Low Income Housing Tax Credit

Case Study

Garden City is one of the fastest growing areas in Kansas. Job growth in the agribusiness, energy and retail sectors is creating an urgent need for affordable housing. Kansas Housing partnered with the Overland Property Group to build 96 apartments at the Reserves of Prairie Ridge using the housing tax credit program. The property consists of 48 two bedroom units and 48 three bedroom units with 45 units affordable to households earning less than 50% of the area’s gross median income. 

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Reserves at Prairie Ridge Apartment Homes, Garden City, Kansas

Program Description

The Low Income Housing Tax Credit encourages investment of private capital in the development of rental housing by providing credits to offset an investor’s federal income tax liability, rather than a direct subsidy. Financial institutions, such as banks, insurance companies and government-sponsored enterprises make equity investments in exchange for receiving the tax credits. Equity from the sale of tax credits reduces the amount of debt financing that the property owner incurs. This process reduces the property’s monthly debt service, lowers the operating costs, and makes it economically feasible to operate the property at below-market rents.

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Audience Served

Property owners and developers.

Funding Source

Authorization of the program was established in the Tax Reform Act of 1986. Investment in the properties is provided by private institutions in exchange for the tax credits.

Staff Contact

Fred Bentley
fbentley@kshousingcorp.org
Director of Housing Development
785-217-2029

How To Apply

KHRC evaluates housing tax credit applications based on several characteristics, such as: location, development design, development team, targeted use, and financial characteristics.
Federal regulations require KHRC to allocate tax credits giving preference to proposals that:

  • Serve the lowest income tenants
  • Serve qualified tenants for the longest periods
  • Contribute to a concerted Community Revitalization Plan
  • Are intended for eventual tenant ownership

Additional Resources

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Income Guidelines

Household SizeMaximum Income for Weatherization (200% of FPL)
1 $  24,980
2 $  33,820
3 $  42,660
4 $  51,500
5 $  60,340
6 $  69,180
7 $  78,020
8 $  86,860
9 $  95,700
10 $104,540
11 $113,380
12 $122,220
13 $131,060
14 $139,900
15 $148,740
16 $157,580
17 $166,420
18 $175,260
19 $184,100
20 $192,940
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