Concordia City Commission Moves Forward on Efforts to Develop Affordable Housing for Moderate-Income Families

The Concordia City Commission voted to authorize city staff to proceed with conversations with property owners regarding property acquisition requests, and to proceed with preparations necessary to secure funding for subdivision infrastructure development, including submittal of a Moderate Income Housing program grant application, during their regular meeting on Wednesday, August 17th.

Over the past year, city staff and CloudCorp have participated in conference calls and webinars, have visited with local realtors, contractors and employers, and have researched what other communities have done to address housing needs.  City staff and CloudCorp believe a lack of quality, affordable housing is widely recognized as one of the biggest barriers to growth and development, particularly in rural communities.

Earlier this month, a draft copy of a housing study and market analysis was presented by FIVE RULE Rural Planning of Kearney, Nebraska to the members of the Concordia City Commission and the CloudCorp Board of Directors.  The study found the city has a current shortage of homes valued at less than $50,000 and more than $100,000, and this shortage is most likely driving up the cost of units that are worth $50,000 to $100,000, thereby creating a situation where housing units are selling for much more than they are worth and raising the purchase price of all homes in Concordia.

Bobbi Pettit, founder of FIVE RULE Rural Planning, told the city commission on August 3rd that expanding the city's housing stock requires long term planning and a willingness to make capital investments, but also shared there are numerous shorter term opportunities for redevelopment that exist within the city's boundaries.

In a memorandum to the Concordia City Commission, City Manager Amy Lange said CloudCorp's Community Resources Committee met last week to discuss the summary findings of the housing study, including the immediate need for new moderate income housing.  Lange said the Community Resources Committee recommends proceeding with the establishment of new housing subdivisions within the city limits of Concordia, thereby creating space for up to 30 new housing units, and to apply for a Moderate Income Housing program grant to support these efforts.

The Kansas Housing Resources Corporation's Moderate Income Housing program serves the needs of moderate-income households that don't qualify for federal housing assistance.  Moderate Income Housing grants are awarded to cities and counties to develop multi-family rental units and single-family for-purchase homes in communities with populations fewer than 60,000 people.

This year, $5 million has been made available statewide to support either actual housing development, including acquisition of real property, new construction, modular or manufactured housing and/or rehabilitation of existing housing, or infrastructure in combination with actual housing development.  Previously, the Moderate Income Housing program had been funded at a rate of $2 million annually since its inception in 2012.

The Moderate Income Housing grant application, due September 30th, requires certain information including proof of site control, proper zoning or zoning application, sketch plan, proof of funding sources in addition to a narrative demonstrating need.  Additional consideration is given to applications who choose to combine the use of a Rural Housing Incentive District with the Moderate Income Housing grant, for which additional steps are required.

The Rural Housing Incentive District Act provides cities a program to assist developers to build housing in rural communities by assisting in the financing of public improvements.  The Rural Housing Incentive District captures the incremental increase in real property taxes created by a housing development project for up to 25 years.

The Rural Housing Incentive District is authorized for any city in Kansas with a population less than 60,000 in a county with a population of less than 80,000.  In order to take advantage of the incentive, property must be within a redevelopment district.

Lange requested the commission give city staff permission to proceed with conversations with current property owners regarding property acquisition requests or donation of land for moderate income housing development, and to proceed with preparations necessary to secure funding for subdivision infrastructure development, which was approved.

In the only other action of the meeting, the commission approved repairs of the Broadway Plaza video screen from Apple One Media at a cost of $10,692.

On April 29th, a significant hail storm came through Concordia that caused damage to the screen.  The screen is made up of numerous square modules that require repair.

Concordia City Clerk Stacey Smith says this has been submitted to insurance for a claim.  The city will receive $8,192 after the $2,500 deductible.