State designates $62 million for affordable housing development
Funding to support moderate income, rural housing; create tax incentives for affordable housing developers
Washington – RealEstateRama – Governor Kelly capped off the legislative session by signing two major bipartisan housing bills into law, representing a significant expansion of resources to support statewide housing development. The measures represent a combined $62 million in new housing resources, as well as initiatives to incentivize housing development.
“We’ve long known that Kansas has a shortage of quality, affordable housing, but the COVID pandemic turned our state’s housing problem into a crisis,” said Ryan Vincent, KHRC’s Executive Director. “Our 2021 statewide housing needs assessment—the first undertaken in nearly 30 years—illustrated the need for more quality, affordable housing in all regions of the state. We are grateful to state leaders, housing partners, and advocates for prioritizing this historic investment to make that housing a reality.”
The measures include a suite of provisions to expand current housing development initiatives and establish new resources:
- House Sub. For Sub. For SB267, signed April 20, 2022:
- Designates an additional $20 million for the 2022 fiscal year from the State General Fund for KHRC’s Moderate Income Housing (MIH) program, to be awarded to cities and counties to develop multi-family rental units and single-family for-purchase homes in communities with populations less than 60,000. Previously, the MIH program had been funded at a rate of $2 million annually since its inception in 2012.
- Designates $20 million from the State General Fund for fiscal year 2023 to the State Housing Trust Fund to establish a Rural Housing Revolving Loan Program to provide loans or grants to rural communities for moderate- and low-income housing development or related infrastructure.
- Provides $20 million in ARPA funds for the state’s MIH program, to be awarded to cities and counties to develop multi-family rental units and single-family for-purchase homes in communities with populations less than 60,000.
- HB2237, signed May 5, 2022:
- Provides $13 million annually to establish a Housing Investor Credit for qualified investors who make cash investments in qualified housing developments in counties ranging from 8,000 – 75,000 residents (SB375).
- Establishes the Kansas Affordable Housing Tax Credit Act, a state tax credit offered in addition to the federal Low Income Housing Tax Credit, to incentivize affordable housing development (SB369).
- Establishes the Kansas Rural Home Loan Guarantee Act allowing KHRC to provide loan guarantees to help address the difference between the cost of construction and the appraised value of single-family homes in counties with populations of less than 10,000.
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Kansas Housing Resources Corporation (KHRC) is a self-supporting, nonprofit, public corporation committed to helping Kansans access the safe, affordable housing they need and the dignity they deserve. KHRC serves as the state’s housing finance agency (HFA), administering essential housing and community programs to serve Kansans.
