Kansas City votes for $50 million for affordable housing. What that means & what’s next
Kansas City voted ‘yes’ on a citywide ballot question that will put $50 million towards affordable housing initiatives in the city, namely the city’s affordable housing trust fund.
“The bond is the largest commitment to housing in the City’s history,” the citywide tenant union KC Tenants wrote in a statement. “KC Tenants set the stage for this victory over the last four years by organizing to make housing a central issue in municipal politics.”
The organization added a political action group arm called KC Tenants Power earlier this fall that knocked on doors advocating for the ballot question.
About 71% of Kansas City voters voted in favor of the money for affordable housing projects, while about 29% voted against it, according to unofficial results from the Kansas City, Platte County, Clay County and Cass County election boards.
The housing question was one of two bonds that voters approved on Tuesday. The other $125 million bond will go toward projects like convention center maintenance, city parks and local community centers.
“Thank you, Thank you, Thank You to Kansas City voters for coming through yesterday, really, on everything, but in particular on City Questions 1 and 2 to support our Housing Kansas City Plan to build affordable housing citywide and to invest millions in parks and public spaces,” Mayor Quinton Lucas said in a tweet on Wednesday.
The money for affordable housing projects and park repairs will come from a general obligation bond, which is typically paid back through city taxes. In this case, the city is already paying an existing bond note, so this new bond note will replace the old one once it’s paid off, which means it won’t raise taxes further.
So what does this mean for the future of affordable housing in KC?
Here’s a breakdown of what you need to know.
Where is the $50 million for housing going? What’s the Housing Trust Fund?
Kansas City’s Housing Trust Fund is a pot of government money that pays for affordable housing projects approved by a board of community members and city council. It was created in 2018.
So far before this vote, $25 million in federal American Rescue Plan money has been allocated to the fund, and $10.5 million in local dollars was reallocated to the fund instead of to a tax break for a large Chicago-based real estate developer to be distributed over 25 years.
The Housing Trust Fund has invested $7.9 million in 14 housing projects, which led to the creation of 500 affordable housing units.
Some examples of those projects include affordable rental units at the Garfield East Senior Cottages, affordable housing creation at the Blue Hills Townhomes and $1.7 million in funds for preserving affordable housing at the Palestine Garden North Apartments.
By investing an additional $50 million into the fund, the city will get closer to its original goal of investing $75 million into the trust fund to pay for affordable housing in the city.
“$50 million is great. It’s 50 million more dollars than we had yesterday in the Housing Trust Fund. But the Housing Trust Fund needs an ongoing revenue source. We know that that $50 million isn’t going to fix the housing crisis alone,” said Wilson Vance, political director of KC Tenants Power.
Kansas City has yet to identify a consistent funding source for the trust fund.
What kind of housing projects will the $50 million support?
The newly approved $50 million will be dedicated to projects that benefit Kansas Citians with low incomes.
That’s because in October, the city council passed a resolution that will make this $50 million specifically designated for projects serving households at 30% or below the area median income (AMI), which is about $23,000 for a two person household.
Right now, Kansas City does not have enough housing for its lowest income renters in this 30% or below AMI group. The city reported in September that it’s 27,000 units short of being able to house renters in this group.
How does the housing trust fund work?
The fund can give grants or low interest loans to developers or other community groups that apply.
It can give money to projects beyond just new developments, including programs that rehabilitate existing housing, help tenants purchase their building and become owners, and programs that help lower income homeowners to maintain and keep their homes.
How does the city decide how to use the money in the affordable housing trust fund?
Mayor Quinton Lucas appointed a nine-person board to help the city figure out which affordable housing projects it should invest in. The board prioritizes projects that will stay affordable over longer periods of time and are accessible to lower income residents.
The Housing Trust Fund board will review applications twice a year and give recommendations to the City Council, which will give each project a final review.
How can organizations apply for the housing trust fund money?
Applications will be considered based on the amount of affordable units per trust fund dollars invested, valuing projects that have more affordable units. Projects that promise to stay affordable for longer periods of time and projects that aim to be affordable for households at 30% or below the area median income (AMI).
The trust fund will also prioritize projects that serve higher bedroom sizes and include community land trust, cooperatives and public housing corporations.
In order to apply, organizations and developers will need to go through the request for proposal process. Those requests must be submitted in writing and sent to the city’s Housing and Community Development Department at:
Housing & Community Development Department
Attn: Sarah Cecil
24th Floor
414 E. 12th Street
Kansas City, MO 64105
For more information on the application process, visit here.
When will you see the benefit of this bond money? Can the city fund housing projects right away?
The $50 million will be distributed over the course of the next five years.
The city will distribute $15 million toward the trust fund in the first year, according to city spokesperson Morgan Said.
If you want to learn more about the city’s affordable housing trust fund, visit here.
The Star’s Natalie Wallington contributed to this story.
This story was originally published November 9, 2022 at 1:30 PM.