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.
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Funding Source
| HOME Investment Partnerships (HOME)
Kentucky Affordable Housing Trust Fund (AHTF)
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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.
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Eligible Properties
| Single-family detached homes or qualified manufactured homes; home must be the homebuyer's primary residence
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Geography
| Anywhere in the Commonwealth of Kentucky
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Maximum Assistance
| 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
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Eligible Activities
| - New construction and sale to new homebuyers.
(CHDO-eligible)
- Acquisition, rehabilitation, and resale of existing homes to new buyers.
(CHDO-eligible)
- Demolition and replacement of substandard owner-occupied homes, with an emphasis on substandard manufactured homes.
(NOT CHDO-eligible)
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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)
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Eligible Applicants/Developers
| 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.
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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
- $15,000
For acquisition/rehabilitation/resale projects, the developer fee cannot exceed the lesser of: - 20% of total development costs, excluding acquisition; or
- $15,000
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Any nonprofit interested in applying for the Homebuyer New Construction should click here.
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