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