KANSAS CITY, Mo. — The debate about whether Kansas can afford to keep its affordable housing credit has been simmering for at least the last two months.
Lawmakers established the Affordable Housing Credit program in hopes it would provide tax credits during a 10-year period for low-income housing projects.
The need for the credit was apparent following a KSHB 41 News report earlier this year showing the number of homes priced at under $300,000 in Johnson County - the state's most populous - in a significant decline.
In that report, Johnson County leaders said the state’s housing tax credit helps attract affordable housing developers to the state.
Earlier this year, Kansas Rep. Sean Tarwater (R - District 27, SE Johnson County), who chairs the House Committee on Commerce, Labor and Economic Development, introduced HB 2119. The bill called for eliminating the tax credit effective July 1, 2025.
During a recent committee hearing, he argued the state needs the money in other areas.
“We can’t continue to throw good money after bad and that’s the chair’s opinion,” Tarwater said.
Some of Tarwater’s fellow Johnson County representatives agreed.
Kansas Rep. Adam Turk (R - District 117, parts of Johnson and Douglas counties), who serves as vice chair of the committee, said lawmakers should scrap the program and build something new.
“If next year we come back with a rural housing focus, that is something worth a discussion,” Turk said. “From scratch with guardrails in place from the beginning that can be built upon as years progress.”
The House bill passed last month. While the Senate discussed the bill, some people speaking in opposition proposed a compromise.
Even on vacation, developer and Kansas Housing Association member Tony Krsnich continued to work toward a compromise.
“It's a resource that we definitely need to keep around,” Krsnich said. “All of our neighboring states have a tax credit.”
He hopes by reducing the tax credit by about 70% they can keep the program in place for the Kansans who need an affordable place to live.
For example, he says the average market-rate unit in Lawrence is around $1,400. A unit built with the state’s housing tax credit would rent for closer to $800.
“If we have employers that are looking to expand their business or looking to relocate their business potentially to Kansas, it's very important that we have places for their people to live,” he said. “Or else they won't stay in Kansas and they likely won't take a look at Kansas if we didn't have that quality affordable housing that this program builds.”
The revised bill is headed to the Senate Committee on Federal and State Affairs next.
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