Rental Housing Enhancement Fund

What the Program Does:

The purpose of the Rental Housing Enhancement Fund (RHEF) is to provide loans or grants for assisting difficult to develop properties. Loans may be used to leverage financing from conventional markets. Grants may be used to make rental units affordable for low income tenants. Awards are subject to funding availability.

Who the Program Helps:

Eligible activities include interim loans for predevelopment or construction financing, amortized loans for permanent financing, and rental assistance grants for unit affordability. Priority rental housing developments will be located in rural or inner city areas, serving senior residents or vulnerable populations. Small scale properties, less than 50 units, will be preferred.

How It Works:

LOAN TERMS include the general and special provisions below.

General. Applicants must have site ownership or acceptable collateral. The principal amount of a loan is limited to $150,000 or 10 percent of the total development cost, whichever is less. Loan funds may be accessed on a monthly basis, as expenses are incurred. Loan payments may be limited to 75 percent of costs incurred at the time of the request. Loan applications will be rejected if properties are not cost effective or not consistent with objectives of the Enhancement Fund.

Interim Loan. Interest on an interim loan will generally be at a fixed rate of three percent. The KHRC may subordinate its mortgage when an interim loan is originated. Repayment of an interim loan will generally be due when closing a permanent loan on the property, or when the borrower receives the last syndication payment, whichever occurs last.

Amortized Loan. The term and interest rate of an amortized loan will be agreed upon by KHRC and the owner/developer. A KHRC amortized loan will be in the first position, unless subordination of the loan is requested by the owner/developer and approved by KHRC.

RENTAL ASSISTANCE GRANTS, including all terms, conditions, and extension thereof, will be provided at the discretion of KHRC. Payment of the monthly rental assistance will be limited to 75 percent of the amount allowed per tenant. The owner/developer must pay the remaining 25 percent. Grants will be awarded in accord with the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships program rules and regulations (CFR 24 Parts 92.203, 92.209, 92.219,92.251, 92.252, and 92.253), as applicable.

Type(s) of Assistance:

Grants
Loans

Funding Cycle:

The RHEF program will be funded at the discretion of KHRC. KHRC reserves the right to reject an application if the activity is not cost-effective or consistent with the priorities and objectives of the RHEF.

Eligible Entities:

Nonprofit owners/developers of rental housing, acting alone or in joint ventures with for profit developers and for-profit owners/developers.

Contact Information:

Fred Bentley
Rental Housing Director
611 S. Kansas Avenue, Suite 300
Topeka, Kansas 66603-3803
Phone: (785) 296-3724
Fax: (785) 296-8985

Related Programs:

Community Housing Development Organization
Housing Tax Credits
Private Activity Bond Allocation
State Housing Trust Fund

More Program Info