HOPE of the Midwest (HOPE) is a consortium of banks providing debt financing for affordable housing projects throughout Kentucky and surrounding states that are financed primarily through the low-income housing tax credits (LIHTC) program. As a subsidiary of the Kentucky Bankers Association (KBA), HOPE pools funds from a network of KBA members for participation loans that allows risks to be spread among multiple participants. We offer a variety of loan products and sizes from small acquisition loans to large construction loans for projects utilizing LIHTC and tax-exempt bonds. Our consortium structure enables banks of all sizes to participate in our loans, whether on projects in their immediate community or scattered throughout the region, allowing them to support community reinvestment efforts near and far.

HOPE began operations in 2011 under the name of HOPE of Kentucky with a focus on filling a void in the permanent loan space for LIHTC projects. Wary about interest rate risk, many community banks were (and still are) uncomfortable with long-term (15-year) maturities these loans carry; while larger banks were disinterested due to small loan size. HOPE’s participation loan structure provided just the solution to help mitigate the banks’ risk and increase their comfort level for these perm loans.

In 2021, we changed our name to HOPE of the Midwest, a name more representative of our geographic presence and growth, particularly in states surrounding Kentucky. The new name conveys our ability to both source capital and work on projects across our broader region.