Kansas Lawmakers Cut Successful Affordable Housing Program

Despite a statewide housing crisis, the state legislature dramatically reduced a tax credit program that had spurred new affordable housing construction.

Apr. 5, 2026 at 9:05am

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Kansas lawmakers have dramatically reduced the state's successful Kansas Affordable Housing Tax Credit (KAHTC) program, despite a documented statewide housing crisis. The KAHTC program, administered by the Kansas Housing Resource Corporation, had leveraged $1.5 billion in new private construction to generate over 6,400 affordable homes across 27 counties, including many rural areas that had seen little new housing in decades. However, on the last day of the 2025 legislative session, lawmakers cited $1 billion in foregone income tax revenue and voted to dramatically scale back and sunset the program by 2028.

Why it matters

The decision to cut the KAHTC program comes at a time when Kansas, like much of the country, is facing a severe housing affordability crisis. The program had been a rare bright spot, spurring new affordable housing development in both urban and rural communities. Its elimination will make it even more difficult for low- and middle-income Kansans to find decent, affordable places to live.

The details

The KAHTC program, approved by the Kansas Legislature in 2022, had leveraged $1.5 billion in new private construction to generate over 6,400 affordable homes across 27 counties in the state, including many rural areas that had seen little new housing in decades. The program had allowed cities to redevelop blighted sites and had provided dignity and economic benefits to families. However, on the last day of the 2025 legislative session, lawmakers voted to dramatically reduce and sunset the program by 2028, citing $1 billion in foregone income tax revenue over 15 years.

  • The KAHTC program was approved by the Kansas Legislature in 2022.
  • From 2023-2025, the program leveraged $1.5 billion in new private construction and generated over 6,400 affordable homes.
  • On the last day of the 2025 legislative session, lawmakers voted to dramatically reduce and sunset the KAHTC program by 2028.

The players

Kansas Housing Resource Corporation (KHRC)

The state agency that administered the Kansas Affordable Housing Tax Credit (KAHTC) program.

Kansas Legislature

The state legislature that approved the KAHTC program in 2022 and then voted to dramatically reduce and sunset it in 2025.

Governor Kelly

The governor of Kansas who did not veto the legislature's decision to cut the KAHTC program.

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What they’re saying

“If the KAHTC experience taught us anything, it's that housing is a team sport — private sector and all levels of government. It must be. Particularly for struggling communities. And that's really the state's role here … not just to increase housing where it's already occurring, but where it's not.”

— Bill Fiander, Author

What’s next

The Kansas Legislature is not expected to revisit the KAHTC program in 2026, leaving the future of affordable housing development in the state uncertain.

The takeaway

The decision by Kansas lawmakers to dramatically cut the successful KAHTC affordable housing program, despite a documented statewide housing crisis, highlights the difficult choices and tradeoffs policymakers face when it comes to addressing complex social and economic challenges. It underscores the need for a comprehensive, bipartisan approach to housing policy that prioritizes the needs of all Kansans, not just those at the top.