Topeka housing officials warn state tax‑credit phase‑out could stall future affordable construction; council advances local development steps

Trey George, president and CEO of the Topeka Housing Authority, told the Topeka City Council on March 10 that the agency’s long‑running neighborhood partnerships and service programs are expanding as demand for affordable homes continues to grow, but a roll‑back of the state housing tax credit threatens that pipeline.

George outlined partnerships that sustain the Pine Ridge neighborhood — including a nurse‑practitioner led Pine Ridge Family Health Center that has served more than 2,700 unique patients and recorded roughly 11,000 encounters — as well as new efforts such as a foster‑youth housing voucher pilot and participation in the countywide plan to end chronic homelessness. He said the state housing tax credit was a key reason “we will soon have a total of 426 affordable homes under construction” in Topeka and warned that the credit is scheduled to phase out by 2028 unless lawmakers act.

“Anything you can do to help encourage that state housing tax credit,” George said, “it’s definitely needed,” adding that the loss of the program would make large affordable developments much harder to finance.

Why it matters: local developers rely on a combination of federal low‑income housing tax credits, state credits and project‑based vouchers to make deep‑affordability projects feasible. Council members asked staff to report back with city‑level data on how many local properties depend on the state credit and what a phase‑out could mean for existing and planned projects.

Council moves on housing actions

Council took three housing‑related procedural steps during the meeting. It approved a zoning map amendment to reclassify about 1.36 acres from planned unit development/commercial to M2 multiple‑family use to allow an 18‑duplex project east of Southwest 21st Street. Planning staff said the rezoning simply aligns the small parcel with the adjacent M2 zoning and that a detailed site plan and traffic study will return for staff review once developers pursue Low‑Income Housing Tax Credit (LIHTC) funding.

Separately, the council approved a resolution to forward an application from ATA Development LLC to the Kansas Department of Commerce to establish a Reinvestment Housing Incentive District (RHID) for the Yurish Center project. Staff described the RHID step as procedural — if state reviewers find the district statutorily eligible, the developer must later submit a project plan and pro forma for a full financial review before any RHID development agreement returns to the council.

Council members pressed staff and the developer on affordability and amenities after the RHID presentation. Council Member Hiller asked whether advertised “age‑in‑place” units would be maintenance‑free or otherwise offer services for older residents. Council Member Miller, reacting to the developer’s initial market rent cited in materials, called the $2,499 figure “wild,” and asked staff to require more detail when the pro forma returns.

TIF hearing set for townhome rehab

The council also agreed to set a public hearing on April 21 to consider establishing a tax increment financing (TIF) district for the proposed rehabilitation of 47 Capitol City Town Home units. Staff said the project would rehabilitate 47 units (38 restricted to 60% area median income) and that the developer is seeking a 20‑year neighborhood revitalization incentive to meet LIHTC underwriting requirements. Council members pressed for records on inspection history and said they want assurance — via KHRC annual inspections or local code enforcement — that properties receiving incentives remain well‑maintained.

What’s next

Staff committed to gathering additional details requested by council: an inventory of Topeka properties financed with the state housing tax credit, the developer’s pro forma and any KHRC inspection records for the townhome property. The RHID, site plan, and the TIF public hearing are all scheduled to return to council for formal action if the state and subsequent steps proceed.

Speakers quoted in this story are identified in council records as Trey George, President/CEO, Topeka Housing Authority; Council Member Hiller; Council Member Miller.