The Risk-Sharing Program is a mortgage insurance program that is combined with construction and permanent financing for the creation of multifamily rental housing. Mortgage insurance protects lenders against loss due to default. Under the Risk-Sharing Program, Kentucky Housing Corporation (KHC) and the U.S. Department of Housing and Urban Development "share" the full insurance risk. Only housing finance agencies or other government service entities can make loans insured under the Risk-Sharing Program.
KHC has partnered with HOPE of Kentucky, LLC and the Community Reinvestment Fund, USA to leverage KHC's permanent loan resources to assist qualified projects in obtaining Risk-Sharing loans.
The Risk-Sharing Program assists households at or below 60 percent of the area median income. Eligible applicants include nonprofit and for-profit builders and developers. The rental units are income-restricted based on the requirements of the loan funds used for financing.
For more information, contact:
Kentucky Housing Corporation | 1231 Louisville Rd., Frankfort,
KY 40601 502-564-7630; 800-633-8896 (KY only); TTY 711