SESSION OF 2021
SUPPLEMENTAL NOTE ON SENATE BILL NO. 90
As Amended by House Committee on
Commerce, Labor and Economic Development

Brief*
SB 90, as amended, would allow vertical renovations of
certain buildings for residential purposes to be a permitted
use of bond proceeds and amend definitions under the
Kansas Rural Housing Incentive District Act.
The bill would provide that, within a rural housing
incentive district (RHID), proceeds from the special obligation
bonds may be used for the renovation of buildings that are
located in central business districts and exceed 25 years of
age as certified by the Secretary of Commerce.
The bill would also limit the eligible improvements to
only those on the second floor of a building or higher that are
residential in nature. All improvements for commercial
purposes would not be eligible improvements under the
program.
The bill would amend the definition for an eligible city to
remove the population limit of less than 80,000 for the county
in which the city is located. The population limit for the city of
less than 60,000 would remain.
The bill would also amend the definition for an eligible
county by raising the county population limit from 60,000 to
80,000.

____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
Background
The bill was introduced by the Senate Committee on
Commerce at the request of a representative of the
Department of Commerce.

Senate Committee on Commerce
In the Senate Committee hearing, proponent testimony
was provided by representatives of the Department of
Commerce, Dodge City/Ford County Development
Corporation, Kansas Association of Realtors, and League of
Kansas Municipalities. Written-only proponent testimony was
provided by a private citizen. The proponents generally stated
this change to RHID statutes would allow communities to
utilize existing infrastructure to address housing needs while
also helping to revitalize downtowns.
Written-only opponent testimony was provided by a
representative of the Kansas Policy Institute, who stated
subsidized housing programs are unsustainable and difficult
to maintain. The representative also stated the bill could lead
to property tax increases.
No other testimony was provided.

Senate Committee of the Whole
The Senate Committee of the Whole amended the bill to
remove the county population requirement for an eligible city.

House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by representatives of the City of Atchison, the
Kansas Association of Realtors, the Kansas Department of
Commerce, and the League of Kansas Municipalities.
2- 90
Proponents indicated the bill would help retain residents in
the state and give residents more freedom to live in the
communities of their choice.
No neutral or opponent testimony was provided.
The House Committee amended the bill to increase the
population limit of an eligible county from 60,000 to 80,000.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill as introduced, the League of Kansas
Municipalities states the bill would fiscally affect only local
government, but it is unable to determine what the effect
would be. The Kansas Association of Counties stated the bill
would increase valuations, which would aid in offsetting
property taxes on other properties for the maintenance of
infrastructure.
Local government; commerce; rural housing; Rural Housing Incentive District Act;
economic development


3- 90


Statutes affected:
As introduced: 12-5249
{As Amended by Senate Committee of the Whole}: 12-5242, 12-5249
As Amended by House Committee: 12-5242, 12-5249
Enrolled: 12-5249, 12-5242