CEO Video

Kentucky Housing Corporation Chief Executive Officer Richard L. McQuady recorded a video message.  Hear Rick speak live at the Kentucky Affordable Housing Conference, September 22-23, 2010, at the Louisville Marriott Downtown.  Online registration is still available.

Table of Contents

CEO Video 

KHC Homeownership Options Provide Relief in Tough Times 

KHC Receives Communications Awards 

Results of Statewide Homeless Count Announced 

ARRA: Providing Affordable Housing and “Greening” Kentucky’s Housing Stock 

Protection Center Contacts Approach Ten Thousand 

SHR Recently Awarded Nearly $1.5 Million for New Programs 

KHC Calendar of Events

Friday, September 3:  KHC Offices Closed (State Government Furlough Day)

Monday, September 6:  KHC Offices Closed (Labor Day Holiday)

Wednesday-Thursday, September 22-23:  Kentucky Affordable Housing Conference, Louisville

Thursday-Friday, October 7-8:  Low Income Housing Tax Credit Compliance Training, Louisville

Thursday, October 28:  KHC Board of Directors Meeting

Thursday, November 11:  KHC Offices Closed (Veterans Day Holiday)

Friday, November 12:  KHC Offices Closed (State Government Furlough Day)

November 14-20:  National Hunger and Homelessness Awareness Week

Thursday-Friday, November 25-26:  KHC Offices Closed (Thanksgiving Holiday)

Thursday, December 9:  KHC Board of Directors Meeting

Thursday-Friday, December 23-24:  KHC Offices Closed (Christmas Holiday)

Thursday-Friday, December 30-31:  KHC Offices Closed (New Year’s Holiday)

KHC Homeownership Options Provide Relief in Tough Times

Many Americans have faced financial challenges the last few years.  While research indicates some improvement, the nation is not out of the woods yet.  In response, Kentucky Housing Corporation (KHC) offers many options to help Kentuckians who may need a little boost to purchase their own homes.

The KHC Down payment Assistance Program (DAP) has multiple options to help residents in various income situations.  The regular DAP, available to all KHC first mortgage loan recipients who are first-time home buyers, offers up to $4,000 in $100 increments.  The $4,000 loan is repayable over seven years at a 6 percent interest rate, equaling a monthly payment of only $58.44! 

Other potential homeowners meeting KHC income criteria may qualify for one of three other programs.  HOME DAP provides assistance to buyers of existing homes up to $4,500 with no monthly repayment…the loan is forgiven over five years!  HOME Special DAP is available to households including a person with a permanent disability and receiving disability income or including a person who is age 62 or older.  With HOME Special, applicants could receive up to $10,000 forgiven over five years!  HOME Family DAP also provides $10,000 forgiven over five years if the household has not owned or had ownership interest in a home over the last three years and has at least one dependent child in the household under the age of 18.

With all these options available from KHC, more Kentuckians are now able to buy their own homes.  In conjunction with the assistance from DAP, KHC home buyers also can take advantage of the low interest rates available.  KHC hit record low rates earlier this year; KHC’s recent rates are even lower.  As of September 1, 2010, future homeowners with a 700 or better credit rating can take advantage of regular rates as low as 3.5 percent.  While home buyers receiving this rate are not eligible for DAP, those taking advantage of the regular Mortgage Revenue Bond regular rate of only 3.875 percent are eligible.  Current rates are posted on KHC's Web site.

With these low rates and assistance programs, KHC has already helped nearly 2,500 households become new homeowners in 2010.  For more information about KHC’s home buying programs, visit www.kyhousing.org; call toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 291; or TTY 711.

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KHC Receives Communications Awards

The communication efforts of Kentucky Housing Corporation (KHC) were recently recognized during the Thoroughbred Chapter of the Public Relations Society of America’s annual awards dinner.

KHC received nine awards in the following categories.

• Media Relations for the 2009 Point-In-Time Count of the Homeless Results Announcement.
• Community Relations for the Hunger and Homelessness Awareness Week in Kentucky Campaign.
• Crisis Communications for the KHC Listening Tour.
• Internal Communications for Rick's Q&A, an internal effort on behalf of KHC’s leadership to take and provide answers to questions from staff.  The questions have ranged from humorous, like “Can you do the John Wall dance?” to more serious questions about the budget and other business-related topics.
• Marketing Communications for materials for the 2009 Kentucky Affordable Housing Conference.
• Brochure for the Coming Attractions Mortgage Credit Certificate Flier.
• Special Purpose Publication for the 2009 Point-In-Time Count of the Homeless Report.
• Creative Tactic for an Owl Postcard, which was created to notify customers of ways they can make their payments and of the Kentucky Homeownership Protection Center.
• Online tactic for the Kentucky Rents Web site redesign.

“At KHC, we value our partnerships within the different departments of the Corporation and with our external partners,” said KHC Chief Executive Officer Richard L. McQuady.  “Many of these award-winning projects were undertaken to better serve our customers and are a direct result of the collaboration of many KHC staff members across several areas of KHC.”

Communications resources are available for KHC partners on KHC’s Web site under Media Room, including a media event planning guide and logo and signage guidelines.

For more information on these award-winning projects or event planning technical assistance, please contact KHC’s Communications Project Manager Amanda Palmer toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 712; TTY 711; or e-mail apalmer@kyhousing.org.

For more information on logo usage and signage guidelines and proofs, please contact KHC’s Communications Director Charla Jackson Peter toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 454; TTY 711; or e-mail cpeter@kyhousing.org.

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Results of Statewide Homeless Count Announced

Results of the 2010 Point-In-Time Count of the Homeless were released earlier this summer at a meeting of the Kentucky Interagency Council on Homelessness (KICH) Executive Committee.

During the 2010 count, which took place on January 28, 6,623 homeless individuals were identified across the state.  This was an increase from the 2009 count when 5,999 homeless individuals were located, although a major ice and snow storm that hit the state around the same time of the count altered plans and prohibited efforts for the count.

The count is a coordinated effort of Kentucky Housing Corporation (KHC), KICH, The Coalition for the Homeless in Louisville, and Central Kentucky Homeless and Housing Coalition in Lexington.  The U.S. Department of Housing and Urban Development requires a Point-In-Time Count of the homeless every other year.  Kentucky, one of the few states to coordinate a statewide count, conducts a count every year on the last Thursday in January in an effort to achieve more current accuracy.

“The count is a massive effort that asks local and state agencies, service providers, and volunteers to come together in the middle of winter to interview individuals, not only in a shelter or inside the office of a service agency, but also outside in the elements,” said KHC Chief Executive Officer Richard L. McQuady.  “We appreciate the time and efforts of everyone who came out to participate in this very important event.  These results are an important piece of planning the state’s efforts to assist homeless individuals and families.”

One of the major findings from the 2010 count was a 31 percent increase, a total of 9,833, in the number of precariously housed individuals outside of Jefferson and Fayette Counties (Jefferson and Fayette Counties do not calculate the number of precariously housed).  Precariously housed means they were doubled- or  tripled-up with family or friends, lived in substandard housing conditions, or expected eviction within seven days.  Precariously housed persons are in danger of becoming homeless because their current housing situation is unstable.  These individuals do not meet the U.S. Department of Housing and Urban Development’s definition of homelessness and, therefore, do not qualify for many federal housing programs.  As a result, this population is difficult to serve. 

A 2010 study conducted by Gary Painter with the Research Institute for Housing America and the Mortgage Bankers Association titled, “What Happens to Household Formation in a Recession?” suggests that more individuals and families are living with friends or family because of poor economic conditions.  This finding could explain the increase in the number of precariously housed. 

Additional Results from the 2010 Point-In-Time Count

• 1,460 homeless respondents were severely mentally ill.
• 2,032 homeless respondents were chronic substance abusers.
• 1,071 homeless respondents were victims of domestic violence.
• 564 homeless respondents were veterans.
• 15 percent of homeless individuals were completely without shelter across the state on the day of the count.

“The U.S. Interagency Council on Homelessness recently released the nation's first comprehensive strategy to prevent and end homelessness called Opening Doors:  Federal Strategic Plan to Prevent and End Homelessness,” said Jason Dunn, vice chair of KICH.  “KICH will evaluate Opening Doors and determine ways to align Kentucky’s Ten-Year Plan to End Homelessness to the national plan.”

The 2010 Point-In-Time Count Report is available on the Kentucky Homeless Web site at www.kyhomeless.org and on KHC’s Web site, www.kyhousing.org, under Specialized Housing, Point-In-Time Count. 

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ARRA:  Providing Affordable Housing and “Greening” Kentucky’s Housing Stock

The American Recovery and Reinvestment Act (ARRA) goes by many names, Recovery Act, ARRA, Stimulus Funds, but the results are the same:  investing over $3 billion in Kentucky to create new jobs and save existing ones, spurring economic activity and investing in long-term growth, and fostering unprecedented levels of accountability and transparency in government spending.

Kentucky Housing Corporation (KHC) has received funding for several new programs and to expand existing programs.

Weatherization Assistance Program

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 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. 

The Weatherization Assistance Program recently reached a milestone of weatherizing 30 percent of its project units a month earlier than originally expected.  By reaching this percentage, KHC is able to access the second half of the $70.9 million allocation.

It was also recently announced that, through the Weatherization Assistance Program, Community Action Kentucky will purchase new GE GeoSpring Hybrid Water Heaters to be utilized in homes participating in 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.

Kentucky Home Performance

KY Home Performance (KHP) helps Kentucky homeowners save energy and improve the comfort of their homes by offering rebates or below-market rate loans to make their homes more energy efficient, which over time, saves them money on their utility bills. 

It is funded with $4 million from the American Recovery and Reinvestment Act through Kentucky’s Department for Energy Development and Independence and an additional $2.1 million provided by Kentucky Housing Corporation.  In total, the program will leverage an estimated $17.5 million in private capital and funding.

All KY Home Performance auditors must be certified by the Building Performance Institute (BPI).  All contractors must have a BPI-certified building analyst on staff or work with a certified-BPI auditor.  KHP has partnered with the Kentucky Community and Technical College System to offer BPI certification classes.

KHP will have a public launch later in the fall, and interested homeowners will be able to contact an auditor to start the process.

For more information about KY Home Performance, 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.

Kentucky's Housing and Emergency Assistance Reaching the Homeless

Kentucky's Housing and Emergency Assistance Reaching the Homeless (KY HEARTH) Program is the state's version of the federal Homelessness Prevention and Rapid Re-Housing Program.  The purpose of KY HEARTH is to provide homelessness prevention assistance to households who would otherwise become homeless—many due to the economic crisis—and to provide assistance to rapidly re-house persons who are homeless.  KHC received $12.1 million to administer the program throughout the state (Lexington, Louisville, and Covington each received direct allocations to fund the program).

A total of 47 nonprofit agencies and local governments across the state received over $11.6 million from KHC’s allocation.  As of July 31, 2010, $3.9 million has been utilized.  Over 11,500 individuals have received assistance (this number does not include domestic violence victims). 

For more information on the KY 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 Program and Tax Credit Exchange

In the weakened economy, traditional funding sources for housing-related projects have been challenged and there is a lack of equity investors.  KHC’s Tax Credit Assistance Program (TCAP) helps the pipeline of construction finance to flow again.  Monies traditionally received from equity investors are now available through the TCAP from a block grant allocation of $31.6 million.  Funding has been awarded to 19 projects throughout the state creating an estimated 841 units. 

KHC’s Tax Credit Exchange (Exchange) Program, funded by the U.S. Treasury, is a financial instrument that makes possible projects that otherwise face funding difficulties.  KHC has recently awarded $64.7 million in tax credit exchange funds to 25 projects throughout Kentucky creating and rehabilitating an estimated 1,273 units.  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.

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Protection Center Contacts Approach Ten Thousand

The Kentucky Homeownership Protection Center (Protection Center) continues to help Kentuckians find a way out of financial home loan difficulties.  From August 11, 2008, to August 16, 2010, 9,445 people contacted the Protection Center, and only a small percentage was not a foreclosure issue (see graphs to the right).

The Protection Center works hard to educate Kentuckians about the many alternatives to foreclosure.  Lenders can alter mortgage terms to allow homeowners to repay in different ways, including forbearance agreements, loan modifications, and partial claims.  If the homeowner is not able to make the mortgage current, there are still options to prevent foreclosure.  These alternatives include a short sale, which allows the homeowner to sell the home and use the net sale proceeds to satisfy the debt.  Sometimes these proceeds are less than the amount still owed on the home, but it is more than the lender would receive from a foreclosure sale.  Also, some lenders will accept a deed-in-lieu, which allows the homeowner to deed the property to the lender in exchange for a release from all mortgage obligations.  All of these options prevent a foreclosure from damaging a homeowner’s credit for years to come.

The Protection Center also works to erase the stigma of mortgage payment problems.  Homeowners may sometimes face financial challenges that prevent them from making their monthly mortgage payments, but ignoring the issue is not a solution.  The Protection Center offers a network of counselors across the state to help homeowners create effective budgets and plans to avoid going into default on their home loan.

The Protection Center was established by the 2008 Kentucky General Assembly to address the foreclosure crisis in Kentucky.  It 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.

For more information on the Protection Center, please visit www.ProtectMyKYHome.org.

SHR Recently Awarded Nearly $1.5 Million for New Programs

The Kentucky Housing Corporation (KHC) Specialized Housing Resources (SHR) Department has recently been awarded funding for three programs that will serve persons with special housing circumstances.

The Kentucky Cabinet for Health and Family Services (CHFS) recently asked SHR to help administer a program that addresses the housing needs of young adults between 18 and 21 who are aging out of the foster care system.  The Chafee Room and Board Program provides rental assistance for up to 100 individuals over the next year.  A contract has been executed between KHC and CHFS that brings over $620,000 to the Corporation for this program.  For more information about this program, contact KHC’s Keli Reynolds toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 376; TTY 711; or e-mail kreynolds@kyhousing.org.

The U.S. Department of Housing and Urban Development (HUD) recently announced that KHC received a $410,000 grant through the national Continuum of Care competitive funding program.  Through the Housing Now program, funds will be used to provide rental assistance and services to help homeless families and individuals access and sustain permanent supportive housing.  For more information about this program, contact KHC’s Rosemary Luckett toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 317; TTY 711; or e-mail rluckett@kyhousing.org.

HUD also recently announced that KHC was awarded approximately $434,000 through the nationally competitive Housing Opportunities for Persons with AIDS program.  KHC will partner with AIDS Volunteers, Inc.; Volunteers of America; and Heartland Cares to utilize this funding.  These organizations will use the grant funds to provide services; short-term rent, mortgage, and utility assistance; tenant-based rental assistance; permanent housing placement; and resource identification for persons with HIV/AIDS and their families.  For more information about this program, contact KHC’s Jane Christopher toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 292; TTY 711; or e-mail jchristopher@kyhousing.org.

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