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Legislation #: 090493 Introduction Date: 6/4/2009
Type: Ordinance Effective Date: 6/28/2009
Sponsor: None
Title: 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 HEDFC’s portfolio that do not have a principal and/or interest payment requirement and have satisfied the U.S. Department of Housing and Urban Development’s affordability period and, if applicable, the tax credit forgiveness schedule.

Legislation History
DateMinutesDescription
6/3/2009 Filed by the Clerk's office
6/4/2009 Referred to Housing Committee
6/10/2009 Do Pass
6/11/2009 Assigned to Third Read Calendar
6/18/2009 Passed

View Attachments
FileTypeSizeDescription
090493.pdf Authenticated 104K AUTHENTICATED
hedfc exhibit.pdf Exhibit 129K HEDFC EXHIBIT
090493revised factsheet.pdf Fact Sheet 94K revised fact sheet
Fact Sheet Loan Forgiveness.xls Fact Sheet 101K fact sheet

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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