An Olathe development group is looking to build a 36- to 43-unit low- to moderate-income housing complex in McPherson.
Prairie Fire Development met with city officials Monday to outline early plans for the complex and ask for preliminary support for an application it hopes to file Feb. 1 with the Kansas Housing Resource Corporation for tax credits.
The two- to three-story complex would be for residents 55 and older. Prairie Fire co-owner Kelley Hrabe said the complex would be apartment living and likely include a community room, laundry room and a library/media room.
The development group is looking at about a $5.5 million to $6.5 million investment in the housing complex. The group is seeking $500,000 to $400,000 in annual tax credits during a 10-year period for a total of $4 million to $5 million in tax credit equity to sell on the market to raise capital for the project.
The developers will need a letter of support from the local governing body in order to apply for the tax credits.
Prairie Fire, which has done a variety of other senior living complexes in the Midwest, is partnering with the McPherson Housing Coalition on the project.
Nick Gregory, McPherson city administrator, said the development may free up housing for families in the community as older resident move into the complex. It also may allow families to bring their older parents to town.
“Low- to moderate-income housing is high on our radar,” Gregory said. “It is a good start, but we have a long ways to go to get toward our goal of adding more affordable housing.”
The group’s next step will be to find a location. The company’s goal is to find a location that is utility ready in order to keep development costs and rents as low as possible, Hrabe said. He said he could not release any information about possible rent prices at this time.
Prairie Fire also has promised to make a $20,000 to $25,000 donation to a nonprofit group in the community once the project is completed.