Kansas Gov. Laura Kelly (D) signed bipartisan legislation last week to help increase the production of affordable housing and address the state’s housing shortage.
House Bill 2237 will create incentives for developers to construct more affordable housing, particularly for rural areas, by providing state income tax credits. Effective July 1, the new state law will offer $35,000 in tax credits per housing unit in counties with a population under 8,000. The cap would fall to $32,000 per unit in counties with 8,000 to 25,000 residents and to $30,000 per unit in counties with a population between 25,000 and 75,000.
By expanding access to quality, affordable housing, communities and businesses can better recruit and retain workers, families and entrepreneurs in rural Kansas," Kelly said. "This bill gives our rural communities more tools to spur economic growth vital to the economy."
"The Wichita Area Builders Association, in conjunction with the Kansas Building Industry Association, appreciate the leadership shown by Gov. Kelly and the Office of Rural Prosperity in choosing to undertake a statewide housing study last year," Wess Galyon, President & CEO of the Wichita Area Builders Association, said. "We were excited to work with other stakeholders, the legislature and the governor to craft a housing package that eliminates barriers and creates immediate growth opportunities."