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Policy No.:



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Effective Date:


Specific Subject:

Low Income Housing Tax Credit Policy

Cancellation Date:

Supersedes No.:



To set forth the general public policy objectives of the city as relates to establishing criteria for comments for projects under the Low Income Housing Tax Credit Program.

Statement of Policy:

The statement of policy is hereby incorporated with Resolution 11-1063. Previous policy regarding Low Income Housing Tax Credit was incorporated by Resolution No. 98-1067.



WHEREAS, the City of Olathe, Kansas (the “City”) strives to affirmatively further fair housing by recognizing that it is essential to provide to all persons living or desiring to live in the City a fair opportunity to purchase, lease, rent, or otherwise occupy housing or other real estate and to provide all persons full and equal access to housing regardless of race, color, national origin, religion, sex, familial status, handicap (disability), ancestry, veteran status, sexual orientation, or age; and

WHEREAS, it is further recognized that the stimulation of a wide variety of housing opportunities is a joint responsibility of the private and public sectors, working closely together to create a positive environment for the construction of housing, and to encourage the construction of affordable housing units in the City, especially in areas which are underserved or in need of redevelopment; and

WHEREAS, the construction of new affordable housing units together with the renovation of existing housing units can significantly improve the livability of neighborhoods and provide quality living conditions to lower income individuals and families; and

WHEREAS, the City has enacted a new Comprehensive Plan which encourages the development of varied housing opportunities, so long as such projects meet the principles, policies, and action items in the City’s Comprehensive Plan; and

WHEREAS, the City recognizes that the Low Income Housing Tax Credit Program, established in the Tax Reform Act of 1986, administered and enforced by the United States Department of the Treasury’s Internal Revenue Service, and codified in the Internal Revenue Code at 26 U.S.C. § 42 (the “Tax Credits”), is an important tool to stimulate development of a wide variety of housing choices serving persons with different needs and income levels; and

WHEREAS, the Kansas Housing Resources Corporation (KHRC) has an allocation plan for the disbursement of the Tax Credits which requires a local review process prior to its consideration of housing Tax Credit applications, including a resolution from the local governing body stating that it is aware of and approves the housing development; and

WHEREAS, to complement the KHRC’s criteria for evaluating housing Tax Credit proposals, and recognizing that the City may receive multiple applications for issuance of the Tax Credits in any given year, the City desires to utilize this policy to articulate the City’s housing and development priorities; and


Section 1. Policy Statement. To meet the housing and development objectives of the City as outlined above, it shall be the policy of the City to analyze projects requesting City support for pursuit of Tax Credits to determine if the projects comply with certain principles, policies and action items in the Comprehensive Plan. The goal of this analysis is to (a) determine if proposed Tax Credit housing projects merit local support, and (b) prioritize Tax Credit housing submissions if more than a single proposal is received during an evaluation period.

Section 2. Required Information. The following information must be submitted by each applicant requesting a resolution of support for issuance of Tax Credits in Olathe before a proposal is evaluated by the City:

A. Project Information. The developer must provide the location of the development (including legal description), number of units, targeted tenant population (elderly, family, special needs, mixed income, rent subsidized), amenities, type of construction (new, rehabilitation, acquisition and rehabilitation), and must state whether additional financing required through City incentives [e.g., tax increment financing (TIF), tax abatement, issuance of bonds for benefit district financing or sales tax exemption certificate, etc.].

B. Project Costs. The developer must provide a schedule of reasonably expected project costs, including a project budget which identifies the total amount of Tax Credits requested as part of the financing for the project, and pro forma showing that the project will achieve a minimum debt coverage ratio of 1.15/1.

C. Evidence of Financing. The developer must submit evidence of permanent financing and permanent loan commitments [for a minimum term of fifteen (15) years as required for issuance of the Tax Credits].

D. Market Analysis. The developer must submit the feasibility study required for issuance of the Tax Credits. Such study must show that the project will be able to attract market rate tenants for any market rate units and low income tenants for the Tax Credit units.

E. Ownership. The developer must provide evidence of recorded title of the real estate to be developed or a contract indicating that the property will be acquired pending the approval of the Tax Credits.

F. Qualified Development & Management Team. The developer must show evidence of developing and operating similar projects to the proposed project, including photos and/or renderings of such projects, or indicate how it has the ability and experience necessary to complete and operate the proposed project.

G. Planning & Zoning Compliance. The developer must submit a site plan and renderings of the proposed project. The project must be on a location which is properly zoned and which complies with the Comprehensive Plan Principles identified herein. The City will not take action on a request for support of a Tax Credit project until zoning is in place or approved subject to stipulations. The City may, however, consider a request for support of a Tax Credit project on a site which is properly zoned but where a final site plan has not been approved so that the Governing Body may determine if the application for Tax Credits satisfies the criteria to merit local support set forth in this policy. The developer must also obtain a letter from the City’s Planning Manager or designee which confirms that the zoning request is consistent with the City’s Comprehensive Plan, or that the zoning request could be approved with certain stipulations in order to be consistent with the City’s Comprehensive Plan. All resolutions of support for Tax Credit projects shall be conditioned upon the project receiving all necessary planning and zoning approvals.

H. Area Support. All projects must contact nearby neighborhood and business associations to (a) inform such associations that they are seeking Tax Credits to finance the project, and (b) seek their support of the project. Evidence that such contact has been made must be included in the request for a resolution of support, including copies of any letters of support or objection to the project. This requirement is independent of any requirement to notify area residents as may be required by the City’s Unified Development Ordinance to achieve planning & zoning compliance. The Governing Body will consider the feedback from area neighborhood and business associations regarding the project.

Section 3. Comprehensive Plan Principles. In addition to supplying the required information set forth in Section 1, above, prior to receiving City support for pursuit of Tax Credits, an applicant must demonstrate to the Governing Body’s satisfaction how the Tax Credit project meets the following Comprehensive Plan Principles:

A. Principle LUCC-3: Promote adequate residential densities to support existing and future commercial centers.

LUCC-3.1: Encourage Housing Near Services. Encourage higher density housing development near transit services, commercial centers, and planned transit nodes and corridors to create activity areas that add to the community’s quality of life.

B. Principle LUCC-6: Discourage “leap-frog” or sprawling land use patterns by encouraging growth in serviceable areas. Promote the infill of vacant parcels and reinvestment in buildable areas.

LUCC-6.1: Targeted Development. With the guidance of the Comprehensive Plan’s Future Land Use Map, encourage targeted development, redevelopment and infill so as to channel growth where it will contribute to the long-term community vision and improve access to jobs, housing and services.

C. Principle OT-1: Continue to support efforts to improve and expand the Downtown and surrounding neighborhoods by locating additional uses and amenities in this area, including entertainment, restaurants, transportation hubs, high density housing, and other compatible uses in a manner that is harmonious with the historic character of Downtown.

OT-1.2: Original Town Neighborhoods. Encourage a balanced mix of complementary and support land uses in each Original Town neighborhood, with a predominantly residential land use character. Support a mix of housing types for all income levels, family types, and age groups, with a variety of prices and rent levels.

D. Principle OT-3: Encourage and implement innovative techniques designed to spur Original Town revitalization activities.

OT-3.2: Housing. Add high density, multi-family housing within and adjacent to the Downtown that will help support desired uses and amenities. Provide housing to serve a diverse population, including affordable housing, senior housing, special needs housing, and transit-oriented development.

OT-3.5: Revitalize Adjacent Areas. Revitalize areas adjacent to the Downtown core, including the reclamation and redevelopment of Brownfield sites, new housing investment, and maintenance and preservation of existing building stock.

E. Principle HN-1: Maintain the character and identity of existing residential neighborhoods.

HN-1.2: Mixed Uses and Mixed Incomes. In existing neighborhoods, a mixture of land use types, housing sizes and lot sizes may be possible if properly planned and respectful of neighborhood character. Require careful design whenever land uses are mixed in order to ensure compatibility between land uses that vary in intensity and scale.

HN-1.5: Promote Housing Rehabilitation. Improve and maintain the quality of existing housing stock through public and private sector investment and contribution to housing rehabilitation. Support community organizations and activities that encourage and provide housing rehabilitation and neighborhood improvements.

F. Principle HN-2: Support housing development and redevelopment that includes a variety of housing types and opportunities to enable a wide range of economic levels, age groups, and lifestyles to live within a community.

HN-1.2: Full Range of Housing Choices. Encourage residential development that supports the full range of housing needs in the community by ensuring that a variety of housing types, prices and styles are created and maintained in the community.

HN-2.3: Higher Residential densities. Target future medium and high-density residential development to locations that are accessible to and integrated with potential employment and transit centers.

HN-2.4: Accessible Housing. Encourage accessible housing units for populations with special needs designed to provide, for example, a main floor bedroom, wider hallways/doorways, main floor baths, first floor laundry and level entries without steps.

HN-2.5: Senior Housing. Address the housing needs of an aging population. Provide neighborhoods with a variety of housing styles and prices that meet the particular needs of seniors and enable residents to “age in place.”

G. Principle HN-4: Promote housing strategies to ensure an adequate supply of homes at all price ranges.

HN-4.1: Affordable Housing. Pursue strategies to meet the community’s affordable housing needs, including housing options within the financial means of service workers, new professionals, seniors, students, and low income residents.

Section 4. Duration of Resolutions of Support. No resolution of support for a Tax Credits project will remain in effect for more than one (1) year.

Section 5. Substantial Changes. Should a project which receives a letter of support from the City have a substantial change before construction begins (including, but not limited to, change of location, change in number of units, change in type of units and/or target population, change in amenities, change in type of construction, change of developer, requirement of additional local incentives, or substantial changes to the final site development plan), the developer must request and obtain a new resolution of support in satisfaction of the criteria set forth herein.

Section 6. Authority of Governing Body. The Governing Body reserves the right to deviate from any policy, but not any procedure, set forth in this Resolution or any other procedural requirements of state law, when it considers such action to be of exceptional benefit to the City or extraordinary circumstances prevail that are in the best interests of the City. In addition, the Governing Body may, at its discretion, consider other factors as part of its evaluation of an application for Tax Credits, including (a) the design and architectural quality of the proposed project; (b) the amenities included at the project for residents; (c) the services provided for residents (if the project is pursuing senior housing Tax Credits); and (d) any other factor deemed relevant to consideration of a request for a resolution of support at the Governing Body’s sole discretion.

Section 7. Sunset Date. Since the context and factors relevant to the Governing Body considering requests for a letter of support to pursue Tax Credits will change from time to time, this policy shall automatically expire on December 31, 2013 unless it is readopted for an additional term. No request for a resolution of support shall be considered following such expiration, unless this policy is readopted or a revised policy is adopted by the Governing Body.

Section 8. Previous Resolution Repealed. Resolution No. 98-1067 is hereby repealed.

Section 9. Effective Date. This Resolution shall take effect immediately.

ADOPTED by the Governing Body of the City of Olathe, Kansas this 15th day of November, 2011.

/s/ Michael E. Copeland



/s/ Donald T. Howell

City Clerk



/s/ Thomas A. Glinstra

City Attorney