The City of El Dorado is excited to announce the Kansas Department of Commerce’s (KDOC) approval of the City's application to establish a Reinvestment Housing Incentive District (RHID). This approval marks a significant milestone in addressing critical housing needs within the community and fostering economic growth.
The RHID designation was granted after the Department of Commerce reviewed the City's two most recent Housing Needs Assessments prepared by Wichita State University and the Next Door Group. The designation by the KDOC highlights the pressing housing shortage in El Dorado, where there is a need for quality housing across various price ranges, including affordable single-family homes and multi-family units.
Key findings supported by the Department of Commerce include:
1. A shortage of quality housing persists despite efforts by public and private developers.
2. Financial incentives are necessary to encourage the private sector to construct or renovate housing developments.
3. The housing shortage serves as a deterrent to the City’s future economic growth and development.
4. The City’s economic well-being depends on providing additional incentives for quality housing construction or renovation.
The establishment of the RHID will enable the City to partner with developers to encourage new housing projects and renovations, fostering an environment conducive to economic growth and community development.
City Manager David Dillner expressed his enthusiasm: “This is a major step forward for El Dorado. The RHID approval allows us to provide tools that will address housing challenges while attracting investment, supporting our local economy, and enhancing the quality of life for our residents.”
The City will now identify developers who want to use the RHID tool to help finance their development expenses. RHIDs can be used as a funding source for public infrastructure needed to support residential development. The tool may also be used in limited circumstances to provide a direct investment in construction expenses for eligible developments.
The RHID provides a source of revenue to reimburse eligible development expenses by capturing the incremental increase in property tax valuation generated from new development. The RHID captures the property taxes levied by local taxing entities for up to 25 years to reimburse eligible expenses.
For more information about the Reinvestment Housing Incentive District and how it will benefit El Dorado, contact the City Manager’s office at (316) 321-9100 or visit www.eldoks.com.
About the Reinvestment Housing Incentive District
The RHID program, under K.S.A. 12-5244, empowers Kansas communities to address housing shortages by encouraging private sector investment through financial incentives. It is designed to spur economic growth by alleviating barriers to housing development.