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Legislation #: 080889 Introduction Date: 9/4/2008
Type: Ordinance Effective Date: none
Sponsor: None
Title: Authorizing the Director of City Development, on behalf of the City, to release a Second Deed of Trust and Security Agreement which secures a $750,000 loan for the Quality Heights I affordable housing project contingent upon the receipt of 9% Low-Income Housing Tax Credits for a redevelopment project proposal by Affordable Housing Kansas City, Inc. (AHKC) in partnership with Blue Hills Community Services and upon the completion of the anticipated renovations of the units, exterior and grounds within the project.

Legislation History
DateMinutesDescription
9/3/2008 Filed by the Clerk's office
9/4/2008 Referred to Housing Committee
9/10/2008 Do Pass
9/11/2008 Assigned to Third Read Calendar
9/18/2008 Passed

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080889.pdf Authenticated 114K Authenticated
http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=080889 Video Link 0K http://kansascity.granicus.com/ViewSearchResults.php?view_id=2&keywords=080889
fiscal note.xls Advertise Notice 38K revised fiscal note
Fact Sheet- Quality Heights.xls Fact Sheet 42K Fact Sheet

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ORDINANCE NO. 080889

 

Authorizing the Director of City Development, on behalf of the City, to release a Second Deed of Trust and Security Agreement which secures a $750,000 loan for the Quality Heights I affordable housing project contingent upon the receipt of 9% Low-Income Housing Tax Credits for a redevelopment project proposal by Affordable Housing Kansas City, Inc. (AHKC) in partnership with Blue Hills Community Services and upon the completion of the anticipated renovations of the units, exterior and grounds within the project.

 

WHEREAS, Quality Heights is a 20 year old residential community that includes 40 single family units between 24th St. on the north, 25th St. on the south, Michigan Ave. on the east, and Garfield on the west that was originally developed by the Kansas City Neighborhood Alliance with funding provided through low income housing tax credits (LIHTC) and the City of Kansas City, Missouri; and

 

WHEREAS, on September 24, 1987, the City of Kansas City, Missouri entered into a fifty-year, 0% interest loan agreement with Quality Heights Associates L.P. using $750,000 in Housing Development Action Grant (HoDAG) funds, which is secured by a Second Deed of Trust and Security Agreement dated September 28, 1987, recorded in the office of the Department of Records for Jackson County, Missouri at Kansas City in Book No. 1730, Page No. 930 as Instrument No. 1987K0796968; and

 

WHEREAS, under the terms of the loan agreement, the City is scheduled to receive $3,000 per month plus 25% of the annual surplus cash generated from the project beginning October 1, 2017 for a period of up to 20 years to fully amortize the loan; and

 

WHEREAS, Quality Heights fully complied with and completed all HoDAG grant requirements in 1998 and reached the end of its 15 year LIHTC compliance period in 2003; and

 

WHEREAS, Blue Hills Community Services replaced the Kansas City Neighborhood Alliance as the property manager beginning in April of 2007; and

 

WHEREAS, since April of 2007, the vacancy rate has been reduced from 30% to 0% with a waiting list, but nine units require substantial renovations to become inhabitable again; and

WHEREAS, Affordable Housing of Kansas City, Inc. (AHKC), a non-profit affiliate of the Housing Authority of Kansas City, Missouri, in partnership with Blue Hills Community Services and the Kansas City Equity Fund is proposing to completely renovate the 40 units, exteriors and grounds to be now known as Quality Homes utilizing 9% low-income housing tax credits; and

 

WHEREAS, Quality Homes will use Energy Star criteria to implement standards that support the economic and environmental impact of building "green" and low energy cost communities; and

 

WHEREAS, the proposed Quality Homes redevelopment is to include a 1,700 square foot community building that will include a computer room and space for a full-time supportive services coordinator to provide education, transportation, and referrals to other social services needed by residents; and

 

WHEREAS, the City is desirous of seeing this redevelopment occur without need for further local resources and recognizes that all terms and conditions required by the City and the United States Department of Housing and Urban Development in the 1987 agreement have been met in full; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Director of City Development is authorized to execute a Deed of Release,on behalf of the City, to release a Second Deed of Trust and Security Agreement which secures a $750,000 loan to Quality Heights Associates, L.P. or its successors for the Quality Heights 1 project.

 

Section 2. That this release shall be fully contingent upon the receipt of 9% LIHTC credits from the Missouri Housing Development Commission for the Quality Homes redevelopment project by the Affordable Housing of Kansas City, Inc. in partnership with Blue Hills Community Services and the Kansas City Equity Fund and upon the completion of the renovations of the 40 units, exteriors and grounds.

 

________________________________________________

Approved as to form and legality:

 

________________________________

Nicole Rowlette

Assistant City Attorney