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
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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:
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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
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