| 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 |
| Maximum Assistance | Direct assistance to homebuyers: up to $50,000, based on front- and back-end ratios.Development gap funding: up to $55,000, 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 investedPeriod 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 Partner Portal, S-F Programs, Homebuyer Development, Homebuyer Development Set Up Packet |
Homebuyer Development - At-a-Glance