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Newton highlights affordable-housing pipeline and incentives in annual housing report
Summary
City staff reviewed Newton's housing pipeline, including Mennonite Housing's Harvest Point expansion and Fox Ridge development, and explained state legislative changes to Kansas' affordable-housing tax credits. Commissioners discussed trade-offs between tax abatements and long-term tax-base growth.
City staff presented the 2025 annual housing report to the Newton City Commission, detailing multiple active projects and programs intended to expand affordable and market-rate housing.
Zach, the staff presenter, described Mennonite Housing's Harvest Point (phase 1 complete) as a low-income housing tax credit (LIHTC) project with 32 doors and a valuation cited at a little over $6 million; he reported that Mennonite Housing Rehabilitation Services secured a 2026 YTECH award of $436,000 with a matching Kansas affordable housing tax credit of $436,000 to support a phase‑2 that will add 28 senior units. Staff said the commission supported a fee waiver for the project to help it proceed.
Zach also reviewed Fox Ridge (market-rate residential development) and said the project includes a mix of 19 single-family homes, 38 duplexes and 11 triplexes; staff reported that 32 certificates of occupancy have been issued to date and permit fees collected total approximately $85,000 so far. The presentation listed other pipeline items: Sand Creek Station area lots marketed by Bannister Real Estate, Lang Real Estate's 30-acre predevelopment, and a small downtown apartment project near Back Alley Pizza expected to add eight units.
Staff highlighted Hope Estates, another LIHTC extension-of-care project with a total valuation cited at $7,800,000, expected to include a mix of duplexes, triplexes and an apartment building (about 20 units), and said construction is expected to begin in late fall pending approvals. The Newton Land Bank was described as pursuing targeted acquisitions for infill and redevelopment, with 118 South Kansas Avenue as an acquisition success used to expand parking for a local business.
State policy updates were included: staff summarized KHRC changes under House Bill 2289 (signed 04/24/2025) that revise the Kansas affordable housing tax credit program, change award limits and phase out certain 4% federal tax-credit projects after Nov. 15, 2025, and noted program sunsets after 2028. Staff also listed funding availability through HOME, National Housing Trust Fund and other state/federal programs focused on rural housing.
During Q&A residents asked whether LIHTC projects are taxed; staff explained that many of the extension-of-care or LIHTC projects are not placed on the tax rolls for the improvements (they receive abatements or are otherwise exempt), while other projects like some downtown apartments will be taxable. Commissioners and staff framed the decision to support certain projects as a trade-off: short-term revenue foregone versus long-term relief to homeowners if the city's assessed valuation grows.
What happens next: Staff will continue to track developer timelines and funding approvals and expects to include additional updates in quarterly housing reports; the commission will consider related plats, fee-waiver requests and funding decisions as projects reach permitting milestones.
