City commissioners voted to extend the New Construction Homebuyer Incentive Program Monday morning.
McPherson City Administrator Nick Gregory says the program was established in 2013.
“The NCHIP program was started as an incentive to try to sell new homes in McPherson and try to encourage the growth and expansion of housing in McPherson,” Gregory said.
Part of the NCHIP program allots for an up-front, $2,000 incentive to be paid at closing for any new home buyer. The program also provides a rebate on the city's portion of the real property taxes for up to four years, which will be paid in diminishing returns over the period until the home is fully on the property tax rolls for the city by the fifth year of ownership.
Gregory feels the program has been a successful one with both homeowners and developers.
“One of the main reasons to renew it for the upcoming years is that we do have a developer that has indicated they're going to do a significant number of houses,” Gregory said. “And we want to make sure we encourage that developer, and other developers, to continue to look at new housing in McPherson.”
The program had 13 homeowners sign up for the program in 2013, with an additional 20 in 2014. This year, to date, around 15 have signed up.
The renewal is good only for an additional two years and will lapse in 2017.