Legislative audit: HPIP data inconsistent; KHRC awarded ~$73M in state affordable housing credits that investors had not yet used

Summary

Legislative Post Audit told the Tax Committee it could not quantify High Performance Incentive Program (HPIP) credits because KDOR data sets were inconsistent. The audit also found Kansas Housing Resources Corporation had awarded about $73 million in state affordable housing tax credits since 2023; investors had not used those credits at audit time.

Legislative Post Audit staff told the Kansas Senate Tax Committee that data inconsistencies prevented them from reporting how much High Performance Incentive Program (HPIP) tax credits businesses earned and used.

"We reviewed three HPIP data sets for this audit ... they weren't [consistent]," said Josh of Legislative Post Audit, noting that for tax year 2019 the datasets showed markedly different 'earned' and 'used' amounts. Because the limited-scope audit had a 100-hour limit and the datasets conflicted, auditors could not determine the actual amounts and recommended a full audit to review KDOR's HPIP data for accuracy.

The presentation described HPIP mechanics: a training credit available for qualifying training expenditures (credits for training are capped at $50,000 per business per year and are nonrefundable) and capital-investment credits that use…

Legislative audit: HPIP data inconsistent; KHRC awarded ~$73M in state affordable housing credits that investors had not yet used

Summary

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