Topeka City Council Advances Dultmeier Housing Incentive District Application

The Topeka City Council voted unanimously on August 6, 2024, to approve the submission of a Reinvestment Housing Incentive District (RHID) application for a residential development project proposed by Dultmeier. This legislative action moves the project to the Kansas Department of Commerce for formal state review, a necessary step to determine if the development qualifies for tax increment financing incentives.

Project Scope and Location

The proposed residential development is slated for a site near Southwest 21st Street and Urish Road. According to city documents, the developer, Dultmeier, intends to construct a mix of housing units designed to address local inventory shortages. The RHID program, governed by Kansas state law, allows developers to capture a portion of property tax increments generated by the new construction to help offset infrastructure costs, such as public utility extensions and street improvements.

The Role of the RHID Program

The RHID program serves as a primary tool for municipalities in Kansas to stimulate housing growth in areas where development costs might otherwise be prohibitive. By designating a specific district, the city can utilize the incremental increase in property taxes resulting from the improvements to pay for eligible project expenses over a set period.

The application process requires city council approval to verify that the project meets specific criteria, including a demonstrated need for housing and a financial plan that relies on the incentive for viability. Once the state reviews and approves the application, the city and the developer will negotiate a formal development agreement, which details the specific public improvements and the duration of the tax increment capture.

Next Steps for Development

With the council’s approval in hand, the city administration will finalize the documentation required by the Kansas Department of Commerce. There is no set timeline for the state’s review process, but once the state issues a determination, the Topeka City Council must hold a public hearing before formally establishing the district.

Following the hearing, the council would need to pass a final ordinance to officially create the RHID. This subsequent legislative phase will allow the developer to proceed with site planning and infrastructure construction, provided all state requirements are met and the project remains financially feasible under the terms of the eventual development agreement.