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Kentucky Housing Corporation

Our History

Our History

KHC was created by the General Assembly in 1972. In its nearly 50 years, KHC has helped thousands and thousands of Kentuckians across the Commonwealth find quality housing. Highlights of KHC’s history of helping communities across Kentucky are listed below.

 

2018​KHC produced over $574 million in single-family loans—the most in its 46-year history. KHC launched new onboarding and internship programs as well as consolidated all staff to one campus. Additionally, KHC curated a traveling exhibit, Simply Home—Affordable Housing Creates Good Neighbors, featuring over 50 pieces of photos and art about our neighbors who need safe, quality, affordable homes. This exhibit was designed to reframe how public and policy-makers view affordable housing and connect with partners to help them advocate in their communities (#SimplyHome and #FacesOfAffordableHousing). 
​2017​HUD recognized KHC with the Affordable Housing Hall of Fame Award for leadership addressing affordable housing needs. KHC eliminated administrative restrictions or "red tape" related to scoring and guidelines for the HOME and Affordable Housing Trust Fund to get these funds more quickly. KHC's Multifamily area streamlined the Qualified Allocation Plan and continued the preservation efforts funding nearly 2,400 units. The Single-Family program provided mortgage loans for over 3,500 families in the Commonwealth. KHC focused on implementing technology to improve workflow, collaboration, and service; this included a new phone system, mobile work devices, and an upgraded MS Office platform changing the way KHC engaged with partners and each other. Finally, KHC saw the retirement of its first female Executive Director/CEO, Kathryn Peters, while ushering in its youngest Executive Director/CEO, Edwin King. Through their leadership, they diversified revenue sources through multifamily development, which was also missional in efforts to rehab multifamily units, keep them affordable, and increase the number of families served. StrategicHousing.com was launched as KHC's first blog and podcast platform to connect with partners and share innovative solutions beyond the borders of the state. The Corporation hosted five statewide housing summits—Housing CCI: Connect, Collaborate, and Innovate—attended by private, nonprofit, and community leaders from across the state to create and preserve affordable housing in Kentucky. These summits made up the largest brainstorming session in KHC's history and led to new partnerships in healthcare, economic development, and education to provide housing solutions for the elderly and youth aging out of foster care. 
​2016​KHC provided a comprehensive cost/revenue analysis for all departments and programs to enhance the discipline of iterative business planning and accountability. We partnered with Louisville-Metro and Lexington Fayette Urban County Development (LFUCG) to enhance our multifamily preservation efforts by preserving over 1,600 units in fiscal year 2016 using Tax Exempt Bonds and 4% tax credits. Finally, KHC launched new programs to recognize high-performing and high-potential individuals within the organization. 
2015​HUD recognized KHC as Public Housing Authority of the Year. KHC issued a report narrating obstacles to the housing market, entitled "Our Right to Choose Where We Live," in keeping with revised HUD regulations. KHC marketed itself to a changing and increasingly multicultural homeownership customer base by launching a social media campaign which was seen by over 30,000 viewers in its first month. The 2014 Tax Exempt Bond NOFA addressed large-scale preservation and multifamily family developments saving 915 affordable housing units. KHC, in partnership with HUD to end veteran homelessness, set-aside 100 Housing Choice Vouchers (HCV) for Veterans Emerging Towards Transition (VETT). Through partnership with the SSI/SSDI Outreach, Access and Recovery (SOAR) Initiative, KHC provided over $8 million in one percent, 30-year, fixed-rate financing for first-time homebuyers in targeted counties in Eastern Kentucky.
2014KHC began a rebranding effort and rebooted the Corporation’s original logo honoring its strong roots and modernizing the Corporation’s websites and internal technological systems. KHC created a plan to lead the preservation of at-risk affordable rental housing units across Kentucky, many of which were built 20-30 years ago. KHC estimated the Commonwealth could risk losing more than 49,000 rent-restricted units. If those units disappeared, many Kentuckians would not be able to afford safe, quality housing. A Preservation Housing Summit was held bringing stakeholders together to make preservation a priority in Kentucky during the same time preservation of affordable housing found itself on the national stage. Efforts were designed to keep units affordable for another 10-20 years using a combination of resources to include subsidies, loans, refinancing, and/or relaxed restrictions. The Scholar House Program received recognition for Special Achievement from the National Council of State Housing Finance Agencies. KHC joined the Commonwealth of Pennsylvania as a charter member of a new secondary market for energy-efficiency loans through Warehouse for Energy Efficient Loans.
2013100 percent of KHC’s mortgage loan production was through the secondary market; no loans were purchased through the issuance of mortgage revenue bonds. The Corporation shifted its focus from single-family homeownership to multifamily production, targeting $12 million for new construction, as well as a bridge loan fund. KY Home Performance received recognition for Special Achievement – Program Excellence from the National Council of State Housing Finance Agencies for innovations in the field of energy-finance. KHC 20/20 was an internal initiative implemented to better position the Corporation to manage challenges of a changing housing and financial environment.
2012KHC introduces its lowest single-family mortgage rates ever (3.375 percent without DAP/3.625 percent with DAP). KY Home Performance awarded the 2012 ENERGY STAR Partner of the Year award by the U. S. Environmental Protection Agency.  A study on the Recovery Kentucky program finds that for every dollar spent on recovery services, there was a $2.92 return in avoided costs and that 75 percent of participants abstained from drugs and alcohol 12 months later.  KHC participated in the efforts to clean up and rebuild areas of Kentucky affected by major storms and tornadoes that devastated many parts of the state.
2011The Unemployment Bridge Program was introduced in April, which provides assistance to homeowners who have lost their jobs or had a significant reduction in income due to the economy through no fault of their own.  Another Recovery Kentucky center opened in Paducah in April.  Over 400 real estate agents became KHC certified bringing the total to 1,018 real estate agents who are KHC certified.
2010KY Home Performance was developed as a new, market-based home energy improvement program; funded through a $4 million grant from the American Recovery Reinvestment Act, plus an additional $2.1 million in funding provided by KHC; and is a partnership between KHC, the Kentucky Department for Energy Development and Independence, and the Kentucky Finance and Administration Cabinet.  Another Recovery Center opened in Owensboro in May.  KHC starts Certified Real Estate program with 280 agents receiving the designation.
2009In conjunction with the American Recovery and Reinvestment Act, KHC launched Kentucky’s Housing and Emergency Assistance Reaching The Homeless program in addition to the Tax Credit Assistance, Tax Credit Monetization, and Weatherization Assistance Programs.  The Kentucky Homeownership Protection Center received a $1.5 million grant to provide counseling services and the First Home Advantage Program was created to help first-time home buyers with down payment and closing costs.  Two Recovery Kentucky centers were opened in Erlanger and Harlan and a Scholar House opened in Bowling Green. 
2008Three Recovery Kentucky centers opened in Florence, Morehead, and Richmond.  The  Kentucky Homeownership Protection Center was created by the General Assembly to help homeowners avoid foreclosure.  KHC participated with the federal Housing and Economic Recovery Act created to address the subprime mortgage crisis.  KHC’s bond ceiling was increased from $2.5 billion to $5 billion.  HUD awarded a record $17.2 million in grants to help fund 76 homeless programs.  The first two Scholar House facilities opened in Louisville and Owensboro.  Staff conducted the KHC Listening Tour to learn of local affordable housing needs across the state. 
2007KHC celebrated its 35th anniversary since origination by the 1972 Kentucky General Assembly.  Lee Square, a 27-home community renovation project in Bowling Green, was unveiled.  A Recovery Kentucky center development broke ground in Owensboro and a center opened in Henderson.  A new Scholar House development broke ground in Bowling Green and another was under construction in Louisville.
2006Kentucky’s Ten-Year Plan to End Chronic Homelessness unveiled by governor. Legislation establishing permanent funding source for AHTF passed by General Assembly. Katrina victims helped with housing assistance. Homeownership production record broken with over $500 million in more than 5,000 home loans. Maximum home purchase price raised to $200,000 with income level up to $90,440. Ground broken for seven Recovery Kentucky centers. Supportive housing provided to 776 individuals (victims of domestic violence, persons with mental illness and homeless families) through new Safe Havens program designed to help end chronic homelessness.
2005Recovery Kentucky program launched to reduce chronic homelessness for drug and alcohol addicted Kentuckians. Housing Choice Voucher to Homeownership program started for Section 8 rental assistance participants. Statewide Don’t Borrow Trouble task force established to raise awareness of predatory lending.
2004Regional offices established to streamline rental assistance processes. Renaissance Kentucky program named Hodgenville as 100th participating community. Recognition received from NCSHA for HouseWorks program, which provided forgivable loans for home improvements for rural homeowners who met income guidelines.
2003AHTF received $6.2 million designated by General Assembly following discontinuance of lottery appropriation. Received $454,280 from the Corporation for Supportive Housing to integrate state systems, help establish 532 units of supportive housing, and increase awareness of need for supportive housing.
2002One of eight state HFAs selected to participate in National Homeless Policy Academy by HUD and U.S. Department of Health and Human Services. Federal income guidelines adopted by General Assembly for use in qualifying home buyers rather than lower state income guidelines. Maximum home purchase price raised by Board of Directors from $99,000 to $144,000. Recognition received from National Trust for Historic Preservation for Renaissance Kentucky and from NCSHA for outstanding human resources management innovation.
2001Morehead State University contracted to conduct statewide homeless study. University of Louisville contracted to conduct statewide housing needs assessment. Universal design policy adopted by Board of Directors to require building concepts that support minimal alteration to accommodate changing needs of current and future residents. First Appalachian Housing Summit hosted by Kentucky Housing in Prestonsburg.
2000Renaissance Kentucky program received Blue Ribbon Best Practices Award from HUD. Debt ceiling raised by General Assembly to $2.5 billion and received continuance of allocation of unclaimed lottery winnings for AHTF for two more years.  KHC assist 50,000th homeowner.
1999HUD grant of $290,281 received to expand homeownership education and counseling programs. Unclaimed lottery winnings for AHTF totaled $5.8 million.
1998Housing assistance provided to 253 households rendered homeless by 1997 flood; flood relief program commended by federal government and used as model by other states. Allocation of unclaimed lottery winnings in excess of $6 million annually received by General Assembly for AHTF for next biennium.
1997Major contributor to Jimmy Carter Work Project, Hammering in the Hills, with Habitat for Humanity in eastern Kentucky including sponsorship of two house builds.
1996Housing Policy Advisory Committee created by General Assembly to establish state policy on housing issues. Yes You Can, Family Self-Sufficiency and innovative media programs awarded by National Council of State Housing Agencies (NCSHA).
1994Named Public Housing Agency of Year by HUD for Section 8 Program administration. $400,000 grant received from HUD for HOPE VI program, which replaces distressed public housing with mixed-income housing.
1993Began administering all federal McKinney Act homeless funding programs. First state HFA to receive double triple A bond ratings from Moody’s and Standard & Poor’s.
1992Affordable Housing Trust Fund (AHTF) established by General Assembly without designated permanent funding source to serve state’s lowest income with critical housing needs.
1991AAA rating received from Standard & Poor’s (first state HFA to do so). Began administering Family Self-Sufficiency Program.
1990Recognition received as one of top four state HFAs in nation for lowest income served and lowest purchase price.  First statewide housing plan created.  Yes You Can (homeownership education course) and Rental Deposits Surety Programs developed.
1989Assets reached $1 billion. In-house Loan Servicing program created.  At the end of the fiscal year, a total of 27,000 Kentuckians achieved the dream of homeownership through KHC.
1988KHC helps over 1,850 Kentuckians become homeowners, including the Watkins family, who was the 25,000th borrower.  In its fourth year, the Grants to the Elderly program assisted an additional 160 low-income elderly homeowners with energy repairs and improvements.  Housing mortgage loans reached $612 million at the end of the fiscal year, the highest in the Corporation's history.
1987Income guidelines revised to allow for family size and location.  New maximum income was $25,500 for $1,500 for each dependent and $2,500 for homes purchased in Eastern Kentucky counties.  Home purchase price limit was increased for the first time in six years.  The Housing Foundation, a 501(c)3 nonprofit, established to attract charitable contributions for affordable housing. Governor appointed Corporation to administer federal Low Income Housing Tax Credit Program.
1986Receives 33 Vouchers from HUD for Housing Choice Voucher program.  Partners with City of Lexington and the University of Kentucky on Virginia Place (now One Parent Scholar House), which provides housing, on-site daycare and counseling for single-parents. 
1985Senior and Special Needs Housing Program, Homeownership Trust Fund for 1-6 percent loans and Kentucky Indoor Plumbing Program created. Property at 1225 and 1231 Louisville Road in Frankfort purchased to construct new office building.
1984First Governor’s Housing Conference held. Grants to the Elderly for Energy Repairs and Training for Affordable Construction Programs developed.  Total units assisted was 38,900 by the end of fiscal year 1984, over 1,000 more than the previous fiscal year. 
1983Total number of single-family loans issued reaches over 19,000 at the end of fiscal year 1983.  Mortgage interest rates begin to lower, indicating a rebound for the struggling housing market.  Household income limits for KHC single-family loans are increased to $25,000 with a purchase price of $46,000 ($52,000 in certain Appalachian counties).
1982With a successful single-family bond issue, KHC exhausts almost all bonding authority available; Debt ceiling raised by General Assembly to $1.125 billion to allow KHC to continue its housing programs.  A difficult economy and high interest rates slow the housing market, putting safe, quality, affordable housing out of reach for many Kentuckians.  The Kentucky Appalachian Housing Program began its fifth year with an additional $1 million for a total of 4,135 single and multifamily units since the program's inception at the close of fiscal year 1982.
1981A total of 29,449 housing units provided in the fiscal year, serving 117 counties.  Since the beginning of the Single-Family Mortgage Purchase Program through June 30, 1981, over 18,000 Kentuckians have received a mortgage through KHC.  Since beginning of Section 8 program in 1975, KHC had participated in the construction of 10,060 units.  Moderate Rehabilitation Program started for multifamily units. Fiscal year 1981 saw KHC's first bond issue for financing of single-family conventional mortgage loans insured by private mortgage companies, as well as KHC-insured and VA-guaranteed loans.  A major fire and casualty company purchased a block of these bonds, which has never purchased tax-exempt mortgage bonds secured by non-federally insured or guaranteed loans, indicating KHC's acceptance in the national market.
1980The Single-Family Mortgage Purchase Program helped 1,900 families become homeowners during the 1980 fiscal year for a total of 13,042 single-family loans in the Corporation's portfolio. Since the inception of Section 8 in 1964 through June 30, 1980, over 5,000 Section 8 units were financed. 
1979Wheelwright, abandoned coal company town in eastern Kentucky, purchased by Kentucky Housing to rehab and resell housing to its residents.  KHC employs 41 staff at end of fiscal year 1979.  Loans to Mortgage Lenders Revenue Bonds program is created, where funds are loaned to lending institutions, which then make mortgage loans to qualified Kentuckians. Loans to Lenders was very successful in eastern part of state where federal programs had struggled.  Urban development becomes more important as Kentucky's population begins to move to more urban parts of the state.  Statewide Housing Study completed in December 1979 and shows population increases will create a housing shortage and overall, homeownership rates increased from 1970 to 1979 but began to fall toward the end of the decade.  LeRoy Miles, KHC's chairman from its inception in 1972, retires from the chair position in December 1979. 
1978Debt ceiling raised by General Assembly from $400 million to $700 million. Initial $150,000 appropriation repaid to General Assembly, which was not required. More Section 8 units constructed than any state housing finance agency (HFA) in nation.
1977Single-family mortgage financing made to 3,113 individuals and families.  KHC received highest housing authority bond and note rating of AA (at the time) from Moody's and Standard & Poors.  KHC officially moves into 1231 Louisville Road building.  KHC has a total of 25 employees.  Kentucky Appalachian Housing Program established.
1976In-house mortgage loan underwriting begins (one of the few state housing agencies at the time to have an Underwriting Department).  Pre-residency counseling program established.  Staff increased from 6 to 12.  KHC leases property at 1231 Louisville Road in Frankfort.
1975First allocation of $1.9 million received from U.S. Department of Housing and Urban Development (HUD) for construction of 623 Section 8 units.  From start to June 30, 1975, KHC financed a total of 5,248 homes, 21 multifamily projects, 2 rehabilitation programs, 3 land acquisitions and development projects, and 1 construction loan. 
1974$30 million in bond-anticipation notes issued to finance home buying program, called Mortgage Purchase Program at the time.  The 1974 Housing and Community Development Act creates Section 8 Program; KHC requests enough funding to develop 600 units.
1973First bond issue originated totaling $52.1 million. First executive director hired.
1972 Kentucky Housing Corporation created as state housing finance agency by General Assembly under Mae Street Kidd Act with $150,000 appropriation.  Housing Development Fund created by the General Assembly.