Developer Closes on Financing for Affordable Kansas City Project
Oak Park Townhomes’ units will be reserved for residents earning between 40 and 60 percent AMI.
DowCon has closed on the financing for Oak Park Townhomes, a 35-unit affordable housing development in Kansas City, Mo.
The company secured funding from several sources, including $9 million in Multifamily Housing Revenue Bonds issued by The Planned Industrial Expansion Authority of Kansas City, according to Jackson County public records.
Advantage Capital issued a $3.5 million junior loan with BOKF, N.A. as trustee, the same source shows. The developer also obtained $710,000 and $650,000 from the federal and state 4 percent LIHTC program, respectively.
Plans call for seven one-bedroom units and 28 three-bedroom apartments across four buildings. Units will be reserved for residents earning at or below 40, 50 and 60 percent of Area Median Income.
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Phoenix Family, The Salvation Army of Kansas and Western Missouri, as well as First Call, will provide on-site support through programs designed to promote self-sufficiency, veteran services, substance abuse recovery, counseling and education.
Located at 3801 Prospect Ave., Oak Park Townhomes will rise roughly 5 miles southeast of downtown Kansas City, Mo. Several transit stops and retail options can be found within walking distance. Multiple parks are within 2 miles of the development.
Building affordable housing in Kansas City
Metro Kansas City’s affordable housing inventory clocked in at more than 20,400 units as of October, according to Yardi Matrix data. The figure represented 11.3 percent of the metro’s total stock. This year alone, upward of 660 affordable units came online in the market.
Developers had more than 3,900 affordable units were in the planning and permitting stages, the data provider reveals. However, the metro’s affordable stock is unlikely to expand further, as only one affordable project bearing 50 or more units was under construction.
Additionally, as affordable construction starts stalled due to a plethora of factors—such as capital and construction costs—metro Kansas City’s affordable pipeline had no new developments of 50 units or more added during the first nine months of the year.
Nevertheless, developers continue closing on affordable projects throughout the metro. In June, MRE Capital secured $29.6 million in federal LIHTC for the development of Canyon Creek East, a 212-unit community in Lenexa, Kan.
