7.2 Aero Plains Housing DevelopmentAGENDA SECTION
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CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
ORIGINATING DEPARTMENT:
Community & Development
Services
BY: Lauren Driscoll
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
BY: 'V `�
Resolution No. 22-8077
Consider adoption of a resolution authorizing the preparation and submittal of an application to the
Kansas Housing Resources Corporation (KHRC) for the 2022 Kansas Moderate Income Housing
(MIH) grant program and authorizing the City Manager to execute a grant agreement and associated
implementation and administrative documents should funds be awarded.
Resolution No. 22-8078
A Resolution waiving the residential building fees associated the Building Kansas, LLC Aero Plains
Rural Housing Incentive District (RNID).
BACKGROUND:
Brief History:
Resolution No. 16-7315 adopting and implementing the 2015 Live Salina Housing Assessment and
Strategic Plan was adopted by the City Commission on January 25, 2016. In January of 2021 the City
began working again with RDG Planning and Design Group (RDG) to update the 2015 Live Salina
Housing Assessment and Strategic Plan. The City Commission adopted the 2021 Live Salina
Supplemental Update via Resolution No. 21-7970 on July 12, 2021 and a Residential Housing
Incentives Policy via Resolution No. 21-7971 on July 19, 2021. These documents spoke of the rising
need for housing, and offered recommendations for the City to follow as a way to meet the City's
housing goals, ensure financial viability, and timely development of new housing. Today, we are in a
national housing crisis where demand is exceptionally high, building materials are exceptionally
expensive, the supply chain is exceptionally slow, manual labor is exceptionally limited, lending is
exceptionally tight and interest rates are rising. Developers know that all communities have a need for
housing right now and they can be selective, doing projects only where the risk is lowest and access
to supplies and labor are easiest. That is why additional creative housing incentives are becoming
more common as cities of all sizes struggle to house their citizens.
Building Kansas, LLC Aero Plains Housing Development:
This project is located on a vacant 53.26 acre parcel south of West Magnolia Road and west of 1-135.
The maps and legal description for this property are part of the attached March 28, 2022 RHID
Resolution No. 22-8023. The site has been annexed into the city limits and applications to rezone the
property to R-2 for townhome development and to subdivide the property have been approved by the
Planning Commission.
The project will consist of 338 total units of moderate income townhomes. Phase 1 has 150 units.
This project has access to water and sewer but neither are installed within the proposed site. This
property is landlocked with no frontage on an existing_ public street. The land owners have obtained a
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
Community & Development BY.
ITEM Services FINAL APPROVAL:
NO:
Page 2 BY: Lauren Driscoll BY:
commitment from the Salina Airport Authority to allow street access across a vacant tract of land
owned by the Salina Airport Authority in order to provide direct street access to Centennial Road.
Therefore, the property only has frontage on one road, Centennial Road, which is improved to City
standards. It has been proposed that this property will have an interim second emergency only access
drive off of Foxboro Drive.
This land is subject to a benefit fee of $130,533.05 for water line improvements. No other special
assessments or benefit fees are currently applied to this property. Only the far eastern edge of this
property adjacent to Dry Creek is within a mapped floodplain or floodway and none of the proposed
building lots are affected. There is a city -owned flood control levee between the end of the Foxboro
Drive right-of-way and the edge of this subdivision. The Planning Commission on February 15, 2022
at a regular meeting approved (5-0) the Preliminary Plat of the Aero Plain Subdivision.
Kansas Housing Resources Corporation: Moderate Income Housing
Kansas Housing Resources Corporation (KHRC) is a public corporation that administers federal and
state housing programs on behalf of the State of Kansas. The KHRC Moderate Income Housing (MIH)
Grant program is designed for communities with a population of less than 60,000. The program has
seen some considerable changes since 2021 due to new funding and greater state prioritization
around housing. The total program funding for MIH in 2022 has increased from $2,000,000 annually
to $40,000,000 annually with a one-time infusion of $22,000,000 of ARPA funds. Funding sources
include $22 million available through the State Housing Trust Fund, $20 million through a Revolving
Loan Program, and an additional $20 million through American Rescue Plan Act (ARPA) funds. With
the increased availability and maximum statewide impact, KHRC has raised the maximum funding
award from $400,000 to no more than $650,000 per awardee. Due to the Developer's, City's, and
County's familiarity with ARPA funds, the MIH Application will request to be specifically awarded funds
from the ARPA MIH allocation of funds. In 2022 only, KHRC has paired the MIH Grant with the new
Kansas H.B 2237 Tax Credit. This economic incentive is designed to reduce a development's income
tax liability proportional to the awarded credits. H.B. 2237 (Section 3 & Section 4) has $13,000,000
available in tax credits for qualified housing projects in counties of less than 75,000 residents. Awards
are for no more than a $1,200,000 credit against the federal income tax liability per project (Up to
$30,000 per residential unit up to 40 Units per year in a community the size of Salina). Qualified
projects are evaluated and determined by KHRC in accordance with Section 42 of the federal internal
revenue code. Building Kansas, LLC intends to apply for this tax credit.
CURRENT REQUEST:
This project is being proposed by Building Kansas, LLC, a group comprised of local developers. This
project's total build -out is 169 lots each with two units (townhomes) per lot, therefore the total number
of units at build -out will be 338. The project is being built in two phases with Phase I being 75 lots with
150 units and Phase II being 94 lots with 188 units. This current request is for Phase I only. All
construction of Phase 1 will be complete within three years of commencement.
The total project cost is $37,500,000.00. The costs breakdown as follows:
1.) Land Acquisition Cost: $375,000.00
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL:
NO:
Community & Development BY.
ITEM Services FINAL APPROVAL:
NO:
Page 3 BY: Lauren Driscoll BY:
3.) Infrastructure Construction Costs: $3,000,000.00
4.) Soft Costs: $350,000.00 / Brokerage & Sales $1,475,000.00
Annual property taxes are estimated to be $960,868.00. The developer is hoping for a 6-12% return
on investment that included the RHID incentive from the City and the potential awarding of
$650,000.00 from the KHRC Moderate Income Housing (MIH) grant program.
Current Request: MIH
The proposed Resolution No. 22-8077 authorizes the submission of an application for $650,000 on
behalf of Build Kansas, LLC. If awarded funding in January of 2023, Resolution No. 22-8077 also
authorizes the City Manager to accept the award and a grant agreement regarding administration of
the grant and the relationship and obligations of Building Kansas, LLC. The funds would be used for
the construction of 75 lots with 150 units of owner occupied housing as described above in the
subdivision known as Aero Plains.
The State of Kansas' Moderate Income Housing (MIH) program serves the needs of moderate -income
households that typically don't qualify for federal housing assistance. MIH grants are awarded to cities
and counties for down payment assistance or to develop multi -family rental units, single-family for -
purchase homes, and infrastructure in communities with populations fewer than 60,000 people. The
shortages of safe, affordable housing has the greatest impact on our rural communities. In smaller
communities across Kansas, the lack of housing is creating challenges in attracting and retaining
residents. While employment opportunities are plentiful in many communities, housing options are not.
The MIH program is designed to address these challenges. Salina meets the minimum requirements
to apply for the MIH program and most certainly reflects the need for housing the program is meant to
address.
If awarded, the City will be involved in the grant administration by working alongside the developers
to monitor reporting, compliance with regulations, and act as the gatekeeper for eligible activities and
requests to disburse grant funds. A grant agreement between the Kansas Housing Resources
Corporation (KHRC) and the City of Salina would need to be signed by the City Manager. The grant
agreement defines the roles and responsibilities associated with the acceptance and management of
the grant. This includes necessary documentation, timelines and dates, reporting requirements, and
financial assurances and procedures. None of the requirements identified through the MIH grant
process or HB 2237 supersede or nullify the requirements of the Development Agreement entered
into by Building Kansas, LLC with the City of Salina for the formation of and participation in an RHID
district.
Current Request: Waiver of Building Permit Fees
Building Kansas, LLC is requesting a waiver from all building permit fees associated with this project,
this includes both phase I and II. Building Kansas, LLC has identified these fees as an additional
incentive that makes the project more viable and allows them to build workforce housing in the
community. Depending on the building mix, permit fees would be waived for each lot using the
following calculations:
AGENDA SECTION
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following calculations:
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
ORIGINATING DEPARTMENT
Community & Development
Services
BY: Lauren Driscoll
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
M
on the building mix, permit fees would be waived for each lot using the
Type of Unit
Unit Bed/Bath
I Finished Sci Ft Per Unit
Total Permit Fee
Duplex
3Bed / 26ath / 2 -Car
1540
$2,537.78
Duplex
3Bed / 213ath / 2 -Car
1668
$3,087.62
Duplex
313ed / 26ath / 2 -Car
1478
$2,438.06
Total fees waived would be between $205,354.50 ($2,438.06 x 75) and $231,571.50 ($3,087.62 x 75)
of fees associated with building permits. Waiving of building permit fees is not an identified incentive
in the City of Salina Housing Incentive Policy. The act of waiving building permit fees has been done
only once before through Resolution No. 21-7994 waiving building permit fees for the South View
Estates, LLC which is also an RHID Housing Development (Attached).
FISCAL NOTE:
If Resolution No. 22-8077 is approved, the City will not be required to provide any matching funds for
the MIH grant. Some staff time will be needed to administer the grant. Based on previous MIH awards,
staff anticipates 2 to 5 hours a month depending on the frequency of development activities and the
stage of the grant process.
If Resolution No. 22-8078 is approved, the City would be waiving between $205,354.50 and
$231,571.50 of fees associated with building permits. There is no upfront cost to the City, building
permit fees would only be waived if permits are applied for and approved.
COMMISSION ACTION:
Staff has identified the following options for the City Commission's consideration:
Resolution No. 22-8077 Authorization to Apply and Accept MIH Grant
The City Commission may:
1.) Approve Resolution No. 22-8077 and approve submittal of an MIH application and authorize
the City Manager to accept an associated Grant Agreement at a future date.
2.) Approve Resolution No. 22-8077 with amendments and/or further direction.
3.) Postpone consideration of Resolution No. 22-8077 to a specified date and time and provide
staff direction regarding additional information or amendments the City Commission would like
to request for their further consideration.
4.) Vote to deny Resolution No. 22-8077 resulting in no MIH application being submitted by the
City.
Staff recommends Option #1.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION DATE TIME
09/26/2022 4:00 P.M.
AGENDA SECTION
NO:
ITEM
NO:
Page 5
Resolution No. 22-8078 Building Fee Waiver
The City Commission may:
ORIGINATING DEPARTMENT:
Community & Development
Services
BY: Lauren Driscoll
FISCAL APPROVAL:
BY:
FINAL APPROVAL:
BY:
1.) Approve Resolution No. 22-8078 for Building Fee Waiver for the Building Kansas, LLC Aero
Plains Housing Development.
2.) Approve Resolution No. 22-8078 with amendments and/or further direction.
3.) Postpone consideration of Resolution No. 22-8078 to a specified date and time and provide
staff direction regarding additional information or amendments the City Commission would like
to request for their further consideration.
4.) Vote to deny Resolution No. 22-8078 and provided additional direction to staff regarding how
the City Commission would like to proceed.
Staff recommends Option #1.
Attachments:
• Resolution No. 22-8077 (Proposed 2022 MIH Application & Acceptance)
o KS H.B. 2237
• Resolution No. 22-8078 (Proposed Aero Plains Fee Waiver)
o Resolution No. 21-7994 (Adopted Ryan Add Fee Waiver)
o Resolution No. 22-8023 (Adopted Aero Plains RHID)
CC:
1. Building Kansas, LLC
2. Salina Chamber of Commerce
3. Economic Development Organization of Salina
RESOLUTION NUMBER 22-8077
A RESOLUTION AUTHORIZING THE PREPARATION AND SUBMITTAL OF AN
APPLICATION TO THE KANSAS HOUSING RESOURCES CORPORATION (KHRC) FOR
THE 2022 KANSAS MODERATE INCOME HOUSING GRANT PROGRAM, SUPPORT FOR
AN APPLICATION BY BUILDING KANSAS, LCC FOR THE HB 2237 TAX CREDIT
PROGRAM AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE GRANT
AGREEMENT, DIRECT ANY ADMINISTRATIVE ACTIONS, AND EXECUTE ANY
DOCUMENTS NECESSARY TO IMPLEMENT THE TERMS OF THE AGREEMENT.
WHEREAS, the Kansas Moderate Income Housing (MIH) Program authorizes any city
incorporated in accordance with the laws of the State of Kansas (the "State") with a population of less
than 60,000 to apply for loans or grants to cities for infrastructure or housing development in areas that
do not qualify for federal housing assistance; and
WHEREAS, the City has an estimated population of less than 60,000 and, therefore,
constitutes an eligible city as said term is defined by the MIH program; and
WHEREAS, on July 12, 2021 the City Commission adopted Resolution No. 21-7970
adopting the Live Salina Plan -2021 Supplement and supporting its implementation;
WHEREAS, the Live Salina Plan -2021 Supplement recommends increased housing and
adoption of a housing economic incentive policy to encourage new developments and infill housing
opportunities;
WHEREAS, this MIH application is being prepared in partnership with Building Kansas LLC;
ITM
WHEREAS, Building Kansas, LLC is worked with the City to create a Rural Housing
Incentive District (RHID) over the Aero Plains Housing Development; and
WHEREAS, the Building Kansas, LLC Aero Plains RHID will contain 150 units of townhome
duplex owner -occupied homes and townhomes for moderate income families; and
WHEREAS, the governing body of the City of Salina, Kansas (the "City") adopts this
resolution making certain findings as the basis for the City's application for and participation in the
MIH program; and
WHEREAS, HB 2237, was enacted by the Kansas State Legislature on May 5, 2022,
(effective July 1, 2022) created an economic incentive referred to as "The HB 2237 Tax Credit
Program"; and
WHEREAS, in order to implement The HB 2237 Tax Credit Program in a timely manner for
the year 2022 only MIH applicants are eligible and must apply simultaneously with the applicants
MIH application; and
WHEREAS, documented support for an MIH applicant's simultaneous application for the HB
2237 Tax Credit Program is required.
SO NOW THEREFORE,
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
SECTION 1. The governing body hereby finds and determines that there is a shortage of
quality housing of various price ranges in the City despite the best efforts of public and private
housing developers.
SECTION 2. The governing body hereby finds and determines that the shortage of quality
housing can be expected to persist and that additional financial incentives are necessary in
order to encourage the private sector to construct or renovate housing in the City.
SECTION 3. The governing body hereby finds and determines that the shortage of quality
housing is a substantial deterrent to future economic growth and development in the City.
SECTION 4. The governing body hereby finds and determines that the future economic well-
being of the City depends on the governing body providing additional incentives for the
construction of quality housing in the City.
SECTION 5. The Governing Body hereby authorizes the preparation and submittal of an
application for the 2022 Moderate Income Housing Program to the Kansas Housing Resources
Corporation.
SECTION 6: The Governing Body herby authorizes support for Building Kansas LLC's
application for HB2237 Tax Credit Program in coordination with the MIH 2022 application
process and further authorizes the City Manager to further document such support as may be
required.
SECTION 7. The City authorizes the City Manager to approve the terms and conditions of the
Grant as set forth in the Grant Agreement proposed by KHRC and to execute the Agreement.
SECTION 8. The City Manager or the City Manager's designee is authorized to direct any
administrative actions and execute any documents necessary to implement the terms of the
Grant Agreement.
SECTION 9. The City Clerk is directed to file and retain the original agreements according to
the City of Salina Records Management Policy.
SECTION 10. That this resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 26`h day of September,
2022.
Trent W. Davis, M.D., Mayor
(SEAL)
ATTEST:
JoVonna A. Rutherford, City Clerk
HOUSE BILL No. 2237
Aa Acr concerning economic development enacting the Kansas affordable housing tax
credit act and the Kansas housing investor an, credit an; providing tax credits for
qualified housing projects; establishing an rider nmmures tax credit, increasing the
amount of the historic structures six credit for qualified expenditure incurred for
structures in cities with a certain population; enacting the Kansas rural home loan
guarantee aa; guaranteeing a certain portion of home loans with moneys from the
nate housing rest fund; authorizing certain unique residential rut property
appraisals in must counties in be conducted without completing the sales comparison
approach to value; allowing the use of bond prucced. under the Karnes..I housing
incentive district net for residential vertical development and renovation of certain
buildings within commoically distressed urban areas; relating to the child day care
services assistance her credit; providing a credit fm employer payments to an
automated. providing sues to employees forchild day cam mrvicen and expanding
eligible taxpayers; amending K.S.A. 79-32,190 and 79-32,211 and K.S.A. 2021 Supp.
12-5242 and 12-5249 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section I. The provisions of sections I through 6, and
amendments thereto, shall be known and may be cited as the Kansas
affordable housing tax credit act.
New Sec. 2. As used in sections I through 6, and amendments
thereto:
(a) "Act" means the provisions of sections 1 through 6, and
amendments thereto;
(b) "allocation certificate" means a statement issued by the KHRC
certifying that a given development is eligible for the credit and
specifying the amount of the credit allowed;
(c) "credit" means the Kansas affordable housing tax credit
allowed pursuant to this act;
(d) "credit period" means the credit period its defined in section
42(f)(I ) of the federal internal revenue code;
(e) "director" means the director of taxation pursuant to K.S.A.
75-5102, and amendments thereto;
(f) "federal tax credit" means the federal low-income housing rax
credit provided by section 42 of the federal internal revenue code;
(g) "KHRC" means the Kansas housing resources corporation, a
not-for-profit subsidiary of the Kansas development finance authority
incorporated pursuant to K.S.A. 74-8904(v), and amendments thereto;
(h) "pass-through entity' means any: (I) Limited liability
company; (2) limited partnership; or (3) limited liability partnership;
(i) "pass-through certification" means a certification provided to
the director by any pass-through entity allocating a credit to its partners
or members, certifying the amount of credit to be allocated to each
partner or member of such pass-through entity;
0) "qualified allocation plan" means the qualified allocation plan
adopted by the KHRC pursuant to section 42(m) of the federal internal
revenue code;
(k) "qualified development" means a "qualified low-income
housing project," as that tern is defined in section 42 of the federal
internal revenue code that is located in Kansas and is determined by the
KHRC to be eligible for a federal tax credit whether or not a federal rax
credit is allocated with respect to such qualified development; and
(1) "qualified taxpayer' means an individual, a person, firm,
corporation, or other entity that owns an interest, direct or indirect, in a
qualified development and is subject to the taxes imposed by the
Kansas income tax act, the privilege taxes imposed pursuant to article
I I of chapter 79 of the Kansas Statutes Annotated, and amendments
thereto, or the premium taxes imposed pursuant to K.S.A. 40-252, and
amendments thereto.
New Sec. 3. (a) For all taxable years commencing after December
31, 2022, there shall be allowed a credit against the income tax liability
imposed pursuant to the Kansas income tax act, the privilege rax
liability imposed upon any national banking association, state bank,
trust company or savings and loan association pursuant to article I I of
chapter 79 of the Kansas Statutes Annotated, and amendments thereto,
or the premium tax liability imposed upon an insurance company
pursuant to K.5 A. 40-252, and amendments therem, for each qualified
HOUSE BILL No. 2237—page 2
development for each year of the credit period, in an amount equal to
the federal tax credit allocated or allowed by the KHRC to such
qualified development, except that there shall be no reduction in the
credit allowable in the first year of the credit period due to the
calculation in section 42(t)(2) of the federal internal revenue code.
(b) The KHRC shall issue an allocation certificate to an owner of
a qualified development to which a credit has been allocated. The
KHRC shall issue an allocation certificate to the qualified development
simultaneously with issuance of federal form 8609 with respect to the
federal tax credits.
(c) All allocations shall be made pursuant to the qualified
allocation plan.
(d) If an owner of a qualified development receiving an allocation
of a credit is a pass-through entity, the owner may allocate the credit
among its partners or members in any manner agreed to by such
persons regardless of whether: (1) Any such person is allocated or
allowed any portion of any federal tax credit with respect to the
qualified project; (2) the allocation of the credit under the terms of the
agreement has substantial economic effect within the meaning of
section 704(b) of the federal internal revenue code; or (3) any such
person is deemed a partner for federal income tax purposes, if the
partner or member would be considered a partner or member under
applicable state law governing such entity and has been admitted as a
partner or member on or prior to the date for filing the qualified
taxpayer's tax return, including any amendments to such tax return,
with respect to the year of the credit. In the case of multiple tiers of
pass-through entities, the credit may be so allocated through any
number of pass-through entities in any manner agreed by the owners of
such pass-through entities, none of which shall be considered a transfer.
Any pass-through entity allocating a credit to its partners or members
shall attach a pass-through certification to its tax return annually. Each
partner or member shall be allowed to claim or further allocate such
amount subject to any restrictions set forth in this act.
(e) An owner of a qualified development to which a credit has
been allocated and each qualified taxpayer to which such owner has
allocated a portion of such credit, if any, shall file with their state
income, privilege or premium tax return a copy of the allocation
certificate issued by the KHRC with respect to such qualified
development and a copy of any pass-through certification, as prescribed
by the director.
(f) No credit shall be allocated pursuant to this act unless the
qualified development is the subject of a recorded restrictive covenant
requiring the development to be maintained and operated as a qualified
development and is in accordance with the accessibility and
adaptability requirements of the federal tax credits and title VIII of the
civil rights act of 1968, as amended by the fair housing amendments act
of 1988, for a period of 15 taxable years, or such longer period as may
be agreed to between the KHRC and the owner of the qualified
development, beginning with the first taxable year of the credit period.
(g) The allocated credit amount maybe taken against the income,
privilege or premium taxes imposed for each taxable year of the credit
period. Any amount of credit that exceeds the income, privilege or
premium tax liability of a qualified taxpayer for a taxable year may be
carried forward as a credit against subsequent years tax liability up to
11 tax years following the tax year in which the allocation was made
and shall be applied first to the earliest years possible. Any amount of
the credit that is not used shall not be refunded to the taxpayer.
(h) Unless otherwise provided in this act or the context or law
requires otherwise, the K14RC shall determine eligibility for a credit
and allocate credits in accordance with the standards and requirements
set forth in section 42 of the federal internal revenue code. Any
combination of federal tax credits and credits allowed pursuant to this
act shall be the least amount necessary to ensure the financial feasibility
of a qualified development.
HOUSE BILL No. 2237—page 3
New Sec. 4. If, under section 42 of the federal internal revenue
code, a portion of any federal tax credit taken on a qualified
development is required to be recaptured or is otherwise disallowed
during the credit period, the qualified taxpayer that claimed the credit
pursuant to this act with respect to such qualified development shall
also be required to recapture a portion of any credits authorized by this
act. The percentage of credits subject to recapture shall be equal to the
percentage of federal tax credits subject to recapture or otherwise
disallowed during such period. Any credits recaptured or disallowed
shall increase the tax liability of the qualified taxpayer who claimed the
credits and shall be included on the tax return of the qualified taxpayer
submitted for the taxable year in which the recapture or disallowance
event is identified.
New Sec. 5. The KHRC and the director, in consultation with each
other, shall promulgate rules and regulations necessary for their
respective administration of this act.
New Sec. 6. (a) The KHRC, in consultation with the director, shall
monitor and oversee compliance with the provisions of this act and
shall report specific occurrences of noncompliance to the director.
(b) For each allocation year, the KHRC shall submit a written
report to the legislature on or before December 31 of each year and
make such report available to the public. The report shall:
(1) Specify the number of qualified developments that have been
allocated credits during the allocation year and the total number of units
supported by each development;
(2) describe each qualified development that has been allocated
credits including, without limitation, the geographic location of the
development, the household type and any specific demographic
information available about residents intended to be served by the
development, the income levels intended to be served by the
development, and the rents or set -asides authorized for each
development and
(3) provide housing market and demographic information that
demonstrates how the qualified developments supported by the credits
are addressing the need for affordable housing within the communities
they are intended to serve as well as information about any remaining
disparities in the affordability of housing within those communities.
New Sec. 7. (a) The purpose of the Kansas housing investor tax
credit act is to bring housing investment dollars to communities that
Ink adequate housing. Development of suitable residential housing
will complement economic development of rural and urban areas that
lack adequate housing resources and enable such communities to attract
businesses, employees and new residents.
(b) Sections 7 through 12, and amendments thereto, shall be
known and may be cited as the Kansas housing investor tax credit act.
New Sec. 8. As used in the Kansas housing investor tax credit act,
sections 7 through 12, and amendments thereto:
(a) "Act' means the Kansas housing investor tax credit act
(b) "cash investment' means, as approved by the director, money
or money equivalent in consideration for qualified securities;
(c) "city" means any city incorporated in accordance with Kansas
law with a population of less than 70,000, as certified to the secretary
of state by the division of the budget on the previous July I in
accordance with K.S.A. 11-201, and amendments thereto;
(d) "corporation" means the Kansas housing resources
corporation;
(e) "county" means any county organized in accordance with
K.S.A. 18-101 et seq., and amendments thereto, with a population of
less than 75,000, as certified to the secretary of state by the division of
the budget on the previous July I in accordance with K.S.A. 11-201,
and amendments thereto;
(f) "director" means the director of housing of the Kansas
development finance authority;
(g) "Kansas investor" means an individual who is a resident of
HOUSE BILL No. 2237—page 4
Kansas or any business entity domiciled in Kansas, or any corporation,
even if a wholly owned subsidiary of a foreign corporation, that does
business primarily in Kansas or conducts substantially all of its
business activities in Kansas, or a bank or other financial institution or
association chartered or incorporated under the laws of Kansas that
does business primarily in Kansas or conducts substantially all of its
business activities in Kansas;
(h) "manufactured home" means a "manufactured home" as
defined in K.S.A. 58-4202, and amendments thereto, that is installed on
a permanent foundation. The permanent foundation shall be of a type
not removable intact from the site, constructed of durable materials
such as concrete, mortared masonry or treated wood, site built and shall
have attachment points to anchor and stabilize the manufactured home
to transfer all loads to the underlying soil or rock;
(i) "modular home" means a "modular home" w defined in K.S.A.
58-4202, and amendments thereto, that is installed on a permanent
foundation. The permanent foundation shall include a basement or
crawl space;
() "qualified housing project" means a project within a city or
county for the construction of single-family residential dwellings,
including, but not limited to, manufactured housing or modular
housing, or multi -family residential dwellings or buildings, that is
eligible for designation by the director as a project for the purposes of
the tax credit allowed under this act. "Qualified housing project" does
not include a project eligible for income or other tax credits designated
for low-income housing under state or federal law, including, but not
limited to, the low income housing tax credit pursuant to 26 U.S.C. §
42, or a project participating in tenant -based or project -based programs
pursuant to section 8 of the United States housing act of 1937, 42
U.S.C. § 1437f;
(k) "qualified investor" means an investor that has made a cash
investment in a qualified housing project and is eligible for a tax credit
under this act. A "qualified investor" includes a natural person, a
business or a bank or other financial institution or association and the
project builder or developer; and
(I) "qualified securities" means a cash investment through any
form or combination of forms of financial assistance, including equity
or debt instruments or bank or financial institution or association loans
pursuant to rules and regulations adopted by the director, and that with
respect to any investment made for the purpose of receiving a in credit
under this act have been approved in form and substance by the
director.
New Sec. 9. (a) There is hereby established the Kansas housing
investor tax credit program within the Kansas housing resources
corporation, to be administered by the director of housing. The purpose
of tax credits issued under the Kansas housing investor tax credit
program is to facilitate investment in suitable housing that will support
the growth of communities that lack adequate housing by attracting
new employees, residents and families and will support the
development and expansion of businesses that are job and wealth
creating enterprises.
(b) To achieve this purpose and to optimize the use of the limited
resources of the state, the director is authorized to issue tax credits for
qualified housing projects to qualified investors who make cash
investments in such qualified housing projects and to project builders
and developers. Such tax credits shall be issued for those qualified
housing projects that, as determined by the director, are most likely to
provide the greatest economic benefit to and best meet the needs of the
community lacking adequate housing where the project is located. In
issuing tax credits, the director shall give priority to Kansas investors.
(c) To be designated as a qualified housing project, the project
builder or developer shall apply to the director. Such application shall
be in a form and substance as required by the director and shall include:
(1) The time and address of the project builder or developer and
HOUSE BILL No. 2237—page 5
names of all principals or management;
(2) if the project builder or developer is seeking tax credits for
such builder's or developer's cash investment in the project, information
as required by the director for consideration of the request;
(3) a project plan, including a description of the project, timeline,
housing to be constructed, intended market, costs and anticipated
pricing for the housing and any other information that may be required
by the director;
(4) a statement of the potential economic impact of the project;
(5) a description of all financing for the project, the amount of any
tax credits requested and the earliest year in which the tax credits may
be claimed;
(6) a statement of the amount, timing and projected use of the
proceeds to be raised from qualified investors;
(7) the names, addresses and taxpayer identification numbers of
all investors who may qualify for the tax credit. Such list of investors
who may qualify for the tax credit shall be amended as any information
on the list shall change; and
(8) such additional information as the director may require.
(d) In determining whether to designate a project as a qualified
housing project, the director shall consider whether the project:
(1) Has the support of the community and the governing body of
the city or county where such project is located;
(2) will enhance the ability of the community that lacks adequate
housing to attract new businesses or expand existing business by
providing suitable housing directly for employees or make such
housing significantly more available, or will meet other significant
housing needs of the community making the community attractive to
new or expanding businesses or their employees, as determined by the
director;
(3) has the financial support, management, planning and market to
be successful;
(4) has an analysis or survey of the housing needs of the
community provided by the project builder or developer or the
governing body of the city or county where the project is located that,
in the director's judgment, supports proceeding with the proposed
project for the purposes of this act;
(5) has met all other requirements of this act to the satisfaction of
the director; and
(6) has met such other requirements of the director as adopted in
rules and regulations.
(e) If the director approves the application, the director shall enter
into an agreement with the project builder or developer for the project
prior to issuing any tax credits for the project. The agreement shall set
forth the amount of tax credits to be issued for the project, the
requirements for a cash investment and the issuance of tax credits. If
the project builder or developer has been approved by the director for
M credits for the project builders or developers cash investment in the
project, the agreement shall set forth the amount of credits so approved
and the amount of credits remaining for issuance to other qualified
investors. Such agreement shall require, as a condition of the issuance
of tax credits, binding commitments by the project builder or developer
to the corporation for:
(1) The reporting of progress and financial data, including investor
information. The project builder or developer shall have the obligation
to notify the director in a timely manner of any changes in the
qualifications of the project or in the eligibility of investors to claim a
tax credit;
(2) the right of access to the project and to the financial records of
the project builder or developer;
(3) the provision of information for purposes of the economic
development incentive program information database pursuant to
K.S.A. 2021 Supp. 74-50,226, and amendments thereto;
(4) the repayment requirements upon loss of designation pursuant
HOUSE BILL No. 2237—page 6
to section 11, and amendments thereto; and
(5) any additional terms and conditions required by the director.
(f) To be eligible to receive tax credits, a qualified investor shall
make a cash investment in the project in accordance with the agreement
required by subsection (e). Each project budder or developer of a
designated qualified housing project shall promptly report to the
corporation the following information at the time such information
becomes known to the builder or developer:
(1) The name, address and taxpayer identification number of each
qualified investor who has made a cash investment in qualified
securities in the project and has received tax credits for this investment
during the preceding year and all other preceding years;
(2) the amounts of the cash investments by each qualified investor
and a description of the qualified securities issued in consideration of
such cash investments;
(3) the name, address and taxpayer identification number of each
person to whom tax credits have been transferred by the original
qualified investor; and
(4) any additional information as the director may require when
requested.
(g) Any violation of the reporting requirements set forth in this
section shall be grounds for loss of the designation as a qualified
housing project, as provided by section 5, and amendments thereto.
(h) The reasonable costs of the administration of this act, the
review of applications for certification as qualified housing projects and
the issuance of tax credits to qualified housing projects as authorized by
this act may be reimbursed in total or in part through fees paid by the
qualified project, qualified investors or transferees of investors,
according to a reasonable fee schedule adopted by the director.
(i) The state of Kansas shall not be held liable for any damages to
any qualified investor that makes an investment in a qualified housing
project.
Q) The director shall provide information regarding qualified
housing projects and qualified investors to the secretary of revenue.
(k) The director shall adopt rules and regulations as necessary to
implement the provisions of this act.
New Sec. 10. (a) (1) For tax year 2022 and all tax years thereafter,
a credit against the income tax liability imposed pursuant to the Kansas
income tax act, the privilege tax liability imposed upon any national
banking association, state bank, trust company or savings and loan
association pursuant to article I I of chapter 79 of the Kansas Statutes
Annotated, and amendments thereto, or the premium tax liability
imposed upon an insurance company pursuant to K.S.A. 40-252, and
amendments thereto, shall be allowed to:
(A) A qualified investor for a cash investment in a qualified
housing project that has been approved and issued a tax credit by the
director. The tax credit may be claimed in its entirety in the taxable
year the cash investment is made; and
(B) a project builder or developer of a qualified housing project
that has been approved and issued a tax credit by the director.
(2) To claim such tax credit, the qualified investor or project
builder or developer shall provide all information or documentation in
the forth and manner required by the secretary of revenue. If the
amount of the credit exceeds the taxpayer's tax liability in any one
taxable year, the remaining portion of the credit may be carried forward
in the succeeding taxable years until the total amount of the credit is
used, except that no credit may be claimed after four taxable years next
succeeding the taxable year that such credit was issued, and any
remaining credit shall be forfeited.
(b) (1) Tax credits may be issued by the director for a qualified
housing project as follows:
(A) For qualified housing projects located in a county with a
population of not more than 8,000, in an amount not to exceed $35,000
per residential unit;
HOUSE BILL No. 2237—page 7
(B) for qualified housing projects located in a county with a
population of more than 8,000 but not more than 25,000, in an amount
not to exceed $32,000 per residential unit; and
(C) for all other qualified housing projects, in an amount not to
exceed $30,000.
(2) A qualified housing project shall be limited to a total of 40
such residential units per year for both single-family and multi -family
dwellings.
(3) Tax credits may be issued to a qualified investor in the amount
of a cash investment of up to the total amount that may be issued by the
director under this subsection for the qualified housing project, or as
provided in the agreement required by section 9, and amendments
thereto. Project builders or developers may apply to the director each
year for tax credits for additional units or phases of a project. Qualified
investors may be issued tax credits for cash investments in multiple
qualified housing projects. Project builders or developers may apply
and be approved for multiple qualified housing projects in the same tax
year.
(4) The aggregate amount of tax credits that may be issued under
this section shall not exceed $13,000,000 each tax year, except that if
the director issues an aggregate amount of tax credits in one tax year
that is less than $13,000,000, then the director may carry forward the
difference and issue such amount of tax credits in the immediately
succeeding tax year in addition to the statutory amount that may be
issued under this section. Of the aggregate amount of tax credits issued
in one tax year, the director shall allocate:
(A) Not less than $2,500,000 in tax credits for qualified housing
projects located in counties with a population of not more than 8,000;
(B) not less than $2,500,000 in tax credits for qualified housing
projects located in counties with a population of more than 8,000 but
not more than 25,000; and
(C) up to $8,000,000 in tax credits for qualified housing projects
located in counties with a population of more than 25,000 but not more
than 75,000.
(c) A cash investment in a qualified housing project shall be
deemed to have been made on the date of acquisition of the qualified
security, as such date is determined by the director.
(d) Any qualified investor without a current tax liability at the
time of the investment in a qualified housing project that does not
reasonably believe such investor will owe any such tax for the current
taxable year and who receives a tax credit pursuant to this section shall
he deemed to acquire an interest in the nature of a transferable credit
limited to the amount of the credit issued to the qualified investor by
the director. This interest may be transferred to any person whether or
not such person is then a qualified investor and be claimed by the
transferee as a credit against the transferee's Kansas tax liability in the
same manner m the transferor beginning in the year the credit is
transferred. The credit may be carried forward as permitted by
subsection (a). No person shall be entitled to a refund for any interest
on such tax credit that may be created under this section. Only the full
amount of the tax credit for any one qualified housing project
investment may be transferred and may only be transferred one time. A
credit acquired by transfer shall be subject to the limitations prescribed
in this section. Documentation of any credit acquired by transfer shall
be provided by the taxpayer claiming such credit in the manner
required by the secretary of revenue. The qualified investor transferring
such credit shall provide the director and the secretary of revenue with
the name, address and taxpayer identification number of each person to
whom tax credits have been transferred and such other information as
may be required by the director or the secretary of revenue.
(e) The secretary of revenue may adopt rules and regulations as
necessary to implement and administer the provisions of this act.
New Sec. 11. (a) If the director determines that a project is not in
substantial compliance with the requirements of this act or the
HOUSE BILL No. 2237—page S
agreement executed pursuant to section 9, and amendments thereto, the
director shall inform the project builder or developer of the project in
writing that the project will lose designation as a qualified housing
project in 120 days from the date of mailing of the notice unless such
builder or developer corrects the deficiencies and becomes compliant
with with the requirements for designation.
(b) At the end of such 120 -day period, if the project is still not in
substantial compliance, the director shall send a notice of loss of
designation to the project builder or developer, the secretary of revenue
and all known qualified investors in the project. Loss of designation of
a qualified housing project shall preclude the issuance of any additional
tax credits with respect to the project, and the director shall not approve
any subsequent application for such project as a qualified housing
project. Upon loss of the designation as a qualified housing project, the
project builder or developer shall repay any tax credits such taxpayer
has claimed.
(c) Qualified investors other than the project builder or developer
who have lawfully made a cash investment in a qualified housing
project approved by the director shall not have tax credits disallowed
solely due to the project losing its designation as a qualified housing
project under this act.
New Sec. 12. (a) On or before January 31, 2023, and on or before
January 31 of each year thereafter, the director shall transmit a report
annually to the governor, the standing committee on commerce of the
senate and the standing committee on commerce, labor and economic
development of the house of representatives. Such report shall be based
upon information received from each qualified housing project for
which tax credits have been issued during the preceding year and shall
describe the following:
(1) The manner in which the purpose, as described in this act, has
been carried out;
(2) the tocol cash investments made for qualified securities in
qualified housing projects during the preceding year and cumulatively
since the enactment of this act;
(3) an estimate of jobs facilitated by housing developed through
such investments; and
(4) an estimate of the multiplier effect on the Kansas economy of
the investments. The amount of tax credits claimed in the previous
fiscal year; a general description of the investors that benefited from the
tax credits; and any aggregate job creation or capital investment in
Kansas that resulted from the tax credits for a period of five years
beginning from the date on which the tax credits were issued.
(b) The director shall conduct an annual review of the activities
undertaken pursuant to this act to ensure that tax credits issued pursuant
to this act are issued in compliance with the provisions of this act and
rules and regulations adopted by the director.
New Sec. 13. K.S.A. 79-32,211, and amendments thereto, and
sections 13 and 14, and amendments thereto, shall be known as and
may be cited as the historic Kansas act.
New Sec. 14. (a) For all taxable years commencing atter
December 31, 2021, there shall be allowed a tax credit against the
income, privilege or premium tax liability imposed upon a taxpayer
pursuant to the Kansas income tax act, the privilege tax imposed upon
any national banking association, state bank, trust company or savings
and loan association pursuant to article I 1 of chapter 79 of the Kansas
Statutes Annotated, and amendments thereto, or the premiums tax and
privilege fees imposed upon an insurance company pursuant to K.S.A.
40-252, and amendments thereto, in an amount equal to 10% of costs
and expenses incurred for the restoration and preservation of a
commercial structure at least 50 years old that does not receive rax
credits pursuant to K.S.A. 79-32,211, and amendments thereto. An
additional tax credit of 10% of the costs and expenses may be allowed
for the installation of fire suppression materials or equipment by a
taxpayer. The total amount of such costs and expenses shall be at least
HOUSE BILL No. 2237—page 9
$25,000 but shall not exceed $500,000. If the amount of such tax credit
exceeds the taxpayer's income, privilege or premium tax liability for
the year in which the rehabilitation was completed, such excess amount
may be carried over for deduction from such taxpayers income,
privilege or premium tax liability in the next succeeding year or years
until the total amount of the credit has been deducted from tax liability,
except that no such credit shall be carried over for deduction after the
10' taxable year succeeding the taxable year in which the rehabilitation
plan was placed in service.
(b) Any bank, savings and loan association or savings bank shall
pay taxes on 50% of the interest earned on loans to taxpayers used for
costs and expenses for the restoration and preservation of a commercial
structure at least 50 years old or for the installation of fire suppression
materials or equipment.
(c) If the taxpayer is a corporation having an election in effect
under subchapter S of the federal internal revenue code, a partnership
or a limited liability company, the credit provided by this section shall
be claimed by the shareholders of such corporation, the partners of such
partnership or the members of such limited liability company in the
same manner as such shareholders, partners or members account for
their proportionate shares of the income or loss of the corporation,
partnership or limited liability company, or as the corporation,
partnership or limited liability company mutually agree as provided in
the bylaws or other executed agreement. Credits granted to a
partnership, a limited liability company taxed as a partnership or other
multiple owners of property shall be passed through to the partners,
members or owners respectively pro rata or pursuant to an executed
agreement among the partners, members or owners documenting any
alternate distribution method.
(d) Any person, hereinafter designated the assignor, may sell,
assign, convey or otherwise transfer tax credits allowed and earned
pursuant to subsection (a). The taxpayer acquiring credits, hereinafter
designated the assignee, may use the amount of the acquired credits to
offset up to 100% of the assignee's income, privilege or premium tax
liability for either the taxable year in which the costs and expenses
were made. Unused credit amounts claimed by the assignee may be
carried forward for up to five years, except that all such amounts shall
be claimed within 10 years following the tax year in which the costs
and expenses were made. The assignor shall enter into a written
agreement with the assignee establishing the terms and conditions of
the agreement.
(e) No person claiming a tax credit under this section may claim a
tax credit for the same structure under K.S.A. 79-32,211, and
amendments thereto.
(f) The aggregate amount of tax credits that may be claimed under
this section shall not exceed $10,000,000 each tax year.
(g) The director of taxation may adopt tales and regulations as
necessary for the efficient and effective administration of the provisions
of this section.
New Sec. 15. The provisions of sections 15 through 19, and
amendments thereto, shall be known and may be cited as the Kansas
rural home loan guarantee act.
New Sec. 16. As used in the Kansas mral home loan guarantee
act:
(a) "Act" means the Kansas rural home loan guarantee act
(b) "corporation" means the Kansas housing resources
corporation;
(c) "financial institution" means any bank, trust company, savings
hank, credit union, savings and loan association or any other lending
institution that is approved by the corporation;
(d) "loan" means a transaction with a financial institution to
provide the owner financing for the construction or renovation of a
single-family home in a coral county; and
(e) "rural county" means any county in this state with a population
HOUSE BILL No. 2237—page 10
of less than 10,000, as certified to the secretary of state pursuant in
K.S.A. II -201, and amendments thereto, on July 1 of the preceding
year.
New Sec. 17. (a) The corporation is hereby authorized to enter
into agreements with financial institutions to provide loan guarantees
against risk of default for mml housing loans in accordance with the
provisions of this act. Except as provided in section 18, and
amendments thereto, for payment for a loan guarantee for which the
state housing trust fund is liable, no claim against the state under this
act shall be paid by the state, the corporation or any other state agency
other than pursuant to an appropriation act of the legislature after such
claim has been filed with and considered by the joint committee on
special claims against the state.
(b) Eligible financial institutions shall apply all usual lending
standards to determine the creditworthiness of eligible rural home loan
borrowers. The financial institution originating the loan shall be
responsible for monitoring the loan and, in case of any default, working
with the borrower to obtain the collateral for the loan. The financial
institution shall be in the first position and the state in second position
to recover on the loan.
(c) The corporation shall administer the provisions of this act and
shall adopt rules and regulations for the implementation or
administration of this act including the development of an application
process. The loan guarantee agreement with the corporation shall
include reporting requirements and financial standards that are
appropriate for the type of loan for the borrower. The corporation may
enter into contracts that the corporation deems necessary for the
implementation or administration of this act. The corporation may
impose fees and charges as may be necessary to recover costs incurred
for the administration of this act.
New Sec. 18. (a) Notwithstanding the provisions of K.S.A. 12-
5256 or 748959, and amendments thereto, to the contrary, each
agreement entered into by the corporation to guarantee against default
on a loan transaction shall be backed by the state housing trust fund and
shall receive prior approval by the corporation or the corporation's
designee.
(b) Each loan transaction eligible for a guarantee under this act
shall be for the construction or renovation of a single-family home in a
rural county. Eligible costs may include land and building purchases,
renovation and new construction costs, equipment and installation
costs, predevelopment costs that may be capitalized, financing,
capitalized interest during construction and consultant fees that do not
include staff costs.
(c) The portion of the loan guaranteed by the corporation under
this act shall be for the amount of the loan that exceeds 80% of the
appraised value of the home. No loan amount above 125% of the
appraised value of the home shall be guaranteed by the corporation
under this act The Ion amount guaranteed by the corporation under
this act shall not exceed $100,000 per home.
(d) The total amount of loans guaranteed by the corporation under
this act shall not exceed $2,000,000.
(e) All fees and charges imposed by the corporation and other
moneys received by the corporation under this act shall be remitted to
the state treasurer in accordance with K.S.A. 754215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the state
housing trust fund.
New Sec. 19. Beginning with the 2023 regular session of the
legislature, the corporation shall prepare an annual report of the Kansas
rural home loan guarantee act activity, including new loans, loan
repayment status and other relevant information regarding activities
under this act and shall submit such report at the beginning of each
regular session of the legislature to the house of representatives
committee on appropriations, or to the appropriate budget committee,
HOUSE BILL No. 2237—page 11
and the senate committee on ways and means, or to the appropriate
subcommittee thereof or to the successors of such committees.
New Sec. 20. (a) In developing an appraisal of residential real
property identified as unique in style or square footage, or both, located
in a rural county for the purpose of a mortgage finance transaction, if
the sales comparison approach cannot be developed for a credible
opinion or indication of value due to a lack of available comparable
sales within 30 miles, the appraiser may perform the appraisal without
completing the sales comparison approach to value. In the appraisal
report, the appraiser shall provide an explanation of the reasons for
exclusion of the sales comparison approach and document efforts to
obtain comparable sales or market data. A financial institution shall not
decline to proceed with a mortgage finance transaction due to the
exclusion of the sales comparison approach in accordance with this
section unless the sales comparison approach is required in order for
such mortgage finance transaction loan to be guaranteed or sold in the
secondary market.
(b) As used in this section:
(1) "Financial institution" means a bank, national banking
association, savings and loan association, savings bank, trust company,
credit union, finance company or other lending institution; and
(2) "rural county' means any county in this state with a population
of less than 10,000, as certified to the secretary of state pursuant to
K.S.A. 11-201, and amendments thereto, on July I of the preceding
year.
Sec. 21. K.S.A. 2021 Supp. 12-5242 is hereby amended to read as
follows: 12-5242. Except as otherwise provided, as used in K.S.A. 12-
5241 through 12-5251, and amendments thereto, and K.S.A. 2021
Supp. 12-5252 through 12-5258, and amendments thereto, the
(a) "City" means the city of Topeka or any city incorporated in
accordance with Kansas law:
(1) With a population of less than 60,000, as certified to the
secretary of state by the director of the division of the budget on the
previous July 1 in accordance with K.S.A. 11-201, and amendments
thereto; or
(2) for purposes of a project as defined in K.S.A. 12-5149(a)(11),
and amendments thereto, within a qualified census tract, "city"
includes any city with a qualified census tract located within the city.
(b) "City housing authority" means any agency of a city created
pursuant to the municipal housing law, K.S.A. 17-2337 et seq., and
amendments thereto.
(c) "Corporation" means the Kansas housing resources
corporation.
(d) "County" means any county organized in accordance with
K.S.A. 18-101 et seq., and amendments thereto-:
(1) With a population of less than 80,000, as certified to the
secretary of state by the director of the division of the budget on the
previous July 1" in accordance with K.S.A. I1-201, and amendments
thereto; or
(2) for proposes of a project as defined in K.S.A. 11-5249(a)(11),
and amendments thereto, within a qualified census tract, "county"
includes any county with a qualified census tract located within the
county.
(e) "Developer" means the person, firm or corporation responsible
under an agreement with the governing body to develop housing or
related public facilities in a district.
(f) "District" means a rural housing incentive district established
in accordance with this act.
(g) "Governing body" means the board of county commissioners
of any county or the mayor and council, mayor and commissioners or
board of commissioners, as the laws affecting the organization and
status of cities affected may provide.
HOUSE BILL No. 2237—page 12
(h) "Housing development activities" means the construction or
rehabilitation of infrastructure necessary to support construction of new
residential dwellings and the actual construction of such residential
dwellings, if such construction is conducted by a city housing authority.
(i) "Secretary" means the secretary of commerce of the state of
Kansas.
0) "Qualtfned census tract' means an economically distressed
urban area that is a qualified census tract as defined and designated by
the United States department ofhoasing and urban development.
(k) 'Real property taxes" means and includes all taxes levied on an
ad valorem basis upon land and improvements thereon.
(k)(!) "Taxing subdivision" means the county, the city, the unified
school district, and any other taxing subdivision levying real property
taxes, the territory or jurisdiction of which includes any currently
existing or subsequently created rural housing incentive district.
Sec. 22. K.S.A. 2021 Supp. 12-5249 is hereby amended to read as
follows: 12-5249. (a) Any city or county-wineh that has established a
rural housing incentive district may use the proceeds of special
obligation bonds issued under K.S.A. 12-5248, and amendments
thereto, or any uncommitted funds derived from those sources of
revenue set forth in K.S.A. 12-5248(axl), and amendments thereto, to
implement specific projects identified within the rural housing
incentive district plan including, without limitation:
(1) Acquisition of property within the specific project area or
areas as provided in K.S.A. 12-5247, and amendments thereto;
(2) payment of relocation assistance;
(3) site preparation;
(4) sanitary and storm sewers and lift stations;
(5) drainage conduits, channels and levees;
(6) street grading paving, graveling, macadamizing, curbing,
guttering and surfacing;
(7) street lighting fixtures, connection and facilities;
(8) underground gas, water, heating, and electrical services and
connections located within the public right-of-way;
(9) sidewalks;
(10) water mains and extensions; and
(11) renovation of buildings or other structures more than 25 years
of age primarily for residential use located in a central business district
or in a business or commercial districl within a qualified census tract
as approved by the secretary of commerce. Certification of the age of
the building or other structure shall be submitted to the secretary by the
governing body of the city or county with the resolution as provided by
K.S.A. 12-5244, and amendments thereto. Eligible residential
improvements shall include only improvements made to the second or
higher floors of a building or other structure. Improvements for
commercial purposes shall not be eligible.
(b) None of the proceeds from the sale of special obligation bonds
issued under K.S.A. 12-5248, and amendments thereto, shall be used
for the construction of buildings or other structures to be owned by or
to be leased to any developer of a residential housing project within the
district, except for buildings or other structures located in a central
business district or in a business or commercial district within a
qualified census tract as approved by the secretary of commerce.
Sec. 23. K.S.A. 79-32,190 is hereby amended to read as follows:
79-32,190. (a) Any taxpayer that pays for or provides child day care
services, including the provision of the service of locating such
services, to its employees or that provides facilities and necessary
equipment for child day care services shall be allowed a credit against
the privilege or income tax imposed by articles 1I and 32 of chapter 79
of the Kansas Statutes Annotated, and amembnents thereto, as follows:
(1) X30% of the total amount expended in the state
during the taxable year by a taxpayer for child day care services
purchased to provide care for the dependent children of the taxpayer's
employees or for the provision of the service of locating such services
HOUSE BILL No. 2237—page 13
for such children;
(2) (A) in the taxable year in which a facility providing child day
care services in the state for use primarily by the dependent children of
the taxpayer's employees is established, 50% of the total amount
expended during such year by a taxpayer in the establishment and
operation of such facility;
(B) in the taxable years other than the taxable year to which
paragraph (2XA) applies, 30% of the amount equal to the total amount
expended during the taxable year by a taxpayer for the operation of a
facility described in paragraph (2xA) less the amount of moneys
received by the taxpayer for use of such facility for child day care
services;
(3) (A) in the taxable year in which a facility providing child day
care services in the state for use primarily by the dependent children of
the taxpayers' employees is established in conjunction with one or more
other taxpayers, 50% of the total amount expended during such year by
a taxpayer in the establishment and operation of such facility;
(B) in the taxable years other than the taxable year to which
paragraph (3)(A) applies, 30% of the amount equal to the total amount
expended during the taxable year by a taxpayer for the operation of a
facility described in paragraph (3xA) less the amount of moneys
received by the taxpayer for use of such facility for child day care
services; and
(4) for all taxable years commencing after December 31, 1020,
50% of the amount equal to the total amount expended during the
taxable year by a taxpayer as payments to an organization providing
access to available child day care services for the taxpayer's
employees.
(b) No credit shall be allowed under this section unless the child
day care facility or provider is licensed OF mg meted pursuant to Kansas
law.
(c) The credit allowed by pa �sccrh
subsection (a)(1), (2)(B) and (3)(B) shall not exceed $30,000 for any
taxpayer during any taxable year. The credit allowed bye)
(A) sad (3)(A) of subsection (a)(2)(A), (3)(A) and (4) shall not exceed
$45,000 for any taxpayer during any taxable year. The amount of the
credit which exceeds the tax liability for a taxable year shall be
refunded to the taxpayer. If the taxpayer is a corporation having an
election in effect under subchapter S of the federal internal revenue
code or a partnership, the credit provided by this section shall be
claimed by the shareholders of such corporation or the partners of such
partnership in the same manner as such shareholders or partners
account for their proportionate shares of the income or loss of the
corporation or partnership.
(d) The aggregate amount of credits claimed under this act for any
fiscal year shall not exceed $3,000,000.
(e) For tax -y m years 2013 and all fait years Aereaffer through
1010, the income tax credit provided by this section shall only be
available to taxpayers subject to the income tax on corporations
imposed pursuant to-subseeimni-{e}-f K.S.A. 79-32,110(c), and
amendments thereto, and shall be applied only against such taxpayer's
corporate income tax liability.
Sec. 24. K.S.A. 79-32,211 is hereby amended to read as follows:
79-32,211. (a) For all taxable years commencing after December 31,
2006, there shall be allowed a tax credit against the income, privilege
or premium tax liability imposed upon a taxpayer pursuant to the
Kansas income tax act, the privilege tax imposed upon any national
banking association, state bank, trust company or savings and loan
association pursuant to article I1 of chapter 79 of the Kansas Statutes
Annotated, and amendments thereto, or the premiums tax and privilege
fees imposed upon an insurance company pursuant to K.S.A. 40-252,
and amendments thereto, in an amount equal to:
(1) 25% of qualified expenditures incurred in the restoration and
preservation of a qualified historic structure pursuant to a qualified
HOUSE BILL No. 2237—page 14
rehabilitation plan by a qualified taxpayer
&tpend eareq equal $5,000 at taste if the total amount of such
expenditures equals $5,000 or mom;of i i sit a natim equal to
(2) 30% of the qualified expenditures incurred in the restoration
and preservation of a qualified historic structure located in a city with
a population between 9,500 and 50,000 pursuant to a qualified
rehabilitation plan by a qualified taxpayer if the total amount of such
expenditures equals $5,000 or more;
(3) 40% of the qual f ed expenditures incurred in the restoration
and preservation gra qualified historic structure located in a city with
a population of less than 9,500 pursuant to a qualified rehabilitation
plan by a qualified taxpayer if the total amount of such expenditures
equals $5,000 or more; or
(4) 30% of qualified expenditures incurred in the restoration and
preservation of a qualified historic structure which is exempt from
federal income taxation pursuant to section 501(c)(3) of the federal
internal revenue code and which is not income producing pursuant to a
qualified rehabilitation plan by a qualified taxpayer if the total amount
of such expenditures equals $5,000 or more. it no emit sliftill 9 a total
ftseal ) a" 204
(b) If the amount of such tax credit exceeds the qualified
taxpayer's income, privilege or premium tax liability for the year in
which the qualified rehabilitation plan was placed in service, as defined
by section 47(b)(1) of the federal internal revenue code and federal
regulation section 1.48-12(f)(2), such excess amount may be carried
over for deduction from such taxpayer's income, privilege or premium
tax liability in the next succeeding year or years until the total amount
of the credit has been deducted from tax liability, except that no such
credit shall be carried over for deduction after the 10" taxable year
succeeding the taxable year in which the qualified rehabilitation plan
was placed in service.
(b)(c) Any bank, savings and loan association or savings bank
shall pay taxes on 50% of the interest earned on loans to qualified
taxpayers used for qualified expenditures for the restoration and
preservation ofa qualified historic structure.
(d) As used in this section, unless the context clearly indicates
otherwise:
(1) "Qualified expenditures" means the costs and expenses
incurred by a qualified taxpayer in the restoration and preservation of a
qualified historic structure pursuant to a qualified rehabilitation plan
which are defined as a qualified rehabilitation expenditure by section
47(c)(2) of the federal internal revenue code;
(2) "qualified historic structure" means any building, whether or
not income producing, which is defined as a certified historic structure
by section 47(c)(3) of the federal internal revenue code, is individually
listed on the register of Kansas historic places, or is located and
contributes to a district listed on the register of Kansas historic places;
(3) "qualified rehabilitation plan" means a project which is
approved by the cultural resources division of the state historical
society, or by a local government certified by the division to so
approve, as being consistent with the standards for rehabilitation and
guidelines for rehabilitation of historic buildings as adopted by the
federal secretary of interior and in effect on the effective date of this
act. The society shall adopt rules and regulations providing application
and approval procedures necessary to effectively and efficiently
provide compliance with this act, and may collect fees in order to
defray its approval costs in accordance with rules and regulations
adopted therefor; and
(4) "qualified taxpayer' means the owner of the qualified historic
structure or any other person who may qualify for the federal
rehabilitation credit allowed by section 47 of the federal internal
revenue code.
If the taxpayer is a corporation having an election in effect under
HOUSE BILL No. 2237—page 15
subchapter S of the federal internal revenue code, a partnership or a
limited liability company, the credit provided by this section shall be
claimed by the shareholders of such corporation, the partners of such
partnership or the members of such limited liability company in the
same manner as such shareholders, partners or members account for
their proportionate shares of the income or loss of the corporation,
partnership or limited liability company, or as the corporation,
partnership or limited liability company mutually agree as provided in
the bylaws or other executed agreement. Credits granted to a
partnership, a limited liability company taxed as a partnership or other
multiple owners of property shall be passed through to the partners,
members or owners respectively pro rata or pursuant to an executed
agreement among the partners, members or owners documenting any
alternate distribution method.
(e) Any person, hereinafter designated the assignor, may sell,
assign, convey or otherwise transfer tax credits allowed and tamed
pursuant to subsection (a). The taxpayer acquiring credits, hereinafter
designated the assignee, may use the amount of the acquired credits to
offset up to 100% oftib such assignee's income, privilege or premiums
tax liability for either the taxable year in which the qualified
rehabilitation plan was first placed into service or the taxable year in
which such acquisition was made. Unused credit amounts claimed by
the assignee may be carried forward for up in five years, except that all
such amounts shall be claimed within 10 years following the tax year in
which the qualified rehabilitation plan was first placed into service. The
assignor shall enter into a written agreement with the assignee
establishing the terms and conditions of the agreement and shall perfect
such transfer by notifying the cultural resources division of the state
historical society in writing within 90 calendar days following the
effective date of the transfer and shall provide any information as may
be required by such division to administer and carry out the provisions
of this section. The amount received by the assignor of such tax credit
shall be taxable as income of the assignor, and the excess of the value
of such credit over the amount paid by the assignee for such credit shall
be taxable as income of the assignee.
(q The executive director of the state historical society may adopt
rules and regulations as necessary for the efficient and effective
administration ofthe provisions ofthis section.
HOUSE BILL No. 2237—page 16
Sec. 25. K.S.A. 79-32,190 and 79-32,211 and K.S.A. 2021 Supp.
12-5242 and 12-5249 are hereby repealed.
Sec. 26. This act shall take effect and be inform from and after its
publication in the statute book.
I hereby certify that the above Bat originated in the House, and was
adopted by that body
HousE adopted
Conference Committee Report
Passed the SFNn
as amended
SF,NAru adopted
Conference Committee
Speaker of &e Howe.
ChiefC/erk of the Haase.
Pea.dew ojthe Sermre.
Seerefary oflhe Sermre.
G.�,,m
RESOLUTION NUMBER 22-8078
A RESOLUTION WAIVING THE RESIDENTIAL BUILDING FEES ASSOCIATED
THE BUILD KANSAS, LLC AEROPLAINS HOUSING DEVELOPMENT RURAL HOUSING
DISTRICT (RFIID).
Whereas, The Aero Plains Housing Development has been proposed by Building Kansas, LLC, a
group comprised of local builders and developers (the "Developer").
2023.
Whereas, this project will consist of 150 units of owner -occupied townhomes.
Whereas, the construction duration is 36 months with a desired construction start time of early
Whereas, on March 2022 Building Kansas, LLC requested formation of a Rural Housing
Incentive District (RNID) for a term of 25 years, assistance with applying for an MIH grant, and a
waiver of building permit fees.
Whereas, the Governing Body adopted Resolution No. 22-8023 on March 28, 2022, which made
certain findings relating to the need for financial incentives relating to the construction of quality
housing within the City, declared it advisable to establish a RHID pursuant to the Act, and authorized
the submission of such resolution and the analysis to the Kansas Department of Commerce in
accordance with the Act.
Whereas, the Secretary of the Kansas Department of Commerce, pursuant to a letter dated April
12, 2022, authorized the City to proceed with the establishment of a rural housing incentive district
pursuant to the Act.
Whereas, on June 16, 2021 the Governing Body adopted Ordinance No. 22-11123 establishing a
Rural Housing Incentive District (the " RHID") within the City, adopting a plan for the development of
housing and public facilities in such district, and making certain findings in conjunction therewith
(Building Kansas, LLC, Aero Plains Housing Development).
Whereas, the Governing Body wishes to further incentivize the development of housing within
the RHID by waiving normal building permit fees associated with new construction within the RHID
under the approved Development Plan and Development Agreement relating to Aero Plains Rural
Housing Incentive District between the City and the Developer.
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. At the time of application for a residential building permit for construction (a) within
the Building Kansas, LLC, Aero Plains Rural Housing Incentive District created pursuant to Ordinance
No. 22-11123 and (b) strictly in accordance with the approved Development Plan and related
Development Agreement between the City and the Developer, the City of Salina will waive one hundred
percent (100%) of the normal building permit fees associated with new construction, including the plan
review and water meter fees.
Section 2. This resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 26th day of September, 2022.
Trent W. Davis, M.D., Mayor
(SEAL)
ATTEST:
JoVonna A. Rutherford, City Clerk
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RESOLUTION NUMBER 21-7994
A RESOLUTION WAIVING THE RESIDENTIAL BUILDING FEES ASSOCIATED
THE SOUTH VIEW ESTATES RURAL HOUSING DISTRICT (RNID).
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Whereas, South View Estates has been proposed by South View Estates, LLC, a group
N
comprised of local builders and developers including Stan Byquist, Kelly Dunn, Craig Piercy, and Todd
311
Roberg (the "Developer").
Whereas, This project will consist of 108 units of owner -occupied housing, 42 units of units of
single-family residential (1,100 sq ft @ $225,000) and 66 units oftownhomes (1,000 sq ft @ $190,000).
2021.
Whereas, the construction duration is 36 months with a desired construction start time of fall
Whereas, on May 3, 2021 South View Estates, LLC requested formation of a Rural Housing
Incentive District (RNID) for a term of 25 years, assistance with applying for an MIH grant, and a
waiver of building permit fees.
Whereas, the Governing Body adopted Resolution No. 21-7955 on May 3, 2021, which made
certain findings relating to the need for financial incentives relating to the construction of quality
housing within the City, declared it advisable to establish a rural housing incentive district pursuant to
the Act, and authorized the submission of such resolution and the analysis to the Kansas Department of
Commerce in accordance with the Act.
Whereas, the Secretary of the Kansas Department of Commerce, pursuant to a letter dated May
21, 2021, authorized the City to proceed with the establishment of a Waal housing incentive district
to the Act.
Whereas, on September 13, 2021 the Governing Body adopted Resolution No. 21-7986
staff to submit a Moderate Income Housing grant application for $400,000 to the Kansas
Housing resource corporation on behalf of South View Estates, LLC.
Whereas, on October 18, 2021 the Governing Body adopted Ordinance No. 21-11090
w establishing a Rural Housing Incentive District (the " RHID") within the City, adopting a plan for the
development of housing and public facilities in such district, and making certain findings in conjunction
therewith (South View Estates).
Whereas, the Governing Body wishes to further incentivize the development of housing within
the RHID by waiving normal building permit fees associated with new construction within the RHID
under the approved Development Plan and Development Agreement relating to the South View Estates
Rural Housing Incentive District between the City and the Developer.
BE IT RESOLVED by the Governing Body of the City of Salina, Kansas:
Section 1. At the time of application for a residential building permit for construction (a) within
the South View Estates Rural Housing Incentive District created pursuant to Ordinance No. 21-11090
and (b) strictly in accordance with the approved Development Plan and related Development Agreement
between the City and the Developer, the City of Salina will waive one hundred percent (100%) of the
normal building permit fees associated with new construction, including the plan review and water
meter fees.
Section 2. This resolution shall be in full force and effect from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor this 18th day of October, 2021.
(SEAL)
ATTEST:
L
City Clerk
d74A4-0�1
Melissa Rose Hodg s, Mayor
C
(Published in the Salina Journal on April 1, 2022)
w II RESOLUTION NO. 22-8023
a A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO
s THE NEED FOR HOUSING WITHIN THE CITY OF SALINA, KANSAS AND
SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED
TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN
THE CITY.
WHEREAS, K.S.A. 12-5241 et seq., as amended (the "Act") authorizes any city incorporated in
accordance with the laws of the state of Kansas (the "State") with a population of less than 60,000 to designate
rural housing incentive districts within such city; and
WHEREAS, prior to such designation the governing body of such city shall conduct a housing needs
analysis to determine what, if any, housing needs exist within its community; and
WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution
making certain findings regarding the establishment of a rural housing incentive district and providing the legal
description of property to be contained therein; and
WHEREAS, after publishing such resolution, the governing body of such city shall send a copy
thereof to the Secretary of Commerce of the State (the "Secretary") requesting that the Secretary agree with
the finding contained in such resolution; and
WHEREAS, if the Secretary agrees with such findings, such city may proceed with the establishment
of a rural housing incentive district within such city and adopt a plan for the development or redevelopment of
housing and public facilities in the proposed district; and
WHEREAS, the City of Salina, Kansas (the "City") has an estimated population less than 60,000 and
therefore constitutes a city as said tern is defined in the Act; and
WHEREAS, the Governing Body of the City has performed a Housing Needs Analysis (Live Salina
Housing Assessment and Strategic Plan) dated January 25, 2016 (the "Needs Analysis"), a copy of which is
on file in the office of the City Clerk; and
WHEREAS, based on the Needs Analysis, the Governing Body of the City proposes to commence
proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the
Act.
HOUSING NEEDS FINDINGS V.3
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THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF
SALINA, KANSAS, AS FOLLOWS:
Section 1. The Governing Body hereby adopts and incorporates by this reference as part of this
Resolution the Needs Analysis, a copy of which is on file in the office of the City Clerk, and based on a review
w of said Needs Analysis makes the following findings and determinations.
Section 2. The Governing Body herby fmds and determines that there is a shortage of quality
housing of various price ranges in the City despite the best efforts of public and private housing developers.
Section 3. The Governing Body hereby finds and determines that the shortage of quality housing
can be expected to persist and that additional financial incentives are necessary in order to encourage the private
sector to construct or renovate housing in the City.
Section 4. The Governing Body hereby finds and determines that the shortage of quality housing
is a substantial deterrent to the future economic growth and development of the City.
Section 5. The Governing Body hereby finds and determines that the future economic well-being
of the City depends on the Governing Body providing additional incentives for the construction or renovation
of quality housing in the City.
Section 6. Based on the findings and determinations contained in Sections 2 through 5 of this
Resolution, the Governing Body proposes to establish a Rural Housing Incentive District pursuant to the Act,
within boundaries of the real estate legally described in Exhibit A attached hereto, and shown on the maps
depicting the existing parcels of land attached hereto as Exhibit B (the "District").
Section 7. The City Clerk is hereby directed to publish this Resolution one time in the official
City newspaper, and to send a certified copy of this Resolution to the Secretary for the Secretary's review and
approval.
Section 8. The Mayor, City Manager, City Clerk, other City employees and officials and Gilmore
& Bell, P.C. are hereby further authorized and directed to take such other actions as may be appropriate or
desirable to accomplish the purposes of this Resolution.
Section 9. This Resolution shall take effect after its adoption and publication once in the official
City newspaper.
[BALANCE OF THIS PAGE INTENTIONALLY BLANK]
600596.20002aESOLUTION HOUSING NEEDS FINDINGS V.3
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ADOPTED by the Governing Body of the City of Salina, Kansas, on March 28, 2022.
(SEAL)
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ATTEST:
loVonna e
City Clerk
600596.20002\kESOLUTION HOUSING NEEDS FINDINGS
(Signature Page to Resolution)
Trent W.Davis, M.D., Mayor
EXHIBIT A
LEGAL DESCRIPTION OF PROPOSED
RURAL HOUSING INCENTIVE DISTRICT
A portion of the North Half of the Southwest Quarter of Section 35, Township 14 South, Range 3 West of the
Sixth Principal Meridian, County of Saline, State of Kansas, being described by as follows:
Commencing at the center comer of said Section 35: thence N 89'45'10 W along the North line of said North
Half, a distance of 327.92 feet to the intersection of said North line and the Centerline of Dry Creek, said point
also being the point of beginning; thence S 01 °56'22" E on said Centerline, a distance of 146.36 feet; thence S
30°47'12" W continuing on said Centerline, a distance of 413.69 feet; thence S 00°56'52" W continuing on
said Centerline; a distance of 136.71 feet; thence S 10°54'41" E continuing on said Centerline, a distance of
406.12 feet; thence S 10°43'00" W continuing on said Centerline, a distance of 240.29 feet to the intersection
of said Centerline and the North line of Wheatridge Addition to the City of Salina; thence N 89°38'06" W on
said North line, a distance of 398.86 feet; thence N 00019'09" E continuing on said North line, a distance of
250.32 feet; thence N 89°37'09" W continuing on said North line and it prolongation, a distance of 1718.33
feet to the intersection of said North line's prolongation and the West right-of-way line of the Missouri Pacific
Railroad, said railroad right-of-way disclaimed by Deed Book 1232, Pages 959-961 in the Office of the
Register of Deeds of Saline County; thence N 00°06'43" W on said west right-of-way line, a distance of
1018.85 feet to the intersection of said west right-of-way line and the North line of said North half; thence S
89045'10" E on said North line, a distance of 2294.62 feet to the point of beginning.
Said Tract contains 53.22 acres more or less.
Together with public rights-of-way and access easement areas adjacent thereto
600596.20002UtESOLUTION HOUSING NEEDS FINDINGS V.3
A-1
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EXHIBIT B
MAP OF PROPOSED
RURAL HOUSING INCENTIVE DISTRICT
1 inch = 600 feet
HOUSING NEEDS FINDINGS V.3
is