Atchison discusses $300,000 CDBG housing rehabilitation application; public hearing held

The Atchison City Commission held a public hearing May 20 on applying for a Kansas Department of Commerce (KDC) small cities Community Development Block Grant (CDBG) under the housing rehabilitation category, driven by a proposed $300,000 application and a plan to concentrate work in the oldest part of the city.

The KDC program would allow the city to seek up to $300,000, with individual homeowner assistance generally capped at $25,000, consultant Garrett Nordstrom of Governance and Services told the commission. "We have maximum per domicile of 25,000 ... If we exceed $25,000 in the grant, then we have to go into construction. On lead based paint, we have to abate it completely out of the home," Nordstrom said.

Why it matters: the funds would target low‑ and moderate‑income households for repairs that address habitability and safety rather than upgrades. City officials said concentrating the award in a single neighborhood would produce a more visible impact than spreading small amounts across many scattered homes.

City staff described the program mechanics and limits. Nordstrom said administration fees are capped under the federal rules and that administrators commonly budget up to $3,000 for program administration. Eligible households must meet low‑ and moderate‑income thresholds tied to county median income; as presented, the one‑person threshold cited was $46,003.50 (80% of the county median as discussed in the hearing). Households would generally be required to provide a 25% match where applicable, he said.

The commission and Nordstrom discussed neighborhood targeting. City staff recommended focusing on the historic Atchison plat bounded roughly by the railroad tracks to Unity Street and the Missouri River to 10th Street so the grant would have concentrated impact; staff said later rounds could focus elsewhere if the application is successful.

City officials also explained how the grant links with other local funding. Commissioners asked whether remaining American Rescue Plan Act (ARPA) funds could be used to supplement projects that need more than CDBG's per‑home limit; staff said the city had already appropriated much of its ARPA allotment to other city projects and nonprofit grants and cautioned using those funds would carry risk because previous ARPA appropriations were earmarked for city projects.

Nordstrom explained property restrictions tied to the CDBG assistance: the city would place a three‑year forgivable lien on the property to secure the grant amount, with the lien grading down over time and typically forgiven after the restriction period if conditions are met. He said the program team expects to screen homes and "walk away" from properties where repair needs exceed what the program can address.

The public hearing was opened and, after no speakers came forward, closed with no vote taken on the application that night. Staff said pre‑applications are open to gauge interest and that the city will return with a recommended application once program criteria and the list of candidate homes are finalized.

Speakers at the hearing included Garrett Nordstrom of Governance and Services, who led the technical presentation; Mark Westoff, city manager, who introduced the consent items earlier in the meeting and participated in discussion; and Representative Justin Pajon, who introduced the item to the commission.