Single-Family Homebuyer Development Program At A Glance
Purpose||To expand the supply of quality, affordable housing for low-income and very low-income households in Kentucky through the creation or rehabilitation of single-family detached housing units.|
Funding Source||HOME Investment Partnerships (HOME)|
Kentucky Affordable Housing Trust Fund (AHTF)
Eligible Households||Households with a combined household income of:|
- HOME-funded projects: equal to or less than 80 percent of the Area Median Income (AMI)
- AHTF-funded projects: at or below 60 percent of the HUD AMI or Kentucky Median Family Income, whichever is greater.
Income-eligible applicants should have non-home assets valued at no more than $50,000.
Eligible Properties||Single-family detached homes or qualified manufactured homes; home must be the homebuyer's primary residence|
Geography||Anywhere in the Commonwealth of Kentucky|
Direct assistance to homebuyers: up to $40,000, based on front- and back-end ratios.
Development gap funding: up to $25,000, depending on HERS rating
- New construction and sale to new homebuyers.
- Acquisition, rehabilitation, and resale of existing homes to new buyers.
- Demolition and replacement of substandard owner-occupied homes, with an emphasis on substandard manufactured homes.
Form and Term of Assistance|
Up to 15 years depending on amount of direct homebuyer or homeowner subsidy invested
Period of affordability is governed through forgivable mortgages (HOME and AHTF) and deed restrictions (AHTF)
Private developers, nonprofit organizations, Community Housing Development Organizations (CHDOs), Faith-Based and community service organizations, units of local government in Kentucky; regional or statewide housing-assistance organizations; and Public Housing Authorities (AHTF only). Applicants must be in good standing with both the Commonwealth and KHC and have at least one full-time staff member. Entities providing services in jurisdictions that receive direct HOME allocations from HUD are ineligible for KHC HOME funding.
Developer Fee||For new construction (which includes demolition/rehabilitation) projects, developer fee cannot exceed the lesser of:
- 15% of total development costs, excluding acquisition; or
For acquisition/rehabilitation/resale projects, the developer fee cannot exceed the lesser of:
- 20% of total development costs, excluding acquisition; or
Any nonprofit interested in applying for the Homebuyer New Construction should click here.