Mayor Lucas, don’t bypass the public and City Council in KC incentive discussions

Kansas City Mayor Quinton Lucas has proposed an audacious framework for changing the city’s housing and incentives policy, including major adjustments in how projects are reviewed.

The proposal relaxes affordable housing requirements for private developers who get tax breaks and subsidies. It leans on borrowing $50 million for the Housing Trust Fund to subsidize affordable housing projects instead.

The money would be available only if voters approve a $50 million bond issue this November. They may also be asked to borrow another $125 million for other city projects.

Lucas also wants to “streamline” the incentive process by allowing city staff to unilaterally approve a standard package of goodies for developers, apparently shutting out the City Council, several boards and commissions, and the public from the vetting process.

Count us as skeptical. Kansas City’s independent incentive review process can be streamlined, but it should not be canceled. No unelected bureaucrat should have the power to authorize millions in tax breaks and subsidies without public input.

We also need far more detail on the bond issues. One question includes the $50 million Housing Trust Fund cash, with the other question concerning funds for “public buildings, parks, recreation and entertainment facilities.” While the vote would come in November, the City Council must decide by Aug. 30 if it wants the questions on the ballot. That isn’t much time — less than three weeks.

Count us confused as well. There was a time Lucas was an advocate for tough affordable housing requirements.

In January 2021, the City Council required apartment builders seeking incentives to set aside 10% of their new units as “affordable.” In 2022, an “affordable” one-bedroom apartment would cost no more than $1,212 a month in rent and utilities for a couple earning up to $48,496 a year.

Another 10% would have to be set aside as “extremely” affordable apartments, which would be about $581 a month for a couple earning $23,250 annually, according to figures compiled by the city manager’s office.

If a builder wanted incentives, but didn’t want the set-asides, he or she could make a payment to the Housing Trust Fund instead.

“At a time when so many lack access to safe, quality, and affordable housing, this legislation shows that Kansas City cares about all people as we develop our city for the future,” the mayor tweeted in early 2021 when the measure passed.

Since then, developers have claimed the 2021 ordinance is too costly, and have backed away from building as a result. Lucas says he’s responding to that.

His plan? Requiring incentivized developers to set aside 20% of units for roughly $1,172 a month, including utilities, which he calls affordable for a couple earning $46,896.

Remember this: Developers are not automatically entitled to taxpayers subsidies and abatements. If a developer wants to build only market-rate homes, he or she is free to do so. If you want public help, on the other hand, you must help the public.

The Lucas proposal essentially shifts the affordable housing burden away from private developers receiving incentives and onto the rest of the city. That can’t be what Kansas Citians want.

We’re also deeply concerned about any ordinance creating a “standard” package of incentives that would not need independent review. The plan, it appears, would not only apply to housing but to a long list of other incentives as well.

Lucas wants efficiency. Kansas Citians should want a voice in handing out millions to the private sector. This part of the plan should be dead on arrival.

The plan includes a new ordinance allowing so-called “accessory dwelling units” behind existing homes. This idea has much more promise and should be pursued.

The rest seems rushed and undemocratic. It’s time to slow down and make sure Kansas City’s housing crisis doesn’t result in a windfall for private developers at taxpayers’ expense, or a more opaque government.