Loading...
HomeMy WebLinkAbout2008-7-7435ORDINANCE NO. 2008-7-7435 AN ORDINANCE ESTABLISHING AND APPROVING THE FOUNTAIN AVENUE CONSTRUCTION FINANCIAL ASSISTANCE PROGRAM AND AUTHORIZING THE DIRECTOR OF PLANNING TO ADMINISTER THE PROGRAM AND PROVIDE FINANCIAL ASSISTANCE TO ELIGIBLE APPLICANTS FOR RECONSTRUCTION OF EXISTING HOMES AND CONSTRUCTION OF NEW HOMES WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper'and orderly development or redevelopment of vacant, orphaned, or underutilized residential properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods; and WHEREAS, the City of Paducah's economic well-being is related to and in many respects dependent upon, sustained growth of its population and tax revenue base through the proper and orderly development or redevelopment of vacant, orphaned, or underutilized residential properties located within its corporate boundaries; and WHEREAS, in order to fulfill the aforesaid public purpose the City of Paducah is presently engaged in a neighborhood redevelopment program known as the "Fountain Avenue Neighborhood Revitalization Project" whose primary purpose is to revitalize the Fountain Avenue neighborhood through the renovation of existing homes and the construction of new homes which will maintain the residential appearance of such area; and WHEREAS, the goals of the Phase 1 Fountain Avenue Neighborhood Revitalization Plan (the "Plan"), which was adopted by the City Commission on April 17, 2007, are to promote the redevelopment of the Fountain Avenue Neighborhood by i) providing incentives to encourage rehabilitation of existing structures and promote quality new infill construction and ii) seeking opportunities to help low income families remain residents in the neighborhood; and WHEREAS, the City of Paducah desires to commit funds for the establishment of the Fountain Avenue Construction Financial Assistance Program (the "Fountain Avenue Program"), which will be utilized to accomplish the goals of the Plan by providing forgivable - deferred payment loans to eligible applicants for the purpose of residential redevelopment and infill development in the Fountain Avenue neighborhood; and WHEREAS, this Program will encourage development of single-family owner - occupied housing on vacant, orphaned, or underutilized land located in the Fountain Avenue neighborhood of Paducah where infrastructure and services are in place and promote quality housing consistent with the character of the adjacent residential neighborhood. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. The City of Paducah does hereby commit $300,000.00 for the fiscal year 2008-2009 to the Fountain Avenue Construction Financial Assistance Program. The Fountain Avenue Program will make available forgivable -deferred payment loans to eligible applicants for the purpose of renovation of existing homes and the construction of new homes in the Fountain Avenue neighborhood. The City of Paducah hereby authorizes the Director of Planning to administer the Fountain Avenue Program in accordance with the policies, procedures, and criteria outlined in Section 2, which may be amended from time to time. SECTION 2. Eligibility under the Fountain Avenue Program will be determined by the Director of Planning, in his sole discretion, based upon the criteria outlined herein. Eligibility will be determined on a "first come, first serve basis," until the fund is depleted. All property receiving the financial assistance under the Fountain Avenue Program shall be located within the Fountain Avenue neighborhood as that neighborhood is defined in the Plan. A. Existing Fountain Avenue Homeowner Rehabilitation: (A person owning property and residing on the premises as their primary residence on the date of the adoption of this Ordinance.) 1. 15% of rehabilitation costs shall be paid upon completion of project in accordance with a certificate of occupancy issued by the Department of Inspection. 2. The forgivable -deferred payment loan shall only be available to property owners who reside on the premises as their primary residence at the time of the adoption of this ordinance. 3. Forgivable -deferred payment loan shall not exceed 15% of the permitted cost of the improvement. 4. Forgivable -deferred payment loan amount shall not exceed $20,000. 5. Project costs shall be a minimum of $50,000 to be eligible for a forgivable - deferred payment loan. 6. The forgivable -deferred payment loan shall be tied to the issuance of a certificate of occupancy issued by the Inspection Department. Prior to payment an Affidavit shall be executed by the homeowner setting out: a. A permit was obtained from the City of Paducah for the work to be done. b. That the project has been completed and a certificate of completion has been issued. That all costs for materials and labor have been paid and no one can claim a mechanic's or materialman's lien against the subject property in accordance with KRS Chapter 276. Mechanics' or materialmen lien waivers executed by the contractor, and all subcontractors and material providers, which evidence the amount of payments received by each of them and their release of any lien interest against the project and the real property shall be provided. d. Proof of expenditures including copies of delivery tickets of materials that are site specific, copies of subcontractors statements showing satisfaction for their labor and materials furnished to the project, copies of statements marked paid with the checks paying same, or other information as requested by the Director of Planning. 7. The forgivable -deferred payment loan is a 0% interest loan evidenced by a promissory note payable to the City of Paducah and secured by a mortgage interest in favor of the City of Paducah. The City of Paducah will prepare a promissory note and mortgage to be recorded. The mortgage would be considered second or in some cases third mortgage. The promissory note and mortgage will be for the forgivable -deferred payment loan amount and no cases shall exceed $20,000. The homeowner is to reside in the residence for a period of 5 years. If the homeowner moves or sells the property, this note is to be paid by homeowner at a sliding reduced rate in the following manner: a. Sale of property less than one year* 100% repayment b. Sale of property after one year but less than two years* 80% repayment Sale of property after two years but less than three years* 60% repayment d. Sale of property after three years but less than four years* 40% repayment e. Sale of property after four years but less than five years* 20% repayment 2 f. Sale of property more than five years* 0% repayment * from the date the documents are signed. B. New Fountain Avenue Homeowner Rehabilitation Or New Construction: (A person who purchases property in the Fountain Avenue Neighborhood, and within 3 months of the issuance of a Certificate of Occupancy resides on the premises as their primary residence.) 1. 10% of construction costs shall be paid to homeowner upon completion of project in accordance with certificate of occupancy issued by the Department of Inspection. 2. The forgivable -deferred payment loan shall only be available to property owners that purchase property in the Fountain Avenue Neighborhood, and within 3 months of the issuance of the certificate of occupancy reside on the premises as their primary residence. 3. Forgivable -deferred payment loan shall not exceed 10% of the permitted cost of the improvement. 4. Forgivable -deferred payment loan amount shall not exceed $20,000. 5. Project costs shall be a minimum of $50,000 to be eligible for a forgivable - deferred payment loan. 6. The forgivable -deferred payment loan shall be tied to the issuance of a certificate of occupancy issued by the Inspection Department. Prior to payment an Affidavit shall be executed by the homeowner setting out: a. A permit was obtained from the City of Paducah for the work to be done. b. That the homeowner is residing at the residence. C. That the project has been completed and a certificate of completion has been issued. d. That all costs for materials and labor have been paid and no one can claim a mechanic's or materialman's lien against the subject property in accordance with KRS Chapter 276. Mechanics' or materialmen lien waivers executed by the contractor, and all subcontractors and material providers, which evidence the amount of payments received by each of them and their release of any lien interest against the project and the real property shall be provided. e. Proof of expenditures including copies of delivery tickets of materials that are site specific, copies of subcontractors statements showing satisfaction for their labor and materials furnished to the project, copies of statements marked paid with the checks paying same or other information as requested by the Director of Planning. 7. The forgivable -deferred payment loan is a 0% interest loan evidenced by a promissory note payable to the City of Paducah and secured by a mortgage interest in favor of the City of Paducah. The City of Paducah will prepare a promissory note and mortgage to be recorded. The mortgage would be considered second or in some cases third mortgage. The promissory note and mortgage will be for the forgivable -deferred payment loan amount and no cases shall exceed $20,000. The homeowner is to reside in the residence for a period of 5 years. If the homeowner moves or sells the property, this note is to be paid by homeowner at a sliding reduced rate in the following manner: a. Sale of property less than one year* 100% repayment b. Sale of property after one year but less than two years* 80% repayment Sale of property after two years but less than three years* 60% repayment d. Sale of property after three years but less than four years* 40% repayment e. Sale of property after four years but less than five years* 20% repayment f. Sale of property more than five years* 0% repayment * from the date the documents are signed. C. Fountain Avenue Homeowner Rehabilitation: (An existing homeowner who resides at the premises as their primary residence and started the improvements on the property after the adoption of Ordinance No. 2006-4-7104 for the Enhanced Standards for the Fountain Avenue Revitalization Project adopted by the City Commission on April 18, 2006 1. 15% of permitted cost of the improvement shall be paid to property owner upon submittals of the following information to the Department of Planning. 2. The forgivable -deferred payment loan shall only be available to property owners who reside on the premises as their primary residence at the time of the adoption of Ordinance No. 2006-4-7104 for the Enhanced Standards for the Fountain Avenue Revitalization Project adopted by the City Commission on April 18, 2006. 3. Forgivable -deferred payment loan shall not exceed 15% of the permitted cost of the improvement. 4. Forgivable -deferred payment loan payment shall not exceed $20,000. 5. Project costs shall be a minimum of $50,000 to be eligible for a forgivable deferred loan payment. 6. Certification that a permit was received from the Department of Inspection dated between April 18, 2006 — July 8, 2008. 7. Certification that the project has been completed in compliance with the Fountain Avenue Enhanced Standards and Design Guidelines and a certificate of occupancy has been issued. 8. Certification that all costs for materials and labor have been paid and no one can claim a mechanic's or materialman's lien against the subject property in accordance with KRS Chapter 276. Mechanics' or materialmen lien waivers executed by the contractor, and all subcontractors and material providers, which evidence the amount of payments received by each of them and their release of any lien interest against the project and the real property shall be provided. 9. Proof of expenditures including copies of delivery tickets of materials that are site specific, copies of subcontractors statements showing satisfaction for their labor and materials furnished to the project, copies of statements marked paid with the checks paying same or other information as requested by the Director of Planning. 10. The forgivable -deferred payment loan is a 0% interest loan evidenced by a promissory note payable to the City of Paducah and secured by a mortgage interest in favor of the City of Paducah. The City of Paducah will prepare a promissory note and mortgage to be recorded. The mortgage would be considered second or in some cases third mortgage. The promissory note and mortgage will be for the forgivable -deferred payment loan amount and no cases shall exceed $20,000. The homeowner is to reside in the residence for a period of 5 years. If the homeowner moves or sells the property, this note is to be paid by homeowner at a sliding reduced rate in the following manner: n a. Sale of property less than one year* 100% repayment b. Sale of property after one year but less than two years* 80% repayment C. Sale of property after two years but less than three years* 60% repayment d. Sale of property after three years but less than four years* 40% repayment e. Sale of property after four years but less than five years* 20% repayment f. Sale of property more than five years* 0% repayment * from the date of the issuance of the Certificate of Occupancy. SECTION 3. That each year the City Commission will review the Fountain Avenue and the market conditions in the Fountain Avenue neighborhood to determine whether to continue the Fountain Avenue Program, amend the program or terminate the program and rely fully on market conditions to complete the redevelopment of the neighborhood. SECTION 4. Severability. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 5. Compliance With Open Meetings. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. SECTION 6. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. SECTION 7. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. ATTEST: j0MVWM � I xi�z�k Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, June 24, 2008 Adopted by the Board of Commissioners, July 8, 2008 Recorded by Tammara S. Brock, City Clerk, July 8, 2008 Published by The Paducah Sun, July 15, 2008 \ord\plan\ftn ave incentives 5 _- — _ . . �......_. � � w --