Communities claim home incentives a success

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July 02, 2012|by Melissa Scheffler | KWCH 12 Eyewitness News

(BUHLER, Kan.) — Numbers show Wichita-area new home sales in May increased by 12-percent from April. Local builders are optimistic about the news. They say incentive packages may be helping the increase.

A block party hosted by the City of Buhler isn't child's play.

"We haven't had any (new homes) built here in the last year or so, so (we) kind of want to get more people in here," Realtor Richard Ediger said.

The Prairie Park development served as the back-drop for the city's new housing incentive that includes a tax rebate.

"The first and second year are 80-percent and then it tiers down for seven years—where you pay your taxes and then later you get a significant tax rebate for living out here," Buhler Economic Development Coordinator Janet Burr said.

Like Buhler, Wichita launched its own program a few months ago. A buyer of a new home will get a tax rebate check from the city after living a full year in the home.

"That will go on for five years, assuming they live in the home for five years," Wichita Area Builders Association President Wess Galyon said.

Galyon pushed for the program. He says it's working. Since it started in February, he says 127 new homes are now under contract.

"I think what it is doing is creating some synergy in the market place. The economy is getting better gradually," Galyon said.

Maize claims it was the first in the area to start offering new home incentives. It's initial program started in 2009. It was a water credit.

"It's either two, four, or six thousand dollars’ worth of a water credit," Maize Deputy City Administrator Becky Bouska said.

In August 2011, Maize started a tax rebate program as well. Since Maize started its programs, 66 new homes have been sold.

"I think we're leading other communities. I don't think we are competing with other communities,” Bouska said.

Galyon says these housing incentives are helping the market. He points to the increase in building permits in the area. Galyon says they're up by 22-percent for this region, compared to last year at this time.

"I think we're in the early stages of seeing a trend start to develop that's going to be sustainable," Galyon said.

There is at least one down-side to the tax rebate programs. Your rebate could be considered taxable income. You will need to talk to your tax consultant for advice.

Communities offering incentive programs:
--Andover
--Augusta
--Bel Aire
--El Dorado
--Garden Plain
--Haysville
--Maize
--Rose Hill
--Wichita

The City of Buhler just announced an incentive package for buying a new home.

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