committeesub
[COMMITTEE SUBSTITUTE FOR] ORDINANCE NO. 260634
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Sponsor: Mayor Quinton Lucas
COMMITTEE SUBSTITUTE
Accepting recommendations of the Housing Trust Fund Board; reducing an existing appropriation by $16,470,876.00 and appropriating $16,470,876.00 from the previously appropriated fund balance in the Housing Trust Fund; authorizing the Manager of Procurement Services to execute various funding agreements in accordance with this Ordinance; and authorizing the Director of the Housing and Community Development Department to expend up to $16,470,876.00 from funds appropriated in the Housing Trust Fund.
Advance and Do Pass as a Committee Substitute
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WHEREAS, on December 20, 2018, by Committee Substitute for Ordinance No. 180719, the City Council established the Housing Trust Fund to implement neighborhood revitalization, housing development, and preservation projects proposed by the City and in coordination with private developers that are undertaking projects in alignment with the City's Housing policy; and
WHEREAS, on November 4, 2021, by Committee Substitute for Ordinance No. 210873, As Amended, the City Council established the Housing Trust Fund Board to review Housing Trust Fund applications, with reporting requirements, funding allocation direction and prioritization of fund use; and
WHEREAS, Section 2-1693 (C)(3) sets forth following funding minimum allocations in determining awards to applicants:
a) A minimum of 20% of awards shall be made for Affordable Rental Preservation, at or below 30% AMFI;
b) A minimum of 20% of awards shall be made for Affordable Rental Creation, at or below AMFI;
c) A minimum of 10% of awards shall be made to create/support Dedicated Transitional Housing and Permanent Supportive Housing for the Homeless; and
d) A minimum of 10% of awards shall be made for Homeownership support programs and/or retention programs for residents at income levels below 60% AMFI. Programs that provide a path for resident tenants to transition to ownership shall be eligible; and
WHEREAS, Section 2-1693 (C) (4) sets forth the following maximum awards to each project based on percent of total development costs:
a) The maximum award given to for-profit developers is 20% of the development costs (loan) or 10% for a grant.
b) The maximum award given to non-profit developers is 30% of the development cost (loan) or 15% for a grant; and
WHEREAS, the Housing Trust Fund Advisory Board was to prioritize projects that maximize:
a) Total number of months of affordability, with longer periods of guaranteed affordability given higher priority;
b) Affordability threshold, with higher priority for projects that serve very low income 50% of Area Median Family Income (AMFI) and extremely low income (30% of Area Median Family Income) households;
c) Number of affordable units created per HTF dollar invested;
d) Projects which include a higher percentage of units suitable for families (2 or more bedrooms); and
e) Social housing opportunities such as cooperatives, community land trusts, and other options that allow for long-term community affordability; and
WHEREAS, Ordinance No. 240413, passed April 25, 2024, amended Section 2-1693 of like title to provide the Housing Trust Fund Board more flexibility in scheduling proposal rounds and allocating funds by certain categories, allowing the Board to deviate from the funding minimum allocations; and
WHEREAS, in addition to the priorities named in the ordinance, the Housing Trust Fund Advisory Board considered project readiness, creativity, capacity of applicant, financial feasibility, household income requirements, affordability, and the overall impact on the housing stock in their review of applications; and
WHEREAS, the Low-Income Housing Tax Credit (LIHTC) is administered by the Missouri Housing Development Commission, which issues tax credits to enable developers to secure financing for the acquisition, rehabilitation, or new construction of affordable rental housing; and
WHEREAS, the Housing Trust Fund Board has recommended conditional funding awards for certain projects contingent upon the receipt of additional financing, including Low-Income Housing Tax Credits (LIHTC) by a specific time; and
WHEREAS, the Historic Preservation Tax Credit (HTC) program is administered by the Missouri Department of Economic Development, which issues tax credits to enable developers to preserve structures on the historic registry; and
WHEREAS, the Housing Trust Fund Board has recommended conditional funding awards for certain projects upon the receipt of additional financing, including HTC by a specific time; and
WHEREAS, conditioning a Housing Trust Fund award on the receipt of tax credits by a specific time provides the developer sufficient time to secure their credits while ensuring the City maintains prudent oversight of public funds; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That the recommendations of the Housing Trust Fund Board that was issued on June 29, 2026, are hereby accepted.
Section 2. That the sum of $16,470,876.00 is hereby reduced in the following account of the Housing Trust Fund:
27-2490-552045-B Housing Trust Fund-Bonds $13,727,357.00
27-2490-555996-B-55BUDGET Budget Integration Account $2,743,519.00
$16,470,876.00
Section 3. That the amount of $16,470,876.00 is hereby appropriated from the unappropriated balance of the Kansas City Housing Trust Fund, Fund No. 2490, to the following accounts:
27-2490-555996-619080-55HAMPTONHTF Hampton Cove $1,100,000
27-2490-555996-619080-55HOPECTRHTF Hope Care Center $1,800,000
27-2490-555996-619080-5519VINEHTF One Nine Vine $2,000,000
27-2490-555996-619080-55909WYDHTF 909 Wyandotte $2,000,000
27-2490-555996-619080-55INDMDHTF Indian Mound $587,801
27-2490-555996-619080-55LINWOODHTF Linwood Senior Comm $900,000
27-2490-555996-619080-55BELMONTHTF The Belmont $1,600,000
27-2490-555996-619080-55SKCWORKHTF SKC Workforce & Trans H. $240,000
27-2490-555996-619080-55URBAN38HTF Urban 38 $800,000
27-2490-555996-619080-55GRANDHTF Grand on Beacon Hill $1,000,000
27-2490-555996-619080-55RESTARTHTF Family Lodge Expansion $837,750
27-2490-555996-619080-55SYNERGYHTF Youth Haven $1,985,917
27-2490-555996-619080-55HEROESHTF Heroes Home Gate $457,408
27-2490-555996-619080-55AMETHTF Prev. Displacement $300,000
27-2490-555996-619080-55OPBRKHTF Operation Brk Harrison $700,000
27-2490-555996-619080-55BRIDGINGHTF Bridging the Gap Housing $162,000
Section 4. That the Director of the Housing and Community Development Department is hereby authorized to expend up to $16,470,876.00 from funds previously appropriated in the Housing Trust Fund, Fund No. 2490 and to negotiate and execute funding agreements with following contractors or other affiliated entities.
|
Developer |
Project Name |
Award Amount |
Budget Account |
|
Oakland Group |
Hampton Cove Senior Living |
$1,100,000.00 |
2490-555996-B-55HAMPTONHTF |
|
Hope Care Center, Inc. |
Hope Care Center |
$1,800,000.00 |
2490-555996-B-55HOPECTRHTF |
|
Vine Parking, LLC |
One Nine Vine Phase II |
$2,000,000.00 |
2490-555996-B-5519VINEHTF |
|
DW Development Group |
909 Wyandotte |
$2,000,000.00 |
2490-555996-B-55909WYDHTF |
|
Just Action Development Co. |
Indian Mound Affordable Duplex Infill |
$587,801.00 |
2490-555996-B-55INDMDHTF |
|
Riverstone Platform Partners |
Linwood Senior Commons |
$900,000.00 |
2490-555996-B- 55LINWOODHTF |
|
Linwood Equity Investment LLC |
The Belmont |
$1,600,000.00 |
2490-555996-B-55BELMONTHTF |
|
Curry Development Group LLC |
South Kansas City Workforce and Transitional Housing Development |
$240,000.00 |
2490-555996-B-55SKCWORKHTF |
|
Community Builders of Kansas City |
Urban 38 |
$800,000.00 |
2490-555996-B-55URBAN38HTF |
|
Grand Paseo, LP |
The Grand on Beacon Hill |
$1,000,000.00 |
2490-555996-B-55GRANDHTF |
|
ReStart, Inc. |
Family Lodge Expansion Project |
$837,750.00 |
2490-555996-B-55RESTARTHTF |
|
Synergy Services |
Youth Haven |
$1,985,917.00 |
2490-555996-B-55SYNERGYHTF |
|
Footprints, Inc. |
Heroes Home Gate Supportive Stacked Duplex |
$457,408.00 |
2490-555996-B-55HEROESHTF |
|
Amethyst Place |
Preventing Displacement Through Ownership |
$300,000.00 |
2490-555996-B-55AMETHTF |
|
Operation Breakthrough |
Operation Breakthrough - Harrison Project |
$700,000.00 |
2490-555996-B-55OPBRKHTF |
|
Bridging the Gap |
Place Based Housing Preservation |
$162,000.00 |
2490-555996-B-55BRIDGINGHTF |
Section 5. That the awards for Hampton Cove Senior Living, Hope Care Center, One Nine Vine Phase II, 909 Wyandotte, Linwood Senior Commons, are conditioned upon the project’s receipt of a LIHTC award before December 31, 2026.
Section 6. That if the projects mentioned in Section 4 are not awarded LIHTC before December 31, 2026, the funds appropriated in Section 3 to these projects shall be appropriated back to the Kansas City Housing Trust Fund Balance.
Section 7. That the award to the Belmont project is conditioned upon the project’s execution of a written agreement for the value of a HTC award before December 31, 2027.
Section 8. That if the Belmont project does not secure the value of a HTC award before December 31, 2027, the funds appropriated in Section 3 to these projects shall be appropriated back to the Kansas City Housing Trust Fund Balance.
Section 9. That all Housing Trust Fund contracts are to include a requirement that projects must start within 12 months of contract execution, or else the funds must be returned to the City to be used in future Housing Trust Fund allocations.
Section 10. That the Manager of Procurement Services is authorized to execute Funding Agreements for Projects set forth in Section 3 as negotiated by the Director of the Housing and Community Development Department that complies, when applicable, with the Missouri Prevailing Wage Law and any applicable provisions of the City’s Contracting Program Requirements set out in Article IV, Chapter 3, Code of Ordinances, including, but not limited to, the provisions concerning affirmative action, Minority and Women’s Business Enterprises and the Small Local Business Enterprises program. Further, the Funding Agreement shall prohibit the use of any HTF funding for the repayment of any preexisting debt or repayment for services or work performed prior to the execution of the funding agreement and must require the disclosure of total funding sources and projected costs and periodic reporting of project progresses.
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I hereby certify that there is a balance, otherwise unencumbered, to the credit of the appropriation to which the foregoing expenditure is to be charged, and a cash balance, otherwise unencumbered, in the treasury, to the credit of the fund from which payment is to be made, each sufficient to meet the obligation hereby incurred.
______________________________
Brenton Siverly
Director of Finance
Approved as to form:
______________________________
Joseph A. Guarino
Senior Associate City Attorney