Multifamily Development
Forecasted
Multifamily Development supports Kentucky development partners with financing for new construction and rehabilitation to create and preserve affordable multifamily rental housing across the state.
Funder: Kentucky Housing Corporation
Due Dates (Anticipated): January 2027 (Annual competitive cycle)
Funding Amounts: Tax credits, tax-exempt bonds, and gap financing; predevelopment loans up to $750,000 for up to 18 months
Summary: Supports the creation and preservation of affordable rental housing in Kentucky through development financing.
Key Information: Predevelopment loans are available only to developers awarded a KHC 4% or 9% LIHTC commitment.
Description
Kentucky Housing Corporation (KHC) finances the creation and preservation of affordable multifamily rental housing across Kentucky. It administers the federal Low-Income Housing Tax Credit (LIHTC) program under Section 42 of the Internal Revenue Code and the rental housing Tax-Exempt Bond program under Section 142(d). KHC also offers gap financing that may be paired with housing credits or bonds.
Through an annual competitive process, KHC works with development partners to award housing credits, low-interest loans, and bond allocations. Developers submit a separate application for each rental property during the single competitive cycle. A related Predevelopment Loan Product finances predevelopment and preconstruction costs for new construction or substantial rehabilitation projects receiving KHC housing credit commitments.
