In a unanimous decision, the City Council of Kansas City voted to move forward with a plan aimed at preserving Parade Park Homes, the nation’s oldest Black-owned housing cooperative.
A year ago, the U.S. Dept. of Housing and Urban Development (HUD) took control of the Parade Park property, citing financial distress and deteriorating conditions. The council’s decision authorizes City Manager Brian Platt to negotiate an agreement with HUD for the acquisition of Parade Park Homes.
Parade Park History
Spanning 26 acres, Parade Park sits near the heart of 18th & Vine and boasts famous former residents like Bruce R. Watkins, baseball legend Reggie Jackson, and Mayor Quinton Lucas’ mother. When it opened in 1962, Parade Park offered low-cost housing, the ability to gain equity, plus a say in how the co-op was run.
Instead of rent, co-op residents paid carrying charges at a rate set by the co-op board to cover the cost of operating and maintaining the complex.
However, over the years, the co-op board failed to set the monthly carrying charges high enough to adequately fund the maintenance needed on the aging complex. Over the past 15 years, many of the townhomes fell into such a bad state of disrepair that when residents vacated their units, the co-op couldn’t afford to repair them. By 2022, more than half of the co-op’s 510 units were vacant.
In 2019 and 2022, the townhomes scored some of the worst scores possible in their HUD inspections. The death knell came last year when HUD intervened because the co-op was unable to repay a $10 million loan. HUD gave the co-op board a deadline to negotiate a deal with a developer to renovate the project. When that deadline passed without a formal deal, HUD moved to foreclose on the project.
The Acquisition Plan
Under the approved plan, Kansas City will acquire Parade Park Homes from HUD, contingent on HUD placing the highest bid at the upcoming foreclosure sale in March 2024.
The city will pay a nominal fee of $10 for the properties to HUD and, upon successful acquisition, transfer ownership to city-selected private developer, Indianapolis-based Flaherty & Collins Properties. The city chose Flaherty & Collins from multiple proposals submitted between October and December 2023.
Redevelopment Details
Flaherty & Collins Properties will have 24 to 36 months to complete the redevelopment project, involving $18.9 million in capital improvements. The specifics of their proposal, including the mix of housing and potential commercial buildings, have not been disclosed. However, when the city asked for proposals, they said they wanted the property to be mixed-income, honor Parade Park’s history, and that they would consider proposals that included ground-level retail.
As part of the development agreement, Flaherty & Collins Properties is required to sign a community benefits agreement (CBA). The city wants the CBA – which has not been finalized – to include local hiring and union participation in construction, building with climate resiliency in mind, offering homeownership opportunities, offering low-income housing, and preservation of Parade Park’s historical significance. The exact mix of rental, retail, and homeownership is to be determined. Those details will remain confidential as the city negotiates with the developer.
The city’s plan also includes provisions to protect the current residents of Parade Park Homes. According to HUD documents, 87 low-income households will receive Tenant Protection Vouchers.
These vouchers will help cover the cost of rent to those who are displaced during redevelopment. The agreement also features a right-to-return policy that ensures residents can return to their units after the redevelopment is completed, and 61 tenants identified as very low-income will be safeguarded from rent increases for two years.
District 3 Councilwoman Melissa Robinson expressed support for the plan, emphasizing the importance of restoring Parade Park to its prominence.
Robinson said the plan provides a clear pathway for redevelopment while addressing the concerns of residents and maintaining the historical value of Parade Park. HUD issued a statement saying the move helps Parade Park remain an affordable and well-maintained property for the current and future residents over the long term.
The scheduled foreclosure sale on Parade Park Homes is scheduled for this March. The city hopes this plan will preserve Parade Park Homes and ensure affordable housing near the historic 18th & Vine District for years to come.
12 Street Heritage 50/50 Partner on Parade House Redevelopment
12th Street Heritage Development Corp (TSHDC), a community development corporation founded to improve Kansas City’s 12th Street neighborhood, and Flaherty & Collins Properties, a multifamily housing development, construction and property management company based in Indiana are slated to be 50/50 partners on the redevelopment of Parade Park if the project gets a final go ahead in March. (See story on this page for details)
In a partnership well underway in Kansas City, the partnership is renovating The Jazz Hill project, a 100% affordable project located along Paseo Blvd. between 9th and 13th streets in Kansas City. That project is adding nearly 200 units of much-needed affordable housing to the city’s north side. See our Jazz Hill story here: https://bit.ly/424s75Z
