In east Kansas City, effort underway to fix up duplexes for affordable housing
Community Builders of Kansas City is set to begin a $12.6 million project to fix up 80 housing units on the city’s East Side to provide affordable housing.
CBKC, the nonprofit urban core developer previously known as Swope Community Builders, plans to rehabilitate 40 duplexes at the Mt. Cleveland Heights development near Cleveland Avenue and 51st Street.
All but eight of the resulting 80 units would be affordable for those making 60% of the area median income.
Mt. Cleveland Heights was first built in 1997 with 35 duplexes. Another five duplexes were added in 2004.
CBKC’s plan is to rehabilitate the existing duplexes with new roofs, replaced siding, new interior paint and appliances, among other upgrades. CBKC would also build a nearby clubhouse for residents that would include a community space, exercise room and shared computer work stations.
CBKC presented its plan, called The Cleveland, to the Land Clearance for Redevelopment Authority on Wednesday. The LCRA board, which can grant property tax breaks, approved a sale-leaseback arrangement for the project that allows CBKC to lower its property tax bill for the duplexes for the next 20 years.
“This is the type of project I’m happy to give incentives to,” said LCRA board member Melissa Patterson Hazley. “It has a clear community connection.”
The Cleveland would result in newly fixed-up affordable housing in east Kansas City that’s near Swope Health Services and the Thomas Roque YMCA Early Head Start.
Rents range from $520 to $800 for the affordable units. For the eight market rate units, rent ranges from $928 to $941. All 80 units are three-bedroom dwellings.
CBKC hopes to begin construction this summer after it closes on the acquisition of the properties. Its target date for completing the rehabilitation is by the end of 2022.
The project would be funded by a combination of tax credit equity, loans from the Missouri Housing Development Commission and other sources of capital.
CBKC’s application for tax breaks illustrates the complexity and difficulty in developing affordable housing. For example, Missouri Housing Development Commission underwriting limits an owner’s revenue increases to no more than 2% annually, but expenses often increase by more than that.
CBKC told the Land Clearance for Redevelopment Authority that it will pay water and sewer bills for The Cleveland, which in Kansas City has becoming increasingly expensive. Insurance is also a cost driver for the project.
“We are happy to break even,” said CBKC president and chief executive Emmet Pierson at the LCRA meeting. “It is a very difficult business to be in.”
