City of McPherson seeking housing applicants

Sentinel Staff
City of McPherson

The City of McPherson received notice in early December 2020 that they received a $100,000 Moderate Income Housing Grant through the Kansas Housing Resource Corporation (KHRC). As a result, the city  partnered  with developer Jim Strawn to build fivehouses.

The houses being built are 1,300 sq. ft. with three three bedrooms, two  baths, a two car garage, and a full unfinished basement with a rough in for a third bathroom. Construction includes dimensional shingles and a seeded yard. The base price for the houses is $198,500. Additional add-ons are available. There are special assessments on the property.

The MIH Grant will allow down payment assistance — up to a $20,000 — for qualifying applicants. In addition, applicants will be eligible for the City of McPherson’s New Construction Homebuyers Incentive Program, which can net up to $4,400 in cash or tax refunds over a 4-year period if the house is owned for the entire period.

Applicants making no more than 150% of the statewide median income, based on family size, and no less than 60% of the statewide median income will be considered.

Interested recipients must first apply through the City of McPherson. Interested applicants should be prepared to show their most recent tax returns for all family members in the household. Applications will be available at the City Office or on the City Website at . Before applications are advanced for consideration, applicants must have a preapproved letter of available financing from a bank or mortgage lender showing eligibility for financing. Upon meeting eligibility, applicants will begin conversations with the builder.

Successful applicants who are awarded funds, will be required to sign a 0% loan agreement/promissory note and second mortgage agreements. These agreements ensure that there are limits on profitability if the home is sold within a ten-year period of its initial occupancy. At the end of ten years, the deed restriction/lien will be lifted and 100% of the loan will be forgiven. If the house is sold before the end of the ten-year occupancy, the loan recipient will be required to pay back a pro-rated portion of the loan. The ten-year requirement prevents awardees from flipping properties for profit soon after purchase.

There are five spots available in the current funding round. The grant will be available until contracts are signed on all five houses. For more questions on the MIH Grant Program or other housing related grant programs, contact City Administrator Nick Gregory at 620-245-2535 or via e-mail at

Grant applications and other relevant forms are available at the City Offices, 400 E. Kansas.