As of April14, the Kentucky Housing Corporation (KHC) received more pre-application requests than its anticipated available private activity bond (PAB) cap. A project will not be considered as having a reservation of bond cap until the technical submission stage has been submitted, approved and the applicant has received a conditional reservation letter from KHC (provided all other required benchmarks have been met). Those reservation letters will be issued on a quarterly basis, in the order of technical submission approval date, so long as KHC has PAB cap available to be allocated subject to published terms and conditions.
Because of the constraints on the availability of PAB cap, any project requesting bonds in excess of the amount needed to meet the required 50 percent test may be substituted with taxable bonds for the excess amount, at KHC’s discretion. Projects that submitted a pre-application, or are in the process of doing so, may not receive an allocation of bond cap in 2021 (dependent on the availability of bond cap as of the date conditional reservation letters are issued). Applicants may stay in the queue for potential bond allocations in subsequent years, but there is no guarantee that projects will be awarded.
