Rural Housing Incentive Districts (RHID)
The Rural Housing Incentive Districts (RHID) is a program designed to aid developers to build housing within communities by assisting in the financing of public improvements. RHID captures 100% of the incremental increase in real property taxes created by a housing development project for up to 15 years. In order to take advantage of the incentive, property must be within a redevelopment district. Districts are defined by the City or County and must be based on the Housing Needs Analysis. RHID is authorized for any city in Kansas with a population less than 40,000 in a county with a population of less than 60,000 or for any county with a population of less than 40,000.
Developers will finance all approved RHID costs while being reimbursed as the increment is received. Special Obligation Revenue Bonds may be issued by the creator of the district and may be purchased or guaranteed by the developer and re-sold once the valuation is established. Full faith and credit (general obligation bonds) are prohibited with this program. Temporary notes also may be used for interim financing.
Permitted uses of bonds proceeds include:
- Acquisition of property (eminent domain prohibited)
- Payment of relocation assistance
- Site Preparation
- Sanitary and storm sewers and lift stations
- Drainage conduits, channels and levees
- Street grading, paving, curbs and gutters
- Street lighting
- Underground public or private utilities
- Sidewalks
- Water mains and extensions
May NOT be used for buildings or structures to be owned or leased to any developer.
Cost benefit analysis, public hearing, and a contract between the developer and governing bodies is required in each application.
To view the RHID districts click here.
For more information click here.
For information regarding the bonds click here.
