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Legislation #: 090871 Introduction Date: 10/1/2009
Type: Ordinance Effective Date: 11/1/2009
Sponsor: None
Title: Authorizing the Director of Housing and Community Development, on behalf of the City, to release a Second Deed of Trust and Security Agreement which secures a $750,000.00 loan for the Quality Heights I affordable housing project.

Legislation History
DateMinutesDescription
10/1/2009 Filed by the Clerk's office
10/1/2009 Referred to Housing Committee
10/14/2009 Do Pass
10/15/2009 Assigned to Third Read Calendar
10/22/2009 Passed

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090871.pdf Authenticated 103K AUTHENTICATED
090871.doc Fact Sheet 148K FACT SHEET

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ORDINANCE NO. 090871

 

Authorizing the Director of Housing and Community Development, on behalf of the City, to release a Second Deed of Trust and Security Agreement which secures a $750,000.00 loan for the Quality Heights I affordable housing project.

 

WHEREAS, Quality Heights is a 21 year old residential rental community that includes 40 single family units between 24th Street on the north, 25th Street on the south, Michigan Avenue 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 $750,000.00 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 $3,000.00 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 Low Income Housing Tax Credit (LIHTC) compliance period in 2003; and

WHEREAS, on September 18, 2008, Council passed Ordinance No. 080889 which authorized the Director of City Development to execute a Deed of Release pertaining to this Second Deed of Trust and Security Agreement which was 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; and

WHEREAS, this Deed of Release has not been executed; and

 WHEREAS, Blue Hills Community Services, a Missouri not-for-profit community development corporation, in partnership with McCormack Baron Salazar, a Missouri for-profit developer, will submit a 9% low-income housing tax credit application to completely renovate Quality Heights Phase I and II for 108 units, exteriors and grounds; 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 Housing and Community Services is authorized to execute a Deed of Release, on behalf of the City of Kansas City, Missouri, to release the Second Deed of Trust and Security Agreement which secures a $750,000.00 loan to Quality Heights Associates, L.P. or its successors for the Quality Heights redevelopment.

________________________________________________

Approved as to form and legality:

 

 

_____________________________

Nicole Rowlette

Assistant City Attorney