News from City Hall
City Communications Office
City of Kansas City, Mo.
FOR IMMEDIATE RELEASE: Aug. 3, 2012
Early loan payoff provides $6.5 million benefit to City
The City of Kansas City, Mo., has announced that approximately $6.5 million will be realized through the early repayment of a loan associated with the Beacon Hill Development Project. The repayment will be made through funds held by a court-appointed receiver of the former Housing and Economic Development Financial Corporation.
“Paying off this debt is a significant accomplishment as it saves the City money while freeing up Community Development Block Grant funds that otherwise would be used to make annual payments for debt reduction,” said John Wood, assistant city manager and director of the Neighborhoods and Housing Services Department. “We now have the flexibility to direct CDBG funds to other viable activities that will strengthen the community.”
The retired loan was provided by the United States Department of Housing and Urban Development as a Section 108 loan. The funds were used to acquire, relocate and demolish deteriorated housing through a contract between the City and the former Housing Economic Development and Finance Corporation.
Section 108 is a HUD-approved financing tool intended for major redevelopment projects. The City has used this financing method for projects, such as Quality Hill, Midtown Marketplace (COSTCO/Home Depot), Swope Health and Day Care Center, Maple Woods Community College Expansion at 152 Highway & Maplewoods Parkway, 18th and Vine District, and several multi-family housing projects.
Media inquiries about this issue should be directed to Stuart Bullington, Neighborhoods and Housing Services Department, at 816-513-3001.