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Legislation #: 150874 Introduction Date: 10/15/2015
Type: Ordinance Effective Date: none
Sponsor: None
Title: Authorizing acceptance of an award from the U.S. Department of Housing and Urban Development (“HUD”) of a Section 108 Loan Guarantee in the amount of $2,950,000.00; authorizing a Section 108 Loan Guarantee Agreement with HUD; estimating revenue and appropriating funds in the amount of $2,950,000.00; authorizing a contract, financing agreement and loan documents in the amount of $1,300,000.00 of Section 108 Loan funds with Faxon School Apartments, LP; authorizing the replacement of previously authorized CDBG funds with Section 108 Loan funds for the St. Michael’s Veterans Center and the YMCA of Greater Kansas City projects and authorizing contracts with both entities; authorizing a contract, financing agreement and loan documents in the amount of $1,650,000.00 of CDBG funds with Oak Point Partners, LP; designating requisitioning authority; and recognizing an accelerated effective date.

Legislation History
DateMinutesDescription
10/14/2015 Filed by the Clerk's office
10/15/2015 Referred to Neighborhoods and Public Safety Committee
11/18/2015 Hold Off Agenda
7/27/2016 Release
6/20/2017 Released

View Attachments
FileTypeSizeDescription
150874 Fiscal Note.pdf Fiscal Note 15K 150874 Fiscal Note
150874 Fact Sheet.pdf Fact Sheet 115K 150874 Fact Sheet
FS - 108.xlsx Fact Sheet 19K Fact Sheet
AA - 108.xls Other 45K Other
FN- 108.xls Fiscal Note 50K Fiscal Note

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ORDINANCE NO. 150874

 

Authorizing acceptance of an award from the U.S. Department of Housing and Urban Development (“HUD”) of a Section 108 Loan Guarantee in the amount of $2,950,000.00; authorizing a Section 108 Loan Guarantee Agreement with HUD; estimating revenue and appropriating funds in the amount of $2,950,000.00; authorizing a contract, financing agreement and loan documents in the amount of $1,300,000.00 of Section 108 Loan funds with Faxon School Apartments, LP; authorizing the replacement of previously authorized CDBG funds with Section 108 Loan funds for the St. Michael’s Veterans Center and the YMCA of Greater Kansas City projects and authorizing contracts with both entities; authorizing a contract, financing agreement and loan documents in the amount of $1,650,000.00 of CDBG funds with Oak Point Partners, LP; designating requisitioning authority; and recognizing an accelerated effective date.

 

WHEREAS, on November 6, 2014, the City Council approved Resolution No. 140948 which authorized the City to submit an application to HUD to borrow $2,950,00.00 for the Seven Oaks Apartments Replacement Housing Project through Section 108 of the Housing and Community Development Act (“Section 108 Loan”); and

 

WHEREAS, on January 29, 2015, the City Council approved Ordinance No. 150046 which authorized a contract not to exceed $1,067,716.00 in Community Development Block Grant (“CDBG”) funding with St. Michael’s Veterans Center, Inc. for the construction of St. Michael’s Veterans Center; and

 

WHEREAS, on April 23, 2015, the City Council approved Ordinance No. 150282 which authorized a $200,000.00 contract with the YMCA of Greater Kansas City for expansion of the YMCA on Linwood and on June 25, 2015, the City Council approved Ordinance No. 150488 which authorized an additional $400,000.00 CDBG allocation to the YMCA on Linwood Project; and

 

WHEREAS, on September 4, 2015, HUD’s National Office notified the City and the local HUD Regional Office that the use of Section 108 Loan funds were approved for the Faxon School Apartments Project as a housing rehabilitation project and for the St. Michael’s Veterans Center and the YMCA of Greater Kansas City on Linwood as public facility projects, but the Section 108 Loan funds were not approved for the Oak Point Project as a housing reconstruction project; and

 

WHEREAS, the HUD National Office determined that the City could switch the funding sources for various projects by allowing the City to use CDBG funds, previously approved for other projects, for the Oak Point Project instead of Section 108 Loan funds and to replace the CDBG funding on the two previously approved public facility projects, St. Michael’s Veterans Center and the YMCA of Greater Kansas City on Linwood, with Section 108 Loan funds; and

 

WHEREAS, this ordinance accepts the Section 108 Loan fund award from HUD, appropriates the funds, and authorizes the Director of Neighborhoods and Housing Services to enter into contracts, financing agreements and loan documents in the amount not to exceed $1,300,000.00 of Section 108 Loan funds with Faxon School Apartments, LP and $1,650,000.00 of CDBG funds with Oak Point Partners, LP. The City loans will be 20-year notes in a first mortgage position and allow for program income to fully service the debt of the Section 108 Loan; and

 

WHEREAS, this ordinance further authorizes the Director of Neighborhoods and Housing Services to enter into contracts in the amounts of $1,067,716.00 with St. Michael’s Veterans Center, Inc. and $600,000.00 with YMCA of Greater Kansas City. NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the HUD award of the Section 108 Loan Guarantee for Project/Grant No. B-14-MC-29-0003 in the amount of $2,950,000.00 is accepted.

 

Section 2. That the Mayor and Director of Neighborhoods and Housing Services Department are authorized to enter into a Section 108 Loan Guarantee Agreement with HUD.

 

Section 3. That revenue is estimated in the following account of the HUD Section 108 Loan Fund:

 

16-2540-572430-476050 HUD 108 Loan $2,950,000.00

 

Section 4. That $2,950,000.00 is appropriated from the Unappropriated Fund Balance of the HUD Section 108 Loan Fund to the following account:

 

16-2540-572430-B HUD 108 Loan $2,950,000.00

 

Section 5. That Director of Neighborhoods and Housing Services is authorized to enter into a contract, financing agreement and loan documents in the amount not to exceed $1,300,000.00 of Section 108 Loan funds with Faxon School Apartments, LP.

 

Section 6. That the Director of Neighborhood and Housing Services is authorized to enter into a contract with St. Michael’s Veterans Center, Inc. for construction of the St. Michael’s Veterans Center in the amount of $1,067,716.00, using proceeds from the Section 108 Guaranteed Loan in the amount of $1,050,000.00, and $17,176.00 of CDBG funds previously appropriated to 2600-575324-G57CDBG13.

 

Section 7. That the Director of Neighborhood and Housing Services is authorized to enter into a contract with the Young Men’s Christian Association of Greater Kansas City for expansion of the YMCA on Linwood in the amount of $600,000.00 from the Section 108 Guaranteed Loan.

 

Section 8. That the Director of Neighborhoods and Housing Services is authorized to enter into a contract, financing agreement and loan documents with Oak Point Partners, LP in the amount not to exceed $1,650,000.00 from funds previously appropriated in the following accounts of the Community Development Block Grant Fund: 2600-575324-G57CDBG13, 2600-555314-G55CDBG12, 2600-575324-G57CDBG14, and 2600-575324-G57CDBG15.

 

Section 9. That the Director of Neighborhoods and Housing Services Department is recognized as requisitioning authority for Account No. 16-2540-572430.

 

Section 10. To the extent that this ordinance modifies certain provisions in other ordinances, any such applicable provisions are hereby repealed.

 

Section 11. That this ordinance is recognized as an ordinance with an accelerated effective date as provided by Section 503(a)(3)(C) of the City Charter in that it appropriates money and shall take effect in accordance with Section 503, City Charter.

 

____________________________________________________

 

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.

 

 

___________________________________

Randall J. Landes

Director of Finance

 

Approved as to form and legality:

 

 

____________________________________

Nicole Rowlette

Assistant City Attorney