Commission approves $40,000 fee waiver to support Mennonite Housing Phase 2 application

The Newton City Commission on April 8 approved a $40,000 fee‑waiver commitment to Mennonite Housing to support the organization’s Phase 2 application for the Harvest Point affordable housing project. Commissioners also authorized reimbursing the city’s economic development fund (sales tax) for the commitment when appropriate.

Mennonite Housing sought municipal support to score points in a Kansas Housing Resources Corporation (KHRC) funding application. Staff summarized that KHRC scoring rules had changed since Phase 1; a larger fee‑waiver threshold (previously $20,000 for full points, now $80,000) influenced the request. Mennonite Housing offered two options: a 44‑unit Phase 2 with a $40,000 waiver (yielding 5 points) or a smaller 28‑unit Phase 2 that, with a $40,000 waiver, would qualify for the full points allocation under KHRC rules because requests under 30 units reduce the waiver needed for maximum points.

Byron Adrian of Mennonite Housing and other project representatives explained the two options and urged flexibility. Adrian said the shaded portion on the site plan represented the larger 44‑unit Phase 2 while the smaller 28‑unit option would confine additional senior housing to the eastern area and leave a western Lot 1 available for potential general‑occupancy units or future development.

Commissioners and staff discussed local housing needs and timing. City staff said a new housing study is expected to be started in coming quarters; several commissioners urged caution and supported a smaller 28‑unit Phase 2 so the city can use the housing study to inform longer‑term decisions. One commissioner said the 28‑unit option would “buy…a little bit of time to research the need for senior or possibly general occupancy.” Mennonite Housing said it would coordinate with city staff on timing.

Commissioner action: a motion was made and seconded to approve a $40,000 commitment and to reimburse the city from economic‑development sales tax (the motion included direction that the transfer be processed at the appropriate time). The motion carried on a voice vote.

Staff clarified that the fee waiver would most likely be applied to building permits and related fees rather than a direct cash payment; the city’s process would reimburse the general fund from economic development sales tax so that the city’s accounting remains whole. Mennonite Housing said a $40,000 waiver plugged it into a scoring band that historically had been likely to receive awards, but staff emphasized there is no guarantee of KHRC approval and that awards depend on relative competition in any given funding round.

The commission requested that the city begin the housing needs study promptly; Mennonite Housing and staff agreed to coordinate timing so any future Phase 2 refinements reflect the study’s findings. The motion included no binding restriction on unit mix if Mennonite Housing later adjusts the final development program; the fee‑waiver commitment was limited to the amount approved.

PROVENANCE: Discussion and motion appear during agenda item on support for Mennonite Housing’s Phase 2 request.