Memorandum

City of Lawrence

Planning and Development Services Department

TO:	David L. Corliss, City Manager
CC:	Scott McCullough, Director, Planning and Development Services Kurt Schroeder, Assistant Director, Planning and Development Services
FROM:	Danelle Dresslar, Community Development Manager, Development Services
DATE:	September 25, 2013
RE:	Neighborhood Stabilization Program (NSP1) Additional Funding Grant Award

In April of 2009, the City received $562,134 from the State of Kansas under the Neighborhood Stabilization Program (NSP1) grant.  The City partnered with Tenants to Homeowners, Inc. for this project.  The original allocation was utilized for the redevelopment of vacant property in the 1100 block of Rhode Island for the “Rhode Island Roost Rentals”; five units of rental housing for low and moderate income tenants.  This project was completed in August of 2010 and the units were subsequently rented to income eligible tenants. The Rhode Island Roost project won a Best Practice award from the United States Department of Housing and Urban Development in 2011.

By design, the NSP1 program had the ability to earn Program Income that could be reallocated to grantees that were able to demonstrate proven administrative capacity and had additional project needs.  In December of 2010 staff was notified that additional funds were available through a competitive grant application process for NSP1 Program Income.  The City submitted an application and was subsequently approved in June of 2011 in the amount of $475,000. This phase of the funding was also a partnership with Tenants to Homeowners, Inc., and went to a redevelopment project at 2123 Rhode Island, as well as to the purchase and subsequent demolition of a property at 828 Elm.  After demolition of the 828 Elm structure, the lot was re-platted to provide the ability for four new units to be redeveloped on the lot, and three of these units were developed using this second allocation.  Construction was completed on all aspects of the additional funding in February of 2013.  The Rhode Island unit and the three Elm units were all rented to income eligible tenants.

In May of 2013, the City again applied to the State of Kansas for another round of additional funding under NSP1 Program Income.  This additional funding in the amount of $75,250 was approved by the State in September of 2013 and will be utilized by Tenants to Homeowners, Inc. to construct the fourth and final unit at the original 828 Elm location.  This unit will be rented to an income eligible tenant.  It is anticipated the projects will begin within the next few months and be completed by March, 2014. 

Including this recent award, the complete NSP1 allocation received by the City of Lawrence totals $1,112,384.