my 2 cents:
1) Cause of low KH - "Alkalinity" (KH) is linked to calcium (CA). Usually, there is a balanced ratio maintained in the reef tank. When you used up some CA you in turn also used up some KH. Like Calcium, KH were used by corals to form their skeletons (a process called calcification), which are composed primarily of calcium carbonate.
2) Efffect of low KH - affect the calcification process and hence the growth of corals. KH also linked to PH. In general a low KH will result in a low and unstable PH value - which in turn impact/stress the fishes and corals. In worst case, isssue narcosis and dealth..
3 Optium range of KH - based on my own experience, it depends on the nutrient level of your reef tank
a) for ULNS (Ultra Low Nutrient System) like Zeovite the good range will be 6.5 - 7.5 dk
Low Nutrient / standard reef tank , the accetable range is 8-11 dk
4) Lesson to learn - keep an eye on your water parameters (mainly KH, CA, MG) and maintain them as constant and possible..
Reading the following for general and immediate problem solving...
http://www.advancedaquarist.com/issues/nov2002/chem.htm