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City allocates $270,000 in HOME funds to Mennonite Housing to build three affordable homes
Summary
The council allocated $270,000 in HOME entitlement funds in forgivable loans to Mennonite Housing Rehabilitation Services to construct three single‑family homes for buyers at or below 80% AMI; project sales price set at $131,000 and total estimated project cost $662,295; vote passed 6‑0 with one abstention.
WICHITA, Kan. — The City Council approved a $270,000 HOME program funding allocation on Sept. 3 to support construction of three single‑family homes by Mennonite Housing Rehabilitation Services Inc.
Carmen Hoffine, real property section manager, said HOME funds provide gap financing for affordable housing and that the city had $923,106 in HOME entitlement funds available for HDLP activities. The proposed $270,000 would be provided as forgivable, zero‑interest development subsidy loans at $90,000 per home.
Mennonite Housing CEO Angie Mendoza said the homes are Energy Star‑efficient slab‑on‑grade units with two bedrooms, two baths and two‑car garages. She said the development cost per home is about $220,000 and the intended sales price is $131,000, enabled by the subsidy. "The subsidy allows us to sell this house for $131,000 so that the buyer can actually afford the mortgage payment," Mendoza said.
Staff recommended approval; the Affordable Housing Review Board recommended the project 2‑1. Council approved the allocation, with Council member Johnson recording a conflict and abstaining from the vote, resulting in a 6‑0 decision with one abstention.
Staff said the subsidy is structured to support owner‑occupied sales to income‑eligible buyers and that buyers typically receive down‑payment assistance and counseling as part of program requirements.
