Focus Area: Quality of Life
Staff Contact: Brandon Hinton and JJ O’Toole-Curran
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title:
title
Consideration of Resolution 26-1055 Authorizing the Sale of Neighborhood Stabilization Program (NSP) Rental Properties After the Program Affordability Period.
Body
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recommended motion:
Make a motion and vote to consider approval of Resolution No. 26-1055
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Summary:
In 2010, the City of Olathe received and used federal Neighborhood Stabilization Program (NSP) funds to acquire and rehabilitate 11 homes. Of these homes, three were sold to eligible homebuyers shortly after rehabilitation, one NSP rental property was sold during its affordability period, and one NSP rental property was sold after its affordability period through a separate property-specific Council action.
The remaining NSP homes were converted to affordable rental properties subject to HUD affordability period and rent limits. The City currently owns six NSP properties, five of which have reached the end of their required affordability periods. Once the affordability period expires, the City is no longer required to maintain the property under the original affordability restrictions.
The Housing Rehabilitation team recommends that the City authorize the sale of NSP rental properties upon expiration of their affordability period without requiring separate Council action for each property, and that such sales be carried out in accordance with the same HUD, NSP, and local program policy and pricing procedures currently applied to NSP sales. This approach would promote consistency, transparency, and administrative efficiency while continuing to support the City’s affordable housing goals. Current NSP policy dictates how to perform a sale to a vacant property outside the affordability period.
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Financial Information:
Staff recommend net proceeds from the sale of post-affordability NSP properties be directed to affordable housing initiatives, to the extent permitted by applicable program requirements and City policy, aligning with the intention of the initial funding investment.
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Attachment(s):
Resolution No. 26-1055