TIF vs. RHID

Comparison of RHID and TIF Districts in KansasReinvestment Housing Incentive Districts (RHID) and Tax Increment Financing (TIF) districts are both economic development tools in Kansas that use tax increment financing to support projects. They capture the "increment" (increase in tax revenue from development) to reimburse eligible costs, but they differ in focus, scope, and application. Below is a structured comparison based on Kansas statutes and program details.

Aspect	RHID (Reinvestment Housing Incentive District)	TIF (Tax Increment Financing District)
Purpose	Specifically designed to address housing shortages by incentivizing new residential housing development, particularly in rural or underserved areas, to stimulate economic growth through increased housing supply, services, employment, and tax revenues. It targets quality housing across price ranges where private efforts alone are insufficient.	A broader redevelopment tool aimed at revitalizing blighted, conserved, or economically underperforming areas. It supports economic development, job creation, and infrastructure improvements to eliminate blight and promote growth in commercial, industrial, residential, or mixed-use projects.
Statutory Basis	K.S.A. 12-5241 et seq. (Reinvestment Housing Incentive District Act).	K.S.A. 12-1770 et seq. (Tax Increment Financing Act). Sometimes overlaps with Sales Tax and Revenue (STAR) bonds for larger projects.
Eligible Projects	Limited to new residential housing developments. Must demonstrate a housing shortage via a needs analysis and meet "but-for" criteria (project wouldn't proceed without incentives). Often for rural communities (cities <40,000 population in counties <60,000), but can apply to larger areas like Topeka if criteria are met.	Broader eligibility: Industrial, commercial, intermodal transportation, residential, or mixed-use projects in blighted or conservation areas. Includes redevelopment of deteriorated structures or areas needing economic stimulus. Not housing-specific.
Tax Capture	Captures only the incremental increase in real property (ad valorem) taxes from the housing project. All taxing districts (e.g., schools, counties) are included—no opt-outs. Used on a pay-as-you-go basis or to repay special obligation bonds.	Captures incremental ad valorem taxes, and can also include city sales taxes and franchise fees in some districts. May allow for exemptions or partial capture from certain taxing entities (e.g., schools). Can use bonds, pay-as-you-go, or other financing.
Duration	Up to 25 years from the date of district establishment.	Typically up to 20 years, with extensions possible to 30 years for certain historic or environmentally contaminated projects.
Approval Process	Initiated by developer pre-application (including fee, site control, no delinquencies). Requires a housing needs analysis, resolution with specific findings on housing shortages and economic needs (K.S.A. 12-5244), publication, and approval by the Kansas Secretary of Commerce. Includes a "but-for" test to ensure incentives are necessary. Process can take up to 60 days.	Requires a finding of blight or conservation need, public hearings, adoption of a redevelopment plan by the governing body, and potential review by affected taxing districts. No state secretary approval required, but must comply with statutory notices and feasibility studies.
Eligible Costs	Reimburses housing-related infrastructure: land acquisition, site preparation, sanitary/storm sewers, drainage, streets, utilities in public rights-of-way, sidewalks, and permanent improvements in older downtown buildings.	Broader range: Acquisition, demolition, site preparation, utilities, streets, parking, environmental remediation, and other public improvements. Can include private development costs if tied to public benefits. Similar to RHID but not housing-limited.
Key Differences & Impacts	More targeted and need-based for housing; considered more stable for developers as the city risks no existing revenue. Impacts all taxing districts equally, including schools (e.g., no control over certain mill levies). Often requires extraordinary costs or alignment with housing studies.	More flexible for diverse projects but requires proof of blight. Can generate additional revenue streams (e.g., sales tax). School districts may see delayed tax benefits, similar to RHID, but TIF sometimes allows negotiations for exclusions.

Both programs operate on the principle of setting a base tax valuation, with post-development tax increases funding improvements—essentially, the project "pays for itself" over time. RHID is essentially a specialized form of TIF tailored for housing, with stricter criteria to ensure it addresses genuine shortages. In practice, cities like Topeka use both for complementary incentives, with RHID focusing on residential needs and TIF on broader redevelopment. For project-specific advice, consult local planning offices or the Kansas Department of Commerce.