MEMORANDUM

TO:              David L. Corliss, City Manager

THRU:                    Scott McCullough, Director, Planning and Development Services

FROM:                    Margene K. Swarts, Assistant Director, Development Services

SUBJECT:     Resolution Supporting a Housing Tax Credit Application

DATE:                   January 13, 2009

          Tenants to Homeowners, Inc., the City’s certified non-profit affordable housing provider, is applying to the Kansas Housing Resources Corporation (KHRC) for the Low Income Housing Tax Credit Program for the development of affordable rental housing located at two sites.  One site has three four-plexes at 2218, 2222, and 2226 Yale Road and the other site has two flour-plexes at 1401 and 1405 E. 21^st Terrace.  According to TTH, the units will remain low income with priority given to persons with a physical disability. 

These living facilities are currently operating in these locations but are in need of rehabilitation and the cash flow for rehabilitation is not available.  The tax credits will be used to finance the acquisition and rehabilitation of the facilities.  The ten one-bedroom and 10 two-bedroom apartments will be updated with new kitchens, maintenance of full accessibility, and increased energy-efficiency.   No existing tenants will be displaced.  The facilities will be managed by Tenants to Homeowners, Inc. during the 15 year tax credit compliance period.  After that TTH receives ownership of the property and will keep it in the Land Trust Program, where it will remain permanently affordable for persons with a physical disability.

          KHRC is required by the Tax Reform Act of 1986, as amended, to notify the chief executive officer of the local jurisdiction where the proposed development is located. For their records, KHRC requires a Resolution from the local government stating their approval and support for all such proposed developments using tax credits. 

The Community Development Advisory Committee (CDAC) met on January 8, 2009 to review the proposed project.  After a presentation by Rebecca Buford, Executive Director of TTH, and a brief discussion, the Committee voted to recommend approval of the application and forward it to the City Commission for approval of the Resolution. 

The City Clerk will have the Resolution for the Mayor's signature.  If you have further questions, please let me know.