The High Road on the Highlands in Abilene

The High Road on the Highlands in Abilene

The City has been negotiating with Abilene Highlands, LP, the partnership that owns the real estate generally known as the Abilene Highlands, in an attempt to come to an agreement that would allow the property to be donated to the City's Land Bank.

The Land Bank has several powers that are advantageous in managing the situation of the Abilene Highlands. Most notably, the Land Bank has the power to defer or waive special assessments on property while it is held by the Land Bank.

Deferring the existing special assessments provides the City with an opportunity to recoup its investment in the future if the Highlands were to develop. Without deferring special assessments, every year that goes by without special assessments being remitted is one less year the City will be able to collect those delinquent special assessments. Recent changes in state law also allows the Land Bank to re-amortize special assessments on property so a city may reassess special assessments that have gone unpaid.

What is the City's plan if it is successful in getting the Abilene Highlands donated to the Land Bank?

The City is working with a development partnership on a possible scenario whereby platted, but undeveloped lots in an existing subdivision would be swapped with lots at the Highlands. The advantage to this scenario is two-fold:  1) the City would not have to extend infrastructure to platted, but undeveloped lots and thus increase the total number of available lots; and 2) development could begin at the Abilene Highlands.

The development plan proposes to construct affordable housing by using a tax credit program administered by the Kansas Housing Resources Corporation. Affordable housing should be more thoroughly defined to provide a context for this complex subject. Estimated income limits for the program are as follows:

·      1 Person:  $26,340 to $36,876

·      2 Person:  $30,060 to $42,084

·      3 Person:  $33,840 to $47,376

·      4 Person:  $37,560 to $52,584

·      5 Person:  $40,620 to $56,868

Estimated rent limits for the program are as follows:

·      1 Bedroom:  $484 to $705

·      2 Bedroom:  $634 to $846

·      3 Bedroom:  $814 to $977

·      4 Bedroom:  $908 to $1,123

·      5 Bedroom:  $1,002 to $1,255

In other words, the program assists developers in providing viable housing options for working class residents. Tax credits are sold and the proceeds are used to help developers reduce their private investment in a housing project. This allows the developer to ask for lower rents because they have less investment that must be recaptured in contrast to a housing project where the entire construction is private investment. 

I have often heard that there is a lack of quality, affordable rental and purchase options when it comes to housing in Abilene. The scenario described above may help provide a least part of the answer in addressing this complex issue for the community. It may also help relieve the taxpayer of the burden associated with the Abilene Highlands. The ultimate solution will not occur overnight, but this will provide a means to get started on a viable plan to turn the failed subdivision around for the benefit of Abilene.