The KLC Financial Services Department provides low interest loans to Kentucky cities and municipal agencies.  For nearly 20 years, KLC has given cities and agencies financial options that help make dreams come true!  Dozens of Kentucky communities have used KLC's programs to fund construction of parks, fire stations, city halls, water parks, water and sewer systems and infrastructure.  Whether it is the low interest rate, the quick turnaround or the flexibility of the program, KLC's goal is to give members the best possible service at the lowest possible price.

KLC Capital Fund Loan Program
Established in 2004 with HUD, the Kentucky League of Cities (KLC) Capital Funds Loan Program allow public housing authorities (PHA) to complete projects more efficiently.  PHA's can leverage annual HUD funds as collateral to borrow larger amounts of money.  In essence, PHA's are borrowing against future HUD Capital Fund grants.

How it Works
·The PHA pledges up to one third of its annual capital fund from HUD as a source of repayment and security for the debt.
·KLC Financial Services will loan the money to the PHA at a fixed interest rate that is determined one week before closing.  KLC pays the closing costs. 
·CFP financing can be combined with other funding programs such as Tax Credit and HOPE VI.

How it Helps your PHA and Community
·Renovations completed at one time have greater impact on the community and property value.
·PHA's save money by avoiding spending money on constant 'fixes.'
·KLC is in the business of city and community building, with your best interest in mind.

The steps to funding are quick and easy:

·Adopt a resolution approving KLC financing

·Evaluate PHA capital projects for CFP