Commission backs letter of support and fee-waiver resolutions for proposed 43-unit affordable housing at 2nd Avenue

Leavenworth Mayor Nancy Bowder and city staff on Monday heard a presentation about a proposed 43‑unit affordable housing development at 2604 2nd Avenue, then voted unanimously to back a letter of support and two resolutions that would provide local incentives the developer says are needed to be competitive for state and federal low‑income housing tax credits.

Penny (city staff) introduced Commonwealth Development Corporation’s Second Avenue Commons concept and turned the presentation over to Danny DeFrancesco of Commonwealth Development, who described the project as a single‑story, 43‑unit complex with one-, two- and three‑bedroom units and an on‑site clubhouse and management office. “All we do is affordable housing,” DeFrancesco said, adding the firm has developed more than 8,300 units in over 15 states and intends to be a long‑term owner and manager in Leavenworth.

Why it matters: The developer said the project would target multiple income tiers (30%, 40% and 60% of area median income), provide units sized to serve families and essential workers, and add property‑tax base where the site is now an open field near the new fire station. Commonwealth estimates the total project cost at about $15 million and told the commission it will seek KHRC (Kansas Housing Resources Corporation) tax credits; those awards are competitive and, staff said, local incentives strengthen an application.

What the city agreed to: Staff recommended and commissioners approved three items related to the proposal: a letter of support, Resolution B‑24‑14 (a fee‑waiver resolution) and Resolution B‑24‑15 (a nonbinding industrial revenue bond resolution of intent). Staff explained that KHRC evaluates local participation and that two waiver tiers exist, $40,000 and $80,000; for this project staff recommended the $80,001 level so the application would be competitive. The commission voted in favor of each item by voice/roll call, with no recorded no votes.

Project timeline and conditions: DeFrancesco said the team submitted a pre‑application to KHRC two weeks ago and expects to be invited to submit a full application by February, with a May 15 full submission deadline and anticipated award notifications in July. If awarded tax credits, the developer said it would proceed with plan review in November and hopes to start construction the following April on a roughly 14‑month schedule, projecting completion in May 2028. Commonwealth noted the project will pursue additional soft funds (HOME, National Housing Trust Fund) and that KHRC scoring favors projects that include three‑bedroom units and local fee waivers.

Next steps: The commission’s support and the fee‑waiver resolutions are local steps to strengthen the developer’s KHRC application; they are not guarantees of tax credits or project financing. If Commonwealth receives a tax‑credit award, further city approvals will be required for plan review, permits and any negotiated economic incentives.

Speakers quoted: Danny DeFrancesco, Commonwealth Development Corporation; Penny (city staff); Mayor Nancy Bowder.

Ending: The commission voted unanimously to approve the letter of support and both resolutions, moving the proposal forward on the city’s agenda while the developer pursues state tax credits.