Developer seeks Atchison County sponsorship for downtown apartments under state moderate-income program

Justin Prejean, a consultant for Pomeroy Development, asked the Atchison County Commission on Aug. 19 to serve as the local sponsor on a Kansas moderate-income housing (MIH) grant that would convert vacant locker-room space under the gym at the 1913 Apartments (the former YMCA) into three one-bedroom units.

Prejean said the project team previously received a $400,000 MIH grant for the building's initial renovation and now seeks additional public incentives to complete infill work. "That was a $400,000 grant, which at the time was the max," Prejean said, and he described a new request that would include a "modest, moderate income housing grant of a $150,000" plus applications for Kansas Housing Investor Tax Credits (KHITC) and other historic-tax-credit financing.

Why it matters: Prejean said the proposed units would reuse existing, underused space in a downtown building that already has elevator service, recent utility connections and demonstrated strong occupancy (he said occupancy since opening has been above 98 percent). He told commissioners that program rules have changed: the Kansas Housing Resource Corporation now requires MIH funds to "flow through a local government partner," meaning the county would receive and pass through the grant funds rather than KHRC writing a company check directly.

Commissioners asked practical questions about the project's effect on property tax assessments and the neighborhood-revitalization (NRP) application process. Prejean said the developer would submit building permits and an NRP application as part of the financing plan and that, because the work adds apartment units, the property's market value and future tax receipts would likely increase. He also said the ownership group is not requesting a county cash contribution and expects to sign performance or assumption agreements if the county requires them.

What happened next: Commissioners did not vote on sponsorship at the meeting. They asked for time to review the draft resolution and supporting documents; Pat Henderson and county staff were asked to confirm who should sign county paperwork if the commission moves forward.

Details and limits: Prejean described two separate KHITC requests tied to downtown properties (three KHITC units for 1913 Apartments and one additional unit for Central School) and said that, if successful, the combined applications would add up to four new downtown rental units. Specific award decisions, tax-credit allocations and final grant amounts remain subject to KHRC and the Kansas Department of Commerce review and are not decided by the county.

Next steps: The commission said staff should review and circulate the draft resolution and that the item could return for action after commissioners have time to vet the documents.