ORDINANCE NO. 090493
Authorizing the Acting Director
or the Director of Housing and Community Development and/or the court-appointed
Receiver of the Housing and Economic Development Financial Corporation
(HEDFC), pursuant to approval by the Federal Court, to accelerate the
forgiveness of all single-family loans currently in HEDFCs portfolio that do
not have a principal and/or interest payment requirement and have satisfied the
U.S. Department of Housing and Urban Developments affordability period and, if
applicable, the tax credit forgiveness schedule.
WHEREAS, prior
to 2005 the City provided funding received from the U.S. Department of Housing
and Urban Development (HUD) to the Housing and Economic Development Financial
Corporation (HEDFC) through yearly contracts for the purpose of administering
housing and community development programs for the City; and
WHEREAS, as part
of said funding, HEDFC created and administered a loan portfolio which consists
of single-family and multi-family loans; and
WHEREAS, the
City has prepared an Asset Transfer and Capacity Building Plan (Plan) for
submission to the U.S. District Court for the Western District of Missouri in
the case styled City of Kansas City, Missouri v. HEDFC, Case No.
4:05-CV-00368-GAF, as part of its request for transfer of the assets of HEDFC
to the City; and
WHEREAS, said
Plan establishes that the City will create a forgivable loan policy that
provides a means to forgive designated loans in the loan portfolio which have
satisfied HUDs affordability period; and
WHEREAS, the
Plan recommends that the City be authorized to forgive all single-family loans
in its portfolio that do not have a principal and/or interest payment
requirement and have satisfied the HUD affordability period and, if applicable,
the tax credit forgiveness schedule; and
WHEREAS, the
City desires to accelerate the forgiveness of all single-family loans in
HEDFCs loan portfolio that do not have a principal and/or interest payment
requirement and have satisfied the HUD affordability period, and, if
applicable, the tax credit forgiveness schedule; and
WHEREAS, the
loan portfolio currently administered by HEDFC consists of HOME, HOPE 3, UDAG,
PIN, FLAME, CDBG and other second mortgage loans; and
WHEREAS, as the
loan portfolio is currently being administered by the Receiver for HEDFC and it
may be more efficient for said single-family loans to be forgiven prior to the
transfer of assets to the City, the Receiver is also authorized to forgive the
single-family loans as described herein, pursuant to approval by the Federal
Court in the above-referenced case; NOW, THEREFORE,
BE IT ORDAINED
BY THE COUNCIL OF KANSAS CITY:
Section 1. That
the Acting Director or the Director of Housing and Community Development and/or
the court-appointed Receiver for the Housing and Economic Development Financial
Corporation (HEDFC) in the case styled City of Kansas City, Missouri v.
HEDFC, Case No. 4:05-CV-00368-GAF, pursuant to approval by the Federal
Court, are hereby authorized to accelerate forgiveness of any and all
single-family loans in the loan portfolio currently administered by HEDFC that
do not have a principal and/or interest payment requirement and have satisfied
the HUD affordability period and, if applicable, the tax credit forgiveness
schedule.
_____________________________________________
Approved
as to form and legality:
___________________________________
Nicole
Rowlette
Assistant City Attorney