Why are RHIDs being considered?
  • Lack of available housing.
  • Shortage of buildable lots.
  • Expense of extending public infrastructure to add buildable lots.
    • In recent years developers have asked if the City would consider incentivizing residential development by paying for a portion or all of the cost to extend public infrastructure and utilities to new subdivisions.  Historically the City had not paid for any portion of extending infrastructure, but Council could consider such an idea.  No developer has taken the effort to approach Council, but others continued to ask City staff the same question.  Staff looked at existing economic incentives approved by the City in 2017 for options to encourage residential development.  Residential development is the most likely type of development to occur in Louisburg in the near future.  Of the approved economic incentives, Tax Increment Financing (TIF) may be the most applicable.  A financial advising firm the City has used on other projects provided information about the use of TIF, but noted City might want to explore an alternative incentive allowed by the state—Rural Housing Incentive District (RHID).  To proceed with an RHID the City had to complete the housing assessment, receive state approval, and obtain approval from the required taxing entities.  The housing study, completed in March of 2019, was utilized by three separate developers to consider the type of housing they feel are marketable in Louisburg based on the needs identified, the cost of infrastructure and pace of development.

Show All Answers

1. What are Rural Housing Incentive Districts?
2. Why are RHIDs being considered?
3. What does this proposed incentive cost current taxpayers?
4. Are there other potential costs that will increase my property taxes?
5. What about burden on, or capacity of, utility systems?
6. The City will lose out on a lot of taxes over 15 years.
7. Why is the City considering this incentive now?
8. How will the City benefit from growth?