Chairperson Smith opened the hearing for HB2408.

Adam Siebers, Office of Revisor of Statutes, noted HB2408 was a bill filed at the end of the 2025 session. The bill  provides that leased ground owned by a county-recognized community land trust shall be considered as a factor in determining fair market value. Pursuant to law, county appraisers are to take into consideration additional factors in addition to sales when determining the value of property. (Attachment 1)

Mr. Siebers stood for questions from Committee members.

Kathleen Smith, Kansas Department of Revenue, noted the Department was not able to actually put an estimate on HB2408 and expect the bill to have negligible fiscal impact.

Proponents:

Josh Brewer, Executive Director, Habitat for Humanity of the Northern Flint Hills, testified as a proponent for HB2408 stating they build, preserve and finance home ownership that is safe and affordable to low to moderate income families in the Northern Flint Hills.  In 2022 there was a need to improve long-term sustainability of the home ownership program and the Community Land Trust was created.  The homeowners in the development own their homes and have signed a 99-year ground lease agreement with Habitat for Humanity. With the Community Land Trust, the homeowner agrees to sell their home to another income qualified buyer. Mr. Brewer introduced proposed language in the 2025 Legislative session that stipulates that the Community Land Trust must be "county recognized," which empowers the County Commission with oversight of those organizations using this approach to advancing housing affordability that the affordable homes are appropriately appraised for tax purposes. (Attachment 2)

Mr. Brewer stood for questions from Committee members.

Katie Killen, on behalf of Habitat for Humanity of Kansas, testified as a proponent for HB2408 stating the change to the statute for appraisers lends clarity, consistency, and uniformity.  The Community Land Trust (CLT) creates a stepping stone to get out of a rental situation and into home ownership.   The properties in a Community Land Trust throughout Kansas is currently under 200 homes which is invaluable for families to move towards home ownership.  The difference for a CLT is that it is a non-profit, the restrictions placed on the resale of the home provide a lower appreciated profit on the sale of the house and is not related to a rental.  (Attachment 3)

Ms. Killen stood for questions from Committee members.

Written testimony was submitted by the following as proponents for HB2408:

Kristy Baughman, United Community Services of Johnson County, (Attachment 4)

Jonathan Smith, Kansas Resident, (Attachment 5)

Rebecca  Buford on behalf of Tenants to Homeowners, Inc., (Attachment 6)

Matthew R. Ghilino, Kansas Resident, (Attachment 7)

Spencer Duncan, League of Kansas Municipalities, (Attachment 8)

Brennan Crawford, Build WyCo, (Attachment 9)

There being no Opponent or Neutral testimony submitted, Chairperson closed the hearing for HB2408.