Partners > Developers > Homeowner/Homebuyer Development > Homebuyer Development Program

​​​Single-Family Homebuyer Development Program At A Glance​​

​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
​Anywhere in the Commonwealth of Kentucky
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

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)
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​)

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​.

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
​​Program Forms and Templates
HCA Help Desk, Homebuyer Development section, 2021 Single-Family Homebuyer Development Set Up Packet​

Any nonprofit interested in applying for the Homebuyer New Construction should click here.

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© Kentucky Housing Corporation
For more information, please contact:

Kentucky Housing Corporation
1231 Louisville Road, Frankfort, KY 40601
502-564-7630; 800-633-8896 (KY only); TTY 711
Equal Housing Provider