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Fairways
Four Plex buildings in Branson.
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Stone Post Apartments |
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Kitchen- Finished
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Fished side view
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Play Ground-Finished
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Finished
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In Progress
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Club House-Finished
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In Progress
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Location:
Hays, Kansas
Size:
32 Units and Clubhouse
Hays Daily News February 15,2007
If all remains on schedule, Hays will have additional affordable housing by the end of the year.
As soon at the weather permits, Overland Property Group partner Brett Johnson said crews will begin demolishing a house on Fifth Street. That is the first step in a $4 million 32-unit apartment complex project that will be built at Fifth and Main streets. The two adjacent lots that the company owns on Fourth Street will be utilized as a clubhouse.
“It’s a goal to keep people living in Hays,” Johnson said. “For all the employment opportunities that are there, there’s not the housing.
“This is the first step in correcting that.”
Construction for the project is scheduled to take about eight months. Once the project is near completion, the apartments will be marketed, but Johnson said he expects them fill up fast, as did the apartments in Salina.
Financing the project
The Overland Park, Kan., group was awarded about $3 million in tax credits in November. Now — three month later — the plans are approved by the city and the construction is revving up.
The complex will contain 2- and 3-bedroom apartments with a slew of amenities. Johnson said each apartment will come with a washer and dryer and free wireless internet. It will also feature a clubhouse with computer room, exercise facility and outdoor basketball court that will service the entire complex.
Eligibility
Johnson said the apartments will be restricted to applicants who make less than 60 percent of the area median income (AMI), which is $53,400. For one person, financial requirements would be between $15,000 and $22,440. The scale is sliding, allowing income of about $25,000 to $37,000, depending upon household size.
“We’re affordable housing,” Johnson said. “One of the main restrictions is that you cannot be a full-time student.”
The facility is open to families, single people or seniors. In Salina, the sister project to the Hays development, Johnson said about 25 percent of the tenants are senior citizens.
Of the 32 units in Hays, 25 units are targeted at families making 60 percent of the AMI or less; seven units are targeted at people that make no more than 40 percent of the AMI.
Is there a need?
Directors of a multitude of local aid agencies say there is not enough low income and affordable housing in Hays.
Kathy Nelson, executive director of Hays Housing Authority, said she has 30 units available at Sunrise Apartments, where tenants pay rent based upon income.
“We always have a waiting list,” Nelson said. “It varies between 60 and 90 families.”
Bill May, director of the Ellis County Housing Authority, said he’s familiar with waiting lists — but his has hovered at about 300 families.
“It had been closed for almost two years because we had a waiting list and no funds,” May said. “Now we’ve had some families drop off so there is some funding available.”
The list reopened around the first of January, and the waiting list has grown to 60 families.
Additionally, 60 to 66 families receive rent assistance via vouchers through Nelson’s agency. She said more affordable housing is needed, but it should be for lower-income individuals and families.
“It’s rough to define affordable,” Nelson said. “If you’re on disability, receiving $600 a month, what’s affordable for them might be different than someone who is working.”
Pam Blau, director of First Call for Help said some people who are on fixed income such as disability or Social Security, they might receive $182 or $458 per month.
“Affordable housing can start at $400 to $450, but low income individuals still can’t afford that much rent,” Blau said.
She said she thinks there is housing in that price range, but it’s likely occupied by college students or lower-middle class families.
“Even when you’re in the lower-middle class range, trying to pay $600 to $800 for rent is difficult,” Blau said. “We really need low income housing.”
Johnson said some people are surprised at who qualifies for the housing.
“The city didn’t realize a lot of teachers, police men, fire men qualify for this housing,” Johnson said.
Why Hays?
Stonepost Apartments is the firm’s first venture into western Kansas.
“We’re all central-Kansas kind of guys,” Johnson said of the three partners. “A lot of development firms are so large that they don’t want to build 32 units because it’s not cost-effective. We know there’s opportunity from Salina west.”
The firm has developed more than 800 apartments in the last five years. He also said the growth of Hays attracted the eastern-Kansas firm to the area.
“Everyone wants to build apartments in Wichita, Kansas City, Topeka and Lawrence,” Johnson said. “The state gets $4.5 million to allocate to developers every year. Unfortunately the big, metro areas are getting the bulk of that. Spreading the tax credits around is difficult. It’s time western Kansas got on board and the credits they’re eligible for.”
Besides, the location is fantastic
“We’re very pleased with where we are now with the water park, baseball location and downtown,” Johnson said. “I don’t know many developers who’d put $4.5 million into downtown. It can only help increase values and hopefully spur further development.”
Benefits for Hays
“It’s a goal to keep people living in Hays,” Johnson said. “For all the employment opportunities that are there, there’s not the housing.”
Mike Michaelis, executive director for the Ellis County Coalition for Economic Development said Hays needs nice places for potential employees to live.
“It’s not some dump,” Michaelis said. “It will provide a nice place to live and it should have nice amenities.”
Initial plans to locate the development near 41st Street and Hall were met with hostility from neighbors. These concerns, coupled with hesitancy from the city, prompted the developer to find another site.
“People say they don’t want it next to their house,” Johnson said. “In Salina, a lot of the homes went up in value because we helped develop the area.”
The downtown location was secured and approved, with the hope of bringing more bodies downtown, as well as furthering downtown development.
Benefits for the developer
Admittedly, the developer has some financial interest in the project. The tax credit guidelines stipulate that the rules will be in effect for 15 years, then the developer will completely own the property. At that point, the income stipulations could be eliminted.
“We like to build a nice property,” Johnson said. “It’s in our best interest to build something that will appreciate in value and that will still be standing when 15 years is up.”
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