Council approves letter of intent for 42-unit affordable housing project using revenue bonds

The Wichita City Council adopted a resolution and authorized signatures on a letter of intent to issue revenue bonds to support a 42-unit low-income multifamily project proposed by Commonwealth Development Corporation.

Assistant City Manager Troy Anderson described the project as a 42-unit multifamily development for low-income households. He said Commonwealth is requesting revenue bonds of approximately $9,200,000; the bonds are structured so the city is not lending money and bears no risk because the developer acquires all financing. Anderson said the primary purpose of the transaction at this stage is to permit a sales-tax exemption associated with the bond structure; staff estimated the approximate value of the sales-tax exemption at roughly $345,000, of which the city share is about $26,000.

Liz Peterson, a development manager with Commonwealth, said the company is applying for federal and state low-income housing tax credits (including the 9% credits) and intended to close a construction loan in late 2025 if awarded credits, with an estimated 14-month construction schedule that would place completion in spring 2027 if the credits are awarded. Peterson said Commonwealth will proceed with financing options even if credits are not awarded.

Councilmember Cindy Hoheisel, whose district includes the site, moved adoption of the resolution; the council voted unanimously, 7-0, to adopt the resolution and authorize the necessary signatures. No taxpayer funds were appropriated; staff said Commonwealth will pay issuance costs and annual fees and that the bonds will be purchased by Commonwealth or an affiliated entity.