The Housing Credit Program, administered by the Kentucky Housing Corporation, is a financing mechanism widely utilized to help fund the development of permanent, affordable rental housing throughout the Commonwealth of Kentucky and the United States. The program uses federal investment tax credit for specifically approved housing developments.
Two key provisions of the Housing Credit Program ensure that the housing units developed meet a community’s needs for safe, decent, affordable housing.
- First, maximum rent limits are imposed on any units assisted with the tax credits.
- Second, the occupancy of any unit assisted is limited to households with incomes at or less than 60% of the area median adjusted for family size.
These rent and household income guidelines are adjusted annually, and are created to allow a resident the choice of where to live anywhere in our community.
Louisville Metro strongly encourages Housing Credit Program developments that serve a mixed-income population and, unless they meet a special (i.e., senior housing), are not located in areas that contain undo concentrations of lower income persons or pockets of poverty.
There are no Section 8 Housing Certificates or Vouchers tied to housing developments funded in whole or in part through the Housing Credit Program.
As part of its review and approval process, KHC requires all applicants to submit a letter of endorsement from the highest official of local government in which a proposed development will be located. Prior to considering the endorsement of any specific development, Louisville Metro Housing and Community Development (LMHCD) first advises the Mayor and the Metro Councilperson of each Housing Credit Program proposal received, and then performs a thorough review and analysis of each proposed housing development.
Several topics are considered including:
- Character and prior history of the developer and the investors;
- Design of the proposed development;
- Availability of supportive infrastructure and services;
- Consistency of the proposed development with existing neighborhood plans and the Comprehensive Housing Strategy;
- Financial feasibility;
- Project management plan
In 2005, KHC approved and awarded housing credits to three housing developments in Louisville Metro:
4615 Cane Run Road, Cane Run Partners Ltd. (48 – 2 and 3 bdrm units, families)
326-330 Meeting Street, Norton Commons Residences (24 – 1 and 2 bdrm units, seniors)
5200 Shepherdsville Road, Willow Creek Manor Apartments (24 – 1 and 2 bdrm units, families)