Pottawatomie County Commission Approves 25-Year Rural Housing Incentive District Policy

The Pottawatomie County Commission unanimously approved a resolution Monday establishing policy and procedures for Rural Housing Incentive Districts (RHID), setting a maximum term of 25 years for future housing developments in the county.

Resolution 2025-44 creates a framework for considering and granting RHID financing for residential development in Pottawatomie County. The commission initially debated whether to cap the incentive period at 15 or 25 years before ultimately agreeing on the longer timeframe.

Commissioner Dee McKee initially made a motion to approve the resolution with a 20-year term, which failed due to lack of a second. Another commissioner then proposed amending the term to 25 years, which gained support from the rest of the commission.

During discussion, commissioners noted that the RHID program is designed to help developers recoup infrastructure costs through property tax incentives. The incentive period begins when the state approves the district, with developers typically needing a couple of years to begin construction.

The resolution specifies that the average lot size for developments should not exceed 0.2 acres, allowing some flexibility for corner lots and varying lot configurations.

School districts will have input on RHID proposals, with a 30-day window to review and approve projects. If a school district does not agree with a proposed RHID, the project would not move forward under the incentive program.

Commissioners emphasized that the RHID program does not eliminate existing property taxes but rather defers taxes on new improvements to help finance infrastructure costs. Once developers recoup 100% of their infrastructure costs, the RHID incentive ends, even if that occurs before the maximum term.

The resolution represents a significant policy addition to the county's economic development toolkit aimed at encouraging residential development.