Kentucky Housing Corporation Announces Recipients of
Tax-Exempt Bond Funding

Kentucky Housing Corporation, the state housing finance agency for Kentucky, has announced the recipients of tax-exempt bond financing to be used for the construction and rehabilitation of 959 affordable rental housing units.           

Conduit financing allows developers to sell tax-exempt bonds in the name of Kentucky Housing Corporation, thereby taking advantage of Kentucky Housing’s superior bond rating.  Kentucky Housing currently holds a rating of AAA, the highest available, meaning that Kentucky Housing bonds are among the safest investments available.  

The four recipients were randomly drawn from a list of all qualifying applicants and will receive a total of nearly $24 million in tax-exempt bonds.  Two HOPE VI projects also received funding through a set-aside.  Each developer will then issue the bonds on the open market to increase revenue for their affordable housing projects.  Although Kentucky Housing serves as the issuer of the bonds, the developer assumes the risk and responsibility of repayment of the debt.  Only developers with previous tax-exempt bond financing experience were eligible to receive funding. 

“Unfortunately, the need for affordable housing in Kentucky currently outweighs the resources available,” said Ben A. Cook, chief executive officer of Kentucky Housing Corporation.  “This innovative program allows us to use our superior bond rating to provide safe, decent and affordable housing for thousands of Kentuckians that we may not have been able to help otherwise.  It’s a good deal for us and a good deal for these communities.” 

Over the past three years, Kentucky Housing has allocated more than $93 million using this kind of conduit financing to create 1,918 units of affordable housing around the state.  Kentucky Housing anticipates another funding round for the tax-exempt bond program later this year. 

For more information on the tax-exempt bond program, contact Susan Cottingham with Kentucky Housing Corporation toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 424; TTY 711; or email scottingham@kyhousing.org. 

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www.kyhousing.org

Kentucky Housing Corporation, the state housing finance agency, was created by the 1972 General Assembly to provide affordable housing opportunities.  As a self-supporting, public corporation, Kentucky Housing offers lower-than-market rate home mortgages, housing production financing, homeownership education/counseling, rental assistance, housing rehabilitation and supportive housing programs for special needs populations. Kentucky Housing Corporation prohibits discrimination in employment based on race, color, religion, sex, national origin, sexual orientation, gender identity, ancestry, age, disability or veteran status.

Tax-Exempt Bond Financing Recipients
Summer 2007