Developers, local officials urge restoring Moderate Income Housing funding and preserving tax-credit tools

A panel of developers and local economic-development officials told the Joint Commerce Committee that several state programs are essential to building workforce housing across Kansas and asked legislators to restore funding and preserve program caps and guardrails.

Alex Bridal, representing Kansas Housing Solutions, asked lawmakers to reinstate $20 million for the Moderate Income Housing program and highlighted three layered tools—MIH, the Kansas Housing Investor Tax Credit (KHITC), and the Reinvestment Housing Incentive District (RHID)—as a package that helps close financing gaps for housing projects.

Dodge City assistant director Molly Leitner described a data-driven approach that used MIH and RHID to support United Village, a 227-unit development. "United Village consists of 60,000,000 in residential construction and 10,000,000 in infrastructure," she said, and reported 95 homes completed and sold at about $200,000 each.

Developer Derek Lee said similar programs enabled 50 homes in Salina priced $199,000 to $229,000 to sell after listing, and emphasized program requirements such as energy-efficiency and accessibility standards incorporated in MIH-funded homes. "Housing that does not exist without these programs," he said.

Randy Speaker, regional housing specialist with the Northwest Kansas Economic Innovation Center, urged continued MIH funding and listed rural barriers: lack of site availability, workforce shortages that increase construction timelines and costs, appraisal gaps in low-comparison markets, and financing constraints. He also provided a historical MHRC average MIH home price of about $280,850.

Why it matters: State-level incentives and grants are central to whether rural and smaller communities can build market-rate workforce housing that supports local employers and retains residents.

Questions and clarifications: Lawmakers asked about program eligibility buckets and whether MIH supports renovation in addition to new construction; presenters said MIH can be used for both in certain cases and described population-based allocations in the KHITC program.

Next steps: Panelists asked Commerce and other state agencies to post up-to-date program data online and agreed to provide details in subsequent sessions; the committee adjourned without formal votes on program funding.