Proposed RHID Project: Financial Impact Analysis for USD 469
Lansing USD 469 has evaluated the financial implications of a proposed Rural Housing Incentive District (RHID) project within the City of Lansing. The RHID initiative is designed to spur housing development in response to a shortage of available homes. To help the community understand the impact on school district finances, two scenarios have been analyzed.
What Is the RHID?
An RHID allows cities and counties to redirect new property tax revenue generated from residential development back into infrastructure and housing-related projects in designated areas. These districts can remain active for up to 25 years. While they support growth, they also affect the revenue available to local taxing bodies, including school districts.
Financial Scenario 1: RHID Project with Full Mill Levy (Including Capital Outlay)
This scenario assumes USD 469 continues to collect the full levy, which includes:
Supplemental General Fund (LOB)
Bond & Interest Fund
Capital Outlay
Key Details:
417 homes built over 20 years (about 52 per year)
Average home price: $300,000
Assessed valuation growth: 4.2% annually
Total projected revenue not captured from the RHID: $12.8 million by 2045
Under this scenario, the RHID captures tax revenue that would typically fund core district services, requiring continued high mill levy rates to support bond obligations.
Financial Scenario 2: RHID Project Without Capital Outlay Collection
In this version, the RHID is implemented without capturing the capital outlay mill levy, which slightly reduces the financial burden on the district.
Key Adjustments:
The district retains capital outlay tax revenue.
However, other funds like the Bond & Interest and LOB levies are still partially redirected under RHID guidelines.
Financial Outcomes:
The total lost revenue is still significant but somewhat reduced compared to Scenario 1.
Mill levy rates can be maintained more easily at near-historic levels, but with fewer RHID obligations covered.
This approach balances infrastructure development support with a more conservative impact on school district finances.
also affect the revenue available to local taxing bodies, including school districts.
Financial Scenario 3: RHID Project with 80/20 Levy Split
This hybrid scenario assumes the district retains 20% of the tax revenue from certain levies (such as Bond & Interest), while 80% is redirected to RHID infrastructure projects.
Key Details:
411 homes projected (25 per year)
Combined mill levy impact for LOB and Bond & Interest: 31.288 mills
Estimated revenue captured by RHID: $7.17 million
This 80/20 option offers a middle-ground approach, softening the financial impact on the district while still contributing meaningfully to infrastructure needs. It allows partial funding retention for district priorities, while still enabling RHID to function effectively.
Looking Ahead
USD 469 remains committed to fiscal responsibility and transparent communication. These financial analyses will help guide future discussions with the community, city officials, and developers. The goal is to ensure any growth initiative like RHID continues to support our ability to provide quality education to Lansing students.