Missouri Housing Incentives Bill Sent to Governor for Signature

Missouri lawmakers have passed a significant housing development bill, now awaiting Governor Mike Kehoe's signature. The legislation aims to spur housing growth across the state, from urban centers to rural communities, by establishing Missouri Innovation Zones. These zones offer property tax abatements, tax increment financing, and a new office-to-residential conversion tax credit without requiring separate redevelopment approvals for each project. A key provision allocates up to $50 million annually for converting vacant commercial buildings into housing, with half reserved for large structures in downtown St. Louis, such as the AT&T and Railway Exchange buildings. The bill emphasizes voluntary participation, preserving local zoning authority while incentivizing developers through a master scorecard system. Additionally, it expands the State Supplemental Downtown Development Program and allows municipalities to capture residential income tax for project costs. High-wealth cities must share sales tax gains with smaller communities to support rural housing stabilization. If signed, the law will take effect on August 28, marking a strategic shift toward incentivizing redevelopment rather than preempting local control.