MANHATTAN – The director of the community development division of the Kansas Department of Commerce says that recent changes to the Rural Housing Incentive District Act (RHID) are helping to contribute to “smart growth” in rural communities.  

Kayla Savage applauded the passage of SB90 in the Kansas legislature last year, opening an opportunity for housing developers and communities to capitalize on upper story space to fill housing gaps.  

“We know there are people moving to our communities that need housing,” Savage said. “This puts another tool in the toolbox for local communities to aid developers (who are) building housing.” 

Savage was the featured speaker during K-State Research and Extension’s monthly online series, First Friday e-Calls, which helps to nurture small businesses and inspire entrepreneurship in Kansas.  

The move toward upper story development is a boost to housing programs that have long contributed to growth in rural Kansas, Savage said, including Rural Housing Incentive Districts. 

“RHID is a vehicle for cities and counties that assists developers in building housing,” Savage said. “It allows the city or county to capture the incremental tax value increase on the property to finance public improvement pieces of a project, or upper story development for residential space in central business districts.” 

Savage noted that RHID is not a grant for improvements to residential properties, but rather a mechanism for capturing the increase in real property taxes to pay qualified expenses for reimbursement to the developer.  

Among 10 permitted uses for reimbursements are street lighting, sidewalks, water mains, storm drains, underground utilities and more.  

“Basically, the program helps to provide infrastructure to support the residential development,” Savage said.  

The Kansas Department of Commerce has a three-step process to help communities create a Rural Housing Incentive District, including a housing needs analysis; a city/county resolution for the district; and a redevelopment plan that includes existing assessed valuations of the property.  

Savage cautioned the process is not nearly as complicated as it may seem.  

“As soon as we start mentioning things like analysis, often times communities are concerned they will have to hire a consultant, or spend thousands of dollars to meet this requirement,” she said. “That is not necessary. We do have some tools to help you get started if you have not completed a housing assessment in the recent past. The goal is not to require you to jump through a series of hoops to get your RHID set up, but there is a very clear public process.”  

A complete listing of the requirements and more information on the RHID program is available online. Information on all housing programs available from the Kansas Department of Commerce also is available online.  

Savage’s full Feb. 4 presentation and other First Friday presentations are available online from K-State Research and Extension.