6.5 Support Low Income Apts CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
11/6/00 4:00 P.M.
AGENDA SECTION: ORIGINATING DEPARTMENT: ~ APPROVED FOR
NO. 6 PLANNING & DEVELOPMENT AGENDA:
ITEM DEAN ANDREW
NO.
5 BY: ~)A BY: ~
Item
Consider approval of a resolution of support for the redevelopment of the UptOwn Apartments, a
proposed Iow-income apartment complex to be built at 801 N. Santa Fe.
Background
Home Buyer's, Inc. of Colorado Springs, Colorado is in the process of preparing an application to
the Kansas Department of Commerce and Housing to obtain financial assistance from the State
Housing Trust Fund for a proposed rehabilitation of the Uptown Apartment property at 801 N. Santa
Fe. The State Housing Trust Fund (SHTF) was established in 1991 to support housing programs
and projects that primarily serve Iow and moderate income families and persons with disabilities.
The application is for construction of 36 units of rental housing at 801 N. Santa Fe, the former
Uptown Motel. This proposed project appears to fit within the SHTF program guidelines. The SHTF
provides gap financing for housing programs and projects to finance the difference between the
amount of private funds available and the total project cost.
The City Commission previously approved a resolution of support for this project in March of this
year in support of an application for federal income tax credits. Tax credits for this project were not
awarded by the Kansas Department of Commerce and Housing in this year's application round.
KDOC&H requires a separate resolution supporting the submission of a State Housing Trust Fund
application.
In March, City staff expressed concern that the concept plan that has been submitted by the
applicant does not conform with some City policies and codes. The resolution that has been
prepared for the City Commission consideration takes those concerns into account by qualifying
support for the project to a plan that meets all local codes and ordinances.
Recommended Action
Consider approval of the attached resolution of support.
Encl: Letter from Randall Holm, Project Manager
Concept Plan
Resolution #00 - 566 o
cc: Randall Holm
John Finger
10-6-00
Salina City Commission
300 W Ash
Salina, Ks. 67401
Dear Commissioners,
I am contacting you today to ask for your additional support on behalf of John Finger,
House Buyers, Inc., in his efforts to make a major improvement in North Salina at the Uptown
Apartment complex located at 801 N. Sante Fe. Mr. Finger is in the process of making some
major changes and improvements at that location and his ability to succeed in those efforts is
subject to applications for and receiving support thru several different types of programs that
provide for special financing and or funding. This is necessary due to the high costs of
rehabilitation and new construction causing the investment requirements to finish such a project,
without that type of help, causing rent to have to be excessively high. The Salina City
Commission has in the past been very supportive of Mr. Finger's efforts by your passing of
Resolution # 00-5582 supporting our application for Tax Credit Increment financing on the
project. As with most Federal programs we needed your support for that to have any hope of
getting that assistance. We are still in the application process on that and have received
indications of a strong likelihood of our receiving some assistance from that program. Thank You
for your support for us in our endeavors to secure that assistance.
We were recently made aware of other potential financial assistance by city staff. That
potential assistance is thru the State Housing Trust Fund (SHTF) "Grant Program", and it can
also possibly provide us with some of the additional assistance needed to make this project a
viable and economically feasible project. This Grant program is ~apidly approaching the grant
application deadline so I am writing you asking for your quick support of our project to help us
meet the requirements of their application. I am asking for you to pass a second resolution
indicating your support of our application for assistance under that Grant Program! We need
these kinds of assistance if we are going to be able to complete the 36 unit project we have
started; and then be able to offer those units at rental rates that are affordable for the elderly, the
disabled, and the low to moderate income individuals of Salina. All of the assistance programs
that we are investigating have strongly structured program requirements that will require us to
rent the majority of our units to low to moderate income households so we will be filling a big
void in the need for affordable quality housing for north Salina and all of Salina with this project.
Mr. Finger has continued his efforts of rehabilitation and improvement of the Uptown
Apartments in spite of the fact that to date he has received no financial assistance to do so from
any of the programs we are attempting to participate in. We have gutted most of the central
building complex and are rapidly approaching the start of the finish work on 3 of the 4 central
apartments. Mr. Finger has invested substantial sums of monies to improve the utilities for the
entire project and in his other rehabilitation efforts of those 3 apartments. Those units will shortly
have been completely gutted and had all new mechanicals (plumbing, heat & air, and electrical),
wall & floor surfaces, siding, windows, doors, and cabinetry installed. They will in essence be
new units. We hope to have tho~e 3 units ready for occupancy before the first of the year.
Page 1 of 2
We are also hoping to possibly be started on the 4th unit by early next year at the latest.. I want
to state again that House Buyer's Inc. has proceeded in these efforts without any guarantees of
any of the programs we are applying for providing us with any assistance. I feel Mr. Finger,
thru House Buyer's, Inc., has demonstrated his strong commitment to providing affordable
quality housing in north Salina with that willingness to make those commitments ahead of any
funding guarantees from any of the programs mentioned. But those commitments are necessary
before we can start demolition of the rest of the other badily deteriated units and start
construction of the new units.
I am including copies with this letter of the plans 8: most of the paperwork that we
submitted earlier this year when we requested your support for Tax Credit Increment Financing to
refresh your memory as to the quality project House Buyer's, Inc. is planning to complete at 801
N. Sante Fe, Salina, Ks. Mr. Finger is simply asking for your additional support and help in
making this project work, by your indicating your STRONG SUPPORT for his project in his
applications to other Government agencies and programs for funding and financing. This support
from you does not obligate the City of Salina in any way to have any potential of any real costs.
It simply indicates that you as the Governing Body of the City of Salina, supports the
development of quality affordable housing at our location ! If you have any questions feel free to
call me at any time of the day or night at 825-1807 or 822-6478. ,
Thank you very much for your continued support
S i~y~~
House Buyer's, Inc.
C.O.:
Holm Town Realty
848 Custer
Salina, Ks. 67401
Page 2 of 2
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