WHEREAS, there is in and about the City of Los Angeles a shortage of safe and sanitary dwelling accommodations available at rents which persons of low income can afford, which condition constitutes a menace to the health, safety, morals and welfare of the residents of the City of Los Angeles; and
WHEREAS, the Housing Authority of the City of Los Angeles, in order that safe and sanitary dwelling accommodations may be available for persons of low income at rents they can afford, proposes to develop, construct, acquire, and administer a low-rent housing project or low-rent housing projects consisting of seven thousand five hundred (7,500) dwelling units pursuant to the approval of the electorate of the City of Los Angeles on May 31, 1977, authorizing the development, construction, or acquisition of 7,500 dwelling units by the Housing Authority of the City of Los Angeles; and
WHEREAS, in connection with the development of the project, the Authority desires to eliminate unsafe or insanitary dwelling units situated within the territorial limits of the City essentially equal in number to the number of newly constructed dwelling units to be provided by the project(s), and
WHEREAS, the authority has requested the City to cooperate with it and assist it in the elimination of such unsafe and insanitary dwelling units; and
WHEREAS there exists in the City of Los Angeles unsafe and insanitary dwelling accommodations of a number greatly in excess of said seven thousand five hundred (7,500) dwelling units which are occupied by families of low income; and
WHEREAS, there are now families and households of low income in the City of Los Angeles of a number greatly in excess of seven thousand five hundred (7,500) who are forced to inhabit such unsafe and insanitary dwelling accommodations because private enterprise has not been able to make available to such families and households, safe and sanitary dwelling accommodations at rentals which such low income families and households can afford to pay; and
WHEREAS, the City will directly benefit from the construction of new dwelling units for families and households of low income and from the elimination of unsafe and insanitary dwelling units within the City;
NOW THEREFORE, THE PEOPLE OF THE CITY OF
LOS ANGELES DO ORDAIN AS FOLLOWS:
Section 1. That the City of Los Angeles shall enter into a Cooperation Agreement with the Housing Authority of the City of Los Angeles in substantially the following form:
COOPERATION AGREEMENT
In consideration of the mutual promises of the City of Los Angeles (herein called the “City”) and the Housing Authority of the City of Los Angeles, California, (herein called the “Authority”), hereinafter set forth, the City and Authority agree as follows:
1. The following terms, whenever used in this Cooperation Agreement, shall have the following meaning:
(a) The term “Project” shall mean any low-rent housing hereafter developed, constructed, or acquired by the Authority with the financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (herein called the “Government”), financial assistance of the State of California, or by any other financial means except local taxation; excluding, however, any low-rent housing project covered by any contract for loans and annual contributions entered into between the 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 non-dwelling rents (excluding all other income of such Project), less the cost to the Authority of all dwelling and non-dwelling utilities.
(d) The term “Slum” shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals.
2. The Authority shall endeavor
(a) to develop, construct, or acquire, with federal or State financial assistance, or by any other financial means except local taxation, seven thousand five hundred low-rent housing units in the City of Los Angeles, with not more than five hundred units in each of the fifteen City Council districts; Provided that no more than five units shall be located on any one site zoned for multi-family dwellings, unless such units are to be occupied by low income elderly persons, and
(b) to develop, construct, or acquire, and administer such units, pursuant to the approval of the City Measure A by the electorate of the City of Los Angeles on May 31,1977.
3. (a) Under the Constitution and statutes of the State of California, all Projects are exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body; and with respect to any Project, commencing with the date of initial occupancy and for 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 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 City agrees that it will not levy or impose any real or personal property taxes (or special assessments) upon such Project or upon the Authority with respect thereto. During such period, the 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 paid at the same time when real property taxes on such Project would be paid if it were subject to taxation, and shall be in an amount equal to either (i) ten percent (10%) of the Shelter Rent actually collected 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) Upon failure of the Authority to make any Payment in Lieu of Taxes, no lien against any Project or assets of the Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof.
(d) The City shall distribute each annual Payment in Lieu of Taxes to the City of Los Angeles and the Los Angeles Unified School District and Community College District in such proportion as each such Taxing Body’s ad valorem tax rate bears to the tax rate which would be levied to the Projects by said Taxing Bodies if they were not exempt from taxation; Provided, however, that such distribution of Payments in Lieu of Taxes to said School District and College District shall not be applicable to those Projects specifically designed as Senior Citizens Housing Projects and occupied by elderly persons; Provided further, that no payment for any year shall be made to any of the taxing bodies mentioned above in excess of the amount of real property taxes which would have been paid to such taxing bodies for such year if the Projects were not exempt from taxation.
4. (a) The City agrees that; subsequent to the date of initiation (as defined in the United States Housing Act of 1937) of each Project and within five years after the completion thereof, or such further period as may be approved by the Government, there has been or will be elimination, as certified by the City, by demolition, condemnation, effective closing, or compulsory repair or improvement, of unsafe or insanitary dwelling units situated in the locality or metropolitan area in which such Project is located, substantially equal in number to the number of newly constructed dwelling units provided by such Project; Provided that, where more than one family is living in an unsafe or insanitary dwelling unit, the elimination of such unit shall count as the elimination of units equal to the number of families accommodated therein; and Provided further, that this Paragraph 4 shall not apply in the case of (i) any Project developed on the site of a Slum cleared subsequent to July 15, 1949, and that the dwelling units eliminated by the clearance of the site of such Project shall not be counted as elimination for any other Project or any other low-rent housing project, or (ii) any Project located in a rural nonfarm or Indian area.
5. 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 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 City without cost or charge to the 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 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 City;
(b) Vacate such streets, roads and alleys within the area of such Project as may be necessary in the development thereof, and convey without charge to the Authority such interest as the City may have in such vacated areas; and, in so far as it is lawfully able to do so without cost or expense to the Authority or to the City, cause to be removed from such vacated areas, insofar as it may be necessary, all public or private utility lines and equipment;
(c) Insofar as the City may lawfully do so, (i) grant such deviations from the Building Code of the City as are reasonable and necessary to promote economy and efficiency in the development and administration of such Project, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of such Project as are reasonable and necessary for the development and protection of such Project and the surrounding territory:
(d) Accept grants of easements necessary for the development and administration of such Project.
(e) Cooperate with the Authority by such other lawful action or ways as the City and the Authority may find necessary in connection with the development and administration of such Project.
6. In respect to any Project the City further agrees that within a reasonable time after receipt of a written request therefor from the Authority:
(a) It will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of such Project, together with all storm and sanitary sewer mains in such dedicated areas, after the Authority, at its own expense, has completed the grading, improvement, paving, and installation thereof in accordance with Specifications acceptable to the City;
(b) It will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding such Project or necessary to provide adequate access thereto (in consideration whereof the Authority shall pay to the City such amount as would be assessed against the Project site for such work if such site were privately owned); and
(c) It will provide, or cause to be provided, water mains and storm and sanitary sewer mains, leading to such Project and serving the bounding streets thereof (in consideration whereof the Authority shall pay to the City such amount as would be assessed against the Project site for such work if such site were privately owned).
7. If by reason of the City’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 Authority or to the tenants of any Project, the Authority incurs any expense to obtain such services or facilities then the Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to become due to the City in respect to any Project or any other low-rent housing projects owned or operated by the Authority.
8. No Cooperation Agreement heretofore entered into between the City and the Authority shall be construed to apply to any Project covered by this Agreement.
9. No member of the governing body of the City or any other public official of the City 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 City involuntarily acquires or had acquired prior to the beginning of his tenure any such interest, he shall immediately disclose such interest to the Authority.
10. So long as any contract between the 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 City hereunder shall remain in full force and effect with respect to each Project so long as the beneficial title to such Project is held by the 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 City and the Authority have respectively caused this Agreement to be duly executed as of the ____day of ____________,1978.
______________________________
CITY OF LOS ANGELES
Attest: By ___________________________
________________________ Mayor
______________________________
HOUSING AUTHORITY OF THE
CITY OF LOS ANGELES
By ___________________________
Attest:Chairman
________________________
Section 2. That the Mayor is hereby authorized to execute a Cooperation Agreement substantially in the form set forth in Section 1 hereof on behalf of the City.
Section 3. This article is required for the immediate preservation of the public peace, health and safety and shall go into effect immediately upon its publication. The facts constituting such urgency are as follows:
A crucial shortage of housing units at rents which lower in come people can afford, the spiraling upward costs of land and materials, high levels of unemployment, and the existence of unsafe, insanitary and congested housing units have produced an alarming economic and social condition in this City. The immediate adoption of this article will enable many housing projects to be undertaken in this City which otherwise cannot be financed at this time. The development and construction of such housing projects will alleviate the aforesaid housing conditions.
SECTION HISTORY
Added by Ord. No. 150,772, Eff. 4-25-78.