Nonprofit, for-profit developers request public funds to renovate Wichita public housing units

The city of Wichita set aside $5 million in COVID recovery money for an Affordable Housing Fund, which is meant to fund the renovation of public housing units. The city is currently selling its single-family public housing units.

Nonprofit and for-profit developers pitched plans last week asking for city funding to buy and renovate public housing units.

The city of Wichita is in the midst of selling its 352 single-family public housing units. It has already sold many of the houses to both homeowners and investors without restrictions.

But the city set aside roughly 60 homes – about 40 in northeast Wichita and 20 in southwest Wichita – that it hopes to keep affordable long-term. In May, Wichita opened a call for proposals from developers to buy, renovate and then sell or rent the properties.

The city is offering developers up to $40,000 per unit, which comes from a $5 million Affordable Housing Fund. It’s funded with Wichita’s COVID recovery money. Developers are required to keep the units affordable long-term by participating in federal rental or homeownership programs, which limit the maximum income of participating tenants or homebuyers. The city’s rules ensure future homebuyers will receive down payment assistance and a 0% interest forgivable loan.

“The goal of the Affordable Housing Fund is to improve the quality of existing housing stock while expanding quality, affordable housing options and promoting neighborhood stability in Wichita’s core,” said Sarah Gooding, who at the time was real property section manager with the city of Wichita.

“These are not: Get the city’s investment … to fix them up and flip them and walk away with proceeds. These are intended to become long-serving affordable units.”

Four developers – one nonprofit and three for-profit – told the city they would like to purchase and rehabilitate one or more of the units.

Each presented an outline of their plans last week to the city’s Affordable Housing Review Board, which is made up of residents who provide professional expertise and community perspective on housing. The board will make a recommendation to the City Council about which plans to accept or reject based on factors like the developer’s credentials, expertise and financial condition. Developers must have past experience using government funding.

The applicants also had to submit a more detailed plan to the board. Sally Stang, the city’s director of housing and community services, said the proposals will not be made public until the City Council votes on which plans to fund.

Below are summaries of the four presentations.

Large Enterprise

Large Enterprise is a collaboration between three California-based businesses – Large Construction, JDC Capital and Large Plumbing – and a local real estate salesperson with Better Homes and Gardens Real Estate.

Brandon Large, owner of Large Construction, says the partnership already owns and manages 18 rental homes in Wichita. Several of his current rentals accept Section 8 housing vouchers.

Large’s development team is seeking to buy 16 public housing units from the city, the majority in northeast Wichita.

It plans to rent the homes to low-income residents. Large said the companies are seeking project-based vouchers for each house, a form of federal rental assistance that will ensure rents stay below 30% of a tenant’s income.

Large said his team will focus on affordable four- to six-bedroom homes, which are often more difficult for low-income families to find.

Brandon Large, owner of Large Construction, says the partnership already owns and manages 18 rental homes in Wichita. Several of his current rentals accept Section 8 housing vouchers.

Large’s development team is seeking to buy 16 public housing units from the city, the majority in northeast Wichita.

Large said his team will focus on affordable four- to six-bedroom homes, which are often more difficult for low-income families to find.

“There seems to be a lack of larger homes available for rent,” Large said.

Large predicts the 16 homes will be renovated and rented in six months. Large is requesting $40,000 per unit from the city of Wichita for renovations.

Though Large Construction and JDC Capital are registered in California instead of Kansas, the partnership has a local property manager and works with other local businesses.

“The majority of the vendors, subcontractors and trades that we use for our Wichita properties are Wichita-based and are typically minority-owned businesses,” wrote Jared Christensen, owner of JDC Capital, in an email to KMUW.

Project Prosperity

The project is a partnership led by Washington, D.C.-based Neil, Armstrong, Collins and Company Group, which bills itself as an affordable housing provider in Wichita and D.C.

Charita Brent is the owner of the company, which currently owns one rental home in Wichita.

Brent seeks to buy two of the public housing units on Piatt Street in northeast Wichita and rehabilitate them into affordable rental housing. She’s seeking federal rental assistance for each unit that will ensure tenants don’t spend more than 30% of their income on rent and utilities.

Brent’s development team is asking the city for $40,000 for each unit. She says she plans to install solar infrastructure on the homes as well as garden beds in the front and backyard of each home. Brent’s partnership will also encourage tenants to engage with the community and become better-informed tenants.

She estimated renovations would take up to three months per house.

Residential Housing Solutions

Residential Housing Solutions is a Wichita-based business that renovates homes, then sells or rents them. The minority-owned business has been open since 2009.

“Our reason for what we started out doing, once we got into real estate, was to transition our renters into new homes, give them an opportunity to own a home,” said Robert McMeans Jr., the company’s president.

McMeans is seeking to buy and renovate six public housing units on Minnesota Avenue in northeast Wichita. The company says it would then sell the homes for between $100,000 and $150,000.

“We plan to do a complete rehab from front door to back door,” McMeans said.

“We’ve gone through extensive details to understand what we need to do. And we want to make sure we provide a home that’s safe and affordable, and one that’s beautiful when it’s all done.”

McMeans said he hopes to increase the number of homeowners in the northeast Wichita area, where renter rates are high. The company plans to market the renovated public housing units to their current renters.

The project is likely to be completed in a year. McMeans’ presentation did not specify whether the group would seek renovation funds from the city.

Wichita Habitat for Humanity

Wichita Habitat for Humanity is a 56-year old nonprofit that develops affordable housing for homeownership.

The organization has built 131 homes in northeast Wichita since 2014.

Wichita Habitat for Humanity wants to buy and rehabilitate 16 of the public housing units in northeast Wichita to offer for homeownership. The nonprofit offers 0% interest mortgages to low-income families who live in unaffordable, overcrowded or dilapidated housing.

Program director Laurie Walker said Habitat homebuyers pay on average about $650 a month for their mortgage, property and insurance.

Walker added that Habitat plans to take the houses “down to the studs”: undergoing asbestos abatement, demolishing existing drywall, and replacing cabinets and flooring. The house will get new doors and windows, and water or termite damage will be addressed.

“Our vision is to transform this entire block,” Walker said. “Not just come in and put the paint on it. We want the whole block to feel new. … So we’re really focusing on making sure these homes look beautiful for the street.”

Habitat also has 24 buyers who have already applied to buy a home through its program – “so we already know who we would be serving,” said Danielle Johnson, Habitat’s executive director.

Habitat for Humanity is requesting $40,000 per house from the city.

This article was republished here with the permission of: KMUW