Memorandum
	To:	David Corliss, Assistant City Manager
	From:	R. Scott Wagner, Legal Assistant
	Date:	March 29, 2005
	Re:	HAND Addition

HAND Addition Project Summary:

Attached is a chart detailing the valuation of homes constructed in the HAND Addition.  This project was coordinated by the Housing and Neighborhood Resources Department to develop low income/affordable housing alternatives for the Lawrence market.  In 1996, the City purchased a 10.65 acre tract near 25^th Street and Haskell for $280,000.  Federal CDBG and HOME funds were used.  The HAND addition was platted with 30 tracts (and a tract reserved for park/green space) for single family housing.  The City partnered with the Lawrence Homebuilder’s Association to contract for the construction of homes in the addition.  The below homes were constructed:

No. Constructed Sq. Feet Construction Price

22                                            1,416                          $73,320

5                                              1,275                          $71,450

3                                              1,250                          $70,850

All of the homes were constructed on slab foundations.  The City financed the required street and infrastructure improvements needed for the addition.  Infrastructure costs amounted to approximately $436,000.  Homeowners approved for the program (meeting income guidelines) were required to finance for basically the costs of construction only.  Loans were obtained by the applicants on the private market.  For each buyer, the City forgave 50% of the total City investment in the program (5% for each year the owner occupied the home up to a maximum amount of 50%) and executed mortgages upon the closing of each home.  The remaining 50% of the City investment in the project is only recouped if the owner sells the property.

The attached chart notes that of the 30 homes originally constructed, all but 3 are still owner occupied.  13 of the homes are still occupied by the original owner.