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HomeMy WebLinkAboutAmending Chapter 2 Article 14 New Section 2-169 Non-Reverting Housing Maintenance Fund ORDINANCE No. 7927-88 Passed by the Common Council of the City of South Bend, Indiana. _ October 24, 19 88 Attest: ` � " -°�'�``� Cicy Clerk IRENE K. GAMMON OP Attest: `� 'resident of Common Council Presented by me to the Mayor of the City of South Bend, Indiana October 25, 19 88 City Clerk IRENE K. GAMMON Approved and signed by me October 27, 19 88 8 Mayor • Substitute BILL NO. 82-88 - Version As of 10-24-88 ORDINANCE NO. 1-1,°‘ `� (7- &g AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, AMENDING CHAPTER 2, ARTICLE 14, BY THE INCLUSION OF NEW SECTION 2-169 ENTITLED NON-REVERTING HOUSING MAINTENANCE FUND STATEMENT OF PURPOSE AND INTENT On June 20, 1988, Mayor Joseph E. Kernan held a press conference where he highlighted specific action which would be taken by the City to further its commitment to providing safe, decent, and sanitary housing. One of the items highlighted was that the City would "explore the establishment of a fund to be used as a backup to guarantee that resources are available for short and long term maintenance, thereby guaranteeing the preservation of property values". It should be noted that payments in lieu of taxes are permitted pursuant to Title 24 of the Code of Federal Regulations, Section 941.103, and Section 36-7-18-25 of the Indiana Code. On June 20, 1988, the South Bend Housing Authority adopted a Resolution addressing the "Acquisition of Existing Housing Program. " This Resolution addressed among other things the need to set aside adequate funds for short-terms and long-term maintenance of these homes. The following ordinance establishes a non-reverting housing fund for the receipt of public housing payments in lieu of taxes which would be used solely as a backup funding source for short and long-term maintenance. It further provides for an amount to be funded in such fund each year and sets a maximum amount to be retained in said fund. NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: SECTION I. Chapter 2, Article 14 of the Municipal Code of the City of South Bend, Indiana is hereby amended by the inclusion of new Section 2-169 entitled "Non-Reverting Housing Maintenance Fund" which shall read in its entirety as follows: Sec. 2-169 Non-Reverting Housing Maintenance Fund (a) The South Bend Non-Reverting Housing Maintenance Fund is established to receive monies from the South Bend Housing Authority which are to be paid in lieu of real and personal property taxes by said authority. (b) A maximum of twenty-thousand dollars ($20,000. 00) of the City's proportionate share shall be placed in said fund by July 1st of each year from such funding source. The fund shall accumulate to a maximum of $100,000. 00, with all interest earned to be placed in the General Fund of the City. (c) The monies accumulated in this fund may be loaned only for the short or loner term PxtPrnal maintenannp • with the Administration and Finance Department and/or the Economic Development Department. Said criteria shall be kept on file in the Office of the City Clerk. Any application for such funds by the South Bend Housing Authority shall be reviewed by the Economic Development Department to determine the need and to recommend terms of the loan. All expenditures from this fund shall be subject to the approval of an appropriate ordinance of the Common Council. (d) Monies remaining in this fund at the end of the fiscal year shall not revert to the General Fund, except as otherwise provided in sub-section (b) herein. (e) This fund shall be reviewed by the Common Council beginning in the year 1998. If the Council fails to specifically reaffirm or re-establish said fund by December 31, 1998, all monies remaining in this fund shall automatically revert to the General Fund. SECTION II. This ordinance shall be in full force and effect from and after its passage by the Common Council and approval by the Mayor. %NOt„ 0(■. Me • -r of the Common Council tSpUTH - - 57-j/�►, \ ?�/ i �-,,, *11' City of South Bend /\v;.\� / d i � ��� ���'-:` // Joseph E. Kernan, Mayor 'll�� 5 186 l a}i�� South Bend Common Council John Voorde Ann Puzzello Thomas Zakrzewski President Vice-President Chairman. Committee of the Whole September 8, 1988 Members of the Common Council 4th Floor, County-City Building South Bend, IN 46601 Dear Council Members: Re: Non-Reverting Maintenance Fund The attached bill will amend Chapter 2, Article 14 of the Municipal Code by the inclusion of a new section, 2-169, entitled Non-Reverting Maintenance Fund. This bill will establish a fund to be used to back up other funding sources for the short and long term maintenance needs of the "Acquisition of Existing Housing Program. " Passage of this bill would reflect the continuing effort to address the legitimate questions raised pertaining to the scattered sites housing program. This action is in response to the guidelines and commitments established by Mayor Joseph Kernan during his press conference of June 20th, 1988, that addressed public concerns over property maintenance and property values. County-City Building • South Bend, Indiana 46601 • 219/284-9321 Stephen Luecke Donald Niezgodski William Soderberg Ann Puzzello Linas Slavinskas First District Second District Third District Fourth District Fifth District Thomas Zakrzewski Sean Coleman Loretta Duda John Voorde Kathleen Cekanski-Farrand Sixth District At Large At Large At Large Council Attorney • I would also note that the acting Secretary of HUD, Carl D. Covitz, has written and advised Senator Richard Lugar that non-essential amenities will not be replaced after their useful life. This policy furthers the need for our own supplemental fund, since we cannot guarantee that amenities in poor condition; not maintained and allowed to be replaced with HUD funds, could adversely affect property values of surrounding homes. I respectfully request your consideration and passage of this bill. Sincerely, Linas K. Slavinskas 5th District Councilman