A Production-Oriented Solution for Northern Kentucky's Housing Needs
The Northern Kentucky Housing Fund is a revolving loan fund managed by the Catalytic Fund, providing flexible, below-market-rate financing for new housing construction and the redevelopment of vacant or underutilized properties into housing across Boone, Kenton, and Campbell Counties. As loans are repaid, capital recycles back into the Fund to finance the next round of projects, creating a permanent, self-sustaining resource for regional housing production.
The Housing Fund is designed to serve a broad range of housing and development models. Financing is available to for-profit developers, non-profit developers, and public-private partnerships, supporting market-rate, mixed-income, and income-qualified housing alike. By offering flexible, below-market financing, the Housing Fund makes it possible to build the housing Northern Kentucky's workforce and families need.
The Need for Housing
Northern Kentucky's continued growth and economic success depend on access to safe, attainable, and affordable housing for residents at all income levels. A 2023 study by the Northern Kentucky Area Development District (NKADD) found that 40% of Northern Kentucky households are housing cost-burdened, spending more than 30% of their income on housing expenses, making it harder to afford other necessities like healthcare, education, transportation, and childcare.
That burden is only expected to grow: a 2026 statewide Housing Supply Gap Analysis by the Kentucky Housing Corporation found that Boone, Kenton, and Campbell Counties face a combined housing gap of more than 37,000 units by 2029.The Northern Kentucky Housing Fund exists to help address these challenges by supporting housing production that strengthens communities, expands opportunities, and ensures Northern Kentucky remains a place where families and businesses can thrive. Investments in housing today will help create a stronger, more resilient region for future generations.
How It Works
The Northern Kentucky Housing Fund operates as a revolving cycle. Investor dollars (low-interest loans and grants from banks, businesses, public entities, and philanthropic partners) capitalize the Fund. That capital goes out as loans to developers building or renovating housing across Northern Kentucky. Those projects create new housing units. As developers repay their loans, those repayments flow back into the Fund, ready to be deployed again as loans for the next round of projects. The Fund isn't a one-time grant pool: it is a permanent, growing resource.
Financing is flexible by design: loans can serve as primary debt, as a secondary loan behind a bank's primary financing, or as a bridge loan against incoming Historic Tax Credit or LIHTC equity. Financing terms are tailored to each project, with more favorable rates available for developments that include affordable units.
Funding Goals
Meeting Northern Kentucky's housing needs will require significant investment. The Northern Kentucky Housing Fund has set ambitious yet achievable funding goals designed to create long-term impact and support the development and preservation of housing across the region. In its first year, the Fund aims to raise $5 million in lending capital to finance projects that address critical community needs. Over the next five years, the goal is to grow that pool to $25 million and beyond.
To deploy that capital effectively and support borrowers, the Fund also needs a five year operational runway of $1.25 million. This funding provides the staff capacity to manage investments, build strategic partnerships, and maximize community impact. Together, these investments will help build a stronger housing ecosystem and a more prosperous future for Northern Kentucky's residents, businesses, and communities.
Interested in Partnering?
Join as an Investor:
Join the NKY Housing Fund as an Investor by providing a low-interest rate loan or a grant that we will use as lending capital to support both new housing construction and redevelopment of vacant properties into housing throughout the Northern Kentucky.
*Loans may qualify for CRA credit. All grants are tax deductible.
Join as a Supporter:
Become an NKY Housing Fund Supporter by contributing directly to support capital deployment, including staff, third-party fees, and program delivery, ensuring the Fund can unlock new housing production and deliver meaningful impact across our region.
*All donations are tax deductible.
Contact Us
If you are interested in learning more about the NKY Housing Fund or would like to partner with us, please send us a short message using the form below and we will get back to you.
