ORDINANCE NO. 080889
Authorizing the Director
of City Development, on behalf of the City, to release a Second Deed of Trust
and Security Agreement which secures a $750,000 loan for the Quality Heights I
affordable housing project contingent upon the receipt of 9% Low-Income Housing
Tax Credits for a redevelopment project proposal by Affordable Housing Kansas
City, Inc. (AHKC) in partnership with Blue Hills Community Services and upon
the completion of the anticipated renovations of the units, exterior and
grounds within the project.
WHEREAS,
Quality Heights is a 20 year old residential community that includes 40 single
family units between 24th St. on the north, 25th St. on the south, Michigan
Ave. 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 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 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 LIHTC compliance period in 2003; and
WHEREAS,
Blue Hills Community Services replaced the Kansas City Neighborhood Alliance as
the property manager beginning in April of 2007; and
WHEREAS, since
April of 2007, the vacancy rate has been reduced from 30% to 0% with a waiting
list, but nine units require substantial renovations to become inhabitable
again; and
WHEREAS,
Affordable Housing of Kansas City, Inc. (AHKC), a non-profit affiliate of the
Housing Authority of Kansas City, Missouri, in partnership with Blue Hills
Community Services and the Kansas City Equity Fund is proposing to completely
renovate the 40 units, exteriors and grounds to be now known as Quality Homes
utilizing 9% low-income housing tax credits; and
WHEREAS,
Quality Homes will use Energy Star criteria to implement standards that support
the economic and environmental impact of building "green" and low
energy cost communities; and
WHEREAS, the
proposed Quality Homes redevelopment is to include a 1,700 square foot
community building that will include a computer room and space for a full-time
supportive services coordinator to provide education, transportation, and
referrals to other social services needed by residents; 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 City Development is authorized to execute a Deed of Release,on
behalf of the City, to release a Second Deed of Trust and Security Agreement
which secures a $750,000 loan to Quality Heights Associates, L.P. or its
successors for the Quality Heights 1 project.
Section 2.
That this release shall be fully 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.
________________________________________________
Approved
as to form and legality:
________________________________
Nicole
Rowlette
Assistant
City Attorney