Neighborhood Stabilization Program

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Affordable Housing & Grant Close-Out Management Plan

The City participated in both NSP-1 (B-08-MN-29-0001) and NSP-3 (B-11MN-29-0001). Total NSP (1 & 3) funds awarded was $9,147,622.00. During the initial NSP period (2009-2018), $11,702,466.15 was expended to the benefit of sixty-four LMI homebuyers, plus the demolition of Horace Mann School, a fire damaged dangerous building, and the eventual completion of six duplex structures (12 units) on the development site which were all sold to eligible homebuyers.

During the period from February 23rd through March 1, 2018, HUD conducted a monitoring visit and reviewed the Emergency Solutions Grant (ESG) and the Neighborhood Stabilization Program (NSP). On May 1st, 2018, HUD responded with its Monitoring Report on certain aspects of each program.

On May 31, 2018, the City responded to HUD’s review, concerns, and findings.

This management plan describes the Final Production Phase for the development of affordable housing and use of remaining NSP funds, the Close-Out Phase, and On-going Actions.

Final Production Phase

NSP Funds Remaining

The following shows unexpended funds for each grant.

Fund Type Grant Funds Program Income Total
NSP1 $486,874.59 $0.00 $486,874.59
NSP3 $121,449.98 $60,753.56 $182,203.54
Total $608,324.57 $60,753.56 $669,078.13

Development Actions

On March 28, 2018 and May 22, 2019 the HCDD issued Requests for Qualifications and Proposals for NSP funds. The City received 18 proposals from the two solicitations. Two proposals were received from Habitat for Humanity of Kansas City to construct three new single family homebuyer units and purchase/rehab & sell two existing single family homes. The Habitat for Humanity of Kansas City proposals were approved for funding with NSP1 and NSP3 funds.

The NSP Workplan for the use of the balance of NSP1 & NSP3 funds is described below.

NSP 1

6717 Paseo- rehabilitation- estimated completion December 2019

3718 Highland Ave. - new construction- estimated completion February 2020

3722 Highland Ave. - new Construction- estimated completion February 2020

NSP 3

4401 Garfield Ave.- new construction- estimated completion July 2020

4405 Garfield Ave.- rehabilitation- estimated completion July 2020

On-going Actions

Quarterly Reports

All quarterly reports are up-to-date. Staff will continue to provide these reports until grant close-out.

Verification of Continued Affordability

On June 4th, 2018, the City sent 64 letters to the original buyers.  The following information was received:

  • Seventeen (17) homeowners have confirmed that they are still the original owners and living in the home;
  • Received three (3) Return To Sender responses from the mail out;
  • Seven (7) properties were through Habitat for Humanity. Working with Habitat’s Development Director regarding the ownership of the H4H homes; and
  • There was “No Response” from 37 letters to NSP owner/addresses.

The three “Return to Sender” homes, and 37 “No Response” homes are under review in the Jackson County Records and via the City’s Water Service Department to verify occupancy.

Close-Out Phase

Estimated Close-Out Date

Although HUD has expressed a goal of closing out all NSP grants by the end of September 2018, it is not possible for the City to utilize the balance of funds and close-out the grants by that date. A final completion and close-out is expected by September 2020. To assist in this process the City has requested DRGR Technical Assistance.

For additional information regarding NSP visit the HUD Exchange.