Beginning July 1, 2008, qualified builders/developers in Kansas have access to $60 million in
loans through the new Kansas Housing Loan Deposit Program. $30 million is for designated areas and an additional $30 million is not
designated.
This program gives Kansas banks the ability to provide incentives for housing construction development loans. These loans can be authorized for a length of up to 5 years for a single family home valued at not more than 350% of the Kansas Median family income as reported by the most recent U.S. Census Report ($165,694 as of July 1, 2009).
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[Download Lender Packet Forms]
[Rules and Regulations]
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What role does Treasurer Dennis McKinney play?
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Kansas State Treasurer Dennis McKinney administers the Kansas Housing Loan
Deposit Program. As Administrator, the State Treasurer:
- Develops linked deposit agreements and other documents
- Adopt rules and regulations
- Disseminates information
- Provides loan packages to lending institutions eligible for participation
- Approves content of completed loan packages
- Certifies to the Director of Investments the amount required for a loan package
- Presents annual activity report to the Governor and Legislature
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What role does the PMIB play?
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The Pooled Money Investment Board handles investment of the State's idle funds:
- Upon certification by Treasurer Dennis McKinney, PMIB places a housing
linked deposit in the amount certified with an eligible institution at an interest rate
of 2.0% below the market rates. The rates will be recalculated on the first business day of January and July each
year using the market rate then in effect. Find out the current rates.
- Wires funds to lending institutions
- Collects interest and principal as appropriate
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What roles do the eligible institutions play?
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Eligible financial institutions include Kansas banks which have entered into a
linked deposit participation agreement with the
Kansas State Treasurer's Office.
- Enter into the above mentioned agreement
- Accept and review applications from eligible persons
- Approve or reject applications
- Forward approved loan packages to the Kansas State Treasurer's Office
- Fund the approved loans
- Remit principal payments to Treasurer as they occur
- Confirm balances with Treasurer every January 1
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Who will the borrower be and what role will they play?
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A borrower must:
- be an individual or developer, involved in building houses, and
- live in Kansas, and
- have not obtained any other housing loan from any lender pursuant to this program, and
- use the loaned funds exclusively for the building of single family home(s), and
- apply for Kansas Housing loans at an eligible Kansas bank, and
- complete the Borrower's Certification of Eligibility, and
- pay back the loan
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[Download Lender Packet Forms]
[Rules and Regulations]
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