Affordable Housing Policy Proposal

KC Regional Housing Alliance has an affordable housing proposal that supports both the homeowners and renters in Kansas City through the preservation of existing and creation of additional housing units. Knowing that the relationship between housing providers and tenants is interdependent, we stand ready to work with all stakeholders to develop effective, sustainable, affordable housing solutions to address the affordable rental housing challenge effectively and proactively. Our goal is to achieve the highest possible quality of life for all Kansas Citians, including homeowners.

Click to download the Affordable Housing Policy Proposal

The Three Big Goals for KCRHA’s Affordable Housing Policy Proposal

One: Keep People in their Homes

Keeping People in their Homes Short Term

• Implement the “KCRHA Eviction Prevention & Emergency Rental Assistance Program” to help those who are struggling to pay the rent (Impact: 750 households helped, cost: $3,000,000 federal rescue funds). At an average of $1000/month for 4 months, totaling $4,000 helps 750+ households. (Detailed if proposal is on page 16.)
• Implement the “KCRHA Shared Risk Rental Guarantee Program” which offers housing providers a modicum of security if they choose to accept a higher risk renter applicant. (Impact: 500 households helped, cost: $2,000,000 Federal rescue funds. $1000/month for 4 months totaling $4,000 helps 500+ households. (Detailed in proposal is on page 15.)
• Collectively these programs would keep 1250, or more, at risk households in Kansas City in their homes and can be implemented post pandemic and year round.
• Add 100 bed spaces for homeless Kansas Citians in transitional housing with appropriate supportive services (including job assistance, mental health and social services).
• Support the “KCRHA Eviction Rehabilitation Program” that KCRHA developed with the United Way of Greater Kansas City along with the Missouri Housing Development Commission (MHDC) to help to re-house those that have been evicted as a result of COVID-19 after April 1, 2020. This program uses federal funds to help renters pay off past due court judgments removing that barrier to future credit and homeownership. (Detailed in propsal on page 17)
• Support increased investments in efficient voluntary rental assistance programs such as Section 8 Housing Choice Vouchers.
• Support at-risk property owners impacted by COVID with mortgage relief (including using federal rescue funds).
• Reorganize the Water Services Department billing practices so that only the person who actually uses/consumes the water is charged for it as opposed to the current practice of forcing the property owner to pay any outstanding bills by threatening & attaching a lien that then encumbers the property & dis-incentivizes ownership. Continue working with the EPA to modify the consent decree so that the monthly bills are not as massive, creating a barrier to maintaining homeownership and operating rental homes. Continue to offer more assistance to struggling homeowners & those that pay the excessive water bills.

Keeping People In Their Homes Long Term

• Advocate mortgage assistance, or restructuring for property owners facing foreclosure, which would adversely affect neighboring property values and ultimately diminish the tax base. This may need to be federally underwritten even after the pandemic. Federal rescue funds are available now.
• Provide state and local property tax incentives to induce adversely impacted rental property owners to retain ownership in lieu of exiting the rental market.
• Work to avoid the negative impact to the greater economy when property owner’s income stream is abruptly and unnecessarily interrupted for an indefinite period as the result of a municipal (or federal) eviction moratorium, or other arbitrary public imposition restricting normal housing operations by keeping the properties in service.
• Advocate for accurate and fair property tax assessments through the counties so that property owners are not priced out of their homes with excessive property taxes leading to a loss of the property and/or increased costs of operating the home.
• Fully Define and Fund a Housing Trust Fund (HTF) established in Kansas City’s Five-Year Housing Policy (at $75 million). (Detailed in proposal page 11.)

Two: Maintain Current Stock of Quality Affordable Housing

Maintaining Housing Stock Short Term

• Make all existing city housing assistance programs available for use on non-owner-occupied structures (City Home Repair Program, Targeted Minor Home Repair Program, Paint Program, etc.).
• Provide rebates/incentives on energy efficient repairs/improvements for both owner and non-owner occupants.
• Issue citations directly to the person responsible for violating the ordinance. If a tenant is in violation of a nuisance code violations resulting from their actions, send a copy of the notice of the tenant’s violation to the property owner, too. This properly puts the burden to mitigate the violation most efficiently with the responsible party.

Maintaining Housing Stock Long Term

• Rework the Healthy Homes inspection program to make it more efficient, easier and less expensive to comply.
• Establish a Home Maintenance loan program providing low interest loans to repair/rehabilitate rental properties with rents at or below 80% of AMI (see chart at the end of this proposal).
• We support the area Housing Authorities, and in the future getting funding for more housing vouchers once we identify that an acceptable level of customer service criteria is established for renters and housing providers through the specific Housing Authority. We support long term project-based housing contracts with HUD to create more affordable housing with private owners.
• Make legal resources available to property owners who meet certain income requirements (can be used to provide guidance/advice on various programs including loan products for home repairs, energy/solar installations, PACE loans of which many owner-occupied properties in MO are potentially set to be auctioned off this year, hiring contractors, tenant leases, etc.).
• Waive Healthy Homes rental permit fees for the year 2021 because of the negative revenue impact during the pandemic suffered by these small business owners (e.g., at $20/unit x 20 units is a $400 estimated savings) for these local entrepreneurs that lost revenue due to COVID & the shutdown of the economy through eviction moratoriums.
• Fully Fund the $75 Million Housing Trust Fund established in Kansas City’s Five Year Housing Policy (Detailed in proposal page 11.)

Three: Encourage Private Investment for Creating of Increased Divers Affordable Housing Inventory

Short Term Encouragement of Private Investment

• Promote and support the rehabilitation of dilapidated properties by local investors and developers in areas already identified by various entities (HTF, Land Bank, Central City Sales Tax/CCED eligible parcels, Urban Renewal Districts, Opportunity Zones, etc.). Support LIHTC projects (and applications)
  • Increase the inventory of affordable single-family homes as well as development of Accessory Dwelling Units (ADUs) working with neighborhoods and the coalition working to engage stakeholders led by the AARP along with Midtown KC Now and KCRHA. Continue to work on creating an ordinance and then partnering with CDFI lenders (like AltCap) and ANB Bank to increase access to low-cost capital for home rehabbers as well as small contractors.
  • Support specifically created expanded voucher programs.
  • Include a specific carve-out for abandoned/vacant home rehabilitation (including vacant apartment buildings), e.g., create with a CDFI loan fund with AltCap: a revolving “$5 Million Housing Preservation Loan Guarantee Fund” to increase access to low-cost capital for home rehabbers/small contractors as well as rehabilitation loan programs through ANB Bank.
• Strongly advocate to preserve the 1031 Exchange (tax free exchange of like kind investment properties) at the federal level with our house members and senators as a way to continue the creation and retention of affordable units by small to medium investors.
• Promote the city’s Safe Harbor program to encourage rehab of dilapidated units without inheriting outstanding code violation citations, or being cited for a period of time while the property is being renovated.
• Provide incentives on a sliding scale to investors creating affordable housing at the 80%, 60%, 50% of Area Median Income, including new construction and rehabilitation
• Promote and support the concept of shared housing as a way to affordably house multiple (up to 5 unrelated people) under one roof with supportive services available. This is currently allowed by ordinance. See page 20.
• Promote the construction of condominiums (condos) units and financing programs through portfolio lenders like ANB Bank.
• KCRHA will continue to work together with other organizations with the same goal of creating and supporting affordable housing and those who need it like restart, the Mid-America Regional Council, Greater Kansas Coalition to End Homelessness, the United Way, the City of KCMO through Jennifer Tidwell and Tiffany Drummer. Working together constitutes jointly sponsoring informational/educational events as well as fostering a communication structure and working on effective and productive housing policies.
• Explore Community Land Trusts as a non-profit housing option.
• Continue to host homebuyer education workshops along with local real estate agents, mortgage lenders and credit enhancing agencies.

Long Term Encouragement of Private Investment

• Establish a “$5 million Housing Preservation Loan Guarantee Fund” loan/equity fund for CDFI lenders, for example, to provide capital to developers, home rehabbers, small contractors, etc. Along with participating lenders: AltCap & ANB Bank and others to be identified as trusted sources, will join with Jennifer Tidwell, Kimiko Gilmore, banking experts, etc., to identify criteria. The city will contribute the funds towards this loan loss reserve. It will allow a CDFI lender like AltCap and others to raise loan capital to lend to developers, home rehabbers, small contractors, etc. AltCap can leverage a loan loss reserve 5-10x (e.g., $1,000,000 loan loss reserve can be used to raise $5-10 million in loan capital). If the loans are paid as agreed, the city doesn’t lose any money. This is easily sustainable into the long term.
• Facilitate alternative development methods (tiny homes, container houses, prefab homes, etc.) with compatible zoning ordinances in supportive neighborhoods and communities.
• Encourage the construction and rental of Accessory Dwelling Units on the open market for current property owners to create additional affordable units on their own property. Can use the “$5 Million Housing Preservation Loan Guarantee Fund” or resources from a participating bank for the renovation.
• Eliminate local barriers to entry into the “affordable” rent market (i.e., zoning variance, infrastructure and regulatory fees, create a welcoming business/development environment). KCRHA will continue our work with the Planning & Development and Housing & Neighborhoods Departments to ensure collaboration and a productive relationship for housing creators.
• Prioritize incentive programs for local developers and investors including concepts in the KCMO Master Development Plan &/or Urban Renewal Area plan on (Detailed in Proposal Page 6)
• Work with Jeffrey Williams and Diane Binckley in the KCMO Development Department to streamline development and permitting processes to reduce bureaucratic overhead costs and project approval processing time. Also, the KCRHA with work with them to host workshops & videos to help applicants to more clearly understand the application requirements and submittal process.
• KCRHA will work with KCMO BizCare through Nia Richardson to make sure any small business entities are prepared and qualified to do business in & with the city. We will work to host informational workshops to support the success of small businesses in all aspects.
• Offer investors vacant city owned buildings & school buildings to develop into affordable housing at a nominal cost, streamlined application and possibly with grants or special incentive packages to help mitigate the costs of renovating them (see “KCMO Master Development Plan &/or an Urban Renewal area plan” below)
• Identify vacant, infill lots and offer them to local investors for sale at minimum cost to build affordable units (Land Bank, Homesteading Authority, city website, etc.). Review the restrictive Land Bank guidelines and revise them to encourage higher approval rate of developer plans. Waive any current fines or outstanding violations on the property for new investors and enroll the property into the Safe Harbor Program. Also, offer incentives through the “KCMO Master Development Plan &/or an Urban Renewal Area Plan” (included)
• Repurpose existing buildings, some with overwhelming code violations, facilitating their sale to local investors who will rehab and return them to serviceable affordable housing inventory (including vacant school buildings, privately owned vacant buildings – from duplexes up to 20-unit buildings that have been identified by the UMKC Center for Neighborhoods with Jacob Wagner & the KCMO Neighborhood Housing Services Department). We participated in a group interview about our experiences & shared suggestions from our experiences. The “$5 Million Housing
• Preservation Loan Guarantee Fund” can be accessed for these projects by local investors (from Missouri).
• Create a “KCMO Master Development Plan &/or an Urban Renewal Area Plan” For Infill Projects in a specific area:
  • Encourage new in-fill construction of for-sale homes in specific geographical areas/neighborhoods by replicating a plan similar to the one that exists in the Key Coalition’s neighborhood with adjustments and input from KCRHA investors:
    • Creating a map with overlays for: Opportunity Zones, Central City tax, Urban Renewal Plans, etc.
    • Institute a $5,000 lot prep fee credited by the city
    • Provide plans/blueprints to builders for alternative affordable building options
    • Freeze property tax rate for these units and surrounding neighborhood for 10 years (for income qualified housing units)
    • Issue builder credits for tap fee/water
• Create a “KCMO Master Development Plan &/or an Urban Renewal Area Plan” For Rehab Projects with existing structures in a specific area (identified by neighborhood or specific boundaries) where there will be a clear impact:
  • Provide a small grant to offset costs to rehabilitate structures with extensive repairs needed, or for demolition at 50% of the rehab costs
  • Identify qualifying areas and qualified investors/rehabbers
  • Provide plans/blueprints for alternative affordable building options
  • Freeze property tax rate for these units and surrounding neighborhood for 10 years (for income qualified housing units)
• Reestablish and promote the “KC Dream Down Payment Assistance Program” to encourage homeownership & support buyers for the newly created properties for sale. Grants should be
• $20,000 and may require buyers to stay in the home for 5 years (or repay the grant on a prorated basis at sale). Work with Realtor members and investors of the KCRHA to create through a streamlined application process (unlike the old program)
• Create a “Whole House Rehabilitation Fund Program” for owner-occupants through a lender like ANB Bank with favorable, non-predatory terms and small-medium size loans for home projects
• Fully Fund the $75 Million Housing Trust Fund established in Kansas City’s Five Year Housing Policy (Detailed in Proposal Page 10).

Click to download the Affordable Housing Policy Proposal.