Kansas City Business Session – September 22, 2022

The Kansas City Council met in Business Session on September 22, 2022, to approve prior meeting minutes, review the audit scope statement for the Central City Economic Development (CCED) Sales Tax program, and receive the Houseless Task Force's "Zero KC" strategic plan. A floor introduction for a citywide community land trust model was also announced.

Consent Calendar

• Approved the minutes of the September 15, 2022 Business Session by unanimous voice vote.

CCED Sales Tax Audit Scope Statement

City Auditor Doug Jones presented the scope statement for an audit of the Central City Economic Development Sales Tax Program. He reported that the sales tax is expected to generate about $10 million annually, with total revenue between fiscal years 2018 and 2022 of about $46 million and fiscal year 2023 revenue expected to exceed $11 million. The City Council has approved $40 million for 28 projects, the program has distributed over $20 million, and four projects have been completed. The program is nearing the midpoint of its 10-year lifespan. The audit objectives are to evaluate whether CCED projects are making progress toward completion and whether funds were spent according to funding agreements. The work will include reviewing statutes and city code, interviewing staff, board members, and developers, and reviewing a sample of projects. The report is planned for January 2023.

• Councilmember Robinson asked how the audit was selected, how progress toward completion would be determined, and whether the CCED board's strategic plan would be audited. Auditor Jones said the audit would focus on processes, procedures, and funding agreements, not the strategic plan.
• Mayor Lucas noted there are currently two vacancies among the three city positions on the CCED board, following D.J. Pierre's departure from the country and Mia Richardson's resignation. He said he had not yet filled the positions but intended to do so as soon as possible, and that a quorum still exists.
• Councilmember Ellington asked that the audit also examine the $2,500 application fees paid by denied applicants, including whether denial letters were issued and where the fees go. Auditor Jones responded that this was not currently included in the audit scope, but he would consult staff about it.

Houseless Task Force Strategic Plan ("Zero KC")

Councilwoman Parkshaw introduced the presentation on behalf of the Houseless Task Force, joined by Dr. Ann Williamson, Markea Watson, Executive Director of the Greater Kansas City Coalition to End Homelessness, and Josh Hinge, Houseless Prevention Coordinator. Dr. Williamson presented findings from the community needs assessment:

• The January 2022 point-in-time count found 711 unsheltered persons, a dramatic increase from about 450 the previous year.
• Nearly 63% of extremely low-income renters experience a severe housing cost burden, defined as paying 50% or more of gross monthly income for rent and utilities. Extremely low income is 30% of the HUD-adjusted area median income. For a family of four in 2022, the transcript gives the income figure as "just over $9,000" and later references "just over $29,000" in the same calculation (discrepancy noted).
• There is a gap of nearly 28,000 affordable and available rental units for extremely low-income renters.
• Only 3% of people housed through the CoC's coordinated entry system return to homelessness.

The assessment identified needs for greater collaboration, hygiene facilities, additional shelter space, wraparound services, nonprofit staffing, more affordable rental units, prevention services, and more flexible funding sources to leverage federal dollars.

Markea Watson and Josh Hinge presented housing inventory data showing a projected need for more housing, including a zero gap identified for transitional housing and shared housing. They noted that unsheltered homelessness is rising while emergency shelter homelessness is declining. Emergency Rental Assistance Program (ERAP) data showed that 72% of assistance went to Black or African American applicants, who represent about 28% of the population, and that assistance averaged almost nine months. Focus group results emphasized the need for wraparound services, shelter and housing options that do not require sobriety, more housing units, increased inclusivity for LGBTQIA community members, and person-centered approaches.

The strategic plan is built on five agreed principles: living outside is dangerous; more housing is needed; wraparound services are essential; one size does not fit all; and solving homelessness requires ongoing investment. Priority projects include a low-barrier emergency shelter, humane encampment response, more street outreach, aligning CoC and ESG programs, and engaging neighborhoods and the business community.

Councilmember Robinson asked where the detailed needs assessment and strategic plan could be found; Parkshaw stated they are online at kcmo.gov/housing and will be emailed and provided in hard copy. Robinson also asked about costs and the plan for the approaching winter. Parkshaw said cost estimates are not yet determined, and that an extreme weather ordinance would be introduced in about two to three weeks, developed with a regional approach and partners across the state line. Robinson raised concerns about the absence of visible Latino representation in ERAP data and about language barriers; Watson explained that federal race/ethnicity categories may create a paradox where Hispanic individuals identify as white or Black racially, and said the housing department could provide more detail. Robinson also asked whether the five-year housing plan informed the strategic plan; Watson confirmed it did.

Key Outcomes

• Unanimously approved the minutes of the September 15, 2022 Business Session.
• Received the CCED sales tax audit scope statement; the audit report is expected in January 2023.
• Received and discussed the Zero KC strategic plan. Two pieces of legislation were introduced: a council resolution to adopt the plan and a measure to establish a houseless commission and disband the task force. An extreme weather ordinance is expected within two to three weeks.
• Councilwoman Parkshaw announced a floor introduction for a citywide community land trust model, referred to committee.
• Meeting adjourned.