The number of rental housing units in Kansas is expected to increase, thanks to recent legislation passed by the U.S. Congress and signed into law.
Starting this year, developers will be able to apply for more housing tax credits to build rental housing. Some of the units will be solely for low- to moderate-income individuals and families.
The legislation increases the amount of tax credits the Kansas Department of Commerce and Housing is authorized to issue to developers by $1.3 million per year or $13 million over the next 10 years.
Last year, the department awarded about $3.3 million in credits. Now, its authority will increase to about $4.6 million per year in tax credits to developers.
Fred Bentley, rental housing administrator in the state's Housing Development Division, said the increase is long overdue. He said the department's authority has stayed at the same rate since the program started in 1987.
"I think it's recognition on part of the Congress that we do need to put resources into this," he said. "We do need to create more affordable housing. The economy has been really good, so there hasn't really been an incentive for developers to build housing for lower-income people."
Bentley said he expects a steady stream of applications for the increased financing, which KDCH tries to spread across the state.
"We're putting some emphasis on getting help to rural areas and other areas where they haven't had a lot of help before or areas that are seeing some development," he said. "There also seems to be a need for senior housing."
In northwest Lawrence, developers used tax credits three years ago to help build a 128-unit complex for seniors at Prairie Commons Apartments.
Bev Bolton, apartment manager, said 90 of the apartments receive tax credits, so their occupants must meet income guidelines. The rest of the tenants are charged market rates.
She said she sees a definite need for affordable housing. The average age in the complex is 72, and about 45 people qualify for other housing assistance.
"From my point of view, there was a real need for middle-income folks. We have Babcock Place and we have upper-end apartments like Brandon Woods, but there wasn't something in the middle. We hit the middle-income retirees."
Congress also increased the state's private activity bond allocation, meaning Kansas will receive an additional $75 million of bonding authority in the next two years. Through an application process, the tax-exempt bonds are sold to investors. The bonds are used for financing manufacturing development, first-time farmers and residential rental projects.
Together, the bonds and tax credits are expected to have a total impact of $37.5 million in new rental housing or about 550 units annually.
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