MODERATE INCOME HOUSING INCENTIVES

Housing is a high priority in the City of Ottawa and the City is seeking developers, contractors, and investors to collaborate on an application to the Kansas Housing Resources Corporation (KHRC) for the Moderate Income Housing (MIH) grant and other potential resources to assist in the development of housing in Ottawa. The City of Ottawa may choose to contribute its resources as leverage to MIH and other state incentives.

Governor Laura Kelly capped off the legislative session by signing two major bipartisan housing bills into law, representing a significant expansion of resources to support statewide housing development. The measures represent a combined $62 million in new housing resources, as well as initiatives to incentivize housing development. The City of Ottawa intends to sponsor an application for funding in the September 2022 round of the Moderate Income Housing (MIH) program and planning efforts are under way. Moderate income households are those having incomes within the range of 60 to 150 percent of median household income as defined by the Federal Department of Housing and Urban Development (HUD) FY 2022 Income Limits. The MIH program provides valuable gap financing to help make these projects viable.

You will find more information about the MIH program below, including KHRC’s Request for Proposals and application requirements:

https://kshousingcorp.org/housing-partners/moderate-income-housing/

Project Qualifications

Qualifying partners and projects must have well developed plans for new housing on a site in Ottawa. The Ottawa City Commission’s current priority is to support the construction of residential duplexes and multi-family residential housing. However, all types of projects will be considered based on their viability and capacity to provide workforce housing. Strong consideration will be given to projects and developers with these characteristics:

• Projects that include multi-family residential housing, which may include duplexes and apartments

• Developers with substantial prior experience in residential development and construction

• Project plans with sufficiently detailed cost, revenue, and funding information necessary for a complete MIH grant application

• Projects that can be completed within 18 months from the date the grant is awarded. The first round of grant awards is anticipated in November 2022.

• Projects meeting other policy objectives, including the redevelopment and adaptive reuse of existing buildings and properties.

To partner in a successful application to KRHC, the developer must be prepared to provide project plans, share financial information relating to the project and its partners, and meet all local and state building/fire/ADA codes and/or requirements. KHRC can provide valuable gap financing, but safeguards to ensure compliance and oversight. Potential project partners must be prepared to be transparent with the City of Ottawa as the project sponsor and KHRC as a project partner.

Submittal Requirements

For the project to be considered in the City of Ottawa’s MIH grant application, please provide a written description to include:

• Name and background of developer

• Qualifications of Project Team

• Proposed project (duplex, tri-plex, quad-plex, apartment building, single family; and quantity of dwellings)

• Total development costs, including a cost breakdown of land, site improvements, public infrastructure, and buildings

• Sources of project funds and revenues

• Explanation of need for gap funding

• Time frame to complete the project

Please also provide project plans including:

• Site Plan, including at a minimum the placement of buildings, parking and circulation

• Floor plans preferred; written description of floor plans is acceptable

• Exterior building elevations preferred where applicable; renderings or written description exterior building design are acceptable

Plans at a conceptual level of detail are acceptable at time of submittal to City of Ottawa, but a higher level of detail may be required at time of consideration by the Ottawa City Commission.

To request information or to submit project proposals, please contact Mike Hall, Community Development Director, City of Ottawa, at mhall@ottawaks.gov or 785-229-3620.

The City of Ottawa has received project proposals for the first round MIH application. Additional rounds of MIH applications are expected to be announced in November 2022 and March 2023.