RESOLUTION NO. 260362

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Sponsor: Councilmember Melissa Patterson Hazley

RESOLUTION - Directing the City Manager to implement a pilot program for the purpose of securing financing through the U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program for eligible economic development and community development projects for the express purpose of removing chronic and long-term slum and blight and that compliment adopted policy such as the vacant land activation initiative; authorizing the pledge of some future Community Development Block Grant (CDBG) funds as security; and recommending requirements and a process to the City Council.

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WHEREAS, the City of Kansas City, Missouri is an entitlement jurisdiction under the federal Community Development Block Grant (CDBG) program administered by the U.S. Department of Housing and Urban Development (HUD); and

WHEREAS, Section 108 of the Housing and Community Development Act of 1974, as amended, allows eligible jurisdictions to obtain federally guaranteed loans by pledging future CDBG funding, thereby providing communities with a powerful source of financing for economic development, public facilities, housing rehabilitation, and other CDBG-eligible activities; and

WHEREAS, the HUD Section 108 Loan Guarantee Program enables local governments to undertake large-scale, transformative projects that would otherwise would not be feasible through annual CDBG allocations alone, while maintaining long-term community benefit; and

WHEREAS, the use of Section 108 financing may support economic development, with an emphasis on city-owned parcels zoned as commercial, or housing with vacancy rates of at least 10 years to promote rapid neighborhood revitalization, job creation, and the development of property to be made available for purchase or creation of quasi-public facilities that benefit a mix -of -income -persons, and remove slum and blight, consi...

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