Rural Housing Incentive Districts (RHID) are authorized by State Statute (K.S.A. 12-5241) in order to stimulate construction of new housing in rural communities. Cities with a population less than 60,000 are eligible to participate. RHIDs allow developers to pay for the cost of infrastructure improvements (like roads, water, sanitary sewer, etc.) using the increase in taxes (tax increment) associated with the development. RHIDs offer an alternative for paying for subdivision infrastructure that is more affordable for the typical homeowner. Unlike special assessment financing for infrastructure, which is added to the local property tax, RHID financing uses the local property tax revenue to pay for that infrastructure.
Hutchinson has State authorization to establish RHIDs for five separate sites. The State found that Hutchinson faces housing challenges and could utilize RHIDs to provide quality, affordable housing units. The finding was based upon the 2015 Housing Needs Analysis, included below.
For more information about Rural Housing Incentive Districts or to apply, please contact the Planning & Development Department at 620.694.2638.