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Legislation #: 081169 Introduction Date: 11/20/2008
Type: Ordinance Effective Date: 12/28/2008
Sponsor: None
Title: Reducing an appropriation in the amount of $300,000.00 from the Contingent Appropriation to correct the U.S. Department of Housing and Urban Development’s Finding No 4: Ineligible HOME Activity in the Rockford Hills project.

Legislation History
DateMinutesDescription
11/18/2008 Filed by the Clerk's office
11/20/2008 Referred to Finance and Audit Committee
12/3/2008 Hold On Agenda (12/10/2008)
12/10/2008 Hold On Agenda (12/17/2008)
12/17/2008 Advance and Do Pass as a Committee Substitute, Debate
12/18/2008 Passed as Substituted

View Attachments
FileTypeSizeDescription
081169.pdf Authenticated 100K AUTHENTICATED
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=081169 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=081169
Fiscal Note - Rockford Hills.xls Fiscal Note 45K Fiscal Note
Approp Admin Rockford Hills.xls Other 324K Approp/Admin worksheet
Fact Sheet Rockford.xls Fact Sheet 103K Fact Sheet

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COMMITTEE SUBSTITUTE FOR ORDINANCE NO. 081169

 

Reducing an appropriation in the amount of $300,000.00 from the Contingent Appropriation to correct the U.S. Department of Housing and Urban Developments Finding No 4: Ineligible HOME Activity in the Rockford Hills project.

 

WHEREAS, the United States Department of Housing and Urban Development (HUD) performed a monitoring visit at the City from January 14-February 2, 2008, and as a result issued Finding No. 4: Ineligible HOME Activity (Finding) regarding the usage of HOME funds with the Rockford Hill project; and

 

WHEREAS, in August 2004, the Housing and Economic Development Financial Corporation (HEDFC) sold the Rockford Hills property, located at 8208 Troost Avenue, to a private borrower for $1,150,000.00 and in September 2004 issued a second mortgage loan of $300,000.00 utilizing HOME Investment Partnership Program (HOME) funds. The total cost of the overall redevelopment plan was $1,398,000.00 which included a first mortgage loan of $920,000.00 from a private banking institution and an additional $178,400.00 investment from the borrower; and

 

WHEREAS, the borrower has never made any of the required payments to HEDFC, and a default letter was sent on October 23, 2007. While the buyer has expressed a desire to get the property into suitable conditions for resale, current market conditions have prevented this from happening; and

 

WHEREAS, HOME funding regulations require that all units must meet Housing Quality Standards (HQS) in order to be rentable and this condition has not been met, thus resulting in the Finding. Currently 51 of the 78 units are available to be rented with one being used as an office; however, 18 units are in need of repair and borrower estimates $135,000.00 is needed to complete renovations; and

 

WHEREAS, the repayment of $300,000.00 from a non-federal source is required to correct the Finding; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the appropriation in the following account of the General Fund is reduced by the following amount:

 

08-1000-179990-B Contingent Appropriation $300,000.00

 

Section 2. That the appropriation in the following account of the General Fund is increased in the following amount:

 

08-1000-642356-B Housing Planning Project $300,000.00

 

Section 3. That the City Attorney is directed, if possible and appropriate, to devise an agreement or other instrument with the lender of record, the Housing and Economic Development Financial Corporation (HEDFC), stating that if any funds are returned to HEDFC pursuant to this HOME loan that HEDFC will return such funds to the Citys General Fund.

 

_____________________________________________

 

I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.

 

 

___________________________________

Jeffrey A. Yates

Director of Finance

 

Approved as to form and legality:

 

 

___________________________________

Nicole Rowlette

Assistant City Attorney