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Wichita Housing update: 267 of 352 public-housing properties sold; $14M in proceeds to be reinvested
Summary
Housing staff told the council 267 of 352 public-housing properties have been sold under mixed methods; about $14 million in sale proceeds must be reinvested in project-based voucher projects, yielding an estimated 70–1,400 housing units depending on project type and subsidies.
Sally Stang, director of Housing & Community Services, told the Wichita City Council on May 19 that the city’s recovery agreement with the U.S. Department of Housing and Urban Development has led to a mixed-method disposition of public-housing units and ongoing reinvestment plans.
Stang said physical-condition requirements under the HUD recovery agreement have been met and that 267 of 352 properties had been sold as of May 5, with another 28 properties pending sale. Disposition methods include open-market sales with no use restrictions, sales to non-profit developers with affordability covenants, RFPs that tied projects to affordable-housing funds or project-based vouchers, and sales to existing tenants.
The city anticipates just over $14 million in public-housing sales proceeds that must be invested in Section 8 project-based voucher projects. Stang said deployment of those proceeds could produce anywhere from roughly 70 units (if leveraged with low-income housing tax credits and limited per-unit subsidy) to as many as 1,400 units (if used for low-cost rehabilitation and smaller per-unit investments), depending on project type and per-unit investment levels. She provided several examples of recent sales and resale values to illustrate changes in affordability and tax status after rehabilitation.
Stang also reported that Park Landing, a project tied to the disposition strategy, has HUD approval, is addressing final permit issues and expects site mobilization soon with a 13-month construction schedule that could yield 75 units (first floor operated as noncongregate shelter, upper floors as leased housing with project-based vouchers).
Councilmembers asked clarifying questions about units that did not receive bids and whether project-based vouchers could be applied to transitional housing; Stang clarified regulatory limits on voucher use and described programmatic options. No council vote was required on the report; the council voted 7-0 to receive and file the HUD recovery-agreement and disposition status update.
The report indicates a multi-path approach to converting public-housing assets to a mix of affordable rental, voucher-assisted units and homeownership opportunities, with staff planning further RFPs and project recommendations in coming months.
