Kansas housing developers can get state funds for projects connected to economic development
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Housing developers will now be able to get state help for home projects related to economic development, the governor's office announced Thursday.
The Startup Housing Opportunity Venture Loan program, or SHOVL, is intended to help build houses to address the needs of communities across Kansas, Gov. Laura Kelly said.
"A shortage of quality, affordable housing is a barrier to economic growth and development throughout the state — and particularly in rural Kansas," Kelly said in a statement. "Affordable housing is a vital component of recruiting and retaining workers, families, and entrepreneurs to help rural and urban Kansas thrive.
"We can’t capitalize on our record-breaking economic success if we don’t have affordable housing options for our workforce, and I’m pleased this new program will be another step in addressing this challenge."
The SHOVL program will provide funding to housing developers for expenses incurred before the closing of permanent financing for housing developments. No-interest loans of up to $25,000, with a required 20% match, available to private developers, non-profit organizations and local governments looking to construct housing developments in communities with populations of fewer than 10,000 people.
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To be eligible, developers must show a direct connection to past, current or future economic development efforts. Examples include new job creation, attraction of new businesses, expansion plans by local businesses and pending development projects or job retention plans dependent on adequate or additional housing.
The governor's office said that economic development is "highly dependent on available and adequate housing."
"We remain committed to finding creative ways to assist developers in finding the funding they need to get projects started," said Lt. Gov. and Commerce Secretary David Toland. "Housing is critical to economic development and we must continue to invest in housing in order to attract new businesses and new residents to the state."
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More information is available online from the Department of Commerce at www.kansascommerce.gov/shovl/.
Jason Tidd is a statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jtidd@gannett.com. Follow him on Twitter @Jason_Tidd.
This article originally appeared on Topeka Capital-Journal: Kansas SHOVL program will help build houses in rural towns
