Johnson County approves IRB resolutions to support Blue Valley Crest affordable housing

The Johnson County Board of County Commissioners on May 7 unanimously approved two resolutions of intent to issue industrial revenue bonds to support the Blue Valley Crest affordable housing project.

Assistant County Manager Adam Norris told the board the developer is seeking IRBs for sales-tax exemption only to improve competitiveness for low-income housing tax credits. "The request is for $13 million of IRBs for phase one and $4.5 million for phase two," Norris said. He said the estimated value of the sales-tax exemption is about $980,000 for phase one and $350,000 for phase two, with the county's portion—covering general sales tax, public-safety sales tax and stormwater—estimated roughly $105,000–$115,000 as a one-time, construction-period impact.

Heather McNeve, director of housing services, said phase one would include a mix of one-, two- and three-bedroom units and that her office recommended $1.5 million in HOME Investment Partnerships Program funds for the first phase, pending due diligence. She said units in phase one are expected to be available in December 2027, and that the developer is applying for state low-income housing tax credits through the Kansas Housing Resource Center.

Commissioners framed the IRBs as a timing and competitiveness tool rather than a county financial obligation. "The issuance of IRBs does not create any sort of financial obligation or commitment for the county," Norris told the board, and Commissioner Brewer added that the sales-tax exemption is a mechanism to avoid charging sales tax on construction materials rather than an expenditure of county funds.

Commissioner Ashcraft, who said he has reservations about tax-incentive tools generally, said he would support the items in this case: "I find IRBs and similar mechanisms to be an anathema ... but I think this is a gesture of us reaching out as a sister government for the betterment of the community," he said.

The board voted first to approve resolution 053-26, authorizing IRBs for Blue Valley Crest Apartments LP for sales-tax exemption only; the motion, moved by Commissioner Brewer and seconded by Commissioner Alan Brand, passed 7-0 on a roll-call vote. The board then approved resolution 066-26 to issue IRBs for Blue Valley Crest Town Homes LLC for sales-tax exemption only by the same 7-0 vote.

Norris and McNeve noted Overland Park city staff are aware the county is considering the resolutions and that the county’s resolution of intent would not preclude the city from later issuing its own IRBs if the city's planning process permits. Norris also emphasized that any IRB issuance would be outstanding only for the construction period and that the county would not be obligated for bond debt service.

The meeting record indicates the board's ad-hoc housing work group recommended bringing the items forward, and the board cited the actions as one element among several—HOME funds, LIHTC and other tools—intended to close financing gaps for attainable housing in the county.

The board did not take additional public action on the items after the votes and moved on to scheduled executive sessions. The approvals are procedural resolutions of intent; subsequent conditions, final bond documents and any city approvals will determine whether the IRBs are issued and when construction may proceed.