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Legislation #: 120855 Introduction Date: 9/27/2012
Type: Ordinance Effective Date: 10/7/2012
Sponsor: COUNCILMEMBER REED AND COUNCILMEMBER CIRCO
Title: Authorizing the acceptance of an additional $400,000.00 of HOME program income from the Housing and Economic Development Financial Corporation (“HEDFC”) federal receivership; estimating and appropriating $400,000.00 in the HOME investment fund; and authorizing the Director of Neighborhoods and Housing Services to amend the contract and corresponding documents with The Colonnades at Beacon Hill, LP to add an additional $400,000.00 in funding.

Legislation History
DateMinutesDescription
9/27/2012 Filed by the Clerk's office
9/27/2012 Passed

View Attachments
FileTypeSizeDescription
120855.pdf Authenticated 1972K Authenticated
Approp Admin - Colonnades.xls Other 39K OTHER
Fiscal Note Colonnades.xls Fiscal Note 66K FISCAL NOTE
Fact sheet for Amending ordiance for Colonnades BH.xlsx Fact Sheet 22K FACT SHEET

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ORDINANCE NO. 120855

 

Authorizing the acceptance of an additional $400,000.00 of HOME program income from the Housing and Economic Development Financial Corporation (“HEDFC”) federal receivership; estimating and appropriating $400,000.00 in the HOME investment fund; and authorizing the Director of Neighborhoods and Housing Services to amend the contract and corresponding documents with The Colonnades at Beacon Hill, LP to add an additional $400,000.00 in funding.

 

WHEREAS, on March 8, 2012, the City passed Ordinance No. 120155 which authorized the acceptance of $1,700,000.00 of HOME program income from the HEDFC federal receivership, estimated and appropriated $1,700,000.00 in the HOME investment fund and authorized a contract, financing agreement and loan documents in the amount of $1,700,000.00 between the City and The Colonnades at Beacon Hill, LP; and

WHEREAS, the Colonnades at Beacon Hill Project (“Project”) is a redevelopment project in the Beacon Hill Redevelopment Area which consists of the rehabilitation of one historically significant colonnade-style, 6-unit apartment structure and the construction of four new structures, each containing 6-unit apartments, along 27th Street at Tracy Avenue to be leased to a mix of market rate and low income Kansas City, Missouri residents; and

WHEREAS, a fire recently destroyed one of the historically significant structures beyond repair resulting in the loss of historic tax credit equity which has consequently created a $400,000.00 loss of funds and has further required that the entire arrangement be restructured in order for the Project to proceed. The loss of historic tax credits will be made up by these additional HOME funds from the HEDFC receivership and through cost saving measures from the Project; and

 

WHEREAS, the addition of $400,000.00 in funding to the Project necessitates amending the contract and corresponding loan documents to reflect the total amount of $2,100,000.00; and

WHEREAS, the predevelopment activities of the Project have been completed, including but not limited to environmental studies, architectural renderings, and engineering structural analysis, and, upon award of low income housing tax credits by the Missouri Housing Development Commission (“MHDC”), the Project is again prepared for closing and rehabilitation/construction to begin; and

WHEREAS, the Project will rehabilitate and save one (1) historically significant structure in Beacon Hill; and

WHEREAS, the City has established the renovation and preservation of the residential units and the related historic elements of the Colonnades in Beacon Hill as a priority; and

WHEREAS, the City has an obligation with the United States Department of Housing and Urban Development (“HUD”) to complete the Colonnades at Beacon Hill project; and

WHEREAS, the City created and the Council approved, through Committee Substitute for Resolution No. 100903, the ReBuild KC/Neighborhoods asset transfer plan, which included the recommendation to complete Colonnades at Beacon Hill project with proceeds coming from HEDFC’s HOME program income account; and

WHEREAS, on September 8, 2011, the City Council adopted Resolution No. 110686 which amended the 2011 One Year Action Plan and authorized submission of a Substantial Amendment to the U.S. Department of Housing and Urban Development in order to allocate the $1,700,000.00 to this Project; and

WHEREAS, the transfer of the funds from HEDFC is subject to the approval of the U.S. District Court for the Western District of Missouri in Case No. 05-00368-CV-W-GAF; NOW, THEREFORE,

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

Section 1. That the Director of the Neighborhoods and Housing Services Department is hereby authorized to accept, subject to approval by the U.S. District Court for the Western District of Missouri in Case No. 05-00368-CV-W-GAF, $400,000.00 in HOME program income from the Housing and Economic Development Financial Corporation (“HEDFC”) for the purpose of the rehabilitation and development of the Colonnades in Beacon Hill Project.

Section 2. That revenue is estimated in the following account of the Home Investment Fund in the following amount:

13-2940-550001-474630-G55HMESPC Federal Grant Revenue $400,000.00

Section 3. That $400,000.00 is appropriated from the Unappropriated Fund Balance of the Home Investment Fund to the following account:

13-2940-555317- B-G55HMESPC Housing Development $400,000.00

Section 4. That, the Director of the Neighborhoods and Housing Services Department is authorized to amend the contract and corresponding documents with The Colonnades at Beacon Hill, LP to add an additional $400,000.00 in funding. A copy of the contract, in substantial form, is on file in the office of the Director of Neighborhoods and Housing Services.

_____________________________________________

 

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