KY HB229

Establishes the Affordable Housing Loan Pool Fund with $100 million in appropriations to provide construction loans for multifamily and single-family housing for households earning up to 100% of area median income, with loan terms up to 48 months and interest rates capped at 50% of prime rate (minimum 1.5%)

Creates a state Affordable Housing Tax Credit of up to $2 million per taxpayer and $20 million annually, available for taxable years 2027-2030, to supplement the federal Low-Income Housing Tax Credit for qualified housing projects

Modifies the existing Housing Development Fund to expand home repair loan eligibility by removing the age 62+ requirement, increasing the income limit to 100% of area median income, and raising the maximum loan amount from $7,000 to $25,000

Appropriates $2 million to the Housing Development Fund and requires Kentucky Housing Corporation to provide public notice of fund availability at least twice per calendar year and technical assistance to applicants

Declares an emergency with an effective date of July 1, 2026, requiring a minimum percentage of loan pool funds to be used for rural housing and imposing 15-year deed restrictions on funded housing units