Ellis County hears developer pitch for 15‑lot Hays subdivision tied to RHID reimbursement

A county staff member told the Ellis County Board of Commissioners that Rural Housing Incentive Districts, or RHIDs, allow jurisdictions to segregate tax increment revenue to reimburse eligible infrastructure and land acquisition costs for housing projects — potentially for up to 25 years — and described the state approval and public‑notice steps required.

The explanation came during a discussion about a proposed 15‑lot subdivision east of North Central Kansas Technical College in Hays. Adam Pray, a builder who said he has worked in that area and with Heartland Corporation on prior projects, told the commission the development would not move forward without an RHID: “If we get the RHID, this will work; if we don't, we won't be able to move forward,” he said.

County staff summarized the RHID process, saying it generally follows three steps: the governing body must find a local need for housing and submit that finding to the state Department of Commerce for approval; the county then prepares a project plan and publishes notice; and the county holds a public hearing. After the hearing the school district has a 30‑day period to take official action and, if it objects, that veto blocks formation of the district, staff said.

Staff also explained how taxes are handled: base valuation continues to be distributed pro rata to taxing jurisdictions while the incremental increase in valuation is segregated into a fund to reimburse approved project costs. Certain levies — staff cited a 20‑mill school district levy — are typically excluded from the captured increment and continue to be distributed normally. The staff member said RHID revenues typically take time to accumulate, noting it “typically takes 2 to 3 years before any money is in the bucket.”

Pray described the proposed subdivision in more detail: he said it would include 15 lots, with one lot reserved for stormwater retention, and that water for the development would be provided by wells and sewer service would be handled through the Big Creek Sewer District. He said building a lift station for sewer service could cost “north of $250,000” and that the sewer district would govern final decisions about lift‑station placement and options.

Pray said the RHID made earlier Hays development possible by avoiding special assessments on buyers and keeping per‑home infrastructure costs lower. He described price‑constraints on previous homes in the area — noting a previous price range cap referenced in the meeting — and said the RHID allowed production of lower‑priced homes by reducing infrastructure costs carried by individual buyers.

Commissioners discussed whether Ellis County should adopt a standing policy for RHIDs or continue to handle applications on a case‑by‑case basis. Some commissioners warned a highly prescriptive policy can render the tool unused; others said a policy would give future applicants clear guardrails and reduce uncertainty when commissions change. County staff said a formal policy is not required by statute and jurisdictions commonly approach RHIDs either by adopting policy guardrails or negotiating terms project by project.

Participants also discussed other funding sources and grant prospects for major capital items such as a lift station. Pray and staff said grant funding is possible but uncertain; Pray estimated the probability of securing a grant for the lift station at “less than 50%,” and staff said development agreements commonly include language to reduce RHID reimbursement proportionally if grants or other outside funding reduce the developer’s net cost, to avoid double recovery.

The board did not take a final vote on forming an RHID for the Pray proposal. Commissioners indicated they will continue to consider whether to create a formal county policy on RHIDs and to review the proposed development and any required plats and planning approvals.

After the RHID discussion the commission recessed into an executive session on attorney‑client privileged financial counseling; the motion passed on a 3‑0 voice vote and listed Commissioners Bill Jeter, Dominic Eck and Darren Myers as attendees.