COMMITTEE SUBSTITUTE
FOR ORDINANCE NO. 180719
Amending Chapter 2, Article XI,
Finances, Division 4, Manual of Accounting, of the Code of Ordinances by
enacting a new Section 2-1693 entitled Housing Trust Fund.
WHEREAS, in
November, 2017, the City Council passed unanimously Resolution No. 170825 that
directed the City Manager to provide information on the overall state of
housing policy at the federal, state and local levels; and
WHEREAS,
Resolution No. 170825 also directed the development of a report on the overall
state of housing resources, housing policy, programs and funding options for
the City, including the role of affordable housing in the development of the
City; and
WHEREAS, this
funding source would be leveraged with both private funds and existing public
resources to implement the recommendations of the proposed Housing Policy; and
WHEREAS; the
Housing Trust Fund shall help implement neighborhood revitalization, housing
development, and preservation projects proposed by the City and in coordination
with private developers that are undertaking projects in alignment with the
City’s Housing policy; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
Chapter 2, Article XI, Finances, Division 4, Manual of Accounting, of the Code
of Ordinances is hereby amended by enacting a new Section 2-1693 entitled “Housing
Trust Fund,” with intents and purposes as follows:
(a) To promote, preserve, and create long-term affordable housing
for very low, low, and moderate income households;
(b) To abate large scale displacement of low-and moderate-income
persons caused by gentrification, historical trends, or other development;
(c) To provide opportunities for tenants and/or public entities
to purchase rental housing in order to maintain perpetual affordability of that
housing;
(d) To provide broad opportunities for persons to transition from
rental to ownership of housing;
(e) To promote the rehabilitation and avoid, where possible,
demolition of housing for low-and moderate-income persons;
(f) To distribute grants or loans to organizations that promote,
retain, or create long-term affordable housing;
(g) To distribute “capacity grants” to
community development corporations (CDC) and other nonprofit entities exempt
from federal income tax obligations under 501(c)(3) of the Title 26 of the
United States for the purpose of creating or preserving housing for very low,
low, and moderate income households;
(h) To distribute grants or loans to nonprofit organizations that
provide representation in court to the public in housing-related issues,
including but not limited to matters involving evictions and the Abandoned
Housing Act;
(i) To promote the general welfare by providing a direct and
immediate benefit to the public through aiding low- and moderate-income persons
by offering methods to acquire safe and healthy affordable housing benefits as
the need is ever present and the federal funding source on which the City has
relied for several decades is depleting;
(j) To promote the general welfare by removing, where possible,
blighted, dilapidated and substandard properties from the City’s inventory and
offering rehabilitation opportunities, thus reducing the City’s ongoing
maintenance costs and adding additional tax revenue for the City;
(k) To promote the general welfare by stabilizing and improving
property values in those areas where property rehabilitation and occupancy of
vacant housing occurs and through the creation of jobs through housing
rehabilitation and expanding opportunities to leverage additional public and
private investments; and
(l) To aid in blight remediation through the rehabilitation and
construction of safe and viable housing for low- and moderate-income persons
and to reduce the number of dilapidated and substandard housing.
Section 2. The
City shall establish a special revenue account, Fund No. 2490, under the name
of the “Kansas City Housing Trust Fund.”
(a) Into the account shall be deposited amounts generated from
the following sources as permitted by the individual funding sources:
1. In-lieu cash payments paid by project developers electing not
to build on-site affordable housing units complying with City requirements;
2.
Bequests and donations from public and private sources;
3. Upon the recommendation of the Central City Economic
Development Sales Tax Board and approval by the City Council, funds designated
to the “Central City Economic Development Sales Tax” fund and for use only
within the geographic boundaries of the tax area, not to exceed more than
thirty-three (33) percent of funds collected by the tax;
4. Funds designated to the “Shared Success Fund” and for use
only within the geographic boundaries of the fund area;
5. Funds designated to the “Love Thy Neighbor” fund and for use
as designated by the City Manager or his designee;
6.
Funds received through any relevant bond proceeds; and
7. Any other revenues specifically directed by the City Council
to the Housing Trust Fund or to affordable housing efforts.
(b) Funds collected in the Housing Trust fund may be leveraged
with other public and private resources to implement designated housing
projects.
Section 3. The
responsibilities of the City Manager or her designee, subject to the direction
of City Council, shall include:
(a) Maintaining
the financial and other records of the Housing Trust Fund;
(b) Assisting prospective applicants for Housing Trust Fund
support in the preparation and presentation of applications;
(c) Disbursing and collecting Housing Trust Fund dollars;
(d) Monitoring the use of monies distributed to successful
applicants for Housing Trust Fund support to assure on-going compliance with
the purposes of the Fund and the conditions under which the monies were granted
or loaned; and
(e) Reporting periodically, but not less than every six (6)
months to the City Council regarding the operation and activity of the Housing
Trust Fund.
Section 4.
Priority in all disbursements intended for use in acquiring, constructing,
rehabilitating, preserving or financing housing units shall be given to
projects that guarantee the longest terms of affordability for units created or
creation of the greatest total number of affordable units and units that permit
long-term residents to remain within the area of the project.
Section 5. The
establishment of the Housing Trust Fund shall include a funding leverage
strategy to attract private sector development and philanthropic investment
dollars.
Section 6. The
Housing Trust Fund shall be subject, by the direction of City Council or at the
discretion of the City Auditor, to an audit by the Office of the City Auditor.
_____________________________________________
Approved as to form and legality:
______________________________
Nicole Rowlette
Assistant City Attorney