Fannie Mae Financing
Incentive:
Fannie Mae sponsors programs that provide equity capital or debt purchase to enable the financing of affordable single-family, multi-family, and mixed-use housing projects. Fannie Mae also encourages transit-oriented and energy-efficient construction projects. Overall, the Fannie Mae website features a broad array of financing options for a wide range of housing products and investment vehicles. Readers are urged to visit www.fanniemae.com to view the extensive selection of financial aid and variety of programs.
Purpose:
Increase of affordable housing stock and neighborhood revitalization. It is a private, shareholder-owned company created by Congress.
Principal Criteria:
Preference for experienced developers.
Contact Information:
Brenda Weaver
300 W. Vine Street
Suite 810
Lexington, KY 40507
Phone: (859) 226-5140
Historic Preservation Federal Tax Investment Credits
Incentive:
Federal Investment Tax Credit of 10% or 20% of rehabilitation costs:
- 20% credit is applicable to historical structures listed or eligible for listing in the National Register of Historic Places and certified for conformance with the Secretary of the Interior's Standard's for Rehabilitation by the National Park Service.
- 10% credit is applicable to non-certified structures built before 1936. To claim 10% credit, the building must be income-producing but cannot be used as a residential property.
Purpose:
Rehabilitation of income producing historic structures and revitalization of historic neighborhoods.
Building must be depreciable.
Owner must hold onto building for at least 5 years or else pay back all or a prorated portion of the tax credit claim.
Principal Criteria:
Only income producing properties in need of substantial rehabilitation are eligible.
Contact Information:
Scot Walters
Kentucky Heritage Council
300 Washington Street
Frankfort, Kentucky 40601
(502) 564-7005 ext.141
(502) 564-5820 (fax)
scot.walters@ky.gov
http://www.heritage.ky.gov
Low Income Rental Housing Federal Tax Credits
Incentive:
Federal Low Income Housing Tax Credits enable property owners to claim a tax credit equal to 30% or 70% of a project’s present value, depending on the type of project. The tax credit is claimed over a period of 10 years and can be realized either through the sale of tax-exempt bonds or through an allocation from the Kentucky Housing Corporation.
Purpose:
To increase the supply and availability of low-income rental housing by offering incentives to developers.
Principal Criteria:
All units receiving the tax credit must rent to people earning 50%-60% or less of the area median income. Overall, any project utilizing the tax credit must rent at least 1/5 of the units to families earning 50% or less of area median income or rent at least 2/5 of the units to families earning 60% of area median income.
The property must remain eligible for low-income tenants for at least 30 years.
Contact Information:
Walter Clare
Housing Credit Program
Kentucky Housing Corporation
1231 Louisville Road
Frankfort, Kentucky 40601
(502) 564-7630 ext. 264
wclare@kyhousing.org
State Residential
Affordable Housing Development Subsidized Loans
Incentive:
Low interest loans for new construction, rehabilitation, site or land development, acquisition or construction of affordable houses.
Purpose:
To facilitate the construction of affordable housing.
Principal Criteria:
Housing costs are subject to KHC's "purchase price limits" in order to be eligible.
Home buyers subject to KHC income guidelines.
Contact Information:
Geri Meyers
Housing Development Fund
Kentucky Housing Corporation
1231 Louisville Road
Frankfort, Kentucky 40601
(502) 564-7630 ext. 356
gmeyers@kyhousing.org
Affordable Rental Housing Risk-Sharing Finance
Incentive:
Financing and risk-free mortgage insurance to developers for new construction projects, acquisition projects, and acquisition with substantial rehabilitation for family, elderly, and/or assisted-living apartment projects. Mortgage insurance risk shared by HUD and the KHC at the respective percentage rates of 75% and 25%.
Purpose:
Creation of affordable multi-family rental housing.
Principal Criteria:
A property needs analysis may be required.
Contact Information:
Mark Offerman
Risk-Sharing Program
Kentucky Housing Corporation
1231 Louisville Road
Frankfort, Kentucky 40601
(502) 564-7630 ext. 266
mofferman@kyhousing.org
Small Multifamily Low-Interest Construction Loans
Incentive:
Low-interest loans at rates no lower than 3.5% for construction and/or permanent financing of affordable housing development. The KHC website also contains a comprehensive list of hyperlinks to a wide range of related assisted-housing programs. See “Housing Links”.
Purpose:
To increase the supply of rental housing for low-income individuals.
Principal Criteria:
Projects are not to exceed 11 dwelling units.
Interest rates are set at the highest possible rate that the program can afford.
Contact Information:
Kim Lyon
Small Multifamily Affordable Loan Program (SMAL)
Kentucky Housing Corporation
1231 Louisville Road
Frankfort, Kentucky 40601
(502) 564-7630 ext. 318
(800) 633-8896 (KY only)
klyon@kyhousing.org
Local Residential
HOME Investment Partnerships Grants
Incentive:
Grants to provide funding that assists affordable housing developers with construction, rehabilitation, land acquisition, and/or site improvement costs.
Purpose:
To increase affordable housing opportunities to low to moderate-income families.
Principal Criteria:
Projects subject to local matching fund requirement.
Tenants subject to rent and income limits.
Regulatory oversight requirements.
Contact Information:
Ms. Paula King, HOME Coordinator
Division of Housing and Community Development
200 E. Main St., Sixth Floor
Lexington, KY 40507
Phone: 606-258-3070
Fax: 606-258-3081
Lead-Based Paint Hazard Control Grants
Incentive:
Grants to cover the entire cost of lead removal/remediation with 10% local funding match requirement. Technical assistance is also available.
Purpose:
Elimination of lead hazards in private and low-income homes.
Principal Criteria:
Privately owned homes built before 1978 that have lead paint hazards, which may include lead contaminated dust or soil.
To be eligible, homes must be occupied by or rented to low-income families.
Contact Information:
Ms. Paula King
Division of Housing and Community Development
200 E. Main St., Sixth Floor
Lexington, KY 40507
Phone: 606-258-3070
Fax: 606-258-3081
Low/Moderate Income Homeowner Rehabilitation Grants
Incentive:
Grants or low-interest loans of up to $18,000 to make home improvements.
Purpose:
Elimination of below-code housing and improved housing conditions.
Principal Criteria:
Low to moderate income home owners.
Amounts based upon family size and income.
Contact Information:
Homeowner Rehabilitation Program
Division of Community Development
Lexington Fayette Urban County Government
200 East Main Street, 6th Floor
Lexington, Kentucky 40507
(859)258-3070
OTHER INFORMATION
DISCLAIMER -– LFUCG provides this information as a service and convenience to the public-at-large. LFUCG makes no claims nor guarantees about the accuracy or completeness of the contents of this website and encourages all readers to contact the
organizations responsible for each incentive program to obtain complete and correct information. This website does not constitute an endorsement or recommendation by the LFUCG of any particular program nor is LFUCG responsible for the content or activities of any linked site.
