A new nonprofit connected to VanTrust Real Estate will partner with Johnson County commissioners to improve options for affordable housing, the commission decided Thursday.
Commissioners lauded the entry of an experienced developer into one of the county’s most difficult challenges. VanTrust has worked with the county on two high-profile developments — Meadowbrook and the New Century Commerce Center.
However, there were still questions about the arrangement and some unease among public commenters due to VanTrust’s ties to county development projects and a lack of information about the new organization.
Some commissioners stressed that the agreement is nonspecific and doesn’t oblige the county to do anything further.
The majority of commissioners voted to approve a letter of intent with the Greater Kansas City Home Ownership Initiative, which is identified as a Missouri nonprofit and signed by David Harrison as president. Harrison is also president of VanTrust Real Estate.
The letter is an “outline of the parties’ intent to collaborate to improve housing conditions,” and does not obligate the county to any binding agreement, the letter says.
“However, if the parties identify a potential housing project, at that point, they will follow the public process to enter a binding agreement for a specific project, in compliance with the county’s policies,” it adds.
Below is a copy of the letter of intent.
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Open in new tab “We were hopeful that these types of partnerships would arise when we decided it was time to create a nonprofit to attack affordable housing,” Justin Duff, vice president of development for VanTrust told commissioners during the meeting.
He said the organization’s leaders hope to be a magnet for others who know of opportunities and locations where land needs to be improved.
The nonprofit is new enough that it is not listed in GuideStar or Charity Navigator. Duff said rebranding will happen soon on the name and its initials (GKCHOI).
Skeptics question partnership
Amy Cox of the Good Faith Network said the partnership “sounds promising in principle” but asked for more information on the nonprofit, including the organization’s members, timelines and deliverables.
The Good Faith Network has pressed county officials for more action on housing issues and was a key proponent of a homeless shelter proposed for a Lenexa hotel that was ultimately scuttled when the city of Lenexa denied a special use permit needed for the project.
“What is the likelihood that the housing created through this partnership will truly be obtainable for populations most in need, such as low-income individuals and families and those exiting homelessness?” Cox asked.
Another speaker, Ben Hobert of Westwood Hills, called the partnership “problematic.” He said the proposal might be a conflict of interest for commission Chair Mike Kelly because of ties between VanTrust and law firm Husch Blackwell, for which Kelly is a partner.
Kelly said he did not believe himself to be in conflict. However, as the discussion went on Thursday, he recused himself to keep the conversation moving and avoid the appearance of impropriety, he said.
The county communications office later confirmed a lawyer at Husch Blackwell is a member of the nonprofit’s board.
Former county commissioner Charlotte O’Hara also questioned the need for a cooperation agreement when the organization could act on its own. “What is VanTrust wanting from the county? Obviously something or they would not have brought forward this initiative.”
“There is no reason for this entanglement with a not-for-profit,” she said.
Commissioner Michael Ashcraft also expressed hesitation, asking that the vote be delayed for a week. His motion died for lack of a second.
Most commissioners see it as an “opportunity”
The majority of commissioners said they supported the idea of bringing in a real estate nonprofit as a partner in efforts to find ways to make housing in the county more affordable.
The inventory of single-family homes available for $300,000 or less has dropped steadily since 2018, according to numbers from the county appraiser’s office.
Commissioner Julie Brewer said she welcomed that the business community wants to be involved in finding the solution.
“I see this letter of intent as an opportunity to bring in those who have authentic expertise in this area,” she said.
Commissioner Janeé Hanzlick said the letter seems to be an open invitation for other developers to join in addressing housing needs.
“To me, it’s pretty innocuous,” she said of the letter.
“A lot of efforts to address housing needs seem to come out of organizations that have no expertise in housing development,” Hanzlick said. Housing developers, “are the ones that need to tell us what they need, what are the barriers to building in Johnson County.”
Like some other commissioners, Becky Fast noted that the letter is non-binding. She added that she hopes efforts will be made to include other nonprofits.
“The only thing that doesn’t sit right with me is that no one else knew that we were doing this,” she said.
Fast added that she is concerned with federal spending cuts on housing assistance.
“Government can’t solve this problem alone”
The commission voted 5-1 to accept the letter of intent, with Ashcraft voting against and Kelly abstaining.
Later in the meeting, Kelly said the county needs more of a housing supply.
“It’s good for everybody, not only from an economic growth standpoint but from an opportunity to broaden the tax base,” he said, adding that partnerships with other entities should be welcomed.
“Government can’t solve this problem alone,” he said. “I’m going to continue to support good things when they are possible, and I look forward to working with those who are ready to put politics aside and actually work for solutions.”
Go deeper: Here is a link to the meeting packet and live-streamed recording of the meeting. Discussion begins at 15:58.
