Commission discusses RHID policy, asks staff to add early developer engagement step

The Riley County Commission discussed a draft Rural Housing Incentive District (RHID) policy on Feb. 13 and directed staff to add language encouraging developers to seek early, voluntary engagement with the county before submitting final applications to city officials.

Britney Phillips, budget and finance officer, told commissioners the RHID draft presented on Jan. 16 had been updated to include three changes requested by the commission: an affordability section referencing HUD definitions, a requirement that RHID applications be presented on an individual basis, and a statement that any RHID term over 10 years would be "presumed to have an adverse effect on the county." Phillips listed where the new verbiage had been added to the draft.

County staff member Jacob clarified the purpose of the policy during the meeting: it is guidance that creates "presumptive" factors the commission can consider, not a binding prohibition. "The point of the policy is to say to our other mobile governing bodies, this is what we would like to see," Jacob said, adding that the presumptive adverse-effect language is rebuttable and the commission can still approve exceptions.

Members of the public, including developers who have proposed RHID projects, urged earlier county engagement. Applicant Zach Burton said his project has proceeded with the city and he and his wife would have preferred earlier county input: "What we really want is for that process to start very, very early ... we are further along in the process right now than I would like to be without engagement with you guys." Gavin Schmidt, another applicant, asked commissioners to identify specific concerns so developers can address them in presentations.

Stephanie Peterson, director of community development for the city of Manhattan, told the commission the city has followed the statutory process and had received a finding from the Kansas Department of Commerce that the three proposed RHIDs meet the housing needs analysis done in 2022. Peterson said developers are hesitant to finalize detailed applications until they have Department of Commerce and city-level feedback and that the city will not take formal action before resuming conversations with the county and the local school board.

Public commenters raised both concerns about affordability and warnings that strict limits could deter developers. Consultant Mark Mashamp said strict income or term limits could keep developers from proposing projects in Riley County, and Tom Phillips urged clearer, plain-language guidance and stakeholder outreach. Commissioners discussed adding a passive, "we encourage" step for developers to request time on the county agenda early in their process; staff agreed to draft that language and return the updated policy for final approval.

No formal vote to adopt the policy was taken at the meeting; staff said they would incorporate the requested language and bring the policy back for final consideration.