Hays has been talking about its housing shortage for years. At their Thursday, Oct. 8 meeting, city commissioners took first steps on two projects that would hit both ends of the problem: starter homes for working families and apartments for low-income renters.
Thirty homes north of Felten
The first project comes from PWC Mgmt LLC, which a city staff memo describes as a local general contractor company. PWC bought a 7.2-acre tract north of Felten Elementary School and south of Skyline Court from USD 489 and plans to build 30 single-family, owner-occupied homes there.
Commissioners approved a resolution supporting PWC's application for a $600,000 Moderate Income Housing grant from the Kansas Housing Resources Corporation, as the Hays Post reported. The money would provide down-payment assistance for buyers of 20 of the 30 homes.
The program is built for households that earn too much for federal housing assistance but still struggle to afford a home. Only cities and counties under 60,000 people can apply, and the application needs a resolution of local support. According to the city's Oct. 1 work session packet, KHRC has $8 million available statewide this cycle. Applications are due Oct. 23, and an award decision is expected by January 2027. The last Hays project to win the grant was the Frontier Apartments in 2021.
The staff memo says the school board approved PWC's bid for the land at its Aug. 17 meeting, and that PWC's contract depends on lining up long-term financing. PWC also plans to seek a Reinvestment Housing Incentive District and Kansas Housing Investor Tax Credits, which will come back to the commission separately. The land still needs to be platted and rezoned before any building starts. A concept drawing in the packet shows houses of about 1,200 square feet.
The Hays Post reported in August that PWC paid $300,000 for the site after a 4-2 school board vote, that educators would get first choice of the homes, and that PWC hoped to have buildable lots by summer 2027 with a five-year build-out adding more than $9 million to the tax rolls.
The resolution costs the city nothing. If the grant comes through, KHRC pays out the money as eligible activities are approved, and the developer agrees to cover the city for any grant-related costs.
Low-income apartments at 26th and Main
The second project is from Epworth Village Inc., a local nonprofit that already runs low-income housing at Epworth Village, 2700 Epworth St., and Epworth Towers, 2800 Augusta Lane.
Commissioners approved an exclusive option for Epworth on 2.1 city-owned acres at 26th and Main, south of Astra Bank. The Hays Post described it as a 15-month option, which gives Epworth time to raise money for a high-density project. If the money comes together and commissioners approve the layout and design, the city would donate the land.
Epworth plans to go after federal Low-Income Housing Tax Credits. At the Oct. 1 work session, Epworth president Greg Daughhetee said the plan is 24 to 26 two-bedroom units, with rents likely between $700 and $900 a month.
"Without some grant funding, be it private or public, it doesn't happen," Daughhetee said.
He pointed to the city's housing study, which found about 55% of Hays renters were "rent-challenged," paying more than 35% of their income in living costs. The latest housing needs assessment lists housing for low-income residents as the city's highest need.
Why it matters for Contractors
The PWC project is a good example of a contractor stepping into the developer's chair in a small city, stacking a state grant, an RHID and housing tax credits to make 1,200-square-foot homes work for moderate-income buyers. If the financing lands, 30 homes over several years means steady work for excavation, concrete, framing, roofing, MEP and finish subs in Ellis County, plus street and utility work once the land is platted. The Epworth apartments are further out and depend on winning competitive tax credits, but a 24- to 26-unit building would be a solid job for a mid-sized commercial or multifamily builder. Contractors in western Kansas who want to grow should study how PWC put its deal together, because the same state tools are open to other small towns.