By Deb Hadacheck
Telescope News
Republic County Economic Development hopes to nail down the county’s share of the $62 million Kansas allocated to help communities develop moderate income housing.
The RCED initial goal, for an application due September 30, is to build up to 11 three-bedroom, two bath homes in Belleville, and to partner with a building trades class at Pike Valley High School to help build construction components for structures in other areas of the county.
Realistically, with an 18-month deadline to get homes completed, Jenny Russell, RCED director, hopes two can be funded and built in this initial offering.
“I’ guessing the state will be overrun with applications,” she said. “All of the state has basically the same need for housing.”
Depending on the amount of money awarded, the state funds could go towards construction, purchasing lots or infrastructure.
Republic County will score above the competition in some areas of the applications she said. The county contains some of the state’s oldest housing stock, and major employers have demonstrated the need for more housing to accommodate its workforce by turning to options like motels or renting apartments in Munden and Republic.
“We have a lot of Reinke workers who live outside of the county,” she said.
This week, Russell received confirmation from Republic County Commissioners to commit $60,000 of American Rescue Plan Act funds towards the grant application. The City of Belleville recently set aside $40,000 of its ARPA funds for housing.
Two general contractors have been identified to oversee the construction, she said. Republic County USD 109 does not have a building trades program, so the plan to involve students in construction will take place only at Pike Valley, she said.
Russell said the program targets individuals who earn moderate incomes: $38,360 for one person, and $43,850 for two people. A challenge is to build affordable homes for individuals in that income range, she said.
“We’ve had programs for low-income individuals, but nothing much in the moderate-income market,” she said.
Republic County has distributed ARPA funds for other projects in recent weeks, but still has $464,000 remaining, Republic County Clerk Kathleen Marsicek said Monday morning.
Commissioner Doug Garman said he experienced the county’s housing issue firsthand when he hired a farm employee and struggle to find a place for the employee to live.
“It’s a terrible problem,” agreed Commissioner Edwin Splichal.
RCED has helped develop other housing programs in recent years. In partnership with the Dane Hansen Foundation, funds are available to paint existing homes, assistance to demolish an existing structure, or the help “empty nesters” cover the cost to move or sell property.
$2 to $62 Million
Previously Kansas only funded the Moderate Income Housing program at a level of $2 million a year.
“We’ve long known that Kansas has a shortage of quality, affordable housing, but the COVID pandemic turned our state’s housing problem into a crisis,” said Ryan Vincent, director of the Kansas Housing Resource Corporation. “Our 2021 statewide housing needs assessment – the first undertaken in nearly 30 years – illustrated the need for more quality, affordable housing in all regions of the state.”
The legislation passed by the state this year also:
-Designated $20 million from the State General Fund for fiscal year 2023 to the State Housing Trust Fund to establish a Rural Housing Revolving Loan Program to provide loans or grants to rural communities for moderate and low-income housing development or related infrastructure.
-Provides $20 million in ARPA funds for the state’s MIH program, to be awarded to cities and counties to develop multi-family rental units and single-family for-purchase homes in communities with populations less than 60,000.
-Establishes the Kansas Affordable Housing Tax Credit Act, a state tax credit offered in addition to the federal Low Income Housing Tax Credit, to incentivize affordable housing development (SB369).
-Establishes the Kansas Rural Home Loan Guarantee Act allowing KHRC to provide loan guarantees to help address the difference between the cost of construction and the appraised value of single-family homes in counties with populations of less than 10,000.
