Los Angeles Municipal Code Art. 2 Cooperation Agreement for Public Housing

Sec. 8.106. [Cooperation Agreement for Public Housing]

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 causes an increase in the spreading of disease and crime and 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 and administer a low-rent housing project or low-rent housing projects consisting of approximately ten thousand (10,000) dwelling units; and

WHEREAS, there exist in the City of Los Angeles unsafe and insanitary dwelling accommodations of a number greatly in excess of said ten thousand (10,000) dwelling units which are occupied by families of low income; and

WHEREAS, there are now families of low income in the City of Los Angeles of a number greatly in excess of ten thousand (10,000) who are forced to inhabit such unsafe and insanitary dwelling accommodations because private enterprise has not been able to make available to such families, safe and sanitary dwelling accommodations at rentals which such low income families can afford to pay.

NOW THEREFORE, The People of the City of Los Angeles Do Ordain as Follows:

Section 1. That the City of Los Angeles approves the development, construction, and operation of a low-rent housing project or projects consisting of approximately ten thousand (10,000) dwelling units, in accordance with Section 8 (b) of the Housing Authorities Law (Chapter 4, Statutes of 1938, Extra Session, approved March 21, 1938, as amended). Sec. 2. That the City of Los Angeles approves the application of the Housing Authority of the City of Los Angeles to the Public Housing Administration for a preliminary loan for surveys and planning in respect to such projects, pursuant to Section 15(7)(a)(i) of the United States Housing Act of 1937, as further amended by the Housing Act of 1949, if such loan is deemed necessary by the Housing Authority of the City of Los Angeles.

Sec. 3. That the City of Los Angeles shall enter into a Cooperation Agreement with the Housing Authority of the City of Los Angeles in accordance with Section 15(7)(b)(i) of the United States Housing Act of 1937, as further amended by the Housing Act of 1949, in substantially the following form:

COOPERATION AGREEMENT BETWEEN THE CITY OF LOS ANGELES

AND THE HOUSING AUTHORITY OF THE CITY OF LOS ANGELES, CALIFORNIA

1. The Housing Authority of the City of Los Angeles (hereinafter called the “Authority”) agrees to undertake, develop, and administer a low-rent housing project or low-rent housing projects (hereinafter called the “Projects”) consisting of approximately 10,000 family dwelling units on sites to be selected by the Authority in the City of Los Angeles (hereinafter called the “City”) and to endeavor during the next three years to secure a contract or contracts with the Public Housing Administration for a Federal loan and for Federal annual contributions to assist in the development and administration of said Projects. 2. The following terms whenever used in this Cooperation Agreement (hereinafter referred to as the “Agreement”) shall have the following meaning:

   (a) The term “useful life of the Projects” shall mean the period of physical usefulness of the Projects for the purpose of

   providing dwelling accommodations, but in no event less than the number of years during which any of the bonds issued to aid in financing the development of the Projects or any bonds issued to refund such bonds shall remain outstanding;

   (b) The term “shelter rent” means the charge established (or estimated) by the Authority for the use of a dwelling unit

   excluding the furnishing of any utilities (i.e. water, heating of water, light, cooking fuel, refrigeration energy, heat or sewer services).

   3. Subject to the terms of this Agreement, the Authority agrees to make payments in lieu of taxes to the City with respect to the Projects, commencing with the date of initial occupancy thereof and continuing throughout the useful life of said Projects in an annual

   amount of 10% of the annual shelter rents charged in such Projects for improvements, services, and facilities furnished by the City; provided that the amount to be paid hereunder shall in no event exceed the estimated cost to the City of the services, improvements, or facilities to be furnished; provided further that such payments in any one year shall only be made to the extent that funds are available from income (excluding Federal annual contributions) after payment of all operating expenses (excluding debt service). For the purpose of fixing a time for making such payments in lieu of taxes, it is agreed that the amount payable for any fiscal year shall be paid at the same time that ad valorem taxes imposed or levied by the City for that year are to be paid; provided, however, that in the event of failure of the Authority to make payments as herein provided, no lien against the Projects, or the property, or assets of the Authority shall attach. The City agrees that each payment received by it will be distributed by the City to the City of Los Angeles, and the Los Angeles City School District in such proportion as each such public taxing body’s ad valorem tax rate bears to the tax rate which would be levied to the Project involved if it were not exempt from taxation.

   4. Pursuant to the Tax Exemption Law (being Chapter 1 of the Laws of California, Special Session, 1938, approved March 21,
   1948. the City agrees that the property of the Authority shall be exempted from all taxes and special assessments. The City further agrees that for the period commencing with the date of the acquisition by the Authority of any part of the sites of the Projects and continuing throughout the useful life of such Projects, it will not levy, impose, or charge any service fees, charges or tolls against the Projects or against the Authority for or with respect to the Projects other than the payments in lieu of taxes specified in Paragraph 3 above, and that it will furnish without charge to the Authority and the tenants of the Projects during the useful life of the Projects all municipal services and facilities which presently are, and in addition, such other services and facilities which may in the future be, furnished without charge for other dwellings and inhabitants in the City, including but not limited to fire, police, and health protection and services, street maintenance and repair, garbage, trash and ash collection and disposal, street lighting on public streets within the Projects and on the boundaries thereof, and sewer services. The term “municipal services and facilities” shall not be deemed to include any utilities for which special or direct charges are generally made by the City.
   5. The City further agrees that as a part of such Projects, it will perform the elimination of unsafe or insanitary dwelling units

   within its jurisdiction, which the City if required to accomplish pursuant to Section 10 (a) of the United States Housing Act of 1937, as further amended by the Housing Act of 1949, in effect as of the date of this agreement, and such elimination will be accomplished within the five year limit specified in said Section, unless such time limit is extended as provided therein.

   6. The Authority agrees to develop the Projects in accordance with the Building Code of the City, except where specific waivers

   are secured. The City agrees to waive any building and inspection fees to which the Authority or the Projects might otherwise be or become subject.

2. The City further agrees to cooperate with the Authority by vacating without cost to the Authority such streets, roads, roadways, alleys and sidewalks within the area of the Projects, or adjacent thereto as may be necessary in the development of such Projects, by accepting the dedication of land for new streets and alleys, by zoning or re-zoning to an appropriate residential classification any area in the City within which the Projects shall be located, and by such other lawful action or ways as the Authority may find necessary in connection with the development and construction of the Projects.

   8. The City and the Authority agree that this contract shall not be abrogated, changed or modified so long as any bonds or other

   obligations issued to aid in financing the development of the Projects to which this contract relates or any bonds issued to refund such bonds or obligations shall remain outstanding and unpaid and so long as the title to said Projects (except for the lien or title conveyed to secure any bonds or other evidences of indebtedness issued to aid in the financing of the Projects or to secure any bonds or other evidences of indebtedness issued to refund such bonds or evidences of indebtedness) is held by the Authority or some other public body or governmental agency authorized by law to engage in the development or administration of low-rent housing projects.

3. This Agreement shall evidence the following actions by the City Council:

   (a) Approval by the City Council of the Projects as required by Section 8(b) of the Housing Authorities Law of California

   (Chapter 4, Statutes of 1938, Extra Session, approved March 21,1938, as amended by Chapter 766, Statutes of 1945).

   (b) Approval of the application by the Authority to the Public Housing Administration for a preliminary loan, pursuant to

   Section 15(7)(a)(i) of the United States Housing Act of 1937 as further amended by the Housing Act of 1949, if such loan is

   deemed necessary by the Authority.

   (c) Approval of the Agreement between the City and the Authority which is a prerequisite to the execution of a contract

   between the Authority and the Public Housing Administration for loans and annual contributions pursuant to Section 15(7)(b) (i) of the United States Housing Act of 1937 as further amended by the Housing Act of 1949, and it is the intention of the City and the Authority that this Agreement comply with all the requirements of said Act.

   10. The term “Projects” as used in this Agreement shall not include or mean the low-rent housing projects heretofore undertaken

   by the Authority and identified as Project No. CAL-4-l, CAL-4-2, CAL-4-3, CAL-4-4, CAL-4-5, CAL-4-6, CAL-4-7, CAL-4-8, CAL- 4-9, CAL-4-10 with respect to which projects the City and the Authority have heretofore entered into Cooperation Agreements.

IN WITNESS WHEREOF, The City of Los Angeles and the Housing Authority of the City of Los Angeles have respectively caused this Agreement to be duly executed as of the _____ day of ____, 1949.

CITY OF LOS ANGELES,

CALIFORNIA

By__________________________________

Mayor.

(SEAL)

ATTEST:

---

City Clerk

HOUSING AUTHORITY OF THE

CITY OF LOS ANGELES,

CALIFORNIA

By__________________________________

Chairperson.

(Seal)

ATTEST:

---

Secretary.

Sec. 4. That the Mayor and the City Clerk are hereby authorized to execute, in quadruplicate, a contract substantially in form set forth in Section 3 hereof on behalf of the City.

Sec. 5. That the City hereby agrees that for the purpose of aiding the Housing Authority of the City of Los Angeles in its efforts to eliminate unsafe and insanitary dwelling units in the City and to comply with the provisions of Section 10(a) of the United States Housing Act of 1937, as further amended by the Housing Act of 1949, the City of Los Angeles shall cooperate with the Housing Authority of the City of Los Angeles by eliminating unsafe and insanitary dwelling units within the territorial limits of the City to the extent required by Section 10(a) of said Act, but in no event to exceed ten thousand (10,000) unsafe or insanitary dwelling units, all as provided in the Cooperation Agreement set forth in Section 3 above. Such elimination shall be accomplished within five years after the completion of the low-rent housing project or projects referred to herein, or such later date as may be authorized under said Act.

Sec. 6. This article is urgently needed 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:

Unemployment and the existence of unsafe, insanitary and congested dwelling accommodations has 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. This development and construction will furnish employment to many persons now idle, enable them to become self-supporting, and will alleviate the aforesaid housing conditions.

SECTION HISTORY

Based on Ord. No. 95,222.