Osage County hears update on countywide MIH application; commissioners weigh neighborhood revitalization program policy options

Osage County officials discussed a renewed countywide application for the Kansas Housing Resources Corporation (KHRC) Moderate Income Housing (MIH) program and how the county’s paused Neighborhood Revitalization Program (NRP) could affect the application’s competitiveness and the affordability of rental and owner-occupied units.

The commissioners heard from Joseph Thomas of Heartland Design Build and Osage County land development director Trisha Webb, who said the county must supply two signed resolutions for the application and give directional guidance about the NRP so application writers can calculate abatements for the MIH submission due Oct. 3. Thomas described the MIH program as targeting the “missing middle” of housing and said award criteria require site-specific plans and evidence of local commitments.

KHRC and the MIH program: Joseph Thomas, of Heartland Design Build, explained that the MIH funds are distributed by the Kansas Housing Resources Corporation and are aimed at “starter-level” homes and rentals for households that do not otherwise receive federal subsidy. Thomas said the program requires detailed, site-specific applications (plans, lot control or options, and cost estimates) and noted that prior awards in the county included a 40-unit award in Carbondale and a separate city-level award for six owner-occupant homes and nine rentals. He told commissioners the pool for this round would likely be distributed across roughly 20 projects statewide and that the county’s multi-jurisdictional application is viewed favorably by KHRC.

NRP pause affects viability: County staff and Thomas told commissioners the county’s decision to pause the Neighborhood Revitalization Program in June has practical effects on project economics. Thomas said the county portion of a typical NRP tax abatement can translate to roughly $100 per month in tax savings on a newly built home when improvements are substantial, and that those savings help keep owner-occupied and rental projects viable and rents affordable. He urged that even directional clarity about reinstating NRP or its parameters would let the application calculate realistic rents and subsidy needs.

Project details, local economic impacts and procurement: Thomas described the MIH application as requiring higher-than-builder-grade performance—better insulation, higher-rated HVAC and windows—and said state reviewers will expect those standards. He also described that many construction trades and suppliers for current Osage City projects are local, and he urged commissioners to consider ways to encourage in-county purchasing because it increases local economic impact from construction activity.

Inspections and compliance: Thomas noted that KHRC has a statewide construction inspector who typically visits projects once or twice during construction to verify MIH standards, but he emphasized that KHRC inspections are not a substitute for local building inspections and for meeting local permitting requirements.

Next steps: Staff asked the commission for a directional decision on NRP parameters so the application team can complete rent and abatement calculations; Trisha Webb advised commissioners that two resolutions will need signatures from the chairman. No final county vote on the MIH resolutions was recorded in the transcript during this meeting; staff said they would bring the resolutions for signature once the commission provides direction.

Why it matters: The MIH award would fund owner-occupied and rental housing targeted at households above low-income thresholds but below market-rate affordability, and county-level NRP decisions will materially affect whether rental projects are financially viable and whether owner-occupied projects proceed.

What to watch for next: staff said the MIH application is due Oct. 3 and that they will return with draft resolutions and concrete NRP parameters for action.