Kansas Affordable Housing Tax Credit Faces Uncertain Future
TOPEKA, KS — What began as a promising initiative for affordable housing in Kansas is now under threat after lawmakers approved a plan to phase out the Affordable Housing Tax Credit, originally passed with bipartisan support in 2022. This credit, designed to match federal funds and incentivize developers to create below-market housing units, has been pivotal in advancing the construction of over 4,600 new affordable units, according to the Kansas Housing Resources Corporation.
Initially funded at up to $25 million annually for ten years, the program has been drastically scaled back to a mere $8.8 million statewide until 2028, after which it will cease new credits entirely. Lawmakers, led by Republican Rep. Sean Tarwater, expressed concerns about the program’s cost, which he claims has already approached nearly $1 billion.
Despite the reduction garnering bipartisan approval and the signature of Democratic Gov. Laura Kelly, homelessness advocates fear that the lack of affordable housing will exacerbate the state’s rising homelessness rates, which saw over 2,800 individuals experiencing homelessness during a January point-in-time count.
Advocates like Christina Ashie Guidry of United Community Services argue that without sufficient housing supply, families facing homelessness will struggle to secure stable lodging. Current estimates reveal Kansas is short by over 100,000 affordable units for individuals earning about half of the area median income.
While some lawmakers, including Tarwater, view homelessness as largely tied to substance abuse rather than housing availability, advocates maintain that enhancing housing options is crucial for addressing these intertwined issues. As discussions continue over the future of the Affordable Housing Tax Credit, many Kansans are left concerned about the implications for housing stability and homelessness in the state.
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