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Commission approves nonprofit to manage two city-owned transitional housing units; staff says no immediate city cost

2669610 · March 17, 2025
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Summary

The commission voted 5-1 to allow OK and Homelessness to administer two transitional housing units owned by the Shawnee Urban Renewal Authority. Staff said tenant management and initial minor maintenance will be covered by the nonprofit and that any larger repairs would be handled with CDBG funds if needed.

The City Commission approved a contract that places two city-owned transitional housing units under administration by OK and Homelessness, a nonprofit participating in the community's homeless-services roundtable. The vote carried 5 in favor and 1 opposed.

Ryan Harkins, planning and community-development staff, told commissioners the City owns the units through the Shawnee Urban Renewal Authority and typically contracts with nonprofits to administer scattered-site transitional housing. "We basically contract out the administration of these units to various non profits," Harkins said. He added the arrangement is intended to provide a short-term, supportive step off the street for people who are unhoused and are engaged in case management.

Why it matters: The units use property assets owned by the city and link to the city's Community Development Block Grant (CDBG) program; while staff said there is no immediate cost to the city, maintenance beyond a contractual threshold could draw CDBG funds or program income.

Program details and staff responses to questions:

- Units and administration: Two units at 104 South Chapman (Units A & B) are to be managed by OK and Homelessness; the city currently has one additional unit under contract with another nonprofit and expects to present another contract in the coming months.

- Cost to city and maintenance: Harkins said currently there is "no cost to us" unless major maintenance is required. Under the contract, minor maintenance up to $2,500 will be handled by the nonprofit; amounts above that threshold would be candidates for CDBG program funds or program income.

- Screening and case management: Tenants would be screened by case managers working with OK and Homelessness (and partner agencies). Harkins described an expectation that clients would follow a case plan (job search, training, or other steps) and that noncompliance could lead to replacement with another eligible individual.

- Utilities and liability: Staff said utilities are typically handled by the administering landlord under current contracts; as with maintenance, the city would reserve the option to call the contract and retake property if serious issues arose.

Public comment and concerns: During citizen participation several speakers raised concerns about homelessness and use of city resources. Resident Cindy Berger said the CDBG funds "are meant for people that live in Shawnee" and urged the city to prioritize grant-funded home-repair assistance for long-term residents rather than using CDBG-funded assets for transitional housing. Other public commenters described neighborhood impacts near homeless-service locations and urged stronger enforcement of property and safety concerns.

Outcome and next steps: The commission approved the contract with OK and Homelessness 5-1. Staff will execute the contract, require monthly reports from the nonprofit, and monitor maintenance needs and any potential use of CDBG funds.