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A CDFI Loan helps alleviate affordable housing crisis in Kansas City

Financial and Social Impact

  • Created 55 apartments for low-income seniors
  • Preserved historic building

For many residents, the recent renovation of an historic Kansas City hospital brought a piece of the city’s history back to life and helped combat an affordable housing crisis.

For the seniors living in the landmark, now known as City View at St. Margaret’s apartments, it offered a home that they can afford in a city where quality affordable rental housing is in short supply and high demand.

Built in 1887 as St. Margaret’s Hospital—the city’s first hospital and one that served the poor—the building was abandoned in 2007. Falling into disrepair, it remained vacant until 2012, when Foutch Brothers, LLC, a local developer, recognized a unique opportunity to restore an eyesore, preserve a slice of history, and create affordable housing for low-income seniors.

Foutch Brothers sought bank financing for the renovation but the developers couldn’t secure funds in time to start construction, so they contacted Midwest Housing Development Fund (MHDF), a CDFI focused on affordable housing development projects. MHDF offered greater flexibility and earlier advances on financing.

Opened in January 2014, the energy-efficient 111-unit building dedicated 55 apartments to low-income residents aged 55 or older. With this opening, an iconic building fulfilled its legacy as a place where underserved people can lay their heads.

“This project had so many benefits we couldn’t turn it down—and we didn’t want to hold it back either. The renovation fixed up an abandoned building, breathed life into a community, and, most importantly, expanded the availability of safe, attractive, and quality housing for seniors.”—Tom Stratman, Vice President of Acquisitions, MHDF

(Date of loan: 2013. Date of story publication: 2014)