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Legislation #: 090352 Introduction Date: 4/30/2009
Type: Ordinance Effective Date: 7/26/2009
Sponsor: COUNCILMEMBER SANDERS BROOK
Title: Approving the Asset Transfer and Capacity Building Plan enabling the transfer of assets from Housing and Economic Development Financial Corporation and authorizing its submission to the U.S. District Court, Western District in City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF.

Legislation History
DateMinutesDescription
5/1/2009 Filed by the Clerk's office
4/30/2009 Referred to Housing Committee
5/6/2009 Advance and Do Pass, Debate
5/7/2009 Councilmember Sanders Brooks Move To Hold On Docket
5/7/2009 Held on Docket (6/11/2009)
6/11/2009 Councilmember Sanders Brooks Move To Hold On Docket
6/11/2009 Held on Docket (6/18/2009)
6/18/2009 Councilmember Sanders Brooks Move To Hold On Docket
6/18/2009 Held on Docket (6/25/2009)
6/25/2009 Councilmember Sanders Brooks Move To Hold On Docket
6/25/2009 Held on Docket (7/9/2009)
7/9/2009 Councilmember Sanders Brooks Move To Hold On Docket
7/9/2009 Held on Docket (7/16/2009)
7/16/2009 Councilmember Sanders Brooks Move to Amend
7/16/2009 Passed as Amended

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090352.pdf Authenticated 96K AUTHENTICATED

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ORDINANCE NO. 090352, AS AMENDED

 

Approving the Asset Transfer and Capacity Building Plan enabling the transfer of assets from Housing and Economic Development Financial Corporation and authorizing its submission to the U.S. District Court, Western District in City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF.

 

WHEREAS, audit reports issued between 2000 and 2004 by the Inspector General for the U.S. Department of Housing and Urban Development and the City Auditor raised concerns about the Housing and Economic Development Financial Corporations (hereinafter HEDFC) administration of Community Development Block Grant and other HUD funds for housing, community development and economic development activities and projects which HEDFC had received as the Citys subrecipient since the 1970s; and

WHEREAS, because of these concerns, the City terminated, or let expire, its various agreements with HEDFC and demanded the conveyance of these federally-derived assets to the City; and

WHEREAS, HEDFC did not comply with the Citys demand; and

 

WHEREAS, the City filed City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF, in the U.S. District Court, Western District seeking the Courts order compelling HEDFC to convey these federally-derived assets; and

 

WHEREAS, at the request of the City, the Court appointed a Receiver to take possession and control of HEDFCs assets and to manage its day-to-day operations of HEDFC in May 2005; and

 

WHEREAS, the Court has indicated its willingness to consider the winding down and eventual termination of the receivership and to consider authorizing the Receiver to convey the federally derived assets still in his possession and control as HEDFCs Receiver, if the City can satisfactorily demonstrate that it has the staff capacity and the administrative and legislative controls to properly administer these assets and other HUD funds in compliance with HUD regulations; and

 

WHEREAS, the Court has ordered the City to develop an Asset Transfer and Capacity Building Plan approved by both HUD and the Receiver; and

 

WHEREAS, the City received HUDs approval of the attached Asset Transfer and Capacity Building Plan on June 5, 2009; and

 

WHEREAS, the City received the Receivers approval of the attached Asset Transfer and Capacity Building Plan on July 15, 2009; NOW, THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Council hereby approves the Asset Transfer and Capacity Building Plan, along with each of the City responsibilities set out therein, in a form substantially similar to that attached as Attachment A.

 

Section 2. That the Council hereby authorizes the City Attorney to submit this Asset Transfer and Capacity Building Plan to the U.S. District Court, Western District in the lawsuit styled City of Kansas City, Mo. v. Housing and Economic Development Corporation, Case No. 05-00368-CV-W-GAF.

 

_________________________________________________

 

Approved as to form and legality:

 

_______________________________

Galen P. Beaufort

City Attorney