Habitat for Humanity proposing Community Land Trust for failed Ogden development

A local organization is proposing utilizing a Community Land Trust to help a failed housing development south of Ogden.

Habitat for Humanity of the Northern Flint Hills Director Josh Brewer spoke to Riley County commissioners Thursday about the concept. He says the organization recently formed its own Good Steward Community Land Trust, selling its first home under the model. where the land is in a shared-equity agreement, meaning the individual owns the home, but not the land.

“Instead they own a lease-fee interest in the ground which legally attaches that house to the land for 99 years,” he said.

The organization has identified 18 lots owned by the City of Ogden where utilities have been in place for over 10 years with little likelihood for private development. The failed housing development currently has a $15,000 burden on Ogden until 2028 where close to $300,000 in public subsidies are at risk without vertical construction. More than $1 million in public subsidy could be at risk overall.

Brewer says Habitat had conversations with the Kansas State University College of Architecture and other nonprofits about a moderate income housing development that could be done.

“The requirements that we have the rough math on right now is that if we were to pay off the existing specials, we will need an RHID subsidizing just under $5,000. If you want to reimburse the City of Ogden for the specials they’ve already covered, that rises to just under $15,000. We also need a subsidy for a moderate income housing award, which totals about $40,000, and you need KHITC tax credits to come in, that’s another $27,000 a unit,” he said.

Assuming all of that came together, he says it’s about $2 million in financing to make the project work.

“I think we really look at this and say, given all that public investment, there really needs to be some sort of mechanism that ties these dollars and protects it,” Brewer said.

Having a CLT model in place for such a project he says does just that while helping Ogden partially dig out from its financial burden.

“It makes the home more affordable and I think of particular interest with your conversation on RHID’s (reinvestment housing incentive districts), it protects any public subsidy that has been invested in that transaction into developing those properties,” he said.

Commissioners did not vote on the proposal Thursday. Commissioner John Ford noted the City of Ogden’s recent audit indicated if something isn’t done on the failed project, the city’s budget could be rendered insolvent within the next decade.