CEO Video

Table of Contents

CEO Video 

Agencies Participate in the 2010 Statewide Point-In-Time Count of the Homeless 

Save the Date 

KHC Welcomes New Board Members 

KHC Offers Lowest Ever Home Loan Interest Rates 

You Spoke, KHC Responded! 

Protection Center Update 

KHC Steers Federal Economic Stimulus Funds to Kentuckians in Need 

Moving from Homelessness to Homeownership 

High Response to KHC’s 2010 Reopening of Section 8 Waiting List  

KHC Weatherization Program Assists More than 1,500 Households So Far 

To view the PDF version of House Calls, click here.

Save the Date

KHC Board of Directors Meeting
Thursday, February 25, 2 p.m.
1231 Louisville Road
West Annex
Frankfort, Kentucky

Good Friday, April 2, 2010
(KHC Offices Close at 12 noon)

KHC Board of Directors Meeting
Thursday, April 22, 2 p.m.
1231 Louisville Road
West Annex
Frankfort, Kentucky

2010 Housing Management Conference
Tuesday through Thursday, May 18-20
Galt House Hotel & Suites
Louisville, Kentucky

2010 Kentucky Affordable Housing Conference
Wednesday and Thursday, September 22-23
Louisville Marriott Downtown
Louisville, Kentucky

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Agencies Participate in the 2010 Statewide Point-In-Time Count of the Homeless 

The U.S. Department of Housing and Urban Development (HUD) mandates that the count be conducted every other year on a single day within the last ten days in January.  To keep homeless data as up to date as possible, Kentucky conducts the count every year on the last Thursday in January.  This year’s count is on Thursday, January 28, from 12 midnight to 11:59 p.m., local time.

Results from the 2009 count caused concern for homeless service providers and advocates throughout Kentucky, as the number of precariously housed individuals outside of Lexington and Louisville rose almost 30 percent.  The term precariously housed refers to those who are doubled- or tripled-up with family or friends, living in substandard housing, or expecting eviction within one week.  It is this population that is likely to become homeless in the near future.

Another point of interest from the 2009 Point-In-Time Count was that, on the day the count was originally scheduled, a massive ice and snowstorm brought much of the state to a standstill.  Because of this, many areas conducted part or all of the count in February.  The weather and the rescheduling of the count by some regions are believed to have resulted in an undercount of the homeless.

“Conducting a statewide count of homeless individuals can be a daunting task,” said KHC Chief Executive Officer Richard L. McQuady.  “This task was made even more difficult by the weather we experienced in 2009.  The data collected during the 2010 count will give us a more accurate picture of the causes and characteristics of homelessness in the state.”

The 2010 count brings new partnerships with the Kentucky Department of Education and the Kentucky Department for Community-Based Services (DCBS), which results in more comprehensive homeless and precariously housed data.  For the first time, the Department of Education’s number of homeless children in the school systems will be included in the Point-In-Time Count results.  KHC anticipates that inclusion will increase the number of children counted and give a more accurate picture of homeless youth in the state.

KHC arranged for DCBS staff to complete the Point-In-Time Count survey online.  As persons arrive at DCBS offices, the staff member meeting with them can easily and conveniently complete the 2010 Point-In-Time Count survey with the click of a link.

“These partnerships and the many others that have been cultivated across the state are an important piece of the count, as we are constantly striving for precise, all-encompassing data,” said McQuady.  “We appreciate the considerable amount of time and effort these partners contribute to the count.”

For more information about the count, contact Kentucky Housing Corporation’s Laurent Houekpon toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 304; TTY 711; or e-mail lhouekpon@kyhousing.org.

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KHC Welcomes New Board Members

Governor Steve Beshear recently appointed three new members to the Kentucky Housing Corporation (KHC) Board of Directors.

Carolyn Stone Edwards, Lexington, is a Realtor with Re/Max Creative Realty.  She represents real estate practitioners licensed by the Kentucky Real Estate Commission, and her term will expire October 30, 2013. 

Horace Alton Cunningham, Benton, is a business representative for the International Union of Painters and Allied Trades District Council 91.  He represents the interests of the Kentucky State Building Trades Council on the KHC Board of Directors for a term expiring October 30, 2013. 

F. Lynn Luallen, Frankfort, is president of The Housing Partnership, Inc., and a former chief executive officer of KHC.  He represents the interests of the home construction industry on the KHC Board of Directors. 

A complete listing of KHC’s Board members is available on KHC's Web site.

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KHC Offers Lowest Ever Home Loan Interest Rates

With homeownership industry troubles in nearly every newscast and newspaper for the last year, it is rare to find a positive point – until now.

KHC’s rate for federal government supported home loans (FHA, VA, and RHS) is 4.375 percent.  Applicants with a 700 or better credit score, who are not using KHC down payment assistance, can receive a 4.125 percent rate.  These are the lowest rates that KHC has ever offered to help as many Kentuckians as possible achieve homeownership.  KHC’s goal is to help 3,500 first- and second-time home buyers acquire homes in 2010. 

“KHC consistently works to help home buyers find ways to work through whatever barriers they face in acquiring a home,” said Richard L. McQuady, chief executive officer of KHC.  “Often, however, we are limited as to just how much we can offer.  But with new pools of resources now available, we are excited to be able to help more individuals and families buy homes.”

The new resources are funds provided by an initiative launched by the Obama administration to help stimulate the home buying market.  The Homeowner Affordability and Stability Plan was created to stabilize the nation’s homeownership market with a two-pronged approach.  The first piece is a new bond purchase program to support new lending by housing finance agencies (HFAs), and the second is a temporary credit and liquidity program that helps HFAs access the money from outstanding bonds.  This means that HFAs can now sell bonds easier and receive cash from the bonds they already have, thereby creating more funds to support home mortgage loans.  The Obama administration worked with the National Council for State Housing Agencies (NCSHA), the U.S. Treasury, Freddie Mac, and Fannie Mae to create the new bond purchase program, which was finalized in November 2009.

“Without the initiative started by President Obama, and the hard work from NCSHA, the U.S. Treasury, Freddie Mac, and Fannie Mae in creating a solid and sustainable plan, these rates would not be possible,” said Governor Steve Beshear.  “We are grateful that the funds provided through this initiative will allow thousands of Kentuckians across the state to have a home of their own.”

To learn more about this and other options available to potential home buyers through KHC, contact KHC’s Homeownership Department toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 291, or TTY 711.

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You Spoke, KHC Responded!
Listening Tour Update and Strategic Plan

In late 2008 and early 2009, Kentucky Housing Corporation (KHC) representatives traveled the state to receive feedback from partners about current and future housing needs and challenges, and hear about what was and was not working with KHC programs and policies.  This information was used to identify needs, areas of opportunity, and to help the Corporation develop an effective strategic plan.  Events were held in Lexington, Louisville, Bowling Green, Paducah, London, and Erlanger.  KHC met with nonprofit partners, builders, developers, lenders, service providers, elected officials, and various other business representatives who work with KHC.  They were all asked to talk about the needs they were working to meet and what they saw as challenges over the next three to five years.

The tour had outstanding attendance and participation from all involved, giving feedback on KHC’s projects and programs.  While much was discussed, five points were brought up recurrently.

1. Need for preserving and rehabilitating the housing stock already in existence
2. Need for more resources across the state
3. Need for permanent supportive housing and more assistance for the homeless population
4. Need for better/more technical assistance on KHC programs
5. Need for greater program flexibility

KHC took all the input and developed an updated strategic plan, which outlines how resources are being used over the next three years.

“We looked at the needs and took a balanced approach, to serve as many Kentuckians as possible with housing needs,” said Richard L. McQuady, chief executive officer of KHC.  “To achieve these results, we have created our strategic plan, to guide us in meeting varied housing needs across the state.”

The strategic plan provides a framework of for how the Corporation's resources will be utilized, tracked, and reported to the Board of Directors.  There are three primary strategies within the strategic plan and three goals within each strategy.

1)   Enhance Long-Term Financial Strength

• Manage corporate risks to ensure safety and soundness
• Increase quality asset base
• Increase revenue/manage cost containment opportunities

2)  Optimize Resources and Enhance Corporate Efficiencies

• Assess internal/external needs and develop corporate priorities
• Improve corporate communications both external and internal
• Increase training opportunities

3)  Promote and Develop Partnerships

• Strengthen and expand relationships with state and national partners
• Implement innovative housing initiatives to be partner of choice
• Reduce program barriers to increase flexibility

As an additional result of the Listening Tour and development of the corporate strategic plan, KHC updated its mission and values to better reflect today’s housing environment.  The updated mission states, “As the state housing finance agency, Kentucky Housing Corporation’s mission is to lead Kentucky in providing safe, affordable housing.”  KHC’s values include integrity, respect, innovation, and commitment.

To monitor progress toward accomplishing the goals of the strategic plan, the Board of Directors created the Communications and Planning Committee.  This committee is chaired by Stacey Epperson, president of Frontier Housing, who represents the interests of nonprofit organizations on KHC's Board of Directors.

To further KHC’s growth and fulfillment of the strategic plan, more forums are planned to share and solicit feedback from all partners and other interested Kentuckians.  To stay informed about future Listening Tour dates and locations, subscribe to KHC’s eGram system, available on KHC’s Web site on the right-hand side of the home page.

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Protection Center Update

The Kentucky Homeownership Protection Center (Protection Center) was established by the 2008 Kentucky General Assembly to address the foreclosure crisis in Kentucky.  The Protection Center is a joint effort of the Department of Financial Institutions, Kentucky Housing Corporation (KHC), and many other organizations across the state.  The Protection Center is administered by KHC, under the direction of Governor Steve Beshear, to provide support to homeowners who are in default or in danger of default on their mortgage loan.  KHC collects and reports data on the results to the Governor’s Office.

These graphs show data collected from the Protection Center from August 11, 2008, to January 11, 2010.  As of that date, the Protection Center has been contacted 7,022 times.  Only a small percentage was not a foreclosure issue.  For more information on the Protection Center, visit www.ProtectMyKYHome.org.

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KHC Steers Federal Economic Stimulus Funds to Kentuckians in Need

The American Recovery and Reinvestment Act (ARRA) is estimated to bring Kentucky more than $3 billion in federal funds.  Of that, an estimated $306 million will increase and revitalize affordable housing.  The infusion of ARRA funds has allowed the expansion or creation of the following Kentucky Housing Corporation (KHC) programs.

Weatherization Assistance Program
Making Homes Warm in Winter, Cool in Summer

Managed by the U.S. Department of Energy, this program is designed to weatherize homes for low-income households.  In Kentucky, these funds are managed by KHC in coordination with the Finance and Administration Cabinet.  KHC has received an allocation of $70.9 million for the state.  In turn, KHC works with Community Action Kentucky, a nonprofit umbrella organization that organizes 23 local Community Action Agencies throughout the Commonwealth.  These ARRA funds will bring improvements to thousands of additional Kentucky homes through the Weatherization Assistance Program.  For more information about this program, contact KHC’s Pat Flowers toll-free in Kentucky at 800-633-8896 or (502) 564-7630, extension 335; TTY 711; or e-mail jpflowers@kyhousing.org.

Homeless Prevention and Rapid Re-Housing Program
Kentucky’s Housing and Emergency Assistance Reaching The Homeless (HEARTH) 

This program, administrated by the KHC Specialized Housing Resources Department, provides assistance to persons who are homeless or in danger of becoming homeless.  Funding for this program in the amount of $12.1 million comes from the U.S. Department of Housing and Urban Development (HUD).  These funds will be disbursed from KHC as grants to local agencies providing services which include financial assistance, rental assistance, security/utility deposits, and housing relocation and stabilization services.  For more information on Kentucky’s HEARTH program, contact KHC’s Anne Colly Rose toll-free in Kentucky at 800-633-8896 or (502) 564-7630, extension 259; TTY 711; or e-mail arose@kyhousing.org.

Tax Credit Assistance and Tax Credit Exchange
Financial Tools Spur Funding for New Construction, Rental Refurbishment Projects

Funds for KHC’s Tax Credit Assistance Program (TCAP) come from HUD’s Low Income Housing Tax Credit program.  In the weakened economy, traditional funding sources for housing-related projects have been challenged and there is a lack of equity investors.  KHC’s TCAP helps the pipeline of construction finance to flow again.  Monies traditionally received from equity investors are now available through KHC’s HOME Investment Partnerships Program made possible through a block grant allocation of $31.6 million.  Funding has been awarded to 19 projects throughout the state.  KHC’s Tax Credit Exchange (Exchange) Program, funded by the U.S. Treasury, is a financial instrument that makes possible projects, which otherwise face funding difficulties.  KHC has recently awarded $64.7 million in tax credit exchange funds to 25 projects throughout Kentucky.  For more information about the TCAP or Exchange Program, contact KHC’s Andrew Hawes toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 326; TTY 711; or e-mail ahawes@kyhousing.org.

Future ARRA Funding

New ARRA-funded programs are being developed that will further strengthen housing for Kentuckians.  The Home Performance with Energy Star program will provide KHC with $2 million from the U.S. Department of Energy for programs that improve energy efficiency for moderate-income households.  Details on this program will be released when available.  For more information about the Home Performance with Energy Star program, contact KHC’s Andrew Isaacs toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 483; TTY 711; or e-mail aisaacs@kyhousing.org.

All of these stimulus-related programs administered by KHC will be monitored and progress reported to ensure each program’s effectiveness and efficiency.  Information on funds received or expended can be found at www.recovery.gov or www.kentuckyatwork.ky.gov.

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Moving from Homelessness to Homeownership
Family Progresses through KHC Programs to New Home

When domestic violence left Tammy and her two teen-aged children suddenly without a home, she never thought she would become an independent homeowner in less than three years.  But after a referral to Kentucky Housing Corporation (KHC), Tammy’s determination led her down a road to homeownership and her success demonstrates how Kentuckians are served by the programs – and people – of KHC. 

“Tammy is a shining success story for KHC,” said Keli Reynolds, manager of KHC’s Safe Havens and Family Self-Sufficiency Programs.  “Here is someone who fled domestic violence in 2007 and bought her own home by 2009.” 

When Tammy purchased and moved into her new home this past fall, she was among the first participants to progress through a series of KHC programs that were created for this purpose. 

Tammy’s journey toward homeownership began with KHC’s Safe Havens program, which provides families with temporary housing options when domestic violence necessitates a new living situation.  Over time, she was able to locate suitable longer-term housing through the Housing Choice Voucher Program.  She entered the Family Self-Sufficiency Program, which included financial literacy and budget education with a local case worker in her area.  A savings account set up by KHC allowed her to accrue extra money that later proved helpful with the new home.  She saved additional earnings in an escrow account that received a funds-matching grant via KHC’s Individual Development Account program. 

Through the mix of temporary housing, financial education, and the unique savings and funding tools her family received from KHC, she secured financing, closed on a loan, and moved into a brand new home in her community in September. 

“It felt great,” said Tammy.  “We were ready to move into our home and it couldn’t have happened quickly enough.  If it were not for KHC, I don’t think it could have happened.  All the people there were great and helpful throughout the long process.” 

“This is a perfect example of how those steps work together for a person who is dedicated to homeownership,” says Reynolds.  For more information about KHC’s Safe Havens and Family Self-Sufficiency Programs, contact Keli Reynolds toll-free in Kentucky at (502) 633-8896 or (502) 564-7630, extension 376; TTY 711; or e-mail kreynolds@kyhousing.org.

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High Response to KHC’s 2010 Reopening of Section 8 Waiting List 

Kentucky Housing Corporation (KHC) reopened the applicant waiting list for the Section 8 Tenant-Based Rental Assistance Program.  KHC administers the program in 87 of Kentucky’s 120 counties.  Applicant response has been high with 2,100 applications submitted so far.  KHC staff members are currently processing the incoming applications in the order in which they are received.  KHC offices are also receiving a higher-than-normal volume of telephone calls from applicants. 

The Tenant-Based Rental Assistance (TBRA) Program allows participants to locate and rent a house, duplex, apartment, or mobile home on their own, using a housing choice voucher, as long as the dwelling meets U.S. Department of Housing and Urban Development (HUD) guidelines.  The housing assistance stays with the participant.  KHC receives funding from HUD which is used to pay rent to the property owner on behalf of program participants.

How to Apply

KHC, as program administrator, reviews all paperwork associated with the TBRA Program, beginning with the application process and ending at the time the family leaves the program.  When an application is received, the information is reviewed for income eligibility.  As funding is appropriated, applicants at the top of the waiting list are mailed a notification letter.  At that time, KHC works with the applicant to collect additional verifications required by federal regulations.

Once an applicant selects a housing unit, a KHC field staff member conducts a Housing Quality Standards inspection.  If criteria are met, KHC processes the applicable paperwork to begin housing assistance.  KHC conducts annual inspections and reviews applicant eligibility information for the duration of program participation.

The 2010 reopening of the waiting list came after KHC was forced to close the list in 2008 when the high demand for rental housing assistance pushed the applicant waiting period beyond two years. 

For More Information

KHC publishes a complete list of assisted rental housing around Kentucky, sorted by county.  More information about KHC’s programs, including a list of the 87 counties where KHC administers rental assistance, is available at www.kyhousing.org or by calling toll-free in Kentucky (877) 552-7368 or (502) 564-9946, extension 749; TTY 711; or e-mail shatchett@kyhousing.org.

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KHC Weatherization Program Assists More than 1,500 Households So Far

The Kentucky Housing Corporation (KHC) Weatherization Assistance Program helps keep Kentuckians warm in the winter, cool in the summer, and safe from extreme weather conditions all year long.  Since July of 2009, more than 1,425 Kentucky households have successfully completed KHC’s Weatherization Assistance Program and an additional 100 homes are currently engaged in the process.

KHC partners with Community Action Kentucky and local Community Action Agencies to provide homeowners with education, customized recommendations by on-site experts, and quality repairs that improve overall energy efficiency.  These improvements deliver long-term energy and cost savings for residents with a primary focus on low-income individuals and families with children, the elderly, and those with disabilities.   

How It Works
The Weatherization Assistance Program increases household energy efficiency and lowers energy costs by providing a variety of conservation measures, including insulation improvements, sealing of air ducts, and repair or replacement of inefficient heating systems.  The program also provides for health and safety measures, such as installing smoke alarms and carbon monoxide detectors. 

After an applicant completes an application and is approved for the program, the local Community Action Agency schedules a local inspector to go to the home and conduct an energy assessment.  After the inspection report, a work crew is assigned to perform the necessary changes to the home.  After the weatherization work is completed, an inspector revisits the site to certify successful completion of the job.

This program is administered by KHC’s Construction Design and Review Department with funding by the U.S. Department of Energy. 

Why It Matters

According to the U.S. Department of Energy:

• Low-income households spend nearly 14 percent of their total annual income on energy.   Other households spend an average of 3.5 percent of their annual income on energy.  Low-income households often cut back on other necessities to pay their energy bills.  
• More than 90 percent of low-income households have annual incomes less than $15,000.
• The average annual energy expenditure for low-income households is $1,102.
• Forty-nine percent of low-income households are occupied by persons with disabilities or elderly residents.  

For more information about KHC’s Weatherization Assistance Program, contact Pat Flowers toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 335; TTY 711; or e-mail jpflowers@kyhousing.org.

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