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951oRDIIVANCE iJO. ____~~.~ ~ Ai'J ORDINANCE CREATING TfiE CITY OF JEST MEMPHh$ RESI-- DEhiTIAL IiCUSING FACILITIES BOARD PURSUANT TO-THE PRO-_ VISIONS OF ACT rJU. 142 OF THE ACTS OF ARKANSAS OF 1975; APPOINTIrJG THE INITIAL MEMBERS THEREOF; PRESCRIBING OTHER MATTERS RELATING TFIERETO, APJD DECLARING AN EMERGENCY WHEREAS, the City of LJest Memphis, Arkansas (the "City"), ,,,~, pursuant to the provisions of Act rdo. 142 of the Acts of the General Assembly of the State of Arkansas for the year 1975 (the "Act"), is authorized to establish public facilities boards for the purposes set forth in the Act, vrhich includes assisting in the financing of residential housing facilities witiain or near the City, and WHEREAS, the providing of decent, safe and sanitary residential housing facilities will be aided by the creation of a public facilities board to assist in the financing of residential housing facilities, and WHEREAS, funds may be obtained by a public facilities s ` board on such terms and under such conditions as will materially w assist persons of low and maderate income to obtain financing of residential pausing facilities under conditions more favor- able than would otherwise be available: rJOW, THEREFORE, BE IT ORDAIrVED BY TE•IE CITY COUNCIL OF ~dEST MEMPHIS, ARKANSAS: Section 1. Findgm~. The City Council of the City hereby finds and determines: (a) There exists within and near the City a shortage of decent, safe and sanitary residential housing facilities available for rehabilitation, construction or purchase on terms that persons end families of low and moderate income can afford to pay. (b) Existing economic conditions including high rates of interest on residential mortgage loans, and a shortage of funds within lending institutions in the State of Arkansas for residential mortage loans are ,,., ~~ ~~' , ,~; .` a~ . operating (i) to further restrict the rehabilitation, construction and purchase of residential housing by persons of low and moderate income at reasonably afford- able costs, (ii) to create unemployment and hardship within the residential construction industry, adversely affecting residents of the City and (iii) to reduce and limit the value of property within the City, all of which adversely affect the City's tax revenues and which, if not alleviated, will lead to further urban blight and decay and result in disproportionately large expenditures for serviced by the City. (c) .The availability of mortgage financing to assist such persons and families in the rehabilitation, cop- struction or purchase of decent, safe and sanitary residential housing facilities will be aided by the providing of funds for mortgage financing of residential housing facilities by the creation of a public facilities board pursuant to the provisions of the Act. (d) The providing of financial assistance in order to enable persons and families of low and moderate income to finance the costs of decent, safe and sani- tary residential housing facilities is a proper public purpose as declared by the Act, and this determination of the City Council of West Memphis. (e) The public purpose of financing residential housing facilities may best be served by establishing a public facilities board to purchase mortgages on such residen- tial housing facilities or make loans to mortgage lenders to provide financing for residential housing facilities as provided in the Act. Section 2. Creation of board. Pursuant to the authority ~""'' of the Act there is hereby created and established the "City of West Memphis, Arkansas Residential Housing Facilities Board" (hereinafter referred to as the "Eoard") with authority as here- (2) inafter provided to accomplish, finance, contract, and make or purchase mortgage loans concerning, and otherwise act in such manner as may be permitted ~y the Act to provide decent, safe and sanitary residential housing facilities within or near the City. k` Section 3. Members of the Board, Term of Office. The Board shall co©sist of five persons. The initial members shall be designated try the Mayor of the City to serve terms of one, two, three, four, and five years, respectively. Successor members shall be selected as provided in the Act. The members of the Board shall be residents of the City and shall take and file with the City Clerk the oath of office prescribed by the Act. As soon as practicable after the enactment of this Ordinance, each member of the Board shall qualify by taking and filing with the City Clerk the oath of office as prescribed by the Act. Section 4. Powers. Subject to the provisions of Section 6 of this Ordinance, the Board is empowered, to loan, acquire, construct, reconstruct, extend, equip, improve, sell, lease, and contract concerning (which shall include the purchase of mortgage loans and the making of loans to mortge~ge lenders) residential housing facilities as shall be determined by the Board to be necessary to effect the purpose of this Ordinance to provide decent, safe and sanitary residential housing facili- ties within or near the City. The Board shall require that a majority of the funds made available for the purchase of mort- gages or making loans to mortgage lenders shall be used for residential housing facilities located within the corporate limits of the City as now existing or as may hereafter be ex- tended, and that for a period of not less than 120 days from the --- date funds are made available for the purchase of mortgages or ~; making loans to mortgage lenders shall be used for single family residential housing facilities located within the corporate limits of the City as now existing or as may hereafter be extended, pro- vided that all funds will be used in Crittenden County, Arkansas (3) exclusively. In addition, the Board shall have each of the powers set forth in Section 9 of the Act. ~. and appro- ~: priate to the purposes for which the Board is created. The Board may enter into such contractual or cooperative agreements wigh such persons as may, in its discretion, be advisable to accomplish the purposes of this Ordinance, including without limitation, de- partments, agencies, or instrumentalities of the United States of America, the State of Arkansas or the City, e. ~. the Department of Hausing and Urban Development Agency, and the West Memphis Housing Authority. Section 5. Issuance of Bonds. Subject to the provisions .. i of Section 6 of this Ordinance, the Board as authorized to is- sue revenue bonds, from time to time, and to use the proceeds either along or together with other available funds and revenues, to eacomplish the purposes for which the Board is created as the same relates to the pro~Giding of decent, safe and sanitary resi- dential hour~ing facilities. Such revenue bonds shall be obli- gations only of the Board and shall not constitute an indebtedness for which the faith and credit of the City or any of its revenues are pledged, and the principal and interest on the bonds shall be payable from and secured by a pledge of revenues derived from residential housing facilities financed, in whole or in part, from bonds proceeds and as authorized by, and in accordance with the provisions of the Act, together with such other collateral as may properly be pledged under the Act and as the Board in its discretion may determine. The aggregate principal amount of revenue bonds of the Board outsteed'rgg at any one time shall not exceed Twenty Five Million Dollars ($25,000,000), any net earnings of the Board, beyond that necessary for retirement of the indebtedness or to implement any public facilities project, shall not inure the benefit of any person other khan to the City of IrJest Memphis, Arkansas. Section 6. Limit on Initial Program. Notwithstanding any other provision of this Ordinance, the Board until authorized later by subsequent ordinance of the City shall be authorized bo (4) 4 engage only in a single family (one to four dwelling units, at least one of which of the one to four dwelling units is owner- occupied) residential mortgage purchase program, and for such purpose to issue and sell its revenue bonds one time only. Section 7. Organization; Reports. As soon as practicable after the adoption of this Ordinance the Board shall meet and elect such officers as shall be required by the Act. The Board may adopt such by-laws and other rules and regulations as shall be necessary for the conduct of its business and consistent with the provisions of the Act. The Board shall cause to be filed with the City Clerk of the City the annual report described in Section 18 of the Act. Section 8. Excess Revenues. Any revenue of the Board accumu- ~r-'"r lated in excess of the amount necessary to accomplish the purposes for which the Board is created and to comply with all convenants and agreements ~~ the Board in connection with any outsteading bond or other obligation shall be reported to the City Council of the City which may direct the payment of such excess revenues into the general fund of the City. Section 9. Severability. If any provisions of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect the other provisions or applications of this Ordinance which can be given effect with- out the invalid provision or application, and to tCnis end the provisions of this Ordinance are declared to be severable. Section 10. General Repeal. All Ordinances of the City, or parts thereof, in conflict with this Ordinance are hereby repealed to the extend of such conflict. Section 11. Emergency. It is hereby found and determined that these is an immediate and urgent; need iior the providing of decent, safe and sanitary housing for persons of low and moderate income in or near the City and the providing of financial assistance to such persons, and that the creation of the Board and the exercise of the duties and powers provided in this (5) Ordinance are necessary to the preservation of the public peace, health, and safety. Therefore, an emergency is declared to exist and this Ordinance shall be in full force and effect from and after its passage. PASSED: [ ~.~..[ilac'~ ~~ _, 1978. APPROVED: Joyce T. Ferguson Mayor ATTEST: ~. City Clerk ( S E A L ) -"' (6)