CHAPTER 66
HOUSE BILL No. 2590*
An Act concerning housing; providing for the creation of rural
housing incentive districts
in such cities and counties; imposing certain
requirements.
Be it enacted by the Legislature of the State of Kansas:
Section 1. This act shall be known and may be cited as
the Kansas
rural housing incentive district act.
Sec. 2. As used in the rural housing incentive district
act:
(a) ``City'' means any city incorporated in accordance with
Kansas law
with a population of less than 40,000 in a county with a population
of less
than 60,000, as certified to the secretary of state by the director
of the
division of the budget on the previous July 1st in accordance with
K.S.A
11-201, and amendments thereto;
(b) ``County'' means any county organized in accordance with
K.S.A.
18-101 et seq., and amendments thereto, with a population of less
than
40,000, as certified to the secretary of state by the director of
the division
of the budget on the previous July 1st in accordance with K.S.A
11-201,
and amendments thereto;
(c) ``Developer'' means the person, firm or corporation
responsible
under an agreement with the governing body to develop housing or
re-
lated public facilities in a district.
(d) ``District'' means a rural housing incentive district
established in
accordance with this act.
(e) ``Governing body'' means the board of county commissioners
of
any county or the mayor and council, mayor and commissioners or
board
of commissioners, as the laws affecting the organization and status
of cities
affected may provide;
(f) ``Secretary'' means the secretary of commerce and housing
of the
state of Kansas.
(g) ``Real property taxes'' means and includes all taxes
levied on an
ad valorem basis upon land and improvements thereon.
(h) ``Taxing subdivision'' means the county, the city, the
unified
school district, and any other taxing subdivision levying real
property
taxes, the territory or jurisdiction of which includes any
currently existing
or subsequently created rural housing incentive district.
Sec. 3. It is hereby declared to be the purpose of this
act to encour-
age the development and renovation of housing in the rural cities
and
counties of Kansas by authorizing cities and counties to assist
directly in
the financing of public improvements that will support such housing
in
rural areas of Kansas which experience a shortage of housing.
Sec. 4. (a) The governing body of any city or county is
hereby au-
thorized to designate rural housing incentive districts within such
city or
county. Any city governing body may designate one or more such
districts
in such city, and any county governing body may designate one or
more
such districts in any part of the unincorporated territory of such
county.
Prior to making such a designation, the governing body shall
conduct a
housing needs analysis to determine what, if any, housing needs
exist
within its community. After conducting the analysis, the governing
body
shall adopt a resolution containing a legal description of the
proposed
district, a map depicting the existing parcels of real estate in
the proposed
district, and a statement of the following findings and
determinations:
(1) There is a shortage of quality housing of various price
ranges in
the city or county despite the best efforts of public and private
housing
developers;
(2) The shortage of quality housing can be expected to persist
and
that additional financial incentives are necessary in order to
encourage
the private sector to construct or renovate housing in such city or
county;
(3) The shortage of quality housing is a substantial deterrent
to the
future economic growth and development of such city or county;
and
(4) The future economic well-being of the city or county
depends on
the governing body providing additional incentives for the
construction
or renovation of quality housing in such city or county.
(b) The resolution containing the findings contained in
subsection (a)
shall be published at least once in the official newspaper of the
city or
county.
(c) Upon publication of the resolution as provided in
subsection (b),
the governing body shall send a certified copy of the resolution to
the
secretary, requesting that the secretary review the resolution and
advise
the governing body whether the secretary agrees with the findings
con-
tained therein. If the secretary advises the governing body in
writing that
the secretary agrees with each of the findings of the governing
body, the
governing body may proceed to establish the district as set forth
in this
act. If the secretary fails to agree with the findings, the
secretary shall
advise the governing body in writing of the specific reasons
therefor.
Sec. 5. (a) Upon receipt of the approval of the secretary
as provided
in subsection (c) of new section 4, the governing body may proceed
with
the establishment of the district. Before doing so, the governing
body
shall adopt a plan for the development or redevelopment of housing
and
public facilities in the proposed district. Such plan may include
plans for
one or more projects, and the length of any individual project
shall not
exceed 15 years. The plan shall include, but not be limited to, the
follow-
ing:
(1) The legal description and map required by subsection (a)
of new
section 4.
(2) The existing assessed valuation of the real estate in the
proposed
district, listing the land and improvement values separately;
(3) A list of the names and addresses of the owners of record
of all
real estate parcels within the proposed district;
(4) A description of the housing and public facilities project
or pro-
jects that are proposed to be constructed or improved in the
proposed
district, and the location thereof;
(5) A listing of the names, addresses and specific interests
in real
estate in the proposed district of the developers responsible for
devel-
opment of the housing and public facilities in the proposed
district;
(6) The contractual assurances, if any, the governing body has
re-
ceived from such developer or developers, guaranteeing the
financial
feasibility of specific housing tax incentive projects in the
proposed dis-
trict;
(7) A comprehensive analysis of the feasibility of providing
housing
tax incentives in the district as provided in this act, which shows
the public
benefits derived from such district will exceed the costs and that
the
income therefrom, together with other sources of funding, will be
suffi-
cient to pay for the public improvements that may be undertaken in
such
district. If other sources of public or private funds are to be
used to
finance the improvements, they shall be identified in the
analysis.
(b) Prior to the adoption of the plan and designation of the
district,
the governing body shall adopt a resolution stating that the
governing
body is considering such action. The resolution shall provide
notice that
a public hearing will held to consider the adoption of the plan and
the
designation of the district and contain the following elements:
(1) The date, hour and place of the public hearing;
(2) The contents of paragraphs (1) through (4) in subsection
(a) of
this section;
(3) A summary of the contractual assurances by the developer
and
comprehensive feasibility analysis; and
(4) A statement that the plan is available for inspection at
the office
of the clerk of the city or county at normal business hours;
(5) A statement inviting members of the public to review the
plan
and attend the public hearing on the date announced in the
resolution;
(c) The date fixed for the public hearing shall be not less
than 30 nor
more than 70 days following the date of the adoption of the
resolution.
The resolution shall be published at least once in the official
newspaper
of the city or county, with the final publication being not less
than one
week or more than two weeks preceding the date fixed for the
public
hearing.
(d) A certified copy of the resolution shall be delivered to
the plan-
ning commission of the city or county and the board of education of
any
school district levying taxes on property within the proposed
district. If
the resolution is adopted by a city governing body, a certified
copy also
shall be delivered to the board of county commissioners of the
county. If
the resolution is adopted by a county governing body, it also shall
be
delivered to the governing body of any city located within three
miles of
such proposed district.
Sec. 6. (a) At the public hearing, a representative of
the city or county
shall present the proposed plan for the development or renovation
of
housing in the proposed district. Each project proposed for the
district
shall be identified and explained. At the hearing the developer or
devel-
opers that have contracted with the city to undertake such project
shall
be identified and present in person or through such developer's
repre-
sentative. Following the presentation, all interested persons shall
be given
an opportunity to be heard. The governing body for good cause
shown
may recess such hearing to a time and date certain, which shall be
fixed
in the presence of persons in attendance at the hearing.
(b) Upon the conclusion of the public hearing, the governing
body
may adopt the plan for the district and may establish the district
by or-
dinance or, in the case of any county, by resolution. The
boundaries of
such district shall not include any area not designated in the
notice re-
quired by New Section 5. Any addition of area to the district or
any
substantial change to the plan shall be subject to the same
procedure for
public notice and hearing as required for the initial establishment
of the
district.
(c) The ordinance or resolution establishing the district
shall be null
and void if, within 30 days following the conclusion of the
hearing:
(1) the board of education levying taxes on such property
determines
by resolution that the proposed district will have an adverse
effect on
such school district;
(2) the governing body of any city located within three miles
of dis-
trict proposed to be established by a county determines by
ordinance that
the proposed district will have an adverse effect on such city;
or
(3) The board of county commissioners of the county in which a
city
governing body proposes to establish such a district.
Sec. 7. (a) Any governing body which has established a
rural housing
incentive district as provided in this act may purchase or
otherwise ac-
quire real property; however, the property may not be acquired
through
the exercise of the power of eminent domain. Relocation assistance
pay-
ments shall be provided by the city or county in accordance with
the
provisions of K.S.A. 12-1777, and amendments thereto to any
tenants
required to be relocated as a result of the acquisition of such
property
for any project in the district.
(b) Any property acquired by a city or county under this act
may be
sold or leased to any developer, in accordance with the rural
housing
incentive plan and under such conditions as shall have been agreed
to
prior to the adoption of the plan. The city or county and the
developer
may agree to any additional terms and conditions, but if the
developer
requests to be released from any obligations agreed to and embodied
in
the plan, such release shall constitute a substantial change and
subject to
the requirements provided in subsection (b) of new section 6.
Sec. 8. (a) (1) Any city or county which has established
a housing
incentive district as provided in this act may issue special
obligation bonds
to finance the implementation of the plan adopted for the district
by the
governing body. Such special obligation bonds shall be made
payable,
both as to principal and interest:
(A) From property tax increments allocated to, and paid into a
special
fund of the city or county under the provisions of subsection (b)
of new
section 10, and amendments thereto;
(B) from revenues of the city or county derived from or held
in con-
nection with the implementation of the project or projects in the
district;
(C) from any private sources, contributions or other financial
assis-
tance from the state or federal government;
(D) from any financial sureties or other guarantees provided
by the
developer;
(E) from a pledge of any other lawfully available city or
county rev-
enue sources, including, but not limited to: (I) a portion of all
increased
franchise fees collected from utilities and other businesses using
public
rights-of-way within the district; or (2) a portion of the sales
and use tax
revenues received by the city or county and collected pursuant to
K.S.A.
12-187, and amendments thereto; or
(F) by any combination of these methods.
The city or county may pledge such revenue to the repayment of
such
special obligations bonds prior to, simultaneously with, or
subsequent to
the issuance of such special obligation bonds.
(2) Bonds issued under this subsection shall not be general
obliga-
tions of the city or county, not in any event shall they give rise
to a charge
against the general credit or taxing powers of the city or county,
or be
payable out of any funds or properties other than any of those set
forth
in this subsection. Such bonds shall so state on their face.
(3) The bonds issued under the provisions of this subsection
shall be
special obligations of the city or county and are declared to be
negotiable
instruments. The bonds shall be executed by the mayor and clerk of
the
city or, in the case of counties, by the chairman of the board of
county
commissioners and clerk of the county, and shall be sealed with the
cor-
porate seal of the city or the seal of the county. All details
pertaining to
the issuance of such special obligation bonds shall be determined
by or-
dinance of the city or resolution of the county. All special
obligation bonds
issued pursuant to this act shall be exempt from all state taxes
except
inheritance taxes. The special obligation bonds shall contain none
of the
recitals set forth in K.S.A. 10-112, and amendments thereto. The
special
obligation bonds shall contain the following recitals, viz., the
authority
under which such special obligation bonds are issued, they are in
con-
formity with the provisions, restrictions and limitations thereof,
and that
such special obligation bonds and the interest thereon are to be
paid from
the money and revenue received as provided in paragraph (1) of
this
subsection.
(4) The maximum maturity on bonds issued to finance projects
pur-
suant to this act shall not exceed 15 years.
(5) Any city or county issuing special obligation bonds under
the pro-
visions of this act may refund all or part of such issue pursuant
to the
provisions of K.S.A. 10-116a, and amendments thereto.
(b) In the event the city or county shall default in the
payment of any
special obligation bonds as authorized pursuant to paragraph (1) of
sub-
section (a) of this section, and amendments thereto, no public
funds shall
be used to pay the holders thereof except as otherwise specifically
au-
thorized in this act.
(c) Any and all terms, conditions, exclusions and limitations
which are
otherwise applicable to bonds issued by authority of K.S.A.
12-1774, shall
also be applicable to bonds issued pursuant to this section.
Sec. 9. (a) Any city or county which has established a
rural housing
incentive district may use the proceeds of special obligation bonds
issued
under new section 8, and amendments thereto, or any uncommitted
funds
derived from those sources of revenue set forth in paragraph (1) of
sub-
section (a) of new section 8, to implement specific projects
identified
within the rural housing incentive district plan including, without
limi-
tation:
(1) Acquisition of property within the specific project area
or areas
as provided in new section 7;
(2) payment of relocation assistance;
(3) site preparation;
(4) sanitary and storm sewers and lift stations;
(5) drainage conduits, channels and levees;
(6) street grading, paving, graveling, macadamizing, curbing,
gutter-
ing and surfacing;
(7) street lighting fixtures, connection and facilities;
(8) underground gas, water, heating, and electrical services
and con-
nections located within the public right-of-way;
(9) sidewalks; and
(10) water mains and extensions.
(b) None of the proceeds from the sale of special obligation
bonds
issued under new section 8 shall be used for the construction of
buildings
or other structures to be owned by or to be leased to any developer
of a
residential housing project within the district.
Sec. 10. (a) All taxable tangible property located within
a district es-
tablished in accordance with this act shall be assessed and taxed
for ad
valorem tax purposes pursuant to law in the same manner that such
prop-
erty would be assessed and taxed if located outside such district,
and all
ad valorem taxes levied on such property shall be paid to and
collected
by the county treasurer in the same manner as other taxes are paid
and
collected. Except as otherwise provided in this section, the county
trea-
surer shall distribute such taxes as may be collected in the same
manner
as if such property were located outside the district. Each
district estab-
lished under the provisions of this act shall constitute a separate
taxing
unit for the purpose of the computation and levy of taxes.
(b) Beginning with the first payment of taxes which are levied
follow-
ing the date of the approval of any district in accordance with
this act,
and amendments thereto, real property taxes received by the county
trea-
surer resulting from taxes which are levied subject to the
provisions of
this act by and for the benefit of a taxing subdivision on property
located
within such district constituting a separate taxing unit under the
provi-
sions of this section, shall be divided as follows:
(1) From the taxes levied each year subject to the provisions
of this
act by or for each taxing subdivisions upon property located within
a
district constituting a separate taxing unit under the provisions
of this act,
the county treasurer first shall allocate and pay to each such
taxing sub-
division all of the real property taxes collected which are
produced from
that portion of the current assessed valuation of such real
property located
within such separate taxing unit which is equal to the total
assessed value
of such real property on the date of the establishment of the
district.
(2) Any real property taxes produced from that portion of the
current
assessed valuation of real property within a district and
constituting a
separate taxing unit under the provisions of this section in excess
of an
amount equal to the total assessed value of such real property on
the
effective date of the establishment of the district shall be
allocated and
paid by the county treasurer to the treasurer as follows:
(A) In districts established by a city, the amount shall be
paid to the
treasurer of the city and deposited in a special fund of the city
to pay the
cost of housing projects in the district including the payment of
principal
of and interest on any special obligation bonds issued by such city
to
finance, in whole or in part, such housing project.
(B) In districts established by a county, the amount shall be
deposited
by the county treasurer in a special fund of the county to pay the
cost of
housing projects in the district including the payment of principal
of and
interest on any special obligation bonds issued by such county to
finance,
in whole or in part, such housing project. If such special
obligation bonds
and interest thereon have been paid before the completion of a
project,
the city or county may continue to use such moneys for any
purpose
authorized by this act until such time as the project is completed,
but for
not to exceed 15 years from the date of the establishment of the
district.
When such special obligation bonds and interest thereon have been
paid
and the project is completed, all moneys thereafter received from
real
property taxes within such district shall be allocated and paid to
the re-
spective taxing subdivisions in the same manner as are other ad
valorem
taxes.
(c) Notwithstanding any other provision of law, it is hereby
stated
that is an object of all ad valorem taxes levied by or for the
benefit of any
taxing subdivision on taxable tangible real property located within
any
district created pursuant to this act, that such taxes may be
applied and
allocated to and when collected paid into a special fund of a city
or county
pursuant to the procedures and limitations of this act to pay the
cost of
a project including principal of and interest on special obligation
bonds
issued by such city or county to finance, in whole or in part, such
project.
Sec. 11. (a) After the adoption by the governing body of
a plan which
contains the provisions required by new section 5, the clerk of the
city or
county shall transmit a copy of the description of the land within
the
district, a copy of the ordinance or resolution adopting the plan
and a
map or plat indicating the boundaries of the district, to the
clerk, appraiser
and treasurer of the county in which the district is located and to
the
governing bodies of any taxing subdivision which levy taxes upon
any
property in the district. Such documents shall be transmitted as
promptly
as practicable following the adoption or modification of the plan,
but in
any event, on or before the January 1st next following the adoption
or
modification of the plan.
(b) The appraiser of any county in which a district is
authorized by a
city or county shall certify the amount of such increase in
assessed valu-
ation of real and personal property within the district to the
county clerk
on or before July 1 of each year.
Sec. 12. Sections 12 through 16 of this act shall be
known and may
be cited as the smoke detector act.
Sec. 13. When used in this act:
(a) ``Dwelling unit'' means a single-family residence,
multiple-family
residence and each living unit in a mixed-use building.
(b) ``Smoke detector'' means a device or combination of
devices
which operate from a power supply in the dwelling unit or at the
point
of installation for the purpose of detecting visible or invisible
particles of
combustion. Such term shall include smoke detectors approved or
listed
for the purpose for which they are intended by an approved
independent
testing laboratory.
Sec. 14. (a) Every single-family residence shall have at
least one
smoke detector on every story of the dwelling unit.
(b) Every structure which:
(1) Contains more than one dwelling unit; or
(2) contains at least one dwelling unit and is a mixed-use
structure,
shall contain at least one smoke detector at the uppermost ceiling
of each
interior stairwell and on every story in each dwelling unit.
(c) The owner of a structure shall supply and install all
required
smoke detectors. The owner of a structure shall test and maintain
all
smoke detectors except inside rental units, the occupant shall test
and
maintain all smoke detectors after taking possession of the
dwelling unit.
(d) The smoke detectors required in dwelling units in
existence on
January 1, 1999, may either be battery-powered or wired into the
struc-
ture's electrical system, and need not be interconnected. The smoke
de-
tectors required in dwelling units constructed after January 1,
1999, shall
be wired permanently into the structure's electrical system.
(e) For purposes of this act, manufactured homes as defined in
K.S.A.
58-4202, and amendments thereto, shall be subject to the federal,
man-
ufactured home construction and safety standards established
pursuant
to 42 U.S.C. § 5403 in lieu of the standards set forth herein.
Owners and
occupants of such manufactured homes shall be subject to the
testing and
maintenance standards for smoke detectors required under this
act.
(f) Officials responsible for the enforcement of the smoke
detector
act shall not enter a dwelling unit solely for the purpose of
determining
compliance with the provisions of the smoke detector act except
when:
(1) Conducting an inspection prior to the issuance of an
occupancy
permit or building permit;
(2) responding to a report of a fire in a dwelling unit,
except in cases
of a false alarm; or
(3) conducting, at the request of the owner or occupant, a
home
safety inspection.
(g) Evidence of the failure of any property owner to provide
an op-
erational smoke detector in a residence as required by this section
shall
not be admissible in any action for the purpose of determining any
aspect
of civil liability.
Evidence of the failure of any occupant to properly maintain a
smoke
detector as required by this section shall not be admissible in any
action
for the purpose of determining any aspect of civil liability.
(h) The provisions of the smoke detector act shall not
constitute
grounds for the purpose of offsetting, reducing or denying the
payment
of amounts due under any contract for or policy of insurance.
Sec. 15. Failure to place or maintain a smoke detector as
provided
by the smoke detector act shall be a nonclass nonperson
misdemeanor.
Any fine imposed for a violation of this section shall not exceed
$25.
Sec. 16. This law shall be in addition to any county
resolution or city
ordinance relating to regulation of smoke detectors.
Sec. 17. This act shall take effect and be in force from
and after its
publication in the statute book.
Approved April 8, 1998
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