Johnson County helps keep innovative housing project moving forward

A multi-unit apartment building in Downtown Overland Park that would provide safe, affordable and accessible housing is one step closer to reality. Today, the Johnson County Board of County Commissioners approved a gap financing loan to Friends of JCDS, Inc. for the Floyd Street Apartment project. The goal is to provide affordable and rent-limited housing for vulnerable Johnson County residents, including people with intellectual and developmental disabilities, people receiving behavioral health services and residents connected through housing or other county-supported service systems.

Today's action approved the use of Johnson County Developmental Supports reserves in an amount not to exceed $2.5 million to be used as a gap funding loan. The project has been affected by significant inflationary construction pressures and shifts in outside funding timelines.

"This is a first-of-its-kind housing project for our area, and we're proud to provide a gap funding loan to keep it moving forward," said BOCC Chairman Mike Kelly. "Too many people served by entities like Johnson County Mental Health Center and JCDS face real barriers to safe, affordable housing. This project addresses those barriers head-on and delivers exactly the kind of results our housing focus area is meant to produce."

More about the project

The Floyd Street Apartments project would add 17 units in Downtown Overland Park, comprising one- and two-bedroom apartments, serving up to 19 residents. Tenants of the new building will have access to a community room and community garden. The mixed-use development will also include offices for Friends of JCDS and a public art gallery for the Emerging Artists program, an art as employment program operated by JCDS for adults with IDD.

"We applaud Friends of JCDS for thinking outside of the box and visioning a place where many different types of people supported by a variety of agencies can successfully live, work and enjoy amenities together," said JCDS Executive Director Chad VonAhnen. "Thank you to the Board of County Commissioners for its role in helping this vision become a reality for some of our community's most vulnerable people."

More about the project financing

The gap financing loan approved by the BOCC is a line of credit of up to $2.5 million for a construction period of up to 12 months. At the end of a post-occupancy grace period or no later than June 30, 2028, the outstanding balance will automatically convert to an initial repayment term of up to eight years, with the availability of annual extensions for up to 12 additional years, provided the project remains affordable housing as defined in the Land Use Restrictive Covenants Agreement. The loan has no interest.

"We appreciate this action from the BOCC to help us overcome some the financial challenges we are facing due to factors outside our control," said Friends of JCDS Chief Executive Officer Janel Bowers. "This funding is intended to provide cash-flow assurance so Friends of JCDS can advance this project while grants, donations and third-party funding efforts continue. The loan will serve as the last option in our capital stack and will only be used if a gap remains after we apply all other funding sources."