Long-planned affordable housing project ends before breaking ground: City cites ‘untenable’ rent prices

Oxford has officially terminated a lease agreement with a developer which had long planned to build an affordable housing project on Hester Road.

Since 2017, Community Development Professionals of Hamilton (CDP) has been developing plans for a 12-unit cottage community on Hester Road. City Council initially supported the project, purchasing the 2.1-acre plot of land with $150,000 of American Rescue Plan Act funding in 2021 and granting a ground lease for $1 per year.

This fall, however, the Housing Advisory Commission (HAC) recommended ending the ground lease after learning that the units would cost $922 per month in rent. The project was initially billed as affordable housing for low-income Oxford residents and would have been one-bedroom units under 400 square feet. Assistant City Manager Jessica Greene said during a Dec. 3. City Council meeting that 1,000-square-foot mobile homes can rent for roughly $900 per month in Oxford.

“The rent that they listed is untenable. It does not meet our goal,” said Mayor Bill Snavely, who voted to accept the HAC recommendation at the meeting. The recommendation ultimately passed 4-1, with council member David Prytherch voting against it.

The city had planned to use $500,000 in ARPA funding to subsidize the project, which had been set on 5234 Hester Rd. The funding is earmarked for an affordable housing project, not specifically the cottage community. Greene said the city would need to decide where to put that money soon because developers starting from scratch might not have enough time to break ground by the September 2026 deadline to spend ARPA money.

In addition to the high rent, other development details failed to align with the city’s vision, Greene said during the meeting. The details emerged after city staff met with the developers in July and September with the intention to create a purchasing agreement for CDP to own the land.

When the HAC created a list of items for CDP to do to be eligible for city contributions including ARPA funding, CDP was able to meet certain conditions including capping rent at 30% of renters’ income. The developers could not meet other conditions including wraparound case management services to support tenants who were previously unhoused and having a property manager on-site daily and every other weekend, however.

Per the HAC’s recommendation, the new RFP will focus more explicitly on building housing for people who are homeless, at risk of homelessness or “very low income,” Greene said. CDP declined Greene’s invitation to attend the Dec. 3 meeting.

“It doesn’t make sense to be subsidizing something that doesn’t actually make a better option for the people we’re trying to help,” said council member Jason Bracken. “That’s the biggest thing, but also, we want wraparound services if possible, especially if we’re concerned about keeping this going forward.”

Council member David Prytherch voted against the resolution to terminate the contract, citing concerns that putting out a new request for proposals could set back any type of housing project for years. Council member Alex French said she worried about burning a relationship with the developer but ultimately voted in favor of the resolution.

‘Major university projects,’ covered bridge improvements focus of other resolutions

During the Dec. 3 meeting, the council also unanimously passed a resolution supporting “close town-gown consultation” for major Miami University projects which would have “significant off-campus impacts.”

The resolution comes after news that the university is considering construction of a new arena and university-affiliated hotel. Neither project has an official site yet, though a list of “buildable sites” includes the green space next to Slant Walk, Cook Field, the current location of Millett Hall and more.

The text of the resolution states that “City Council urges the Board of Trustees of Miami University” and administration to consult with city officials and staff “in the site location and planning of major campus projects that have significant off-campus impacts.” The city would in turn consult the university on developments which would have on-campus impacts. The resolution specifically highlights project impacts on traffic, parking, utilities and public safety.

Council approved a contract worth more than $400,000 with Jagger Construction, LLC for improvements to the Black Covered Bridge, which is part of the Oxford Area Trails System. These improvements will include replacing structural components including siding and roofing, as well as extending the roof rafters and applying fire retardant to exposed wood.

The city had budgeted $450,000 for the project, but Jagger’s bid came in at just under $370,000, plus a 10% contingency. The city received three other bids ranging from nearly $600,000 to more than $1.4 million. Service Director Mike Dreisbach said the winning bid came in significantly below the city engineer’s estimate for the work, but he’s comfortable that Jagger will do the required work.

Also during the meeting, council heard a first reading of an ordinance to approve plans for an indoor putt-putt course and escape rooms on South Locust Street. The entertainment venue received approval from the Planning Commission last month. Multiple council members spoke in favor of the project.

All four ordinances regarding changes to parking violations and penalty fees introduced at the last council meeting passed unanimously. The ordinances are intended to streamline the parking penalty process and get rid of discrepancies in the city’s current code.

City Council will meet again at 7:30 p.m. Dec. 17 in the Oxford Courthouse.