Moderate Income Housing

HISTORY: In 2012, KHRC created the Moderate-Income Housing (MIH) Program after the Kansas Legislature allocated $2 million to the SHTF for the purpose of administering and supporting housing programs.  Since that time, the Legislature allocated an additional $2 million per year in continued support of MIH activities.


PROGRAM OVERVIEW: The MIH program serves the needs of moderate-income households, those families that cannot afford market-rate housing, yet don't qualify for federal housing assistance. MIH grants and/or loans are awarded to cities and counties to develop multi-family rental units, single-family for-purchase homes, and water, sewer and street extensions in communities with populations fewer than 60,000 people. MIH awards also help finance construction costs, rehabilitate unsafe or dilapidated vacant housing, and offer down-payment and closing-cost assistance to homebuyers.

 

Defining the Need

The need for moderate-income* workforce housing in Kansas is great. Currently, there are 97 counties and over 600 communities in Kansas, which have a population of fewer than 60,000, that are eligible to apply for the MIH Program. These communities comprise approximately 68 percent of the State of Kansas’ total population. Many areas are experiencing or have opportunities for economic development and job growth, but the lack of adequate, affordable housing is making new expansion extremely challenging.

 

State Housing Trust Fund

Created in 1991 and administered by KHRC, the State Housing Trust Fund (SHTF) is essentially a discretionary, interest-bearing trust account for the purpose of administering housing programs and services. While many state housing trust funds around the country have robust designated revenue streams from taxes on such things as real estate sales or recording fees, the Kansas SHTF does not have a sustained funding source. Kansas SHTF activities are funded instead through infrequent and diminishing revenue streams, such as MRB and multi-family bond issuance fees. A summary of SHTF activities can be found here.

Leverage Factor

The leverage factor the MIH program has achieved to date is impressive. With approximately $6.3 million in state funding, local municipalities leveraged an additional $51.5 million in private investment, a rarely seen leverage ratio of $8.20 for every $1 in state resources.

Eligible Applicants

Cities and counties with a population fewer than 60,000 are eligible for MIH funding. Applicants are allowed to partner or contract with outside entities or individuals, including but not limited to public housing authorities, non-profits, community housing development organizations, developers and local employers.