City of Lawrence
Planning and Development Services Department
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TO: |
Diane Stoddard, Interim City Manager |
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FROM: |
Danelle Dresslar, Community Development Manager, Planning and Development Services |
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CC: |
Scott McCullough, Director, Planning and Development Services |
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DATE: |
October 28, 2015 |
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RE: |
Neighborhood Stabilization Program (NSP1) Additional Funding Grant Award |
Background:
In April of 2009, the City received $562,134 from the State of Kansas under the Neighborhood Stabilization Program (NSP1) grant. The City partnered with Tenants to Homeowners, Inc. for this grant. The original allocation was utilized for the redevelopment of vacant property in the 1100 block of Rhode Island for the “Rhode Island Roost Rentals”; five units of rental housing for low and moderate income tenants. This project was completed in August of 2010 and the units were subsequently rented to income eligible tenants. The Rhode Island Roost project won a Best Practice award from the United States Department of Housing and Urban Development in 2011.
By design, the NSP1 program had the ability to earn Program Income that could be reallocated to grantees that were able to demonstrate proven administrative capacity and had additional project needs. In December of 2010 staff was notified that additional funds were available through a competitive grant application process for NSP1 Program Income. The City submitted an application and was subsequently approved in June of 2011 in the amount of $475,000. This phase of the funding was also a partnership with Tenants to Homeowners, Inc., and went to a redevelopment project at 2123 Rhode Island, as well as to the purchase and subsequent demolition of a property at 828 Elm. After demolition of the 828 Elm structure, the lot was re-platted to provide the ability for four new units to be redeveloped on the lot, and three of these units were developed using this second allocation. Construction was completed on all aspects of the additional funding in February of 2013. The Rhode Island unit and the three Elm units were all rented to income eligible tenants.
In May of 2013, the City again applied to the State of Kansas for another round of additional funding under NSP1 Program Income. This additional funding in the amount of $75,250 was approved by the State in September of 2013 and was utilized by Tenants to Homeowners, Inc. to construct the fourth and final unit at the original 828 Elm location. This unit was rented to an income eligible tenant. This project was completed in 2014.
In October of 2015, staff was notified by the State that there were additional NSP Program Income funds, and the City was informed that the State would accept proposals for around $215,000. The attached form includes information on a proposal that the City and Tenants to Homeowners would like to submit to compete for this additional funding. This proposal is in line with the past projects completed with this grant, and continues the NSP partnership between the City and Tenants to Homeowners, which has successfully added infill development and rental units geared toward the low-moderate income tenant.
It should be noted that the NSP program has income limits, and no renter household can be over 80% of Area Median Income. The grant additionally requires that 25% of the units must be dedicated to those under 50% Area Median Income. All units developed by the City’s partnership with Tenants to Homeowners fulfill the proper requirements.
Including this potential award, the complete NSP1 allocation received by the City of Lawrence since 2009 totals $1,312,384.
Staff Recommendation:
Staff recommends directing Staff to apply for $215,000 in additional NSP funds from the State of Kansas to continue adding affordable housing for low-moderate income renters in Lawrence. Upon approval from the State of the award amount, the Mayor will be asked to sign an addendum to the original grant agreement.
Action:
Authorize the Mayor to sign the Request for Neighborhood Stabilization Program (NSP) Income Funds.