By ALICIA FEYERHERM
Tiger Media Network
Hays City Commission met on Thursday and approved a Resolution of Support for a Medium Income Housing (MIH) Grant for DP Management.
According to Management Analyst Jarrod Kuckelman, the MIH Grant Program is administered by the Kansas Housing Resources Corporation (KHRC) and is intended to serve individuals who don’t meet the requirements for federal housing assistance.
Only cities with populations under 60,000 are eligible for grants and a resolution from a governing body is required to show community support. If approved, quarterly reports and income tracking would be required. The maximum award amount is $650,000.
Justin Pregont previously used this program for the Frontier Apartments in Hays.
The proposal includes a developer partnership with DP Management and RMDX Development. The group currently has a purchase right to property for the property at the southeast corner of 22nd St. and Wheatland Avenue.
The complex would include 136 apartment units with one, two and three-bedroom options. While the units would look the same, 88 units would be low-income housing and the other 48 units would be market-rate housing.
Possible onsite amenities include a fitness center, pool, garage parking and clubhouse.
The developer is partnering with Ellis County for support on the Low Income units. The MIH grant that the City is being asked to support would go toward the market-rate housing units.
Commissioner Shaun Musil said he was contacted by someone asking why the Commission would allow construction in that area.
“The key thing is it’s zoned for that and we can’t really stop someone if it’s zoned correctly,” Musil said.
Musil noted the need for housing in the area and that the City’s involvement in the project is minimal.
“It’s just a letter of support,” Musil said. “That’s all the City would be doing.”
Mayor Sandy Jacobs said she received calls from individuals worried that the low-income side would not be as nice as the market-rate housing. Jacobs said they will be unkempt the same because for 15 years, the developer will be receiving subsidies on that side. After 15 years, the developer can raise rent to whatever they want.
“I think it’s a really valuable piece of investment in our community,” Jacobs said.
Vice Mayor Mason Ruder said during the work session last week, the developer said that if they do not receive the MIH grant, they will not proceed with the project.
“They can always change their mind, but that’s the way it is today,” Jacobs said.
Director of Recruitment and Retention at Grow Hays David Clingan said that in western Kansas, MIH grants are often submitted several times before they are approved.
“They are anticipating that might be a possibility, but their goal is to still find a financial path that gets them into trying to break ground and start that process in October of next year,” Clingan said. “It’d be nice if this worked the first time, but they’d probably reapply and try to continue in that same direction.”
The resolution passed 5-0.
Other items from the meeting:
- A public hearing was held for the establishment of Community Improvement District (CID) for the Cervs remodeling project
- An ordinance was approved for a 1.5% CID Sales Tax for the Cervs project
- A design-build agreement was approved for the first phase of the Police and Municipal Court Facility
The next City Commission meeting will be at 4:00 p.m. on December 12 at City Hall.
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