Authority to make any
Payment in Lieu of Taxes, no lieu against any Project or assets of
the
Local
Authority
shall
attach,
nor
shall
any
interest
or
penalties accrue or attach on account thereof.
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4.
During
the
period
commencing with
the
date
of
the
acquisition of any part of the site or sites of any Project and
continuing so long as either (i) such Project is owned by a public
body or governmental agency and
is used for
low-rent housing
purposes, or (ii) any contract between the Local Authority and the
Government
for
loans
or
annual
contributions,
or
both,
in
connection with such Project remains in force and effect, or (iii)
any bonds issued in connection with such Project or any monies due
to the Government in connection with such Project remain unpaid,
whichever period is the longest, the Municipality without cost or
charge to the Local Authority or the tenants of such Project (other
than the Payments in Lieu of Taxes) shall:
(a)
Furnish or cause to
be
furnished to the
Local
Authority and the tenants of such Project public
services and facilities of the same character and
to the same extent as are furnished from time to
time without cost or charge to other dwellings and
inhabitants in the Municipality;
(b)
Cooperate with the Local Authority by such other
lawful action or ways as the Municipality and the
Local Authority may find necessary in connection
with the development and administration of
such
Project.
5.
If by reason of the Municipality's failure or refusal to
furnish or cause to be furnished any public services or facilities
which
it has agreed hereunder to
furnish or
to
cause to
be
furnished to the Local Authority or to the tenants of any Project,
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the Local Authority incurs any expense to obtain such services or
facilities then the Local Authority may deduct the amount of such
expense from any Payments in Lieu of Taxes due or to become due to
the Municipality in respect to any Project or any other low-rent
housing projects owned or operated by the Local Authority.
6.
No Cooperation Agreement heretofore entered into between
the Municipality and the Local Authority shall be construed to
apply to any Project covered by this Agreement.
7.
No member of the governing body of the Municipality or any
other
public
official
of
the
Municipality
who
exercises
any
responsibilities or functions with respect to any Project during
his tenure or for one year thereafter shall have any interest,
direct or indirect,
in any Project or any property included or
planned
to
be
included
in
any
project,
or
any
contracts
in
connection with such Projects or property.
If any such governing
body member or such other public official of the Municipality
involuntarily acquires or had acquired prior to the beginning of
his tenure any such interest, he shall immediately disclose such
interest to the Local Authority.
8.
So long as any contract between the Local Authority and
the Government for loans (including preliminary loans) or annual
contributions, or both, in connection with any Project remains in
force and effect, or so long as any bonds issued in connection with
any Project or any monies due to the Government in connection with
any Project remain unpaid, this Agreement shall not be abrogated,
changed, or modified without the consent of the Government.
The
privileges and obligations of the Municipality hereunder shall
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remain in full force and effect with respect to each Project so
long as the beneficial title to such project is held by the Local
Authority or by any other public body or governmental agency,
including the Government,
authorized by
law to engage
in the
development or administration of low-rent housing projects.
If at
any time the beneficial title to, or possession of, any Project is
held by such other public body or governmental agency, including
the Government, the provisions hereof shall inure to the benefit of
and may be enforced by, such other public body or governmental
agency, including the Government.
IN WITNESS WHEREOF the Municipality and the Local Authority
have respectively signed this Agreement and caused their seals to
be affixed and attested as of the day and year first above written.
APPROVED:
CITY OF FEDERAL WAY
By:
J. Brent McFall,
City Manager
Sandra Driscoll,
city Attorney
ATTEST:
By:
Maureen M. Swaney, CMC
City Clerk
KING COUNTY HOUSING AUTHORITY
By:
Chairman
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