Kentucky Programs

Government Grants & Incentives for Real Estate Investors in Louisville

Louisville's affordable housing market benefits from Kentucky Housing Corporation's LIHTC program, Louisville Metro's Affordable Housing Trust Fund, and the state's Enterprise Zone incentives. The city's historic housing stock creates significant rehabilitation opportunities.

20 designated tracts
Opportunity Zones
$1,010
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Kentucky Housing Corporation (KHC)

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Public Housing Authority

Louisville Metro Housing Authority (LMHA)

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Local Programs

Louisville Government Incentive Programs

These programs are available specifically to investors and developers in the Louisville, KY market.

Louisville Affordable Housing Trust Fund

Metro Louisville's dedicated fund providing gap financing for affordable housing development and preservation.

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KHC LIHTC Program

Kentucky allocates LIHTC credits through KHC, with Louisville receiving significant allocation for affordable multifamily development.

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Louisville Historic Tax Credits

State and federal historic tax credits for rehabilitation of Louisville's extensive stock of historic buildings.

Louisville Forward Economic Incentives

Tax increment financing and economic development incentives for qualifying housing and commercial projects.

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LIHTC Tax Credits in Kentucky

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In Kentucky, credits are allocated by KHC.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

Kentucky Allocator

Credits are allocated by KHC through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View KHC LIHTC Program
Investor Tips

Why Invest in Louisville?

Rich historic housing stock creates layered historic + LIHTC tax credit opportunities

20 Opportunity Zones concentrated in west Louisville revitalization areas

Affordable acquisition costs with strong rental demand

Housing Trust Fund provides critical gap financing

Finance Government-Incentivized Properties in Louisville

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Louisville.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Louisville's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Louisville

Tell us about your Louisville investment plans. We'll match you with the best financing options within 24 hours.

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