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AN ORDINANCE CREATING THE CITY OF JONESBORO, ARKANSAS RESIDENTIAL HOUSING FACILITIES BOARD PURSUANT TO THE PROVISIONS OF ACT NO. 142 OF THE ACTS OF ARKANSAS OF 1975; APPOINTING THE INITIAL MEMBERS THEREOF; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY (NOTE: THIS ORDINANCE WAS AMENDED BY ORD-80:1915 ON APRIL 7, 1980)
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WHEREAS, the City of Jonesboro, Arkansas (the "City"), pursuant to the provisions of Act No. 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, which includes assisting in the financing of residential housing facilities within 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 board on such terms and under such conditions as will materially assist persons of low and moderate income to obtain financing of residential housing facilities under conditions more favorable than would otherwise be available:
NOW, THEREFORE, be it ordained by the City Council of the City of Jonesboro, Arkansas:
Section 1: Findings: 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 and families of low 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 mortgage loans are operating (i) to further restrict the rehabilitation, construction and purchase of residential housing by persons of low and moderate income at reasonably affordable 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 services by the City.
(c) The availability of mortgage financing to assist such persons and families in the rehabilitation, construction 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 sanitary residential housing facilities is a proper public purpose as declared by the Act, and this determination of the City Council of the City.
(e) The public purpose of financing residential housing facilities may best be served by establishing a public facilities board to purchase mortgage on such 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 Jonesboro, Arkansas Residential Housing Facilities Board" (hereinafter referred to as the "Board") with authority as hereinafter provided to accomplish, finance, contract and make or purchase mortgage loans concerning residential housing facilities, and otherwise act in such manner as may be permitted by the Act to provide decent, sale and sanitary residential housing facilities within or near the City.
Section 3: Members of the Board; Term of Office: The Board shall consist of five persons. The initial members shall be appointed by the Mayor of the City to serve for 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. The initial members of the Board, each of whom is a resident of the City, and their respective terms of office shall be:
Member Term
Fred Dacus One Year
Randall Ishmael Two Years
Glenn Highfill Three Years
Charles Schaff Four Years
Herb Davis Five Years
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: The Board is empowered, from time to time, 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 mortgage lenders) residential housing facilities as shall be determined by the Board to be necessary to effect the purposes of this Ordinance to provide decent, safe and sanitary residential housing facilities within or near the City. The Board shall require that a majority of the funds made available for the purchase of mortgages or making loans to lenders shall be used for residential housing facilities located within the corporate limits of the City now existing or as may hereafter be extended. In addition, the Board shall have each of the powers set forth in Section 7 of the Act, as amended, and appropriate to the purpose for which the Board is created. The Board may enter into such contractual or cooperative agreements with such persons as may, in its discretion, be advisable to accomplish the purposes of the Ordinance, including without limitation, departments, agencies or instrumentalities of the United States or America, the State of Arkansas or the City, e. g. the Department of Housing and Urban Development, the Federal Housing Administration, the Arkansas Housing Development Agency, and the Jonesboro Housing Authority.
Section 5: Issuance of Bonds: The Board is authorized to issue revenue bonds, from time to time and to sue the proceeds, eight alone or together with other available funds and revenues, to accomplish the purposes for which the Board is created as the same relates to the providing of decent, safe and sanitary residential housing facilities. Such revenue bonds shall be obligations 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 bond 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.
Section 6: 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 7: Excess Revenues: Any revenue of the Board accumulated in excess of the amount necessary to accomplish the purposes for which the Board is created and to comply with all covenants and agreements of the Board in connection with any outstanding 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 8: 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 without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable.
Section 9: General Repeal: All Ordinances of the City or parts thereof, in conflict with this Ordinance are hereby repealed to the extent of such conflict.
Section 10: Emergency: It is hereby found and determined that there is an immediate and urgent need for the providing of decent, safe and sanitary housing for persons of low and moderate income in or near the City and providing of financial assistance to such persons, and that the creation of the Board and the exercise of the duties and powers provide in this Ordinance are necessary to the preservation of the public peace, health and safety. Therefore, an emergency is declared to exist and the Ordinance shall be in full force and effect from and after its passage.
PASSED and ADOPTED this 16th day of October, 1978.