Developer Secures Financing for Affordable Housing in Kansas City

Photo byWalker & Dunlop

DowCon has finalized financing for Oak Park Townhomes, a new affordable housing development in Kansas City, Missouri. The project, comprising 35 units, is set to provide housing options for residents earning between 40 and 60 percent of the area median income (AMI).

The financing package includes $9 million in Multifamily Housing Revenue Bonds issued by The Planned Industrial Expansion Authority of Kansas City, according to Jackson County records. In addition, Advantage Capital extended a $3.5 million junior loan, with BOKF, N.A. acting as trustee. Federal and state Low-Income Housing Tax Credits (LIHTC) provided further support, contributing $710,000 and $650,000 respectively.

Oak Park Townhomes will feature a mix of seven one-bedroom and 28 three-bedroom units across four buildings. Located at 3801 Prospect Avenue, the development is approximately five miles southeast of downtown Kansas City, offering residents convenient access to public transit, retail, and parks.

The project also incorporates a robust support system for residents, partnering with organizations like Phoenix Family, The Salvation Army of Kansas and Western Missouri, and First Call. These groups will offer on-site programs focusing on self-sufficiency, veteran services, substance abuse recovery, counseling, and education.

Affordable Housing in Kansas City

The Kansas City metro area has a growing inventory of affordable housing, with more than 20,400 units as of October, representing 11.3 percent of the region's total housing stock, according to Yardi Matrix data. This year alone, over 660 new affordable units were added to the market.

Despite progress, the pipeline for affordable housing remains limited. Developers had over 3,900 units in planning or permitting stages, but construction activity slowed due to rising capital and construction costs. Only one affordable housing project with 50 or more units was under construction, and no new developments of this scale were added in the first nine months of the year.

However, developers remain committed to expanding affordable options. In June, MRE Capital secured $29.6 million in federal LIHTC for Canyon Creek East, a 212-unit community in Lenexa, Kansas, highlighting ongoing efforts to address affordable housing needs in the region.