Sedgwick County Commissioners have voted to approve a policy governing a new approach for housing projects to meet a need for quality affordable housing in communities.

Cities and counties will be able to designate Reinvestment Housing Incentive Districts (RHID) to help finance housing projects.   This is a new economic development tool that would be used to encourage housing development that would spur economic growth in a community.   Under the policy, cities and counties would have to find that there is a shortage of quality housing, that it is expected to persist, and that the shortage is a deterrent to future economic growth.

The RHID would work like the tax increment financing districts that cities create for economic development projects.   Increases in property taxes resulting from a housing development would be captured and used to help finance infrastructure costs.

Cities will have to apply to Sedgwick County to create a district, and the county or a school district could reject the request if it would have an adverse effect.

Commissioners voiced concerns about the impact on property tax revenue and the costs that would be involved in providing public services to a housing development.  Commission Chairman Ryan Baty said there is a housing shortage and he favors a policy on RHID, but the question at hand is whether the market on its own can develop  affordable housing, “and if not, where is the role of government to offer incentives because of the need?”   He expects applications for these districts to be submitted to the county soon, and county officials need to be aware of the impact.   Baty believes the districts should be used sparingly and with a very narrow scope, and he said decisions would be made on a case-by-case basis.

The Commission voted 4-1 in favor of the policy.  Commissioner Jim Howell was the no vote, and he said he supports the concept but he believes more work is needed before the policy is ready for adoption.