Leavenworth considers RHID program to spur housing development and infrastructure growth

Leavenworth City Commission is exploring new housing development incentives following interest from potential developers in the area. During the March 18, 2025 meeting, city officials discussed the Residential Housing Incentive District (RHID) program, which aims to stimulate housing growth by redirecting tax revenues generated from new developments back into financing infrastructure for those projects.

The RHID program, which has evolved since its inception in the late 1990s, allows cities to support various housing types, including single-family homes, multi-family units, and mixed-use developments in downtown areas. The program is designed to maintain property tax levels for developers during the initial years of development, allowing them to reinvest the tax growth into their projects.

City staff outlined the process for establishing an RHID, which includes conducting a housing needs assessment and obtaining approvals from the state, county, and local school districts. The program can last up to 25 years, providing a long-term incentive for developers to invest in areas that may struggle to attract development without such support.

Commissioners expressed optimism about the potential benefits of the RHID program, particularly in addressing housing shortages and enhancing economic growth. However, they acknowledged the need for careful consideration of its implementation, especially in areas where development is already viable without incentives.

In addition to the RHID, the commission compared this program to existing initiatives like the Neighborhood Revitalization Area (NRA) program, which has seen limited uptake among developers. The discussion highlighted the importance of understanding why the NRA has not been as successful and whether the RHID might better meet the needs of the community.

As the city moves forward, officials are committed to evaluating the RHID's potential impact on housing development and the broader economic landscape in Leavenworth, aiming to create a more vibrant and accessible community for residents and businesses alike.