Northern Kentucky regional leaders have established the Northern Kentucky Housing Fund, a revolving loan fund designed to boost housing development in Boone, Kenton, and Campbell counties.
The fund has a minimum capitalization target of $25 million and will serve as a permanent financial resource to expand the region’s overall housing supply. The fund will be housed within and managed by The Catalytic Fund, a nonprofit community development financial institution based in Northern Kentucky.
The Greater Cincinnati Foundation will provide $1 million in initial lending capital toward a $5 million launch goal, along with a $500,000 operating grant through the Carol Ann and Ralph V. Haile Jr. Fund.
A 2023 Northern Kentucky Area Development District housing analysis found that the region will need at least 6,650 additional housing units over the next five years. Reports from NKADD, Brighton Center, and the Northern Kentucky Chamber of Commerce have also recommended establishing a regional housing fund.
A study of housing in Northern Kentucky has revealed troubling trends for housing in the region, with the largest need being for “workforce housing” for households earning between $15 and $25 per hour, with monthly housing costs between $500 and $1,500. The region needs about 3,000 more housing units to provide for people within that income range, according to the study. The demand for one- to two-bedroom rentals and owned properties consistently exceeds their supply, while supply for three and four-bedroom properties consistently exceeds demand. The study suggests that the region needs to build 6,650 housing units to support economic development in the next five years, which equates to 1,330 units per year. Read more here.
Understanding NKY’s housing shortage
The NKY Housing Fund will aim to offer below-market, flexible financing to support new housing development, including workforce housing and “missing middle” housing types. Loan repayments will be recycled into future projects.
“Housing is the backbone of our communities – without strong neighborhoods and enough housing our families can afford, our region cannot grow and prosper,” Catalytic Fund CEO Jeanne Schroer said in a news release. “Establishing the NKY Housing Fund is a natural extension of the work we are already doing across our region, and we are excited to invest in more housing in Northern Kentucky.”
In addition, the Horizon Community Foundation of Northern Kentucky will support the fund through its NKY Home for All Fund, which allows individual donors to contribute to housing initiatives, including the fund’s operations.
“Horizon Community Foundation has been working with our regional leaders for more than four years to document and understand our region’s housing needs,” Horizon Community Foundation CEO Nancy Grayson said in the release. “We are excited to launch the NKY Home For All Fund as a response to what we have learned – the success of our region lies in the people who live here and housing them is a regional priority.”