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Council approves fee reduction to boost 48‑unit affordable project’s LITC application

Hutchinson City Council · May 6, 2026
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Summary

Council approved waiving building permit and tap fees to support the Zimmerman Hutchinson Park application for Low‑Income Housing Tax Credits; staff said the fee reduction improves competitiveness and aligns with housing goals.

The Hutchinson City Council approved a fee reduction on May 25 to support a proposed 48‑unit multifamily project seeking Low‑Income Housing Tax Credits (LITC).

Jason Lady, building official, asked the council to approve a waiver of approximately $33,255 in building‑permit and water‑tap fees and to consider participation up to $80,000 to strengthen the project’s LITC scoring. He said the $8.7 million Zimmerman Hutchinson Park development would deliver 48 new apartments, including income‑restricted units, and align with the city’s housing goals and strategic plan.

Jeff Beckler of Zimmerman Properties told council the project had previously scored in the high‑80s on the state LITC ranking and that additional local participation points would improve competitiveness. Lady and staff argued the local support leverages private and federal investment and produces long‑term benefits to the tax base and housing supply.

Council approved the reduction on a motion and roll call vote. Staff said the fee waiver would reduce the applicant’s upfront obligations and boost the project’s ability to secure federal tax‑credit financing; staff noted the city expects long‑term returns through property and utility revenues.

What happens next: The fee reduction is incorporated into the project financing as the developer pursues LITC awards. If tax credits are awarded, the project would proceed to final permitting and construction according to the developer’s schedule.