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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 65'-0' 75'-0' $ETI~CK c~r'/BAO( 45'-0' 49'--4' 71'-O' 25'-0' PROPOSED S~'HIBACK TO FROPER~Y LINE 2~,'-0' -[-- gi'-8' 75'-0' _ SCHEMATIC SITE PLAN_ -'~'