More Than $12.5 Million in Housing Credits Awarded for Affordable Rental Housing Projects Throughout Kentucky
Awards Include Permanent Supportive Housing in Mason County and Innovative Projects in Fayette and Hardin Counties
FRANKFORT, Kentucky — Kentucky Housing Corporation (KHC) recently awarded more than $12.5 million in Low-Income Housing Tax Credits (Housing Credits) and other program resources, providing communities throughout Kentucky more affordable housing options.
KHC awards Housing Credits to developers annually through a competitive process. Housing Credits are tax incentives allocated by the Internal Revenue Service and are designed to increase the supply of quality, affordable rental housing by helping developers offset the costs of rental housing development for individuals with low to moderate income.
This year, KHC received 33 applications requesting more than $28 million in Housing Credits and was able to fund 13 projects with $12,508,108 of 2023 Housing Credits in conjunction with $3,775,000 of HOME Investment Partnerships Program (HOME), $8,500,000 of HOME-ARP (appropriated by the American Rescue Plan), $300,000 of state Affordable Housing Trust Fund (AHTF) funds, and $1,855,000 in National Housing Trust Fund (NHTF). These funding awards will result in the preservation and creation of 712 affordable housing units throughout the Commonwealth.
HOME-ARP Funding
The American Rescue Plan Act (ARPA) provided Kentucky more than $51 million of HOME-ARP funds. This funding round represents the first award of HOME-ARP funds for multifamily development in KHC’s jurisdiction, in conjunction with Housing Credits set aside for permanent supportive housing.
“These 13 projects provide quality, affordable housing options where they are needed and allow residents to stay in the communities they love,” said Winston Miller, KHC’s executive director. “Kentucky Housing Corporation celebrated its 50th anniversary last year, and it has been amazing to see the progress we have made as a state and as a corporation thanks to the investment in affordable housing by state and federal government. This year, we were pleased to offer a new pool of funding to our development and housing partners. With these HOME-ARP dollars, we can provide those at risk of homelessness a stable, safe home and the foundation they need to begin to rebuild their lives.”
Innovation Pool
Since 2019, KHC has set aside noncompetitive Housing Credits in its Qualified Allocation Plan (QAP) that incentivizes innovative housing concepts in the Commonwealth. Two projects received funding through the Innovation Pool this year, while three other applicants received funding for their innovative projects from the competitive pools.
“Every year, developers present KHC truly original concepts, many of which address gaps in the housing market or that assist niche populations,” said David Starck, managing director of multifamily programs. “They work with partners throughout the area to provide residents the services and resources they need to be successful.”
Award Recipients
Permanent Supportive Housing (HOME-ARP) Pool Award
Sutton’s Landing – The Model Group, Inc./Welcome House, Inc.
A 40-unit development in Mason County, Sutton’s Landing offers residents who are or at risk of becoming homeless stable housing and on-site services, including counseling for mental and behavioral health, substance abuse, financial management, personal care and physical health.
Welcome House Inc. will manage Sutton’s Landing, which has a mixture of one-, two-, and three-bedroom units. Over the last 40 years, the Northern Kentucky organization has helped more than 80,000 clients with programs including emergency housing, medical care and applying for Section 8 and Social Security.
“Welcome House began providing Street Outreach services in Buffalo Trace in October of 2020,” said Danielle Amrine, chief executive officer of Welcome House. “Our Street Outreach teams began to quickly realize that affordable housing was a critical need in the community and was truly the cause for so many individuals continuing to live on the street. The development of affordable housing increases spending and employment in the surrounding economy, acts as an important source of revenue for local governments, and reduces the likelihood of foreclosure and its associated costs.”
Innovation Pool Awards
The Flats at Woodland – Winterwood Development
The Flats at Woodland will serve Fayette County seniors, offering them affordable housing as well as access to the community services provided at the Woodland Christian Church, including public meetings for neighborhood groups, and fitness classes.
The project has several prongs:
- Renovating the historic property, including repairing the roof, masonry, chimney, plaster, lighting and mechanical systems; installing a fire alarm system; painting; making the building ADA compliant; and upgrading the elevator
- Adding 10 affordable units in the church building
- Constructing 28 new senior housing units on an adjacent parcel of land
- Connecting the new building to the church with a bridge
The property resides in an area of opportunity with close proximity to shopping, healthcare, recreation, educational opportunities and other necessary services that would support seniors as they age in place.
“Winterwood is thrilled to be a part of the Flats at Woodland project,” said Zach Worsham, vice president of Winterwood. “This innovative solution not only provides much needed affordable senior housing in Fayette County, but it also preserves and protects a historic landmark and a 100 year old congregation. We believe that integrating the community of Woodland Christian Church with our residents will lead to healthier outcomes and more opportunities for seniors to age in place.
“This project would not be possible without Pastor Christy Jo Harber and her board and elders,” Worsham added. “The courage they have shown in thinking outside of the box and opening their doors to new opportunities is making a difference that will be felt throughout our entire community.”
Family Scholar House Elizabethtown – Family Scholar House, Inc./Wabuck Development
Family Scholar House Elizabethtown Campus will be the newest Scholar House program in the state, offering 48 families the opportunity to learn, grown and improve their lives. Parents must be enrolled in a secondary education institution. They receive permanent housing, free childcare, classes and workshops in workforce development, financial management, nutrition, health and wellness and parenting.
Located on the campus of Elizabethtown Community and Technical College (ECTC) in Hardin County, the new Family Scholar House will serve parents exploring a career in nursing or healthcare with the hope of producing job-ready employees to fill vacancies in the field.
Unlike previous Scholar House developments, this project will not use housing choice vouchers. Wabuck Development will provide residents up to $250 per month in rental assistance for the first five years.
The challenges of the last few years have highlighted the many non-academic barriers students face outside of the classroom, with affordable housing being a significant need in our rapidly growing region,” said Juston Pate, ECTC president and chief executive officer. “We are proud to collaborate with Family Scholar House on this innovative project, which leverages the resources of both our organizations and better positions hard-working students to change their families’ futures. Bringing Family Scholar House’s housing program to our campus also will reduce transportation barriers, as education and childcare will be available within walking distance.”
Family Scholar House is pleased to further its reach in Kentucky, connecting more parents with the education and services they need to improve their lives.
“Affordable housing is essential to student parents and their families having the stability necessary to focus on their educational, career, and personal goals,” said Cathe Dykstra, Family Scholar House president, chief executive officer and chief possibility officer. “Once completed, the Family Scholar House Elizabethtown Campus will provide a home, support, and a sense of belonging for 48 student parents as they complete their education and build the life of their dreams.”
Kentucky Housing Corporation, the state housing finance agency, was created by the 1972 General Assembly to provide affordable housing opportunities. As a self-supporting, public corporation, Kentucky Housing offers down payment assistance loans to assist first-time homebuyers obtain home mortgages, housing production financing, homeownership education/counseling, rental assistance, housing rehabilitation, and supportive housing programs for special needs populations.
