Johnson County board approves $1 million loan for affordable housing apartments in Shawnee

Commissioners in Johnson County approved a $1 million loan Thursday to aid in the construction of an affordable housing development in Shawnee.

The measure passed 5-2 with Commissioners Charlotte O’Hara and Michael Ashcraft voting against the funding.

At last week’s meeting, the Board of County Commissioners was asked to give $1 million in community support funds to help construct the Hedge Lane Apartments in Shawnee. The project is a joint venture between Sunflower Development Group and Consolidated Housing Solutions.

The apartment complex will have 144 units and be located on Hedge Lane Terrace. Units will likely be available to tenants by next spring or summer, Jay Leipzig, director of Planning, Housing and Community Development for Johnson County, said in an interview.

Jason Swords, one of the developers said the complex will have a pool, dog walking area and workspaces. Units will have washers and dryers.

The apartments will be designated as workforce housing, meaning those who make less than 60% of the area’s median family income will qualify. Commissioner Charlotte O’Hara confirmed at the meeting that the income ceiling for one person will be $40,680. For two people, it will be $46,500 and $52,320 for three people.

A one-bedroom unit at Hedge Lane will be about $1,100 and a two-bedroom would be about $1,300, Jessica Hotaling, deputy director of Housing Services in Johnson County, said at last week’s meeting. She said, however, that rent prices change annually and are set by the Department of Housing and Urban Development.

There will be 42 one-bedroom units, 80 two-bedroom units and 22 three-bedroom units, according to documents from the developers.

“The developer has the low-income housing support tax credits in hand and has gone through the approval processes with the city of Shawnee,” Leipzig said during last week’s county board meeting. “But because of inflationary pressure, labor pressure and material pressure, they have a $1 million gap for the project.”

Swords said at today’s meeting that the project could not move forward without the $1 million loan.

The loan, Leipzig said, will be non-interest bearing.

Several Johnson County residents spoke against the loan at the meeting Thursday, saying the county should not act as a bank for developers.

Commissioner Jeff Meyers said that there was a demand for workforce housing in Johnson County that needed to be addressed.

“From a county standpoint, I look at it as a fully secured, guaranteed loan with no risk. Or if any risk, extremely low to a county taxpayer,” Meyers said.

Others had concerns about the lack of public transit to the area in west Shawnee while some pointed out the lack of a playground for children at the complex.

Meyers also said the zoning for the complex and all its amenities had been approved at the city level prior to the meeting, so the commissioners were not voting on a potential playground.

While Commissioner Becky Fast said working citizens like teachers and firemen would potentially qualify to live at Hedge Lane Apartments, those making public comments disagreed.

“Let’s call it what it is: Section Eight,” said Shawnee resident Abby Rawie.

She also expressed concern that the plans for the clubhouse at the complex look too “vanilla” compared to the $400,000 to $600,000 homes in her nearby neighborhood.

Leipzig said that they expect to lose 349 low-income housing units countywide from 2020 to the end of 2022, and that this project would help replace some of that housing.

According to a study by the United Community Services of Johnson County, almost half of Shawnee residents spend over 30% of their income on rent.

The cost of living in Johnson County is more than any other Kansas City area county, and there is only a 3 to 5% vacancy rate in Shawnee rental properties, compared to 7 to 8%, which is considered healthy.

Shawnee City Council also passed an ordinance on April 25 limiting the number of unrelated tenants living in one home to three. The decision faced major backlash from residents who said they at one point could only afford to live with many roommates.