The Kansas City Council greenlit more than $20 million on Thursday to support the redevelopment of Parade Park Homes, previously one of the country’s oldest Black-owned housing cooperatives.
The action, approved unanimously by city council, secures funding for the first phase of a $300 million plan to transform the site near Kansas City’s Historic 18th and Vine district into 1,085 apartments, townhomes and flats.
“It's a special project because of what it represents,” said Gavriel Schreiber, general counsel for Mayor Quinton Lucas’s office, during a city council committee meeting earlier this week.
“This is a crown jewel of Kansas City, of Kansas City's east side, and historic parts of Kansas City that have historically been under-invested in and underrepresented.”
Kansas City successfully purchased the historic complex in a foreclosure sale about one year ago, following years of uncertainty, deteriorating living conditions and neglect that forced the U.S. Department of Housing and Urban Development to take control of the property and then put it under foreclosure. The city then transferred Parade Park to Flaherty & Collins Development and Twelfth Street Heritage Corporation to oversee its redevelopment.
“This project represents the city council really walking the walk of investing in parts of the city that deserve the type of investment and the type of safe and dignified housing that all of us in our city deserve,” Schreiber said.
The first phrase of the project includes plans for 480 townhomes, apartments and flats. Construction is slated to begin later this year, with estimated completion by 2027. Remaining Parade Park residents have already begun relocating.
Kansas City Mayor Quinton Lucas said in a statement that council's approval ensures Kansas City will continue to honor Parade Park's legacy while also creating affordable housing.
"Parade Park Homes represents both Kansas City’s heritage and our future — and I am proud and honored to be the mayor privileged to ensure this historically Black neighborhood will be strong for generations to come," Lucas said.
Development details
The developer plans to replace 510 of Parade Park’s original townhomes with 1,085 new units.
The funding approved Thursday covers the remaining funding needed for the first phase of the project, slated to cost about $148 million.
About 280 units will be made affordable for people making between 30% and 80% of the median family income. That includes a family of four making between $51,550 and $82,500 a year.
According to a presentation to city council by Lucas’s office, Flaherty & Collins, and Twelfth Street Heritage, 60 units will be available to own. Those units will come in future redevelopment phases.
Funding details
The city’s funding pulls from about five sources, though not all of it is guaranteed:
- $12 million loan from the Housing Trust Fund, which awards funding to support affordable housing development. The interest-free loan would be repaid in six annual installments of $2 million. This award from the Housing Trust Fund marks the largest single allocation to one project since it was established in 2018.
- $5 million in money that’s yet to be awarded from the Central City Economic Development sales tax fund. Receiving this money will require an application to the CCED board and its approval.
- $2 million from unspent funds that were allocated for dangerous building demolition.
The ordinance also directs the city manager to find tax-exempt financing the city would repay over 10 years. The city estimates this financing has a present value of $3.9 million, with money available in the 2026 fiscal year.
The ordinance restricts the maximum annual amount the city contributes to $2 million, and stipulates the city will pay less if the project receives additional outside funding, like a federal grant or private, philanthropic dollars.
The city will also establish a Parade Park Future Fund to finance future phases of Parade Park’s redevelopment.
The first phase of the Parade Park Homes redevelopment has also received other public money. In January, before President Donald Trump took office, the U.S. Department of Housing and Urban Development announced a $15.5 million grant for Parade Park Homes.
And the Port Authority of Kansas City, an economic development agency, authorized in December a three-year arrangement that will exempt Parade Park Homes from paying property taxes.
How we got here
Parade Park was established in 1963 as a housing co-op in Kansas City’s Historic 18th and Vine district. Unlike the traditional renting model, residents owned a share of the nonprofit that controlled the development. Parade Park stood for decades as one of the country’s oldest Black-owned housing co-ops, and served as a symbol of pride for Black families in Kansas City.
But Parade Park faced a period of struggle and uncertainty in recent years, marred by deteriorating conditions and turmoil between management and residents. Aging and neglected townhomes, and a lack of money to repair them, forced residents to live with issues like black mold and leaking roofs, and netted low scores from HUD inspections.
As a result, HUD took over Parade Park in 2022, and announced it would foreclose on the property in 2023.
Representatives of the development told City Council members earlier this week that 62 households impacted by the first phase of development have relocated so far. Of those households, 36 received tenant protection vouchers from HUD that eligible current residents can use for rental assistance anywhere they move.
Remaining residents also have right of refusal on new homes, and get priority for new units as they become available.
"Parade Park is so special to the city of Kansas City," said 3rd District Councilmember Melissa Robinson. "It means a lot to the city, it's an anchor for the community and we're excited to move this project forward."
