Kansas Authorizes Prison-Made Modular Homes Pilot Program

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The Kansas Governor has signed a law establishing a pilot program at the Hutchinson correctional facility that will permit certain contracts for the production of manufactured or modular homes. The law includes a provision requiring any nonprofit organization participating in the pilot to not request a property tax exemption for housing units produced and to agree to pay property or ad valorem taxes on those units if they are retained and owned by the nonprofit.

Why it matters

This pilot program aims to provide job training and skills development opportunities for incarcerated individuals, while also addressing the state's need for affordable housing. The tax-related provision is intended to ensure that any nonprofit-owned housing units produced through the program contribute to the local tax base.

The details

The new law authorizes the Kansas Department of Corrections to enter into contracts with nonprofit organizations as part of a pilot program at the Hutchinson correctional facility. These contracts will allow the production of manufactured or modular homes by incarcerated individuals. The law includes a stipulation that any nonprofit participating in the pilot must not request a property tax exemption for the housing units produced and must agree to pay property or ad valorem taxes on the units if they are retained and owned by the nonprofit organization.

• The law was signed by the Kansas Governor on April 9, 2026.
• The law will take effect after its publication in the state statute book.

What’s next

The Kansas Department of Corrections will now work to establish the details and implementation of the pilot program, including selecting the nonprofit organizations that will participate.