ORDINANCE NO.  8437

AN ORDINANCE OF THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS ESTABLISHING ADDITIONAL ENFORCEMENT PROVISIONS UNDER THE LAWRENCE COMMUNITY HOUSING TRUST.

            WHEREAS, from time to time the City of Lawrence, Kansas (the “City”), enters into certain Grant Agreements (the “Agreements”) with Tenants to Homeowners, Inc., a Kansas not-for-profit corporation (“TTH”), whereby the City agrees to allocate certain funding and subsidies to TTH in exchange for TTH’s creation, operation, and management of an affordable housing trust program known as the Lawrence Community Housing Trust (the “LCHT”); and

WHEREAS, TTH has used and intends to continue using the City’s subsidies provided under the Agreements to acquire, renovate, restore, maintain, manage, and construct affordable residential housing for use in the LCHT (such properties, whether now owned in the LCHT or hereafter acquired, are collectively referred to as the “Trust Properties”); and

            WHEREAS, TTH, through the LCHT, provides needed affordable housing opportunities in the community by selling residential improvements located on the Trust Properties to certain eligible individuals (as determined in the Agreements), and by entering into 99-year ground leases (the “Ground Leases”) with such individuals, which Ground Leases impose certain use, eligibility, and resale restrictions on the Trust Properties; and

            WHEREAS, the City has rights to enforce the Ground Leases under the Agreements and under certain Lien Agreements (the “Liens”) that are granted to the City by the owners of the Trust Properties; and

            WHEREAS, with the consent of the Douglas County, Kansas Appraiser’s Office and TTH, the City desires to create rights to enforce the Ground Leases and the perpetuation of affordable housing under the LCHT, in addition to the City’s existing rights.

            NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:

            SECTION 1.   For purposes of this Ordinance, any act or omission by an owner of any Trust Property (including such owner’s heirs, successors, and assigns) that constitutes a material breach or default under the terms of the Agreements or the Ground Leases shall constitute a violation of this Ordinance.  Such violation shall be subject to the remedies described in Section 2, below.

            SECTION 2.   The City shall send notice of any violations of this Ordinance to TTH and the owners of the Trust Property in question.  If, within ten (10) days of such notice, such violations are not remedied to the reasonable satisfaction of the City, and in addition to the City’s rights under the Agreements, the Ground Leases, and the Liens, the City impose the following penalties against such owners:

(1)        The City may impose a fine against the owner(s) of the Trust Property in a total amount not to exceed $100.00; and

(2)        If the Trust Property has been sold in a manner not permitted by the Ground Leases, the City may impose a fine against the purchaser of such Trust Property in an amount not to exceed $10.00 per day for each day such violation continues. 

Nothing in this Ordinance shall be construed as a limitation on the City’s existing rights and remedies, or as imposing any requirement on the City to act.

            SECTION 3.   The Governing Body hereby finds and determines that the use, eligibility, and resale restrictions contained in the Agreements, the Ground Leases, the Liens, and this Ordinance each constitute restrictions or requirements imposed upon the use of real estate by a local governing body for purposes of K.S.A. 79-503a.

SECTION 4.   If any provision of this Ordinance shall be invalid or otherwise unenforceable, then the remaining provisions of this Ordinance shall remain in effect and shall be enforceable in accordance with its terms.

SECTION 5.   This Ordinance shall take effect and be in force from and after its passage and publication as provided by law.

PASSED by the Governing Body this ______ Day of _____________, 2009.

PASSED:

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                                                                        Robert Chestnut, Mayor

ATTEST:

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Jonathan M. Douglass, City Clerk

APPROVED AS TO FORM AND LEGALITY:

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Toni Ramirez Wheeler

Director of Legal Services