Chairperson Smith opened the hearing for HB2621.

Adam Siebers gave an overview for HB2621  that provides for a property tax exemption for all real property used to provide affordable housing if such property is owned by a non-for-profit organization and such organization engages in providing affordable housing to individuals or families earning less than or equal to 80 percent of the Area Median Income (AMI)  to provide transitional or emergency shelter housing. Pursuant to the bill, the exemption would apply for taxable years commencing after December 31, 2026 starting in 2027. (Attachment 9)

Mr. Siebers stood for questions from Committee members.

Chairperson Smith noted HB2621 would reduce property tax revenue that impacts state expenditures for aid to school districts.  The Kansas Association of Counties and the League of Kansas Municipalities indicate that property tax collections are based on the approved budget and the property tax exemption would not impact local government finances but would narrow the property tax base. 

Mr. Feilmeier testified as a proponent for HB2621 that authorizes local nonprofit organizations to build and sustain the housing in communities that are needed.  The bill provides a property tax exemption for real property used to provide affordable housing when the property is owned by a 501(c)(3) nonprofit organization; and the organization provides housing to individuals or families earning at below 80.0 percent of the Area Median Income (AMI), transitional housing, or emergency shelter housing. (Attachment 10)

Mr. Feilmeier stood for questions from the Committee.

In reponse to a questions from the Committee, Janel Bowers, Friends of JCDS, Inc. stated there are funding streams for affordable housing of different types and amounts.  The Federal Home Loan Bank of Topeka covers the four state area and funding is provided every year in an amount of $750,000 up to $1.5 million but is a point-based grant.  The points are based on whether you're doing adaptive reuse or a nonprofit requesting the funds.  The Sunderland Foundation grants money across the Midwest and Northwest for affordable housing but will sunset in four years.  There are other smaller lenders like First National Bank of Omaha (FNBO), Community Investment Act (CRA) funding, and UMB banks that provide grants between $20,000 and $30,000.  There are also foundations in the Manhattan, Topeka areas.

Proponent written testimony for HB2621 was provided by the following:

Shawna Williams, Habitat for Humanity, (Attachment 11)

Kelsey Herr, Kansas Housing Association, (Attachment 12)

Emma Shankland, Health Forward Foundation, (Attachment 13)

Opponent written testimony for HB2621 was provided by  Aaron Mays, Kansas Association of Counties, (Attachment 14)

Neutral written testimony for HB2621 was provided by Marvin Matchett, Norton County Commissioner, (Attachment 15)

Chairperson Smith closed the hearing for HB2621.