MHA 2025: Downtown Affordable Housing Campus 

Objectives:

• Develop a housing campus that would provide approximately 109 units of housing for the replacement of National Church Residences’ Garden Grove I and II (62 units senior) as well as the Manhattan Housing Authority’s Carlson Plaza (47 public housing units)

• Relocate residents from all three buildings (Garden Grove I & II, Carlson Plaza) to the new replacement building(s).

• The campus in downtown Manhattan, KS would consist of two or three buildings at or near the site of the existing Carlson Plaza and Colorado Plaza (50 units), an existing National Church Residences’ Section 8 senior housing property.

• The campus would consist of the replacement building(s) and Colorado Plaza, for a total of approx. 159 units.

• Transfer the rental subsidies from Garden Grove I and II and Carlson Plaza to the new building.

• Secure FEMA grant for the acquisition and demolition of Garden Grove I and II. The acquisition proceeds would be used to retire existing FHA debt on Garden Grove I and cover relocation costs of residents.

• The new development would be single plan of finance with three kinds of subsidy contracts -- Section 8 HAP, RAD for PRAC converted to PBRA, and Carlson Plaza public housing subsidy converted to project based subsidy under RAD or demolition/disposition authority.

Roles:

• Manhattan Housing Authority (MHA): will work with a Co-Developer to ensure project is completed and conversions from PH to Project Based Sec 8 happen within the guidelines of HUD and Federal Regulations. 

• Oikos Development Corporation (ODC): nonprofit community development corporation dedicated to building quality affordable housing in partnership as Co-Developer with Manhattan Housing Authority. ODC will provide development oversight ranging from planning to construction to financing and tax credit application process. 

• Housing MHK Fund: independent nonprofit organization formed to be affiliated and/or instrumentality of the Manhattan Housing Authority and would act as the general partner of the owner as necessary to meet HUD 202 ownership requirements and potentially as the developer, owner, and property manager of additional properties. 

• National Church Residences (NCR): Will facilitate the transfer of the Garden Grove I and II rental subsidies and use restrictions to Manhattan Housing Authority / Housing MHK Fund as development is completed. 

• US Department of Housing and Urban Development (HUD): Approve the transfer of Garden Grove I’s Section 8 contract and 202 Use Agreement to the new building under the Appropriations Act Authority for moving Section 8 contracts and use restrictions. Approve the conversion of Garden Grove II’s PRAC to RAD and the transfer of the resulting RAD PBRA contract to the new building along with the required use restrictions. Approve the requested conversion of the public housing Carlson Plaza through RAD or demolition/disposition authority and moving the resulting project-based subsidy to the new building.

• Kansas Housing Resources Corporation (KHRC): Provide 4% and/or 9% LIHTCs and needed gap funds.

• City of Manhattan: Assist in approving any needed zoning variances to accommodate new building and any available tax abatement/PILOT. Submit a proposal to FEMA on behalf of National Church Residences for the acquisition of Garden Grove I and II. Authorize site control via MoU with Manhattan Housing Authority for City Parking Lot located at 5th & Pierre St. 

• This project will relocate vulnerable Senior Citizens from future flooding of Wildcat Creek by relocating HUD Assisted Seniors from Garden Grove I & II to a new HUD assisted housing structure in Downtown Manhattan 

• MHA is committed to working with the US Department of Energy and is one of two Public Housing Authorities in Kansas that is part of the Better Buildings Challenge. Future building construction will feature solar energy with a goal of being net neutral of energy consumption.  

• The final product must be aesthetically pleasing and aligned with character of entry into Manhattan from viaduct and the Downtown Historic District. 

• We are in pre-development and conceptual design phases. We are not locked into a specific funding stream or type of design at this stage. We are very early in the overall process and now is the perfect time for you to help us shape the outcome so that it meets your agency's needs. 

• This concept is a joint venture between Manhattan Housing Authority, National Church Residences, Housing MHK Fund, HUD, and Oikos Development Corp. (all entities are non-profits)

• Preservation of 109 safe affordable housing subsidies that are otherwise at-risk in the Manhattan community. Including 62 Senior Housing Units and 47 Public Housing Units.

• Flood mitigation for 62 vulnerable seniors in HUD Housing near Wildcat Creek.

• Revitalization of the 5th & Pierre neighborhood with two new buildings that respect the Downtown historic district

• New marketable units that meet modern day needs and are ADA compliant

• Relocation of 62 vulnerable Seniors to walkable district with access to social services and Senior specific needs. (Area Agency on Aging, Art & Light Museum, Blue Earth Plaza, Flint Hills Discovery Center, aTa Bus stop, the Mall and Downtown shopping.

• MHA will utilize local contractors, labor, and vendors to maximize the estimated $20M in funding that will come into our community for this project.

• MHA and our Co-Developer from Oikos Development are working on plans to preserve the parking by building over the parking lot and maintaining the parking on the ground floor. There are roughly 95 spots in the 5th & Pierre City Parking Lot and our aim is not see a net decrease in parking spots.

• We anticipate demolition of Carlson Plaza (425 Pierre St) and during the rebuilding phase we will work to add additional parking for MHA residents. It is likely we will have a net gain of parking after all the phases are complete.

There are numerous funding streams we are leveraging and applying for additional grants.

We are not seeking tax dollars from the City of Manhattan. The financing of the project is fluid and dependent on the type of HUD subsidy that is being utilized on the property. Here are some of the financing tools we intend to utilize throughout the duration of the project.

• State Low Income Housing Tax Credits (New in 2023)

• Federal Low Income Housing Tax Credits (9% or 4%)

• American Rescue Plan Act Funds (ARPA Funds)

• HUD - HOME Funds

• HUD - Rental Assistance Demonstration (RAD)

• FEMA – Flood Area Buyout Program (award pending for Wildcat Creek properties)

• Strengthening People and Revitalizing Kansas (SPARK) – $10M

• HAP Contracts and Section 202 financing for Senior Housing

• KHRC – HOME-ARP Funding (New in 2023)

• All entities involved are not-for-profit

• Estimated costs for project $20M (including the Carlson Plaza rebuild)

Is this City Parking lot site limited to HUD Senior Housing development?

Actually, no – there are many possible scenarios and options we are seeking public input on that may be beneficial to the community as possible additions to the Senior Housing development.

Some examples of ideas we are exploring are:

• Possible relocation of the Senior Center to be on the first floor of the new Senior building. If the Senior Center relocates that will also open the 3rd & Leavenworth City Parking lot up for development which would add to the property tax base.

• Possible addition of Workforce Housing Units that would be subsidized for applicants between 80%-120% Area Media Income.

• Possible inclusion of private retail space. Similar projects have had success with on-site hair salons or other services that meet senior population needs.

• Possible inclusion of childcare space – could partner with Boys and Girls Club