SMART program update


TIF dollars are used for preservation loans.

- Priority is given to repairs that keep the house intact and keeping the elements out (repairing roofs, guttering, sealing basement, windows, etc.)

TIF dollars are leveraged and require an investment in time and often money by the property owners.

- SMART has invested $600K in direct forgivable loans to owner, forgiveable if the owner lives in the house for 5 more years.

- Owners have invested $400K of their own funds for a 70% return on the TIF investment. (1:1 match required for income between 100-125% of median. 2:1 match required for income greater than 125%. No match for below median income.)

- Owners are required to complete an application that includes verification of ownership, employment/income and most recent tax return.

- Every loan is attached as a lien on the home.

- Loans are forgivable at a rate of 20%/year.

The SMART program has considerable oversight.

- Homeowners are required to obtain 3 bids for the work on their home from a list of contractors approved by Westside Housing.

- Westside Housing oversees the work and signs off on the final inspection.

-Advisory board meets monthly to review work being done, funds available. No SMART properties have been foreclosed nor have foreclosures in process against them. SMART properties have increased neighbor property values.

- From 2004 to 2008, the appraised values of single-family SMART properties have increased $400K.

- Likely that surrounding properties have increased as well.

Continued demand for SMART

- 16 properties are on the waiting list even though the program has not been advertised for a year due to decreasing fund balance.

Continued need for SMART

-180 properties in benefit area that appear in need of the program.

-4100 block of Locust – 12 vacant houses. Street has become a haven for prostitutes.

- Southmoreland has over 5 times the urban core density of multi-family parcels.* 38% of parcels in Southmoreland are multi-family. This compares to a rate of 7% in the urban core.

Advisory board has diverse membership

- Homeowners from the benefit area and outside the benefit area.

- Representatives from MainCor and American Century.

- Ex-officio members include KCMO City Planning, City Councilmember Beth Gottstein and KCAI.

* Parcel land use data from Dr. Doug Bowles, UMKC Center for Economic Information. Parcel land use is intended to convey current use (not zoning).