Private Activity Bond Allocation
Rental housing provided through HUD and USDA contracts is a vital resource for some of the state’s most vulnerable households. The tax-exempt bond program with 4% floating credits helps provide this housing. Hillcrest Manor Apartments in Leavenworth is a recent preservation development that rehabilitated 95 senior housing units. The project preserved 89 one-bedroom and five two-bedroom apartments. This redevelopment provides well-maintained, affordable homes for community members with limited housing opportunities.
Private Activity Bonds provide low interest, long-term financing options for developers and businesses. This tax-exempt bond program provides 4% floating tax credits, which provide a source of equity to the developer, allowing them to offer lower rental rates to serve low-income households.
Federal funding allocated through the state’s Private Activity Bond Authority
How To Apply
The Private Activity Bond Allocation Program has an open funding cycle beginning January 1 of each year. To apply:
- Submit the PAB tax credit application to KHRC.
- Secure and submit necessary inducements or resolutions from the Kansas Development Finance Authority or, in some cases, local municipal authority.
- Secure and submit allocation from Kansas Department of Commerce.