Community Builders of Kansas City (CBKC) has closed on financing and construction has begun on the complete renovation of The Cleveland, the $14.3 million project that will combine Mt. Cleveland Heights and Mt. Cleveland Townhomes into one project. Located at 51st Street and Cleveland Avenue, the property boasts all three-bedroom duplex units that range in size from an expansive 1,039 to 1,276 square feet and include a single-car attached garage.
“The renovation plan includes a comprehensive modernization of the 80 residential units, 10 of which are currently underway, and construction of a new resident clubhouse,” said Shannon Hesterberg, “We are working closely with a consultant to relocate residents into newly finished units and anticipate a minimum of disruption.”
On the interiors, units are being outfitted with modern appliances and energy-efficient systems as well as new paint, flooring, bathrooms and kitchens. Exterior property updates include new roofing and paint.
The new clubhouse will feature space for classes, an exercise room, a computer room and a common area where residents can hold meetings or social gatherings. Residents will be able to take advantage of new onsite programming such as health/wellness initiatives, job search and career development services and youth-oriented activities.
Through a partnership with the Beta Lambda Educational Institute, student services such as mentoring, access to an annual tour of Historically Black Colleges and Universities and ACT prep classes will be available for eligible residents.
The Cleveland offers a range of affordability, from 18 Public Housing Authority (PHA) units serving families at or below 30 percent of Area Median Income (AMI), to 54 Low Income Housing Tax Credit (LIHTC) units serving families at or below 60 percent AMI, to eight market-rate units available to all families.
“This is an example of the type of mixed-income housing development the city of Kansas City, Missouri is seeking,” explained Hesterberg. “It is also a testament to CBKC’s mission and commitment to the community. The new project will allow any resident whose income exceeds 60 percent AMI the opportunity to continue to be a part of this community.”
CBKC closed on financing in early November, securing MHDC fund balance and HOME loans, a construction loan from UMB Bank and equity from the sale of 9 percent Low Income Housing Tax Credits. Additionally, the city of Kansas City, Missouri, and Housing Authority of Kansas City, Missouri resubordinated debt to the project and the Sunderland Foundation provided $750,000 in funding.
The development and financing team is made up of professionals with extensive experience in multi-family, low-income housing tax credit projects and includes Straub Construction; Rosemann & Associates PC architects; Powell Engineering; EastPointe Realty, LLC; Hardwick Law Firm; Horizon Housing Foundation; LWH Consulting, LLC; RCT Investments, LLC; Raymond James; Sugar Creek Capital; MHDC; the city of Kansas City, Missouri; Housing Authority of Kansas City, Missouri; and UMB Bank. CBKC is the developer of the project and will serve as general partner. Its subsidiary EastPointe Realty will manage the property.
“We’re grateful to all our partners who have come together to make this exciting renovation possible for our residents,” said Hesterberg. “The Cleveland is the cornerstone development that led to CBKC’s creation so we are excited to oversee its modernization that will take it into the next generation.”
The $14.3 million rehabilitation of The Cleveland is just the latest manifestation of CBKC’s mission to change the landscape by promoting equity, access, opportunity and advocacy.