CEO Video Message

Kentucky Housing Corporation (KHC) Chief Executive Officer Richard L. McQuady recorded a video message to provide an update on the financial state of the Corporation.

Table of Contents

KHC Home Buying News

Annual Homeless Count Across State

Daniel Pitino Transitional Housing Ribbon Cutting

Recovery Kentucky Adds Two Centers

UBP Increases Assistance 

KHP Moves to Phase II 

Join Us!

KHC is hosting two conferences in the coming months.

The Housing Management Conference is Tuesday-Thursday, May 14-16, with a pre-conference course on Real Estate Assessment Center inspections on Monday, May 13.  The conference will take place at the Galt House Hotel & Suites in Louisville.

The 2013 Kentucky Affordable Housing Conference will take place Wednesday and Thursday, October 9 and 10, at the Hyatt Regency and Lexington Convention Center.  For sponsorship opportunities, please contact Mary Kay Meagher at (614) 224-8446 or e-mail mmeagher@occh.org.  More information will be available in KHC's eGrams. 

KHC Home Buying News

Neighborhood DAP Still Available!

Kentucky Housing Corporation (KHC) still has $1.4 million available for the Neighborhood Down payment Assistance Program (DAP)!  The Neighborhood DAP is a $10,000 loan, amortized over 30 years at a 1 percent interest rate.   

One of the following conditions must apply for the property to be eligible for Neighborhood DAP:

• Property in the process of disposition option, i.e., deed-in-lieu, short sale, HUD Real Estate Owned, or foreclosed upon.
• New construction or existing property that has been for sale for at least six months.
• The home buyer has experienced a foreclosure in the past and now credit qualifies to purchase another home.

A Neighborhood DAP video is available on KHC's YouTube channel outlining the qualifications for the Neighborhood DAP.

Become a KHC-Certified Real Estate Agent

Consumers often name real estate agents as the most important gatekeepers of information about home financing options.  We encourage real estate agents to learn more about KHC's affordable loan programs.  

KHC can help expand a real estate professional’s customer base by offering a source of financial assistance that meets customers' needs.  To find out more about KHC and the many opportunities available for home buyers, attend one of our 2013 Real Estate Agent Continuing Education classes!

These classes are free and approved for three elective credit hours by the Kentucky Real Estate Commission.  For upcoming classes, visit KHC's Web site, under Lenders/Realtors, Homeownership Calendar.  Classes start in March.  By attending one of these classes, an agent becomes a KHC-Certified Real Estate Agent and receives free advertising and exposure to lenders and home buyers!

Need Help with KHC First Mortgages or DAP?

KHC developed two quick reference cards for both the KHC First Mortgage Program and KHC's DAPs to assist lenders in determining the funding source, first mortgage program, and appropriate DAP for the borrower.  The quick reference cards are available on KHC's Web site, under Lenders/Realtors, Lender Services.

Stay Up-To-Date with KHC Homeownership

Don’t forget that KHC has multiple Homeownership e-newsletters—or eGrams—available, as well as other topics of interest from KHC.  To sign up for eGram or edit your preferences, please visit KHC’s Web site and click on “Subscribe to eGram.”

Annual Homeless Count Across the State

On January 30, volunteers across Kentucky gathered to conduct the 2013 K-Count, previously known as the Point-In-Time Count of the homeless.  Kentucky Housing Corporation (KHC) coordinates count efforts through 118 counties in Kentucky; Jefferson and Fayette Counties coordinate their own counts.

In addition to counting those living in shelters, on the streets, and other places not meant for human habitation, the precariously housed–individuals and families living in substandard housing conditions, living in a hotel or motel, doubled- or tripled-up with family or friends, or expecting evictions within 21 days from a private dwelling–were counted across the state.

“We have to ensure those who are on the verge of being homeless, or precariously housed, are also factored into any plan that addresses homelessness,” said KHC Chief Executive Officer Richard L. McQuady.  “By counting both the precariously housed and currently homeless, we can better target federal resources to address the needs of the homeless in the state.”

A comprehensive analysis of this year’s data, including five-year K-Count trends, will be available in April.

“The count has varied over the years and we have improved the count to be more accurate to get a clear image of how best to apply homelessness funding,” said Polly Lloyd, research analyst in KHC’s Specialized Housing Department.  “Looking at these issues from every angle allows us to identify and address the root causes of homelessness our fellow Kentuckians face.”

The U.S. Department of Housing and Urban Development (HUD) mandates that Continuum of Care (CoC) regions across the United States conduct a homeless count during the last ten calendar days in January, every other year during odd years.  HUD uses the figures from the count to determine how much funding will be made available to the CoC regions for homeless assistance grants.

Kentucky has three CoC regions:  Jefferson County, Fayette County, and the Balance of State (the other 118 counties in Kentucky).  KHC coordinates efforts in the Balance of State.  These regions separately apply for and receive HUD funding. 

 Daniel Pitino Transitional Housing Ribbon Cutting

On Friday, January 25, 2013, The Daniel Pitino Shelter held a ribbon cutting to celebrate completion of its two new transitional housing units.  With its soup kitchen and by serving as a place for emergency and temporary housing, the shelter has played a major role for many years in helping those who have fallen on hard times.

“For homeless or at-risk Kentuckians to be successful in sustaining a home of their own, we must combine housing and other services to help individuals and families reach self-sufficiency,” stated Brenda Weaver, chief strategy officer at Kentucky Housing Corporation.  “We understand that families who have been relying on the support of the shelter may need a bit more support before they can afford their own home.  And that’s where housing like this comes in.  Having a place to call home is imperative to the well-being of our Kentucky families and is proven to have a substantial impact on a child’s well-being, as well.”

KHC allocated $197,600 from the Affordable Housing Trust Fund (AHTF) to help make these homes a reality.  The AHTF was established by the Kentucky State Legislature to provide housing for very-low income Kentuckians.  The fund was created in response to economic conditions, federal housing policies, and declining resources which adversely affected the ability of very low-income persons to obtain safe, quality, affordable housing.

Barry Johnston, housing programs manager for Green River Area Development District said, “I’ve written housing applications for nearly 12 years.  I’ve written applications for large housing projects and small projects, but sometimes it’s the smaller projects that really touch the heart.  This is one of those projects.   We very much appreciated the fact that Kentucky Housing Corporation listened to the needs of the homeless and near homeless.  Without KHC, this project would have never taken place.”

Recovery Kentucky Adds Two Centers

1,200 Total Beds to be Available through Program

Kentucky Housing Corporation’s Recovery Kentucky Program will add two centers:  Hickory Hills Recovery Center in Hindman and Men’s Addiction Recovery Campus in Bowling Green.  Recovery Kentucky was designed to simultaneously address the state’s homeless issue and substance abuse problem through a recovery model including peer support, daily living skills classes, job responsibilities, and establishment of new behaviors.

These centers will bring the total number of facilities to 12,^* which are located throughout the state.  Construction on Hickory Hills Recovery Center is expected to start by the summer of 2013.  Men’s Addiction Recovery Campus will break ground later this year.  Both are men’s centers.

Due to the overwhelming need for substance abuse recovery centers, each of the existing centers has a waiting list of clients.  The size of the list varies from each center.  One list has almost 200 persons waiting for a spot to open in the facility; this number is almost double the capacity of the center.

 “KHC is proud of the program’s proven success in helping Kentuckians change their lives but wish the demand for the program was not so overwhelming,” said KHC Chief Executive Officer Richard L. McQuady. 

An outcome study conducted by the University of Kentucky Center on Drug and Alcohol Research and UK Department of Behavioral Science found the Recovery Kentucky Program saved an estimated $3.5 million in 2011.  In addition, there was a 93 percent reduction in victim cost of crimes and a 94 percent reduction in incarceration for individuals who participated in the study.

A family member of a client currently participating in the Recovery Kentucky Program stated, “I am so proud of my sister and the progress she is making...I really think she is in the perfect place this time.  I can see it every visit I make.  She is going to make it this time.”

Each center received funding from KHC through the HOME Investment Partnership Program and Low Income Housing Tax Credits.  The Federal Home Loan Bank has also committed funding to both centers.

Two more centers are planned in the future but locations have not been determined.

*Four program model centers are also in operation (two in Lexington and two in Louisville). 

Housing Credit Expected to Exceed $9.5 Million in 2014

Kentucky Housing Corporation (KHC) has released the draft 2014 Qualified Allocation Plan (QAP).  As the designated administrator of the federal Low Income Housing Tax Credit (Housing Credit) Program for the Commonwealth of Kentucky, KHC is required to publish the QAP, which describes the process for the allocation and use of Housing Credit. 

The Housing Credit Program was created by the Tax Reform Act of 1986.  The program is one of the few remaining tax incentives for the creation and preservation of affordable rental housing.  Investors in affordable housing can claim Housing Credit against their federal income tax liability for ten years.  The property must remain affordable for a minimum of 33 years.

The 2014 set-asides and pools of credit have been restructured to meet housing needs in the state and based on feedback received from developers.

Proposed Distribution of Housing Credit for 2014:

Any qualifying project can apply for Housing Credit through a competitive process and compete through either the urban, rural, community impact, or nonprofit pool.  Credit will be awarded to the highest scoring projects from a single pool.  If the pool has credit remaining and it is not sufficient to fully fund the next highest scoring project, that project will not automatically be funded.  KHC must ensure the nonprofit set-aside requirements have been met for the combined allocations of 2014 Housing Credit.

Comments on the QAP were accepted through March 1.  The current version of the QAP reflects suggestions and feedback received during the open comment period.  A public hearing was held on March 25. 

The Multifamily Production Department is also exploring a risk-share lender product specific to Housing Finance Agencies (HFAs) that will support the Housing Credit Program. This will allow HFAs to establish reasonable underwriting guidelines, produce flexibility, and accept all underwriting responsibilities.  

More information about Housing Credits or multifamily housing creation is available on KHC’s Web site or by contacting KHC’s Senior Director of Multifamily Finance Andrew Hawes toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 326; TTY 711; or e-mail ahawes@kyhousing.org.

UBP Increases Assistance

The U.S. Department of Treasury created the Hardest Hit Fund^® (HHF) for states with high unemployment rates.  Kentucky was eligible for this assistance as a result of having a sustained unemployment rate at-or-above the national average.  The Commonwealth received $148.9 million for the program and was one of 16 other states and the District of Columbia that received this funding.  KHC created the Unemployment Bridge Program (UBP) utilizing funding from the HHF and administers the UBP through the Kentucky Homeownership Protection Center.  As of March 6, 2013, there have been 3,322 loans closed.  There is roughly $59.7 million remaining that has not been committed or expended.

The UBP is a forgivable loan option for eligible homeowners to assist them in making their mortgage payments.  To be eligible, the homeowner must have experienced a job loss or reduction in income due to changing economic conditions, through no fault of their own, and demonstrate a need for assistance.  A homeowner applies for the UBP through the Protection Center and are then assigned a housing counselor in their area who assists them with the process.

KHC has received several stories of how UBP has successfully helped Kentuckians.  One includes Elaine Peebles of Stamping Ground.  “The Unemployment Bridge Program was an absolute Godsend for us.  My husband was laid off some time ago and sadly my job barely pays enough to meet the other bills and living expenses.  Without participating in this program we would have surely lost our home,” she said.  “My mother who has many medical problems lives with us, and I feared that if we had not managed to keep our home that I would have not been able to personally care for her and had to have made arrangements for care in a facility which I did not want to do under any circumstances.  This truly is one of those ‘no strings attached’ programs.  In the beginning, I kept waiting for the ‘other shoe to drop’--thinking there was some catch to the program.  I couldn't be happier to report there is nothing to worry about.  This program meant so very much to us, and I am just grateful for the help.  The State of Kentucky did a wonderful thing by obtaining these funds to help people caught in a bad situation be able to keep their mortgages, taxes, and insurance current so another home isn't lost in the foreclosure hole."

On March 4, 2013, the maximum UBP assistance increased from $25,000 or 12 months to $30,000 or 18 months of mortgage payments, whichever occurs first.  Former UBP participants who completed the program are not eligible for these funds nor will borrowers who have closed prior to March 4, 2013, and are currently receiving assistance.

KY Home Performance Moves to Phase II

KY Home Performance (KHP), launched November 2010, is the statewide Home Performance with ENERGY STAR^® program that provides a market-based system of incentives and technical support for energy upgrades to existing single family homes.  It is Kentucky’s only statewide system for residential energy efficiency improvements. 

Available in all 120 Kentucky counties, at least one home has completed the KHP program in 70 of those counties.  A total of 1,071 whole-house energy evaluations have been completed, plus an additional 338 with the Tennessee Valley Authority (TVA) distributors.  Of all homes receiving an evaluation, 71 percent have resulted in completed jobs.  The average home shows a performance efficiency improvement of 26 percent.

As of December 1, 2012, a total of 1,006 homes were completed and passed KHP Quality Assurance tests.  Of the 1,006 homes, 936 were paid in rebates and 70 paid in loans, or have had loans funded, generating a total development cost of $10,817,929. 

“We were successful in securing an additional $3 million in funding through the Department for Energy Development and Independence (DEDI) and the state of TVA Clean Air Mitigation Funding.  Now we are proceeding with KY Home Performance Phase II.  Most of the new funding will be used to create energy-efficient loan products for existing single family homes,” states KHP Manager Andrew Isaacs.  “We hope to initially fund over 611 energy-efficient equipment replacements/single measure jobs and or whole-house energy-efficient retrofits.  The products will be for equipment only/single measures or to provide lower financing rates for whole-house retrofits.  We plan to also provide funding for on bill finance retrofits in Appalachia in partnership with Mountain Association for Community Economic Development (MACED) and four participating rural electric cooperative corporations.”

Additional plans include providing more funding to Next Step and other partnering nonprofits to help fund an energy-efficient manufactured housing replacement program in Kentucky.  Lastly, KHP is looking at continuing the partnership with Greater Cincinnati Electrical Association (GCEA) by providing loan capital for energy-efficient loans for homeowners in northern Kentucky.

Isaacs hopes the new program will launch to the public in April of 2013 after finalizing program details, updating the program software, and re-training participating contractors.  He also hopes to secure new contractors to the program.  The primary focus will be to reach reactive consumers who are planning, or are in the process of, HVAC or other equipment-oriented replacement.  “After getting the program up and running, we hope to gear up production in the fall of 2013,” says Isaacs.

To learn more about the program, visit the KY Home Performance Web site at www.kyhomeperformance.org or by contacting KHP Manager Andrew Isaacs toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 483; TTY 711; or e-mail aisaacs@kyhousing.org.