Blogs| Kansas Low-Income Housing Tax Credit (LIHTC) Program
Written by
Priya Gupta
Published
Oct 16, 2024
Topics
State LIHTC
The Kansas LIHTC program is one of the state’s main tools for producing and preserving affordable rental housing. It was established to address the shortage of affordable housing throughout the state, with the greatest need for low—to moderate-income households. The program reduces the construction and rehabilitation costs of developers by issuing considerable tax credits.
The LIHTC Program in Kansas, targeting the cities of Wichita, Kansas City, and Topeka, has enabled the development of affordable apartments throughout the state in both urban and rural areas.
This article will cover the key elements of the Kansas LIHTC program and other affordable housing programs available to developers, nonprofits, and local governments.
Affordable housing in Kansas is based on a program network that aims to increase low-cost rental units. Leading in this effort are low-income housing tax credits through Kansas, which encourage the development of housing for low-income families and individuals through federal and state tax credits.
The Kansas affordable housing tax credit, established under state law, complements the federal LIHTC by tripling the amount of credits that go to developers, providing greater affordability in communities across the state.
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Kansas |
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| Program | Kansas Affordable Housing Tax Credit |
| Administering Agency | Kansas Housing Resources Corporation |
| Application Deadline(s) | Three deadlines per year for 4% credits, in January, April and July. 9% LIHTC deadline in May. |
| Transaction Cap | $8.5 million |
| Credit Description | Credit equal to the federal LIHTC allocated or allowed by the KHRC. Unused credits are not refundable. |
| Credit Period (Compliance) | 10 years (15 years) |
Developers play a crucial role in enhancing affordability in Kansas. The state offers programs to encourage housing development while focusing on optimizing public-private partnerships.
The Wichita, Kansas, LIHTC housing program is important for developing affordable rental housing in the city, particularly for families earning less than 60% of the Area Median Income (AMI). This tax credit enables developers to reduce a huge part of development costs; it aids in providing affordable rent. The Kansas LIHTC income limits are set so that housing units developed with the credit remain within the reach of low-income residents.
KHITC provides additional encouragement for rural housing development. Investors who finance developments in rural areas are granted credit that enables them to reduce state tax liabilities. This is particularly useful for cities such as Olathe and Manhattan in Kansas, which show a significant demand for affordable housing yet fewer monetary capacities.
The MIH program provides grants and loans to support affordable housing development for moderate-income families. It may be used in combination with LIHTC projects, further reducing costs. This program is especially vital to municipalities like Overland Park, which has experienced a growing need for affordable apartments.
In addition to LIHTC, Kansas offers other programs that further help encourage housing affordability and energy efficiency in new and existing developments.
The HOME program advances funds to affordable rental projects through deferred loans. Often, it complements LIHTC funding, especially in towns like Lawrence, where development costs are high. The rental housing tax credit in Lawrence, Kansas, increased affordable housing choices.
The WAP program offers grants to improve energy efficiency in low-income housing, thus saving operating costs for owners as well as residents. This program has been widely utilized in Topeka where sustainable, low-cost housing is constantly being developed.
The table below details the maximum annual income ceilings for households of varying sizes in Kansas. These income limits are set by HUD and are essential for determining eligibility for Section 8 housing assistance based on the area median income (AMI).
| Household Members | Annual Income Ceiling |
| Single resident | $20,050 |
| Couple | $22,900 |
| Trio | $25,750 |
| Family of four | $28,600 |
| Family of five | $30,900 |
| Family of six | $33,200 |
| Family of seven | $35,500 |
| Family of eight | $37,800 |
Although the state has made great headway in using the LIHTC program in Kansas City, Kansas, and elsewhere, challenges persist in meeting affordable housing needs. Other LIHTC challenges include high construction costs, labor shortages, and ensuring long-term affordability. As urban areas grow, demand for affordable units rises in cities like Wichita and Overland Park, which has resulted in a higher cost of housing.
Programs such as Kansas LIHTC will be instrumental in ensuring that cities such as Wichita and Overland Park possess satisfactory affordable housing available to meet current and future demands .
To further this end, Kansas is highlighting the growth of its tax credit opportunities and promoting affordable housing development in underdeveloped areas, such as low-income housing in Manhattan, Kansas.
In the future, developers are encouraged to explore how to apply for LIHTC in Kansas, implement LIHTC software and tools for smooth functioning, and use available state resources to meet the rising demand for houses.
To apply for the low-income housing tax credit in Kansas, one must go through the state’s Qualified Allocation Plan (QAP), which explains what it expects to apply for and how to remain compliant with LIHTC. The LIHTC application process allows for eligibility verification and submission of detailed development plans. However, it shall still follow the parameters of income restrictions, such as the Kansas LIHTC income limits. For more detailed instructions on applying for LIHTC in Kansas, visit the KHRC website or refer to the QAP document.
The Kansas LIHTC program is a critical step forward in promoting affordable housing throughout the state. The program’s targeted efforts toward urban cities, such as Wichita and Kansas City, and rural areas continually create solutions that fill the void for housing within the state.
Developers and local governments are in the best position to raise the levels of affordable housing sharply, using federal and state tax credits in conjunction with the other Kansas housing programs for low-income families.
Such programs will be crucial as the state grows, ensuring access to quality and affordable housing for all Kansans.
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