Banking Industry Providing Community Lending

HOPE is a Consortium of Kentucky Banks formed to pool loan funds to make permanent loans on affordable housing projects financed principally utilizing equity generated from the sale of Federal tax credits allocated to the projects.  The Consortium allows banks to diversify and limit their credit and interest rate risks by lending to multiple projects across the Commonwealth. The Consortium approach also allows banks to participate in the highly technical affordable housing industry without the need to employ that expertise on their own staff.

We wanted to utilize a name that was easy to remember and that demonstrated our mission – to provide safe, well-built, well-managed affordable housing for workforce employee and seniors. The below-market rents charged reduces the tenants’ housing costs from 50% upward of gross income to approximately 30%, like most middle-income Americans. The Consortium is modeled after a dozen similar consortia around the country, most of which have been making loans for 20 plus years.

We believe everyone deserves the right to have safe, decent, affordable housing. With the housing and economic recession of the last several years, many Americans can no longer afford to own their own home or rent market rate rental units. Affordable rental units, financed with Federal tax credits, are in greater demand the ever in recent history. Most affordable complexes are fully occupied with waiting list of applicants.

A bank can join HOPE by completing a simple application and paying a one-time fee based on the bank asset size. We also ask the bank to pledge the total dollars they are willing to commit to lend over the next three-year time frame. This pledge allows us to know how many projects we can realistically fund. An initial group of ten banks joined and became involved with numerous others requesting information about membership.

Bank Benefits

CRA Credit | Participating in the HOPE lending program could earn your bank CRA credit.

Limit Risk | Banks can diversify and limit their credit and interest rate risks by lending to multiple projects through HOPE.

Tax Credits | The OCC’s March 2014 issue of “Community Development Insights” spotlights Low-Income Housing Tax Credits as Affordable Housing Investment Opportunities for Banks. The report summarizes how the program works and why banks may want to participate.

HOPE Leadership

Billie Wade | Executive Director

HOPE is lead by Billie Wade, a CPA and former Banker who has 20 years of experience in lending and investing in affordable housing project. Wade knows most all the major players in the industry – developers, syndicators, consultants, nonprofits, etc. – that are active in developing affordable housing. Wade can also introduce developed to officials at HUD, FHLB of Cincinnati, Kentucky Housing Corporation and Government housing officials, all of whom provide funding sources.

Bank Participants in HOPE of Kentucky

1st Trust Bank | Hazard
The Bank of Harlan | Harlan
BB&T | Louisville
Central Bank & Trust Company | Lexington
Century Bank of Kentucky | Lawrenceburg
Citizens Union Bank of Shelbyville | Shelbyville
The Commercial Bank of Grayson | Grayson
Commercial Bank of West Liberty | West Liberty
Commonwealth Bank & Trust | Louisville
Cumberland Valley National Bank | London
Farmers National Bank of Danville | Danville
Farmers State Bank | Booneville
First & Peoples Bank | Russell
First Federal Savings Bank of KY | Frankfort
First United Bank & Trust | Madisonville
Home Federal Bank Corporation | Middlesboro
Hometown Bank of Corbin | Corbin
Hyden Citizens Bank | Hyden
Kentucky Bank | Paris
Kentucky Federal Savings & Loan | Covington
Kentucky Housing Corporation | Frankfort
The Monticello Banking Company | Monticello
Peoples Bank of Kentucky, Inc. | Flemingsburg
Springfield State Bank | Springfield
Taylor County Bank | Campbellsville
Town Square Bank | Ashland
Winchester Federal Bank | Winchester