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Legislation #: 100903 Introduction Date: 10/21/2010
Type: Resolution Effective Date: 11/7/2010
Sponsor: None
Title: Approving the asset transfer plan entitled “Rebuild KC/Neighborhoods” enabling the transfer of assets from the Housing and Economic Development Financial Corporation in accordance with the proposed asset transfer plan and authorizing its submission to the U.S. District Court, Western District, in City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF.

Legislation History
DateMinutesDescription
10/21/2010 Filed by the Clerk's office
10/21/2010 Referred to Housing Committee
10/27/2010 Immediate Adoption as a Committee Substitute
10/28/2010 Adopted as Substituted

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COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 100903

 

Approving the asset transfer plan entitled “Rebuild KC/Neighborhoods” enabling the transfer of assets from the Housing and Economic Development Financial Corporation in accordance with the proposed asset transfer plan and authorizing its submission to the U.S. District Court, Western District, in City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF.

 

WHEREAS, audit reports issued between 2000 and 2004 by the Inspector General for the U.S. Department of Housing and Urban Development and the City Auditor raised concerns about the Housing and Economic Development Financial Corporation’s (hereinafter “HEDFC”) administration of Community Development Block Grant and other HUD funds for housing, community development and economic development activities and projects which HEDFC had received as the City’s subrecipient since the 1970s; and

WHEREAS, because of these concerns, the City terminated, or let expire, its various agreements with HEDFC and demanded the conveyance of these federally-derived assets to the City; and

WHEREAS, HEDFC did not comply with the City’s demand; and

WHEREAS, the City filed City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF, in the U.S. District Court, Western District seeking the Court’s order compelling HEDFC to convey these federally-derived assets; and

WHEREAS, at the request of the City, the Court appointed a Receiver to take possession and control of HEDFC’s assets and to manage its day-to-day operations of HEDFC in May 2005; and

WHEREAS, the Court has indicated its willingness to consider the winding down and eventual termination of the receivership and to consider authorizing the Receiver to convey the federally-derived assets still in his possession and control as HEDFC’s Receiver if the City can satisfactorily demonstrate that it has the staff capacity and the administrative and legislative controls to properly administer these assets and other HUD funds in compliance with HUD regulations; and

WHEREAS, the City developed an Asset Transfer and Capacity Building Plan (“Plan”) which outlined the City’s proposal for conveyance of HEDFC assets, which was approved by Council through Ordinance No. 090352, As Amended; and

WHEREAS, the City submitted its Plan to the Court for approval on July 31, 2009, having received approval of the Plan from both HUD and the Receiver; and

WHEREAS, the Court held two status conferences to hear the details of the Plan and to hear from the Receiver and HUD; and

WHEREAS, on February 5, 2010, the Court denied the City’s request for approval of the Plan and directed the City to file a revised Plan by May 4, 2010; and

WHEREAS, the City requested and received two extensions to file its revised Plan due mostly to the City’s need for additional information to complete its revisions in order to propose a viable plan; and

WHEREAS, the Court has ordered the City to submit its revised transition plan by November 2, 2010; and

WHEREAS, the City has prepared a revised asset transfer plan entitled “Rebuild KC/Neighborhoods;” NOW, THEREFORE, 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Council hereby approves the asset transfer plan entitled “Rebuild KC/Neighborhoods” enabling the transfer of assets from the Housing and Economic Development Financial Corporation in accordance with the proposed asset transfer plan, along with each of the City responsibilities set out therein, in a form substantially similar to that attached as Attachment A.

Section 2. That the Council hereby authorizes the City Attorney to submit this asset transfer plan entitled “Rebuild KC/Neighborhoods” to the U.S. District Court, Western District in the lawsuit titled City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF.

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