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Developer seeks Neosho support for second phase of Kodiak Village affordable housing
Summary
Developer Pete Grama asked the Neosho City Council for a resolution and letters of support to strengthen an application for CDBG disaster funds and Low-Income Housing Tax Credit equity for a second phase of Kodiak Village that would include duplexes offering tenant homeownership after a 15-year compliance period.
Pete Grama urged the Neosho City Council to back a second phase of Kodiak Village, describing a financing plan that mixes a $950,000 Community Development Block Grant (CDBG) award with Low-Income Housing Tax Credit (LIHTC) equity to build affordable rental duplexes and — after the 15-year LIHTC compliance period — offer a path to tenant homeownership.
Grama told council members the first phase of Kodiak Village was financed with CDBG disaster relief and tax-credit equity and led to long wait lists. He said the current DED application would pair leftover CDBG disaster funds with LIHTC points-based scoring from the Missouri Housing Development Commission (MHDC), and that adding tenant-ownership features to duplex units should raise the project's score and improve its funding prospects. "We're crazy people, and we don't know to stop," Grama said, later adding, "I'm here again asking for your support." (Pete Grama, visitor.)
Grama outlined the program mechanics: a $950,000 grant would help attract LIHTC investors who purchase federal housing credits, producing equity to reduce debt and keep rents affordable. He described a 15-year tax-credit compliance period; if tenants have lived in units long enough, the developer intends to offer a purchase option—Grama said in one example long-term tenants might be able to buy for 50% of appraised value, and that first-time-homebuyer assistance and below-market financing could also be part of the package.
Councilors asked what the developer needed from the city. Grama said he requested a resolution of support, a letter from the mayor and a letter from the city manager attesting to zoning and comprehensive-plan consistency; staff confirmed the request would return on the next council agenda with those items for formal action.
The council did not vote on the request during the presentation but directed the city manager to prepare the resolution and letters and place the item on the next meeting agenda. Staff and the applicant agreed that submitting the mayor's letter and the city-manager zoning letter with the resolution would meet the DED timeline.
What happens next: the city manager will prepare a draft resolution and the two requested letters for council consideration at the next meeting; the application will be submitted to DED and compete for MHDC credit allocation under the state's points system.
