HomeMy Public PortalAboutORD09725 i
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BILL NO.
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INTRODUCED BY COUNCILMEN
ORDINANCE NO. 9 ?as
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI , AUTHORIZING THE
ESTABLISHMENT OF AN ESCROW ACCOUNT OF CITY FUNDS TO ASSIST IN
THE HOUSING AUTHORITY SPONSORED SMALL CITIES PROGRAM AND SETTING
UP CONDITIONS FOR SAID ESCROW ACCOUNT.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON,
(� MISSOURI, AS FOLLOWS :
i SECTION 1. ESTABLISHMENT OF ESCROW ACCOUNT. The City Ad-
ministrator shall deposit Three Hundred Thousand 'Dbllars
($300, 000) in City funds in a fully insured escrow account with
the financial institution in which the Housing Authority of the
City of Jefferson establishes a Small Cities Program Escrow
Account. The City shall have full review and examination of
j all documents pertaining to the establishment of said escrow
account through the office of City Administrator.
SECTION 2. EARNED INTEREST ON ESCROW ACCOUNT. The 'C-ity
Administrator is hereby directed to make said deposit provided
�I that the City shall earn interest not more than two (2) percent
less than the average interest earned for deposits or invest-
ments generally. The rate of earned interest shall be adjusted
each. six (6) months, if an adjustment is necessary due to changes
® in the City' s overall average interest earned. The interest
earned shall be paid to the City each six (6) months.
SECTION 3. WITHDRAWALS FROM ESCROW ACCOUNT. The City
Administrator is authorized and directed to withdraw One Hundred
Fifty Thousand Dollars ($150, 000) from said escrow account on
November 15, 1982, and One Hundred Fifty Thousand Dollars
($150,000) on November 15, 1983, for use in fulfilling legal
! City financial obligations or for redeposit in accordance with
i normal City investment practices. If Small Cities Funds from
the U.S. Department of Housing and Urban Development are made
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available prior to either of said dates, then amounts equal to
the HUD Small Cities Funds available and deposited may be with-
drawn from the escrow account. Any HUD Small Cities Funds made
available shall be deposited in the escrow account so that City
funds may be withdrawn. Furthermore, any violation of the terms
of this Ordinance by the Housing Authority of the City of
Jefferson or any financial institution participating in this
program shall be grounds for the immediate withdrawal of all
City funds plus interest earned from said escrow account.
SECTION 4. DISPOSITION OF LOANS. In the implementation
of the Small Cities Program for housing rehabilitation, a
® minimum of eighty (80) percent of the dollar volume of the loans
made shall be for the purpose of rehabilitating owner occupied
dwellings.
SECTION 5. LOAN RESTRICTIONS FOR RENTAL PROPERTY. All
loans made to owners of rental property in areas approved and
designated for participation in this program shall be made only
to those owners who have owned the property for which the re-
habilitation loan is being made a minimum of two (2) years prior
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to the date of the approval and passage of this Ordinance.
SECTION 6. REPOF.TS. The Housing Authority of the City of
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® ' Jefferson shall make full quarterly reports to the City through
1 the Office of City Administrator concerning the dollar amounts
of loans approved for owner-occupied and rental property in the
proceeding quarter and to date for the program. The quarterly
reports shall be due not later than the fifteenth day of the
month following the end of the quarter.
SECTION 7. This Ordinance shall be in full force and.
effect from and after the date of its passage and approval.
Passed S)Q /� ��/ Approved
r side6t of the Co4ficil Mayor
ATTEST:
City Clerk
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FISCAL NOTE
The loss of earnings as a result of this bill has been
determined at $9 ,000.00 over a two year period. Although
there has been no detailed investigation, it is believed
that the economic stimulation resulting from loans in the
community will offset this loss.
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