>> Almost a month. ♪ ut it just. Seems to make sense to combine this is sort of a last chapter and that's acquisition and disposition policy. And so obviously, as we're going out and acquiring not only for capital improvement projects, but other investment opportunities, right? How are we approaching the conversation about going out and acquiring property this consistent with our goals and objectives, but also some of their disposition. Right? And so I'm just kind touch to liberate on. So 3 aspects of our disposition policy. Obviously we have a surplus real estate determination rise. So we oftentimes acquire remnants of property, for example, as part road project rate, we might pick up properties. And so a lot of these properties may be remnants of parcels and tracks oftentimes developable right? Sometimes they are sometimes or not. But so will list all of those as surplus SOS surplus properties are recommended by city council and they'll sit on our website until folks approach the city and inquire into acquiring surplus property. Where on the website is that located? There is a link through our economic development. Real estate page. But we can certainly circulate a direct hyperlink to each one of you. So you have a direct hyperlink to that specific page. So that obviously that's just our surplus. Real estate page. The city also holes real estate that >> isn't necessarily surplus at this time. Right and so oftentimes that second category is what we call unsolicited offers right way. The city owns real estate could be a bacon undeveloped. Could be a an existing building, right? And so often times folks approached the city. With unsolicited offer. city owns a tract of land or city on with the city and arrested him selling out. And so we walk through a process associated with what we call an source said it offers, right? It's not surplus. Real estate. It's just real estate in our inventory and we might just be approached by somebody who may want to acquire the property and do something with us. So we have another section around on source and it offers. The search 3rd category is one. We intent to go out and drive some sort of developing, right? We've acquired a tract of land some sort of real estate. And so we're going to put it out in the form of a request for proposal to see what kind of development we can drive through a more formal RFP process. Those are very strategic, very few and far between right. But we do have a handful of we just went through it recently with the property up. Near 21st and or or Grove the former the former emergency winter shelter property. That was an example of a real estate that came into inventory that we went through. Very specific part of on it to dispose or so. Well, we'll have a section around acquisition and disposition and those men guidelines. Yes, quick, are we going come back to disposition of property later in this presentation or was that >> that's it for right now. I just wanted to, but I can certainly answer questions. That was really the extent of. >> We're going to roll up our >> acquisition and disposition policy as part of the amended guidelines. When when that comes up. I would like to see not only like a general policy, but even if it area specific. >> For example, property that the city arms all night and grow. They went to nutty zones where failure at this point, one piece of property on the southwest Corner is an opportunity zone. The northeast corner Jason to the Urban is not, but they both are city-owned and it would be. At I thought that we would encourage trying to develop both corners and not one off at the time and maybe there's different properties and other parts of the city like that where it may be a benefit to try to those properties rather than just one. So I don't know if that is the overall policy that you'll be looking at. But just a thought when it comes to different parts of the city. >> So that's a great question. And I can tell you right now, our acquisition disposition policy is really just high-level, right? If we want to. I'm certainly open to having the conversation about being a little tactical right and kind of identifying those opportunities you know, obviously there's some sites that we've come to acquire. And that may be why we're not showing property on a surplus property is because there's an opportunity to assemble the properties adjacent to it right. And so as we walk through real estate conversations, right, we have to be super sensitive not to drive up the price those kind of things good stewards of taxpayer dollars. And so we might be in and progress of trying to assemble various properties. But perhaps maybe we identify some of those more tactical type of acquisition approaches then show how that leads to. And disposition RFP to drive economic development. we can certainly look at that. the acquisition disposition policy as it's currently drafted. It's just general, how do we acquire disposed properties? But I'm certainly open a conversation. >> Can you talk again about I think you just to bit of information that I think is important for community to understand when we show an interest, something, does that drive up, crisis have use actually seen that. >> They can Obviously. varies by project, Most folks understand that. got careful how I respond to this, right. We always have eminent domain sort of authority as it relates to some capital improvement projects. >> Roadway projects, those kind of things. And so a lot of folks know that in the background, we sort of have this process that if we have to, we can go through. Right. And so most folks are generally pretty amenable to just receiving an offer. There'll be some negotiations sometimes which is why we bring to you all oftentimes offers that maybe above market value. Right? And it's just that balance between what we want to pay above market value. And what do we think opinion of our professionals right? Is. Too high of a of a counteroffer right? And then that's where we may have to go through more rigorous process eminent domain. But yes, sometimes property. Values continue to drive as cities expressed interest in a property. But for the most part, almost 90% of our acquisition and disposition policy is really geared around capital improvement. Water projects, sewer projects right away project, right. And so 90% of the work that we do is really tailored around that. for the most part, those pretty successful and just obtaining property market value. As we were going to walk away from part 2 last week, want to continue kind of drive this point home to right that we want to separate those private versus public-private projects. We're cities it actually investing what are called taxpayer dollars into project drive by doing some sort adjacent improvements or otherwise. Those are public private projects right? But what we're going to come back with amended guidelines in the first version is just for those wholly private projects where somebody arguably owns the They want to. Invest all of their own money, right? And they're just looking for some sort program offering property sales, tax exemption or a sales tax rebate right? That's a wholly private project. We'll come back with a supplement to the amended guidelines that shows how we're going to do with public-private projects. But which continue to drive down. Not every and sent program that we bring before you is a public-private project. In fact, most of them are just private projects. >> And while you're on that topic, can you just remind some folks, what is I guess, a public-private project heart projects. >> okay. So here's an example right of a public-private project somebody might approach the city and say I want to do this project, right? It might be a multi-family residential project or a mixed use project oftentimes we do with and sort of downtown environments, right where they also need parking. And a good synergy right between. Their project in the value that they're going to bring and building a public parking garage to help offset that investment. That's that's a good example of a public-private partnership. >> We're >> building a public asset to help support that project. But it still attended a a public asset and can be used for more than just private benefit right that's one example. We recently went downtown. There was a multi-family residential project right? good example of a wholly private projects where they own the land. They were simply requesting approval of a property tax abatement on a sales tax exemption for the project. But the city was not bringing any land to the table. The city was not any capital investment to the project, making any public improvements adjacent to that. That was a wholly private project right? And so that's kind of how we can begin to kind of separate to hold a private project and what a public private partnership. As we were going to segue. This is really my opportunity to Segway 2. Obviously, we continue to focus on housing, housing, housing, housing, of all sorts, right? You've heard me previously talk about differentiating between affordable housing and housing affordability, right? Probably 90% of. The housing that's out. There is just a conversation around housing, affordability. But there is a small market segment, right? That is specifically affordable housing. And when we talk about affordable housing, we're talking about things like hard and things like area percent area. Median income talk about fair market rents. At the end of the day, this is subsidized housing. That's is warming up hand conversation off to a solid stanger housing community Service director to really what is the world that she lives in all day every She's going kind of touch base on just some of the tools and programs that we have. specifically tailored to subsidized affordable housing. >> And during the transition, I just kind of wanted to make a quick comment and accolades in the most recent, the 2024 point in time, homeless count the very last pages affordable housing and give some great statistics that it's $774 a month is the market rate for one-bedroom apartment in touch county. And then it goes on to talk about hourly wages and minimum wage and cetera. But there's a statement here. This is which just 2023 housing retention rate is 97% showing that prioritizing housing with support of services is highly successful strategy for ensuring long-term sustainability in preventing homelessness in our community. So just kudos to you and all your team. Do I know it's part of the the entire coalition and homelessness and lots of partners involved. But just wanted to highlight that the work that you're doing is impactful and appreciated. Thank you very much. >> Once again, staying housing and community services. This is the world I live in every So when I talk affordable housing, this definitely the round we're talking about. A lot of people are surprised that the figure popped in their $73,200 for a family of 4, that that that's what we're looking at when we're working with different programs. Now, we obviously we have programs that work at different levels. But when we're looking at trying to build housing that's affordable to folks at 83% area. Median income. Today with interest rates. That's 200 to $211,000 House to buy is considered affordable to someone at that income. Right? So we have a lot of room to work in, but we have a lot of families that aren't even close to 80% area median So. All right. So we definitely have some federal resources that try and tap into that right. Talk a little bit about the low income housing Tax program that does actually fall under the IRS section. 42 but it is administered through the Kansas Housing Resources Corporation. We have our community development block. Grant had a council presentation a couple weeks ago on a consolidated plan which addressed many of these resources we're talking about today, the Home Investment Partnership program, Section 8 housing Choice Voucher program as well as our Affordable Housing Fund. And then there are some we don't happen too frequently, which is federal home loan bank. So every 4 federal home loan bank in the country has an 8 what they call the HPD program the Affordable Housing program. It is another source of gap financing as well as the National Housing Trust Fund and then there's the myriad loans. So you have 72 to. 23 asked to 21 de et cetera. These are all federal resources that often get tapped in our projects that come. I'm not just through us, but to us in our community. But hopefully we have the ability to do the multi-family residential revenue bonds there's very similar to the IRB is when we talk with developers were kind of usually using that same IRB language, although they have a little different term analogy. But that does afford us the ability to do a property tax abatement and the sales tax exemption which could make or break a project actually being affordable, especially for folks that are under and 60% area median income, which is required for a tax credit program. The the new game in town has been the residential housing incentive District or the reinvestment Housing Incentive District that's seen it written both ways that started as the real housing incentive district was one of 11 programs passed by the state of Kansas 2 to 3 years ago. At that time was really, really sad to see that the state came out with 11 affordable housing prep programs. And at that time, only one was available for metropolitan areas. 10 others were available only to rural areas. this particular incentive district failed miserably across the state and they reposition did about 18 months ago to make it available potentially for multi in Fillmore, downtown areas or greenfield It is something that's continuing. We're continuing to evaluate. But it's a really a challenging. I see why it failed in rural areas because we're very challenge to see how it can be effective in metro areas, too. And then we talked briefly about the fee waiver policy. This was challenging because I can't guarantee what's going to be in the qualified allocation plan next year. But we will have that opportunity. They're required push it ahead of time and take public comment and hold public hearings. And it's my intent and hope that we're going to actually bring back to the council. Some recommendations for the entire council to make a resolution for changes to that qualified allocation plan. Next year, find it really distant disheartening to only has 4 projects in Wichita and the last 7 years. And we have communities like Park City that have more than needed. So we need to definitely see changes if we want to effect. Change happens when when do they come out with their changes? The state's change just they come out in the fall September October, when we see the first draft will see 2 or 3 drafts. >> Throughout the process and painters, he does do a good job. They do come down to this area and hold a public meeting locally they hold that their local conference. We may actually see the first draft is I think their conference is the last week August this year. So we may see hints of the first draft at their conference, but it's being held Overland Park. but just as much as will be pushing for changes, we might want to see other communities will be doing the But it is our opportunity. >> question. I'm sorry. Go back to the program that you were just talking about. You said the rural areas was really complicated. Minutes even complicate what are likewise difficult and our other communities, the successful, we're really not seeing many other communities being successful yet. And it was totally restricted to rural communities previously. >> And it allows him to be bent you know, the difference between that taxes now and the taxes after redevelopment. And when you look at that, especially in the downtown scenario. So one of the opportunities as you take a multi-story building over 25 years old all the stories above the first floor would be eligible as housing. The problem is, most of those you see our adaptive reuse project. So you're taking what was an office building or what was you manufacturing building and converted into housing. Once you change that use from a commercial use to residential use, you actually see the appraised value on that. So that you don't see the ability to them leverage. That statement of those increases in taxes as a funding source in your stack because they don't exist because the change of use really wiped out. The challenge in Greenfield, Greenfield makes a lot more sense because you're going to see in a significant increase in taxes with a building on it. But it's a 25 year tax abatement. Most of those greenfield developments we see are often multipe bedroom units that caused great stress on school districts who now you're talking about potentially updating the taxes that go to the school districts that that's very difficult for them to to maintain as well as other systems. You go Green Field. We're looking at having to expand infrastructure. Police coverage, fire coverage and with out the increase taxes to cover it, it puts a strain on the overall budget really, really challenging. I think it was a good intention as a means to try you know, fund affordable housing going forward. It's just when you start putting pencil to paper, it doesn't work really well. >> I always I'm hopeful and most have not true that somebody that actually does the work like you like at the tables, like, hey, that sounds great. But in reality, like that's not going to work. So. Hopefully they had somebody at the table. >> And, you know, we would love them to, you know, maybe rethink the program or repurpose the funding they had set aside before and how much isn't It's really not. It's it because it's all based that increased property values and what you can leverage for in today's market. So it varies based on what the going rates are, as well as the scale and scope of every project. So really thank I think Don, so community development block Grant Obviously we this is our most flexible form subsidies. Although the one caveat you can't use it to build new affordable housing, it's just ineligible activity. It can be used for renovations and infrastructure and we do a lot projects related to housing in our in our comp plan. As you saw that you approved a few weeks ago, as far as the home repair program, the homeowner repair programs are most popular program that really helps existing homeowners make needed repairs in order to stay in their home or keep it affordable. We also have an old home improvement loan program which allows us to buy down interest rates if someone was going to go out to to get a line of credit on their home, can use subsidies to help buy Great. We This wasn't being used at all for several years because rates were so low. We're starting to hear some additional interest in it. Now. We have a rental. We have loan program restructured a bit. But it allows a landlord and to be able to tap into low-interest loans in order to make repairs. So they commit to leasing to the a voucher holders going forward. We have a historic loan program. Haven't seen anyone use that since I've been here. It is on the books. So one owns a historic property and is looking to do rehabilitation it is a low interest loan program now have a lot of those. But like to keep flexibility and then of course, we can do it in infrastructure and acquisition. hat. So that was some of the activity in the funding we put aside for the landing was around acquisition. We have just. >> What are the most successful of these programs that you have up That would be the homeowner repair program. And, you know, we just relaunched it early this year. It was limited previously to $5,000 per project. What can you do for $5,000 anymore? So we really did have give it some flexibilities, although we're seeing a lot of applications still coming in. >> At the 5,000 or less gives us that ability to address those smaller projects for people, but have another alternative to go to higher cost projects what we exceed $5,000, all the lead paint regulations come into play, which makes it a little bit more cumbersome, a little more challenging. But we were as a birth able to acquire and xrf gun so we can actually go out and test for lead ourselves. So we have an idea of what we're getting into in each project. Looking ahead to the Home Investment Partnership program, home programs all about affordable housing units, funding them one way or another can be used for new construction renovation and infrastructure are we use The majority of this is used for single-family development. So development subsidies for our partners to come in to build infill projects. You see those come across Mennonite habitat Jacob's ladder. They come in frequently residential housing solutions. Right now we're in a very challenging time because costs have increased so much. But appraisal values have not so where we're many of our partners we're having to put in significant amounts of subsidy just to get one unit very, very challenging. We can also do. We have opened it up for multifamily. And as you saw, we brought to that project forward. That was $150,000 gap subsidy and one of the low income housing tax credit applications. We are hoping they were score well enough to bring 50 units. And to me, that's a that's a great ratio $150,000, bringing 50 units are. 55 and older is a great, great, great scenario. We also use home funds for down payment assistance. This has been limited to those infill development projects in the past. So once we get past the disposition of the public housing units in the arpa funds associated with acts were going to be using down payment assistance for that. going to be evaluating ways to be able to open that up for general party per purchases in the community right now. It's not. And part of that's because of regulations around home funds and the restrictions and how that subsidy flows to the homeowner over time. But we're looking into that. This is one that confuses people. A lot of the section 8 housing choice voucher contract. So right now all of our vouchers are used as a tenant based voucher. We have the ability and it is in our pH a plan to allow us to project the snow. doesn't give us any more about yours to do that. But they allow us to go through a process to convert existing tenant base vouchers to project a softer and this can be very strategic. One. There are points and Q A P if you have subsidies on a project, it could give the project more points. But if we're looking to to increase the number of units that will accept a voucher, what a way to do that. But to provide a contract. So we can issue up a 5 to 20 year contract. I'm on a property. So instead of issuing about your to a tenant who goes out and finds unit you put about unit and whatever tenant from the waiting list moves into that unit receive subsidy. The beautiful part about that is the way the regulations are written and this really well and homeless programs is if we have a project that has a project based vouchers it and you have a client move into that unit at once we stabilize after year. If they want to move a regular Boucher and the project that your stays doesn't increase. But is strategy that's often missing in projects that are addressing homelessness? Because if you move someone into a permanent supportive housing situation and they're they're still in need rent assistance, but don't need the wraparound services. You're actually wasting space having someone holding a space that comes with wraparound services. So we can use that as a way to have people move for bond from can. help explain Section 8 vouchers a little bit I know that we want a more in depth into it. >> Can you go back to high level again on Section housing vouchers so that community can understand how the process kind of works. Who is eligible for this and how many do we currently have? Sure. >> So that the Wichita Housing Authority is considered a consolidated housing authority in 2018 combined with Cedric County Housing Authority who have previously taken over Butler. And part of how Harvey County. So our housing authority actually covers all of Cedric County, Butler County and Hardy County outside the city of Newton. We have a total of 3,311 about yours right now. It changes slightly. It's not an area where we're going to see had come in and give housing authorities more vouchers. They're having a hard enough time keeping up with rent costs under their budgets to be issuing more. But there are little pockets. We sometimes we receive more such as the bash program for the Foster Youth program or as we're converting our public housing units. So as we're selling off public housing units, we get percentage of those. They give us extra vouchers to help take care of the families that are being displaced. So we're seeing and that's why you ask in 2 months. I may say it's 10 or 15 higher than that because we've received a few more. Doesn't happen very often. But what about your is it rent subsidies? And it allows the household or family to lease the unit in the private market. They pay 30% of their income towards the rent and about your pay is the difference could be the whole rent can be by cheapest have had one contractor. We're paying one because their income was higher. it can be the whole gamut. There it is. A challenge, gives U.S. 3,311 vouchers, but $20,318 and change. Is it 20 Million? 20 million dollars, 20 million, 318,000 changes. This year's budget for our 3,311 vouchers to use that we It's just it's just over 20.3 million is this year's budget allocation from hot for those 3,311 vouchers. We can't afford to have all 3,311 vouchers utilize because our per unit cost. Than the money that we received. So we're always playing them once again. We're looking at how many as we can over the 3,311. We also can't overspend or money. So it is a once a week. I'm looking at the numbers going. Can we afford to issue to vouchers to be vouchers? 10 doubters? Because we're always watching that. And as we see wrecked cost increase that effects. It is rent costs. Go up. The fewer families we can afford to have under contract. It is a tough balancing court. Thank How many voters on average do we have out? >> Like now? >> House and how many are under contract right about 3100. So is about all we can afford to have under. So pretty close question too. >> Out of those 3100, how many them are outside of our housing authority >> portability that, You want to get into the real under the regulations. A voucher holder can take our voucher and go anywhere. There is a housing authority anywhere in the country or Virgin Island territory anywhere. There's a housing authority they can port that voucher. >> And we have to continue to pay the rent where they go. This craziness in the rules. We absolutely hate so we can take someone who's here in which Todd Gurley step. They decide they want to move to New York City. They take about New York City. The rent on a one-bedroom apartment in New York City is about $3200 a month. I have to pay $3200 month. House them in New York City and now our per unit cost is about 5.60, right now. So for I can. House 5 or 6 families here for the cost. It cost me the house that one person in New York say nothing we can do about it. It's in the regulations goes the other way to people can bring their vouchers from other communities. And we're doing that right now. They call that minister in them. So in addition to the 3100 batches of our own, we've got about 20 that have poured to us from other communities that we administer and get reimbursed from those other housing authorities. But it is definitely makes it much more challenging to manage. important 20, how many report last I checked there were 14 14 to 16 that were out 14 under contract to others that are looking for units are moments But yeah. So again makes balancing this really challenging this one >> the Pha Zahau much interest says they're from groups and units and whatnot and our city too participate in come into the program. Is there nice stream coming in or is a pretty spotty. It comes and goes with how tight the market is. >> So the rental market gets really tight on the open market, it makes it more challenging for about a holders to lease up. >> Because if your landlord and you have 3 for applicants, one has about your guess what? You're gone with one. That doesn't because you don't want the extra paperwork, the extra inspections, et cetera. But we see this happens in our markets all the time. Write ups and downs. So then all of a sudden will see that the market's not as tight and we'll have landlords clamoring going. know, we need we need more residents. We need more residents. We try and ride that out. We were in a tough situation last year where we were actually 400 units and are least where we had. We could afford 400 more families, to least 7. We were challenged to get him. Lisa. We implemented the landlord incentive program with the ARPA funds and within 9 months we were 100% It worked really well. It is one of those things I would love to continue if we could find funding for it. The other thing and that is we had Lee signing incentives and then for new landlords and the training landlords. But we also made risk mitigation fund for vacancy, loss of people who are to and damages. And since January 2023, we've paid one vacancy claim and that was on a domestic violence situation. And one damage claim. So that speaks volumes and did not hit the budget really hard at this Those funds still sit there because we can accept claims through September of this year. We're not seeing damage to units like sometimes hear. >> How do you guys a market that like how how do people that that bill is now law? It is no longer available soon as we were 100% the stuff we stopped that incentive. But all of those contracts have year in which to submit a claim. And that's why we are holding the funds that we had until the end of September when one year from the last we saw guy. >> And then we're hoping to be able to identify more funds to continue at least the damage claims side of it is right now. We are we are fully utilize. And when I say I look every week, I'm like, I think we can issue Dole out. Here's we used to be like, let's issue 200. we didn't do too. We're watching. We are so tight. So close, but it is important because we don't leave money on the table either because what this what do the next year he leave money on the table. They find you that much to next So we try to maximize the spend, make sure housing as many families as we can. Is a use it or lose it. >> Kind. Yes, in the sense that they will cut next year's funding by the amount that you under spent this year. >> So it could cycle we did over spent last by about $19,000 on a 20 million Dollar Project is pretty amazing considering. Trying to balance when people are moving in. We did over shoot a newly overshot by about 19,000 figured we'd end up having to pay that out of the admin had came back and made us whole, which was a huge celebration. I mean, I know it doesn't sound like a lot of money that it was like yay. They came back minutes hull and and pick paid us. There's no guarantee that the lever to On How long do individual stay >> Vouchers voucher. >> You know, it really depends. And the situation a lot of time seniors will be on for 20 years. We'll see that. We'll see some families on for 20 years. It can come and go as far as how long I've seen people that, you know, people leave the program for many different reasons. Sometimes they're good. Sometimes they're bad. We lose about 30 people a month. Off the program. People pass away people to their circumstances change and sometimes they get terminated from the program for violations. So our average with a call that rationing is about 30 units a month. And so that's where we're monitoring going cannot issue 30 more about years. What are we seeing in the increases and rents and utilities? Can we afford over time? We have some really complicated spreadsheets be able to forecast. Well, so are sorry. on the topic of that. I Councilmember Jaisol was kind of talk alluding to this. >> So if there would be more rental units available, then that would loosen up that market. So that landlords could potentially say, yeah, I'll take that housing voucher individual. So more units is what we but also curb the increases in rents are seeing tremendous increases in rents because of supply and demand. So yes, increases in supply definitely needed. So we go back to project basing HUD we can't project face up to 20% of our allocation. So 20% of the 33 11 and less, it's a project our have control and we have to go through a competitive process which can make things challenging because it has to line up with other things happening like it was for a tax credit project. This will give us that flexibility. That's why the units we want to project base for the Mac. We can do that because we'll have an ownership interest and we can just. Project Basin and intending on using many of those vouchers that we're receiving because of the disposition of the public housing units to be able to do that over time. If we want to project based privately owned and controlled project has to come through a competitive process and that competitive process is reviewed to ensure it was truly an unbiased, competitive process. So does that mean anything do with the MACC has to be within that 20%? >> Now they actually get a little cart out because it is the replacement units for public housing. Those won't go against our 20% cap. >> So that can be outside of the the 20% could still be one is doing now and and additional ones that we decide because it's attached to our project. Public housing disposition. Yes. Is there a certain limit on that or we could do it? I don't have enough money to do one for one replacement and all 352 >> But for whatever units that we have developed with those proceeds from those sales, could attach project based vouchers to. It will probably next, though, because, you know, we're talking about putting in another credit application and one of the not likely to have all vouchers in it just because of its location. But the other side talking, you know, the side that would be attached to the mat with all have project based vouchers associated with that. This gets extraordinarily underwriting the subsidy layering review the environmental issues, but it's worth it in the end, even if they're not ours, it's really worth it. In the end, I do recommend here not required limit them to newly rehabilitated or newly built units that are usually get your biggest bang. You could just open. We could just put out an RFP and say we're looking for apartments who want to project this. that a long time ago was not very successful because you know what, we had coming to the door where the units where they're having challenges leasing up because of their condition. So they look at it. As an opportunity to feel less desirable units, whereas we want to look at it as an opportunity to encourage the development for new construction, high-quality housing. So if we stick to that, that's what we can get out it. All right. And so those contracts we can do in for up 5 years to 20 years renewable for up to another 20 years. So this could be a very long term investment. We do have the arpa affordable housing funds. Very exciting. Excited to that. That RFP was able to be released Wednesday. It was supposed actually go out what was at 6 the when we have the cyber incident slowed us down from getting it released. So it is released. We had over 500 interested parties on the direct email list and we are getting a lot a lot of questions we're very excited about this. So this came about with the designation or allocation of 5 million in arpa funds for affordable housing. The idea to strategize being able to use that this first round is that pilot that we talked about. This is really a test. Candy's. Can bring up old neighborhoods if we do a targeted investment? And so we identified 2 clusters of public housing units, a total of 66 units, one in the Northeast, one in the southwest to where we are affordable housing fund dollars up to $40,000 per unit for renovations. But with that requirement to keep them as affordable. So through a coupling home funds for down payment assistance for on or after 5 units and or project based vouchers for rentals so that we know we're getting at least and I'm saying at least a 15 minute 15 year restriction on those. It is one of the most complicated RFP is probably put out there because they have the ability to to purchase property at of the fair market value apply for affordable housing funds. Apply for home funds for down payment assistance that home ownership apply for project based vouchers. If it's rentals and then we want to watch and see. And it's not just those public housing units, any unit within a quarter mile of those. What we call those clusters. So we want to watch and see if we can actually help bring up property values all throughout those 2 neighborhood. can you remind us where exactly they are to set southwest to northeast. Yes. So they're the ones in the northeast. Are it 20 between 25th and 26th Street Minnesota, Ash high at Madison. >> The ones in the Southwest are at corner of high school and Saint Clair. So there's 43 units in the North East and 23 units in the Southwest. The units in the Southwest are all 4, 5, 6, spectrum. Very, very units. Northeast is a mix of 2 threes and fours. So all that information is available on the website. The application I said is it it's a lot of that. very specifically made it at a an application house by house. But the system we're using allows create a proposal. Copy it, change. What they need to address is the house by House is very specific because we didn't want someone to come in and say I want these 20 and someone else come in and say I want these 25 of them overlap. And how do you decide which one to grant? we can look at a house by House bases. Those will come up through the Affordable Housing Review Board. Do make recommendations. Then the council take action, whether or not to wear those contracts really excited to see what comes from this. I because I really do we when we look at these clusters that there is Everywhere you purple. isn't public housing unit. Right now. We're looking at the clusters in the North East and the Southwest. would. Our hypothesis says that we will see property values of surrounding properties increases were increasing. Putting this targeted investment in units. That we expect to use about 3 million of the 5 million dollars that was set aside for the Affordable Housing Fund program. Originally the remaining 2 was to make those available for units outside of the 2 clusters that we're at a point that if the council wish to do something different, it could be that last 2 million could be. Restructured and some other way. We would just need to come back. Yes. >> Okay. So the do they have to specifically be houses or can they be multi-family units duplexes apartment buildings, someone under the RFP right now, it would be have houses. >> Is what it's single family. Very specifically in the plan. >> so you've had multiple applications for the 3 million are here that is open. It doesn't. We left a lot of time for that RFP to be open because we knew it was going to take people a lot of time to pull the resources together. >> So we're those homes are all open every morning. This week in every morning. Next week have staff at those locations to allow people to come in. Take measurements. Take a look at their conditions so that they can work on their proposals. I believe there due to 21st. So we're leaving that open for quite a while. And the other 2 million is that application close June 21st know that's the one That one up per the existing Affordable Housing Fund. The plan would be rolled out for other. Properties that aren't in those 2 clusters. But we haven't acted on that. So if there was a desire to do something different, we could restructure the the plan. Whether or not you want to amend that. continue that going forward. I have a couple of follow-up questions. So June 21st of is the deadline, as you mentioned, 500 interested parties Have you thought about doing some sort of workshop with folks so that they can kind of go through the application and a group setting. >> Answer all the questions. 31st is the actually a couple times throughout the process. >> If we have a people's a conference is set up as well as periods of time for people to submit questions and then will be releasing Addenda to respond to those 2. Yes, we expect this to be complicated. And then the 2 million that you just mentioned. know that obviously we keep talking about the Mac. >> would there be an opportunity there that you could absolutely would be an eligible expense? All right. I want to get back to >> So as I was listen and the salary, right eye want to go back to maybe one of the things that I talked about continue to help kind of put in perspective right? We're talking about affordable housing versus housing, affordability. It's a really, really small market segment right? If you think 3,000 vouchers in a market of 100,000 housing units. 23% of the housing market, right? And to some of the comments housing housing housing even market rate housing, the more housing that we can bring the market, whether it's affordable housing or just housing in general. Helps affordable housing just by creating opportunities in the march before housing only a really small super complicated, super beneficial. There's a lot of folks that can really take advantage of the program right? But again, in perspective, right, it is a really small percentage of the housing market, which is usually what try to focus on just housing in general. thanks so much, Ali, for the work. It. It's a helmet work. We appreciate all the work do right around affordable housing. So if you talk about current working next steps, right, we'll continue to focus on macroeconomic stability. >> Removing barriers, aligning strategic investment. Housing, housing, housing. So we mentioned evaluating the Q A P in the fall and formally comment priorities and scoring criteria in our discussions. Right? It's one thing for the recommendations to come from staff at another that hopefully recommendations for provisions. IQ AP coming from collective body. >> Right. Well, hopefully well, a little heavier on the minds of those folks that are drafted. Those securities and then will continue to work through the Arby's. And our is try. These tips said is a safe as we bring back and amend of development guidelines. >> Well, not so much a question, I'd like to get a head start and maybe at the end of the year after the elections come up with the changes that would like to see the state to was some of the leaders before we set our legislative agenda, even and then during the legislative agenda, make sure we have like specific ask for the legislature going forward. That's one thing. I've kind some of the feedback I've gotten is they would like some some more specifics, one regarding some of the stuff. So I'm just thinking out loud here and yeah, we most of the Nader around the state is here and Wichita or they are been areas like that and seeing so much focus go out to. Rural communities where there you know, you we acknowledge there's a out there. But also what can we do to see some of the specific changes that would have been, in fact here Wichita? I'm just throwing that out there again, like to meet him little bit after the election this year and really kind of buckle down and get some of the changes we need. I agree with councilmember parcels. so I did a few questions. >> I think this is probably our first hour bar. We're looking picture. the 2 million dollars that you're talking about. You said again, council partner was focused around those areas. Okay. I like that. Just because you can see a real impact on your focus on the areas that are just random. Scattered trucks. the block areas. A great example of just that focused So I would like to see that stay. But I do wonder with those funds, I guess, out the cluster. So outside of the specific houses. Is there way that we can? Create or require using that to bring some of these rental units up to code. Because some landlords just like the patch things to bad living conditions. But there is a way to say. Forcing you to do things. But this is what it would take to bring property up to code and we have funds to help offset. >> So we're looking both the rental. We have redesign part of that. That strategy to make sure that there is a source of low interest loans available for that as well on the homeowner side, this first round, we've got out and been selling. It hasn't been in the position for that. But that is something we are are communicating to new applicants coming through and we're using, you know, it's an amendment to our policy. That is all we had to do that require had required that they own it for a year. We're saying that that's not necessary. If you're buying one of these, you could apply as a homeowner for the repair program to assist in getting repairs made units. So definitely on our radar. You know, it's need. >> OK, and with that. Would it do and is there enough to really bring some of those properties up to code? >> Most of them are actually don't have food issues as much because most most of the public housing properties have the rest. Replacing 2014 HVAC in 2010. So and then, you know, most had been kept up to code along most of its more more cosmetic and condition. From sitting. They get for a period of time. But that's needed to absolutely. And that's why we want to make sure that especially those low-income homeowners who might be buying these have the ability to tap into the resources they would be restricted to either landlords who have a commitment to rec to to somebody with a voucher or homeowner that income qualifies. Okay with that. Also be for the houses are not our public houses. So someone who lives 2 blocks away, they want to do the same Yes, and that even under the rp that's open right now, any of them that are within a quarter mile of those, they could >> They can use that affordable housing fund and that's why if you do the math of the 66 unit sense of 40 billion 2 million, 640,000, we 3 million because we knew we'd get some applications from others that aren't necessarily tied to those specific house. awesome. my last question, the way that you were talking about, what sometimes? Landlords want to take house and towards vouchers and when they don't, do you think a source of income >> discrimination ordinance would stop the way, but we would always be able to see what's available and people could. Stop kind of saying no, because I don't want someone with that or how the Tories factor. >> My experiences in other communities where they have source of income discrimination, sometimes they find other ways by putting unrealistic credit scores and things folks like you need to have a 7.85 credit score to here. That's where we start going. We wait a minute. We need to make sure you're enforcing all of your applicants. Not just the ones with vouchers, that sort of thing. Sometimes people can get really creative and and getting around in income discrimination ordinance. Allowing their unit to fail. If it doesn't pass inspection, I can't go under contract. Yeah. They figure out ways. Unfortunately. But the other thing you did bring I was a question someone asked about the supply and demand. if there's demand for property see the prices increase, habitat for humanity saw that greatly with to black. Soon as people sought a wave of what was happening with what they were doing, all the vacant. Lots in that area of us and they got up and then people think there were 3, 4, times more than they are and are just sitting on them. It's it's a weed that frustrating. But it is an example where when there is when it's known in the community, all of us and we see prices. >> anticipate using all 3 million of the fun. >> Most likely yes. Haha. And so one of those you make the money available. That is one of the challenges you know, we have to make sure that we're underwriting and looking at every proposal. >> One benefit we have is we did go through the attempt to secure the funding, to do the rehab all the so I have planned and specs on every property. So when someone submits their proposal along with what they intend to do to you to improve that. We know what it means. And if it doesn't cut what we believe it needs, because we have the plans and specs we can at least advise the Affordable Housing Fund Review Board to say are plans it needed X, Y Z and they're only proposing what I call put lipstick on the >> I just have a comment. And and truly appreciate the affordable housing versus housing that's affordable. And been trying say that Montrezl much as I can. I was at a conference a few weeks ago and I understand the affordable housing part. We don't have as much creativity year flexibility because of the restrictions term, HUD it for me in the 18 different departments we have within the city. I think housing is the most complicated but in the housing that's >> affordable. >> I think we do have an opportunity to maybe think outside the box a little bit talk to Troy little bit about this and Skyway, tell him not at all proposing this. It was just something I heard from it. >> Another community on a panel is they have what they call a density bonus. And so it and we don't have as much issue because of land here, right? don't really grow up as much as we grow out. But they changed some of their zoning processes. So that if a developer would have a certain portion of the housing be low income, then they would wave maybe height restrictions or green space restrict space restrictions right? And we can get more information center said that the other communities card, but it would just really prompted me to be thinking of, you know, what are some things that we can do to change so that we can have more housing that's affordable and not always just think about affordable housing. So and I'm really glad for this presentation interested in other discussions. But I do think this is a great opportunity for us to be creative to think about what we can do because, you know, this issue certainly and we can see from that point in time count going away. And it's it's not going to be resolved quickly or easily Thank you for all your work. Both of you on this. >> Yeah, I'll build on that a little bit. You see here removing barriers right? And that's not just him. Getting to the programs and incentives that we have available to us. The tools in our toolbox right? >> But it's more comprehensive than that, right? How do we continue to remove the barriers associated with things like density worse and communities across the nation right now. Rethink urban development, right? And there's a push density density density right cities have a hard time. I'm continuing to do with urban sprawl, road and utility infrastructure of that and the maintenance of that perpetuity, right? And so Caesars coming back, 2 months, more dense urban environment to take advantage of existing infrastructure. And so you'll probably hear me often time talks about density density density. And how do we continue to remove the barriers generally associated with housing and other development? >> And the interesting thing about the density bonus, that the discussed is that there wasn't a financial ask from the city, right? They weren't saying give us a tax abatement or anything. It was just let us build something a little bit differently. And and if a portion of that was affordable housing. So there is absolutely no cost to the city. So I just think it's a really interesting concept. And again, I'm not proposing we do that here, but just be thinking and looking at what other communities who are doing, who are dressing has done well, what are they doing? The used to be our indie was research and development. Now are India's ripped off and duplicate. So I would suggest all of the RND that we can get. >> And I will Echo Council totals comments to just thinking about how we remove barriers that may not be taxes and Abe. So when we look at zoning are, you know, we pre zoning areas from single-family multifamily. So we're encouraging people to develop certain a particular areas that are more dense. I think that's the way that we can make government easier for individuals and they're looking develop. So I would echo councilman comments as well. >> follow-up question. I know you talked about may have been the last workshop revealing the CIA and the tax program with pros property tax. Where is Have you had any movement on that conversations with 2, 5 non-essential county. >> So we put up our conversation with '02, 5, 9, late last fall, right? Because as we dove in to just where are we going with economic development policy, right? We want to make sure that we have this conversation with first. We had a good road map on how we're going to and then work fully prepared to factory out to 5 million last week and just told them and say, hey, look, we haven't forgot about right? We're just been going through this economic development policy review and analysis first, just to make sure that we're all on the same page and then we get back together with them knowing that very well. We'll have to enter into an inner local cooperation agreement with to lay all of the terms and conditions of one of program. Look like. But we have to put up our conversation 2, 5, 9 for now, just as we went through this. But now that we've kind of gone through the policy narrative with you all were prepared to pick up conversation. >> Was there a proposed timeline on the tax benefit that you talked about? It wasn't just very high level. >> Just really high level. One of the things we were talking about with them was, you know, if we focused on that note, support stilts, that same adjacent the momentum of free, you the previous reprogram was a very large geography, right? If we were more focused and strategic and we focused to court or stand pressure going provide, what is that history on the projects that commenced in those notes and corridors. What could expect over of one to 5 year window so that they can start making some informed decisions. We have that information again. We're just waiting to pick up conversation again. But yes, we know the building permit data over the last 5 years. We've been working closely with and maybe city and our GIs department to help us at that, right. We we now have sort of active day by day permit data over five-year window that we can go back and look at and we can share that information help them make an informed decision. Thank you. >> Thank you and mayor will. That's all we have in terms of workshop items us for a couple of updates. One related to the budget and one related to the recent cyber incident that we're still sorting through in terms of the budget As you all are, where it's been guided by the community survey results. Our resident engagement began in January with but around Citizens engagement, Academy, certain boards and commissions. We hosted to social media town halls during the month of April. The first one focused on street maintenance. The second focused on crime prevention and reduction and city manager as well as our budget office staff made the rounds that are district advisory boards during the month of May. We have a workshop scheduled for June 4, starting at 4 o'clock during the workshop, staff will present options for balancing the 2026 budget we believe were fairly good shape for 2024. Revise 2025 primarily due to interest earnings. But as interest earnings are anticipated to come down, we need to figure out how have a soft landing in 2026. so staff will present options during the workshop and seek feedback. Secure guidance on what options are palpable. Any questions relative to the budget process workshop on Tuesday. >> We were supposed to have a simulator on mine. Thank >> It's a I don't think I have enough caffeine from eyes to remote script here. Staff is working on the budget similar be one of the topics of staff are covered in the workshop and announced about the Thank you. As far as the cyber incident staff continues to work diligently on systems, infrastructure, internal systems to support operations. Continue to say 30 days into this incident into this event. It's amazing the work that our staff is is is able to do. I realize that we are not moving as quickly or as fast as some would like. But I assure you that staff is making every effort to do what we can. What you can expect over the coming today, which didn't can expect over the coming weeks relative to customer facing systems as staff doing what we can safely bring those systems online. So we think about customers customer facing systems. We're talking about online credit card payments were talking about information queries in some cases, we're talking a reservation systems as it relates to golf and other programs the nature of those systems out there on base, they require you access a firewall. And so staff want to take every precaution they can take to bring those systems up safely in terms of internal operations. We're starting to see some things come back online last water meter reading came on my we hadn't been able to read meters since May. 5th. Was that important that allows us to provide accurate and timely information to customers as they go forward with paying their water bills. Another thing that we've seen, our progress that we've made relates to accounts payable. So our vendors who have submitted invoices, we were challenge to pay those invoices. Now we're starting to manual processes largely to pay a a fair amount of those invoices and then also employee payroll 3,000 plus employees working hard to deliver services for residents and businesses. Want to make sure you get pain that I'm a matter where possible. So as the skews me, the situation continues to evolve, followed, provide more information, more updates. Thank you, Mayor. >> Thank you. Dante. And as a reminder, our next council meeting is going to the second evening meeting of 2024, which is June 4th, next Tuesday at 06:00PM. So again, June 4th, 06:00PM as our evening time meeting before we adjourn, we actually have an executive session. So I will motion that we move that the City Council recess into executive session for 15 minutes to receive information on municipal Court. Judge vacancies pursuant to KSA. 75 dash. 43 19. Be one to discuss. Personnel matters for not elected personnel. The executive session is required to protect the privacy interests of an identifiable individual. So the executive session will again. At 9. Sorry, 10, 30 well, take a little break and we will come back at 10. 45? To have a second. Motion to approve, say Aye. All those opposed. Same sign motion passes 7, 0, We'll get into executive session and return at 10:45AM. Thank you.