Habitat KC marks milestone with Olathe housing project, welcomes first homeowner
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- Habitat KC welcomed first homeowner at Olathe project; 14 homes planned, 3 completed.
- Project funded by $1.95M public grants plus over $4M private contributions.
- Community land trust model aims to preserve long-term affordability.
Habitat for Humanity of Kansas City welcomed its first homeowner last week to the Pathway at Heritage Park community, where 14 new affordable homes are being built in Olathe.
The homeowner, Maura, was welcomed at a celebration Jan. 21, along with Habitat KC staff, city council and county commission members, the mayor and other partners that supported the project from concept to construction.
The development, located at 159th Street and Black Bob Road, was made possible by public and private support. Johnson County’s Board of Commissioners approved $950,000 in COVID relief monies in 2023 for infrastructure, and Olathe approved $1 million in HOME funds — federal grants given to local and state governments for affordable housing projects.
Private funding for the Olathe development totaled more than $4 million.
Habitat KC’s CEO Lindsay Hicks said in a phone call last week that Maura, a first-generation home buyer in her family, is excited to make the place her own.
“Seeing what this means for her family... was just really awesome,” Hicks said. “To see her excitement, and see that pride of homeownership, and to live in a community that is going to allow for her family to thrive, it’s really meaningful.”
‘The need is very high’
Pathway at Heritage Park is a development born of inspiration and high need, Hicks said.
According to Habitat KC’s website, 40% of all Johnson County renters pay more than 30% of their income on housing. High rent and home costs are pricing some potential buyers out of the community, the organization says.
Recognizing that need, Pathway Church came to Habitat KC for help with an idea of using land near its church to create affordable housing. A construction committee for Habitat KC determined the land would be a good location for a pocket neighborhood.
The homes are part of a community land trust model, which aims to ensure long-term affordability in an area where property values are climbing.
According to Habitat KC, community land trust models typically work like this:
- Someone purchases a house that sits on land owned by the community land trust
- The purchase can be more affordable, because the buyer is purchasing just the home, not the land
- The homeowners lease the land from the trust in a long-term renewable lease
- Homeowners agree to sell the home at a restricted price to keep it affordable in perpetuity. But they may be able to realize appreciation from improvements they make while living in the home.
Instead of being able to retain 100% of the market appreciation of the home, the homeowner retains 25% of the market appreciation. The remaining 75% stays with the home to make it affordable for the next buyer.
Habitat KC reviewed hundreds of applications from prospective homeowners in the Pathway at Heritage Park community. The potential homeowners had to pass background checks, be able to afford the mortgage payment at 30% of their gross monthly income, have no bankruptcies or foreclosures for two years, and meet other criteria.
The homeowners selected then go through more than 100 hours of working with Habitat KC to create a plan to become stable homeowners.
Hicks said the community has not only been receptive to the project, but have gone above and beyond what Habitat KC could have asked.
Council members and volunteers spent time “swinging hammers,” Hicks said, to help build the homes.
“We had a great team that was on board and believed that this type of housing is needed in our community,” Hicks said.
A spokesperson for the city of Olathe, Cody Kennedy, said affordable housing remains a priority of the Olathe City Council.
“After several years of discussion and planning, we were excited to welcome the first of many new residents into Olathe,” Kennedy said. “We look forward to the homes in this project and how it holistically works to address the ‘missing middle’ and attainable housing options.”
Timeline for completion
Last week, Habitat KC celebrated the completion of three homes, with two more near completion as of Jan. 22. Construction of a neighborhood playground will begin some time over the summer, Hicks said.
By late fall, early winter this year, Habitat KC anticipates all 14 homes to be completed.
“So we’ll see even more families moving in over the next few months,” Hicks said. “We’re making substantial progress, and it’s going to be done by the end of the calendar year.”
