photo by: Hernly Associates

A concept plan shows the layout for an affordable housing project at 105 Michigan St. proposed by Tenants to Homeowners.

City leaders will soon consider allocating more than $1 million from a city trust fund for affordable housing efforts, and as part of those considerations they will discuss a fundamental question about the best use for those funds.

The city’s Affordable Housing Advisory Board opened applications for up to $1.23 million in trust fund money this fall, and it received six applications totaling $1.35 million in requested funding. As in years past, those applications include some projects that would construct more affordable housing units, as well as some voucher or other assistance programs that help residents pay housing costs or make repairs.

The board recommends that $400,000 go to support a project from the nonprofit Tenants to Homeowners that would build six new affordable homes, and that another $450,000 go to programs that would not add any more units to the city’s stock of affordable homes but would instead fund housing vouchers or home repairs. The board is also recommending that the city consider using additional funding, either from the housing trust or the city’s general fund, to help support another project, headed by Salb Construction, that would construct 30 new affordable housing units.

The board struggled with its recommendation, including the question of whether the city’s housing trust fund dollars should go to support voucher and other assistance programs or whether they should be focused more on constructing affordable homes and rentals, according to the board’s meeting minutes. Lawrence voters approved a 0.05% sales tax in 2017, which will provide funding for the housing trust for a period of 10 years.

The City Commission received the board’s recommendation as part of its meeting on Dec. 21 but deferred the agenda item so that it could consider the funding decision in the context of the city’s other efforts to address affordable housing and homelessness.

The city created a new housing initiatives division as part of its 2022 budget process that will be in charge of allocating $1.14 million that the city previously spent more broadly on social services. Commissioner Brad Finkeldei asked to defer the decision on how the housing trust fund dollars would be spent so that city staff could bring back information about how the new division’s funding was being allocated.

Other commissioners agreed, and the commission will consider the housing trust fund allocation at its meeting on Jan. 11 as part of a broader discussion of the city’s affordable housing efforts.

A summary of the board’s funding recommendation for the affordable housing trust fund allocation and descriptions of the projects or programs are as follows:

• $400,000 for Tenants to Homeowners’ Michigan Six Project: The project would build six units, including two rental units and four units for purchase, at 105 Michigan St. The six units would provide a total of 15 bedrooms and would utilize the city’s affordable housing density bonus, which allows two homes to be built on one lot as long as both are affordable.

• $300,000 for the Housing Stabilization Collaborative, a joint program provided by Tenants to Homeowners and Family Promise of Lawrence that provides rental and utility assistance.

• $50,000 for the Lawrence-Douglas County Housing Authority’s New Horizon Program, which provides rental vouchers for families experiencing homelessness or at risk of homelessness.

• $50,000 for Independence Inc.’s Accessible Housing Program, which helps pay for accessibility modifications for the homes of people with disabilities.

• $50,000 for Lawrence Habitat for Humanity’s Critical System Repair program, which provides funding for home repairs for eight to 10 households.

• Consider providing funding to support the for-profit Salb Construction project that would build a new subdivision with 38 houses and duplexes at 1338 East 1600 Road. The project, which requested $300,000 in city support, would include both rental units and homes for purchase. It would have 20 affordable homes for purchase and 10 affordable rentals.

The commission’s agenda packet, which includes the full application for each project and program, is available on the city’s website, lawrenceks.org.