Item Coversheet

City of Topeka
Council Action Form
 Council Chambers
214 SE 8th Street
Topeka, Kansas 66603
www.topeka.org
July 11, 2017
DATE:July 11, 2017
CONTACT PERSON:Sasha Haehn, Neighborhood Relations DirectorDOCUMENT #:
SECOND PARTY/SUBJECT:PROJECT #:
CATEGORY/SUBCATEGORY 019 Reports / 009 Real Estate
CIP PROJECT:No
ACTION OF COUNCIL:JOURNAL #:
PAGE #:
DOCUMENT DESCRIPTION:

 

APPROVAL of a Real Estate Report and method of disposal for real property located at 1116 and 1126 NW Van Buren (Council District No. 2)

(Approval would authorize sale of the property for a nominal monetary amount to Cornerstone of Topeka.  All City departments have indicated they have no interest in the property and it has been declared surplus property.)

VOTING REQUIREMENTS:
Majority vote of the Governing Body (six votes).
POLICY ISSUE:
The Governing Body will consider transferring the subject properties to Cornerstone of Topeka for use as the location of two new single family affordable rental units.  The two rental units will meet federal affordability requirements for a period of twenty years.
STAFF RECOMMENDATION:
Staff recommends approval of the Real Estate Report and the request to dispose of the real property through negotiated sale to Cornerstone of Topeka, as outlined in section 3.30.340(d)(3) of the Topeka Municipal Code.
BACKGROUND:

In 2009, the City applied for and received funding from the State of Kansas Neighborhood Stabilization Program.  The lots in question were acquired with these program funds in 2014 for infill housing in the Historic North Topeka East neighborhood in conjunction with the SORT program that was ongoing at the time. 

 

Housing Services is partnering with our Community Housing Development Organization (CHDO), Cornerstone of Topeka to build two single family homes on these lots that will be used as affordable rental properties in the neighborhood.  Cornerstone will own and manage the properties upon the completion of construction, and they will remain affordable housing units for a period of 20 years. 

 

This project will further enhance the improvements made in this area from the SORT project, as well as providing two additional affordable rental units in the area.  Construction costs are being covered with the remaining NSP funds the City has.  The  project has been approved by the State of Kansas, which oversees the Neighborhood Stabilization Program.  Completion of construction is estimated for early fall of 2017 - September/October time frame.  This project will complete the City's Neighborhood Stabilization Program project and will close the project with the State.

BUDGETARY IMPACT:

Other than reduced land maintenance and upkeep costs there will be no impact on the City of Topeka.  As these properties were acquired through the State's Neighborhood Stabilization Program, and the construction will be paid for with the NSP funds, there is no impact to Housing Services HUD funding or the Department's General Fund budget.

SOURCE OF FUNDING:

Neighborhood Stabilization Program funds received from the State of Kansas.

ATTACHMENTS:
Description
Contract
Real Estate Report
Aerial Map