The Kenai City Council enacted an ordinance conditionally granting certain foreclosed city-owned properties to Central Peninsula Habitat for Humanity. Municipal code allows the council to grant or devote a piece of real property to a nonprofit corporation.
Kenai City Manager Paul Ostrander explains the process:
“These folks apply for houses through Habitat for Humanity. There needs to be in-kind donations by those individuals during construction of the house. Once the house is constructed, I’m not sure how that transfer of deed works or what monetary contribution those individuals have to make towards the house. I know that ultimately, it gets people in houses at a much lower expense than would be if they build the house themselves. As far as the process for the city, the way that this ordinance is constructed is they essentially have until 2028 to build the three. The previous ordinance was a little more restrictive, which is why they had to reapply because even though they had until 2025 to complete these five residences, they had to complete them in a timely manner throughout. This one is changed where essentially if something comes up and they aren’t able to get one done in the first or second year, they can still get three done in the last three years of the agreement.”
Central Peninsula Habitat for Humanity, Inc. is a charitable housing organization and has identified several lots of Mommsen Subdivision Replat Addition No. 1 and 2 as properties meeting the needs of their organization. The properties were acquired through tax and special assessment foreclosures (judgement year was 1987). A previous ordinance declared the properties as not needed for a public purpose and could be sold. Additionally, the Kenai Land Management Plan reestablished that the properties are not needed for a public purpose and recommended disposal.
In the ordinance, the city stands to benefit by granting these lots in order to provide needed safe affordable low-income housing over the next several years, which will produce tax revenue for the City of Kenai, rather than having them remain vacant.
The lots are zoned and of appropriate size for the intended development.