State expands housing incentive districts to all cities for infrastructure projects

During the recent Ellis County Commission meeting on April 15, 2025, officials discussed the evolution of housing investment programs in Kansas, highlighting the transition from Rural Housing Investment Districts (RHIDs) to Reinvestment Housing Incentive Districts. This change reflects an expansion in the program's scope, allowing cities of all sizes to participate under certain conditions, thereby broadening opportunities for housing development across the state.

The Reinvestment Housing Incentive Districts operate as a tax increment financing program. This means that when a district is established, a base property valuation is set, and taxes collected on this valuation continue to be distributed among local taxing jurisdictions. Any increase in property value above this base is allocated to a special fund that can be used to cover eligible project costs, primarily related to infrastructure and land acquisition.

Developers typically front the costs for these infrastructure projects, which can later be reimbursed through the increased tax revenues generated by the property over a period of up to 25 years. The commission emphasized the flexibility within the program, allowing local governing bodies to tailor the specifics of reimbursement terms and eligible costs to meet community needs.

This discussion is significant for Ellis County residents as it opens the door for potential housing developments that could enhance the local economy and provide more housing options. The commission's commitment to adapting housing incentives reflects a proactive approach to addressing community growth and development needs. As these districts are established, they could play a crucial role in shaping the future of housing in Ellis County, making it essential for residents to stay informed about upcoming projects and opportunities.