The Small Multifamily Affordable Loan Program (SMAL) is designed to increase the supply of affordable rental housing for lower-income individuals. The program makes it easier for developers to build smaller projects than with more traditional sources of funding. One of the benefits of the SMAL Program is that, when used as a sole source of funding, it serves people whose incomes are too high to receive assistance with other KHC programs.
SMAL funding is used for permanent financing and construction. SMAL funds cannot be used for refinancing. Eligible applicants include nonprofit and for-profit builders, developers and units of local government.
When SMAL funds are solely used to finance a development, eligible households must have incomes at or below 120 percent of the area median income. The SMAL Program is extremely flexible and can be combined with other KHC financing to reach lower-income families.
Rents should be projected at 30 percent of the income level of the targeted population and may not exceed the rent limits for this program. SMAL may not be used for developments exceeding 11 units.
The Multifamily Finance offers one competitive application for all KHC-funding sources. Applications are received and scored based upon capacity of development team, project design, financial feasibility, readiness to proceed, and market need.
Eligible applicants for this source of funding are nonprofit organizations, for-profit entities, and units of local government.
For more information, contact:
Kentucky Housing Corporation | 1231 Louisville Rd., Frankfort,
KY 40601 502-564-7630; 800-633-8896 (KY only); TTY 711