Salina hoping to build 150 duplex townhouses, using grant

The City of Salina is looking for any opportunity to help alleviate the current housing situation, with another state resource currently being considered after approval by the City Commission.

During its meeting Monday, the commission approved a resolution to submit an application to the Kansas Housing Resources Corporation for the state's 2022 moderate income housing (MIH) grant program for a development that is expected to have 338 housing units.

This development, known as Aero Plains is located south of West Magnolia Road and west of Interstate 135 and is currently a vacant parcel more than 53 acres in size. It is also designated by the city as a Rural Housing Incentive District (RHID).

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More funding available from the state

According to Lauren Driscoll, community and development services director for the city, the state's MIH grant program is used for households that don't usually qualify for federal housing assistance and is designed for communities with a population of less than 60,000.

"This grant has undergone quite a bit of change in this last year," Driscoll said. "The change from 2021 due to new funds...has gone from $2 million annually to $40 million."

Driscoll said this uptick in available funding has allowed the state to use MIH in more ways over the past year.

"MIH was a great program, we just didn't have enough money for it (in the state)," Driscoll said.

Much of this additional funding came from a one-time infusion of American Rescue Plan Act (ARPA) funds in the amount of $22 million and more funding will be put into the MIH program as housing needs in the state grow and the program is used more frequently.

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Asking for the new maximum

Before this funding increase, applicants to MIH could ask for up to $400,000.

"They can (now) ask for up to $650,000," Driscoll said.

This new maximum amount of grant request is what the city will go for, with the $650,000, if granted, to be used to build Phase 1 of the Aero Plains development consisting of 75 lots with a total of 150 townhome duplex units.

In addition to approving the submission of this for funding from the state, the commission also approved a waiver of building permit fees for the Aero Plains project. In the written report given to the commission Driscoll said that Building Kansas, LLC, the development group for Aero Plains, requested this waiver as further incentive to allow the project to be more viable "and allows (Building Kansas) to build workforce housing in the community."

The commission approved both actions by a unanimous vote of 4-0, with Commissioner Mike Hoppock recusing himself due to a conflict of interest.

This article originally appeared on Salina Journal: Salina seeks $650,000 from state for townhome building project