Creates or retains a total of 1,500 units in the first two years. The loan fund itself creates roughly 750 affordable units, but through housing filtering effects, will positively affect new 750 additional households for a total of 1,500 units. Louisville CARES creates a ladder to economic stability by creating opportunities for cost-burdened households to move into more affordable housing. As cost-burdened households move up the ladder to units that reduce or eliminate their cost-burden, they create space in the housing market for other cost-burdened families to find less expensive housing options. For example, if a cost-burdened household paying $600/month for housing is able to move into a new unit created through Louisville CARES, a second cost-burdened household paying $700/month for housing will be able to move into the less expensive vacant unit, which will reduce its cost burden. Part of a larger solution needed for new goal to work with the community to collectively create or retain 24,000 units by 2030. Demonstration of need and operational capacity to deploy this type of funding. Proof of concept for proposed incentives to create or retain affordable units. Program Timeline: May-June 2015 Budget reviewed and passed by Metro Council June-October 2015 Focus groups with private and non-profit developers, housing lenders, LAHTF Board Members, housing advocates, and other subject-matter experts to develop Louisville CARES Initiative lending criteria November-December Draft lending criteria released for public review and comment 2015 December 2015-January Louisville CARES Initiative base funding taken to bond market, 2016 bonds sold February 2016 Louisville CARES program launched, applications accepted on a rolling basis, funds awarded and deployed to coincide with award of tax credits and other project financing Other Questions: Q: Will Louisville CARES solve the entire problem of affordable housing? A: No. $11 million will only address about 5% of this a 15-year goal and be goal. But it’s we’ll looking for not only a recurring revenue source but other partners, including the Kentucky General Assembly, Kentucky Housing Corporation, the Louisville Metro Council, private lending community, developers, non-profits and foundations to help us address it. Affordable housing is a community-wide issue, and it will take a community-wide effort to fully address the need.
Creates or retains a total of 1,500 units in the first two years. The loan fund itself creates roughly 750 new affordable units, but through housing filtering effects, will positively affect 750 additional households for a total of 1,500 units. Louisville CARES creates a ladder to economic stability by creating opportunities for cost-burdened households to move into more affordable housing. As cost-burdened households move up the ladder to units that reduce or eliminate their cost-burden, they create space in the housing market for other cost-burdened families to find less expensive housing options. For example, if a cost-burdened household paying $600/month for housing is able to move into a new unit created through Louisville CARES, a second cost-burdened household paying $700/month for housing will be able to move into the less expensive vacant unit, which will reduce its cost burden. Part of a larger solution needed for new goal to work with the community to collectively create or retain 24,000 units by 2030. Demonstration of need and operational capacity to deploy this type of funding. Proof of concept for proposed incentives to create or retain affordable units. Program Timeline: May-June 2015 Budget reviewed and passed by Metro Council June-October 2015 Focus groups with private and non-profit developers, housing lenders, LAHTF Board Members, housing advocates, and other subject-matter experts to develop Louisville CARES Initiative lending criteria November-December 2015 Draft lending criteria released for public review and comment December 2015-January 2016 Louisville CARES Initiative base funding taken to bond market, bonds sold February 2016 Louisville CARES program launched, applications accepted on a rolling basis, funds awarded and deployed to coincide with award of tax credits and other project financing Other Questions: Q: Will Louisville CARES solve the entire problem of affordable housing? A: No. $11 million will only address about 5% of this goal. But it’s a 15-year goal and we’ll be looking for not only a recurring revenue source but other partners, including the Kentucky General Assembly, Kentucky Housing Corporation, the Louisville Metro Council, private lending community, developers, non-profits and foundations to help us address it. Affordable housing is a community-wide issue, and it will take a community-wide effort to fully address the need.