The fate of three former elementary schools is once again a question mark after a state housing corporation rejected a second request for low-income tax credits to convert the buildings into apartments.
BNIM, a Kansas City development firm, sought financing from the Kansas Housing Resources Corporation as part of its plan. The tax credit program is very competitive. For the past two years, BNIM passed the preliminary round of applications but ultimately fell short of securing the funding.
USD 257 Superintendent Stacey Fager said the school board will discuss the situation at a meeting later this month.
“They submitted a compelling proposal but unfortunately it wasn’t selected,” Fager said.
The buildings — McKinley, Jefferson and Lincoln — were vacated as elementary schools in the fall of 2022, when the newly constructed Iola Elementary School opened. Some have been utilized for other purposes, such as using McKinley as an afterschool and summer school program for the Southeast Kansas Mental Health Center and Lincoln as a day school for the ANW Interlocal.
The district asked for proposals for future use, and BNIM submitted a plan to convert all three into apartments. Their efforts hinge on a combination of tax credits, grants and other financing.
They would start with McKinley and Jefferson, converting the old schools into one- and two-bedroom apartments. When the Kansas Housing Resources Corporation rejected their first proposal, BNIM added a plan for three-bedroom duplexes to be built on property near McKinley.
The school board agreed in September 2022 to give BNIM two years to secure funding. That time is nearly up, so the board will consider whether to extend the agreement or shift gears.
The next school board meeting is 6 p.m. Monday, but the board isn’t expected to take up the issue because the chairperson will be absent.
The board likely will discuss the matter Aug. 26.
