CEO Video

Kentucky Housing Corporation (KHC) Chief Executive Officer Richard L. McQuady recorded a video message to update partners and staff on happenings at the Corporation and annoucing KHC's theme for its 40th Anniversary.

Table of Contents

CEO Video

KHC Homeownership Programs Expanded

KY Home Performance Has Successful First Year

Homeowners Getting the Help They Need with the UBP

Oliver Street School Wins Award 

Rental Costs Rising: Assistance in Demand 

KHC-Certified Real Estate Agent Program Proves Successful As It Enters Second Year

Counting Kentucky's Homeless

Save the Date!

The Kentucky Affordable Housing Conference will take place Tuesday and Wednesday, September 11-12, at the Crowne Plaza Louisville Airport, in Louisville, Kentucky.  Celebrating 40 years of KHC leading the way home!

KHC Homeownership Programs Expanded

There is good news for Kentuckians thinking about purchasing a home.  Kentucky Housing Corporation (KHC), the state housing finance agency, is offering the lowest rates ever in its 40-year history. 

For a limited time, rates are as low as 3.375 percent, with a 30-year, fixed-rate term.  KHC also has a program for down payment and closing costs assistance with a special rate of 3.625 percent. 

“It has never been a better time to purchase a home through KHC,” said Governor Steve Beshear.  “With rates this low and down payment and closing costs assistance, Kentuckians who thought they would not be able to own a home now have an opportunity.  These low rates will not last; buyers should contact a KHC-approved lender as soon as possible.”

Purchasing a home through KHC is easy.  Buyers work with a network of KHC-approved lenders and banking institutions that help the buyer throughout the purchasing process.  There are also over 1,000 real estate agents who have become KHC-certified and have committed to helping their buyers with affordable home-financing solutions.  A list of lenders and real estate agents is available on KHC’s Web site.  Buyers should ask a partnering lender for a KHC loan.

“Kentuckians can feel comfortable purchasing a home through KHC,” said Richard L. McQuady, chief executive officer of KHC.  “KHC home loans start with us and stay with us.  When homeowners make a payment or call about their loan, they are talking to a KHC staff person at our office in Frankfort.”

Kentucky Housing is able to offer these low rates through an extension of the New Issue Bond Program, a federal bond purchase program provided by the U.S. Department of Treasury.  The extension provides $50 million for Kentucky home loans.  Funds are going fast, so home buyers should act quickly.

More information about this and other options available through KHC to potential home buyers is available on KHC’s Web site or by contacting KHC’s Homeownership Department toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 291, or TTY 711.

KY Home Performance Has a Successful First Year

Chandler von Schrader of ENERGY STAR stated, “The KY Home Performance with ENERGY STAR program has succeeded in the Mid-Atlantic and South, despite relatively low-energy cost.  By establishing a robust whole-house energy efficiency program in this region, KHP has progressed like no other program in their first year of operation and is setting an energy-efficiency precedent that others will surely follow.”

Available in all 120 Kentucky counties, at least one home has completed the KHP program in 51 of those counties.  A total of 679 whole-house energy evaluations have been completed.  Of all homes receiving evaluations, 73 percent have resulted in completed jobs.  The average savings per home is 26 percent. 

As of January 27, 2012, a total of 537 homes have been completed and passed KHP Quality Assurance tests.  Of the 537 homes, 497 were paid rebates or loans, or had loans funded, generating a total development cost of $5,942,218.  The remaining 40 homes are in the process of having rebates paid or loans funded.

 “We are most pleased and excited about the progress of KY Home Performance,” states KHP Project Manager Andrew Isaacs.  “KHP has been a true partnership between the Kentucky Department for Energy Development and Independence (DEDI), the Finance and Administration Cabinet, Kentucky Housing Corporation, 25 participating utility partners, the Home Builders Association of Kentucky and their members, and other national and local partners.  We are all committed to serving the residents of Kentucky and ensuring the success of this program.  KHP is about making homes more energy-efficient and comfortable for the consumer.  With approximately 1,500 contractors signing up to participate, KHP has also helped create jobs for the contractors of Kentucky.”

Kentucky is projected to increase spending on electricity by $7 billion by 2025.  Every dollar spent on energy efficiency (EE) will diminish the projected expense of new demand.  Investment in jobs across the state will avoid future costs.  EE is triple-net economic development:  jobs, capital investment, and long-range savings for consumers and rate payers.

The program’s current end date is set for Monday, April 30, 2012.  An extension has been submitted by DEDI.

Homeowners Getting the Help They Need with the Unemployment Bridge Program (UBP)

Brett Sparks of Nicholasville was laid off and was not able to find work.  His only choice for employment was to go back to school and finish his degree, but the father of two boys also had a mortgage and other bills that needed to be paid.

 “I am very grateful for this [UBP] program!” stated Sparks.   “If it weren't for this program, we would literally be homeless.”

The UBP, administered by Kentucky Housing Corporation (KHC), assists eligible homeowners who have experienced a job loss or reduced income due to changing economic conditions, through no fault of their own, and demonstrate a need for assistance.  

As of January 1, 2012, there were 1,029 homeowners assisted with UBP loans, 472 in process (reserved, in underwriting, but not yet approved), and another 156 approved, awaiting closing.

“By participating in the program, homeowners are able to stay in their homes,” said Richard L. McQuady, KHC chief executive officer.  “The Unemployment Bridge Program helps us become a more stable, stronger Kentucky.  Many people have been unable to find new jobs, leading to additional stress when contemplating how to pay their mortgages.  This program lessens that stress by providing assistance in making mortgage payments, so the family can focus on seeking stable income.”

The maximum amount of assistance is $25,000 or 12 months, whichever occurs first.  Of the $25,000, the maximum amount that may be used for reinstatement– all related fees and payments to bring the loan(s) current – is $7,500. 

Interested homeowners may contact the Kentucky Homeownership Protection Center (Protection Center) at www.ProtectMyKYHome.org.  The Protection Center, also administered by KHC, will send the application to counselors, and the counselors will help determine which options are best for the homeowner. 

Oliver Street School Wins Award

On November 15, 2011, the National Housing & Rehabilitation Association (NH&RA) announced the Oliver Street School in Clark County, Kentucky, won the “Timmy Award” for Best Historic Rehab Utilizing Low Income Housing Tax Credits (Small/Up to $5 million development cost).

The “Timmy Awards” were created to honor outstanding real estate projects that involve rehabilitation of older, historic buildings, primarily using state or federal historic rehabilitation tax credits.  Scoring is based on overall design and quality, interpretation and respect of historic elements, innovative approach to construction and use of building materials, impact on the community, sustainability, and financial and market success of the project. 

The Oliver Street School, built in 1892 and replaced in 1938, is the only surviving historic African-American community high school structure in Clark County.  It was last used as a school more than 50 years ago.  AU Associates, Inc., based in Lexington, Kentucky, redeveloped the 26,500-square-foot building into 11 affordable apartments in a $2.1 million transaction.  The architect for the project was Brandstetter Carroll, Inc., of Lexington.  Funding for Oliver Street School included federal historic and housing tax credits, state historic tax credits, and monies from the Affordable Housing Trust Fund (AHTF).

“Through the use of many available funding sources, we at KHC and our partners are able to provide safe, quality, affordable housing to Kentuckians,” said Richard L. McQuady, chief executive officer of Kentucky Housing Corporation (KHC).  “We are proud that with our help, a historically significant example of Kentucky architecture found new life as a home for special individuals and families dealing with physical disabilities and/or chemical or alcohol addiction.”

A meditative garden is on the property to allow the residents an opportunity to reflect and relax.  Also, the original gymnasium was maintained and refitted, and is used by all area residents as a community service facility.

The Housing Credits used for the project provide tax incentives for investors and developers, and are derived from the federal Low Income Housing Tax Credit program, for which KHC is the designated administrator in the state.

The AHTF, managed by KHC, was established in 1992 by the Kentucky General Assembly to address the critical housing needs of very low-income Kentuckians, including the mentally and physically disabled and those on the verge of homelessness.  The fund supports projects that assist persons at or below 60 percent of the area median income, with a preference to help persons at or below 30 percent of the area median income.

Rental Costs Rising:  Assistance in Demand

As homeownership rates have fallen, demand for rental housing has increased, which raised rents and made affordable rental housing out of reach for many Kentuckians.  In 2009, across the U.S., 10.1 million renters and 9.3 million owners paid more than half their income for housing. 

In July 2010, KHC received approximately 3,700 applications for Section 8 rental assistance in the 87 counties in which it manages the Tenant-Based Rental Assistance program.  This was the first time the waiting list opened under KHC’s new process of opening the waiting list for Tenant-Based Rental Assistance during the months of July and January.  In previous years, the list opened and closed according to the length of wait on the list.  Opening the list during the months of July and January is making the list more manageable for KHC staff and provides better customer service for partners who can make informed housing decisions for their clients because they know when the list will open again.

As of December 8, 2011, KHC had approximately 3,300 on the waiting list, not including the applications received in July.  Applicants can complete the online application; download, complete, and return a hard copy version of the application; or request an application be sent to them by contacting one of KHC’s regional offices during July and January.

Once an application is received, it is processed within a few weeks, and the applicant is placed on the waiting list.  When the applicant reaches the top of the waiting list, they receive notification.  Their eligibility is then verified and they work with a KHC staff member to receive the voucher and identify a place to live.

When the tenant selects a unit, Kentucky Housing field staff conduct a housing quality standards inspection on the unit.  After KHC processes all of the applicable paperwork, housing assistance payments begin.  Kentucky Housing conducts annual inspections and reviews of family information as long as the tenant remains in the program.

All applicants for this program must meet income requirements and have not participated in drug-related or violent criminal activity within the past three years.  All applicants listed on the sex offender registry are excluded from program participation.  Applicants are also excluded if any member of the household has ever been convicted of the manufacture or possession of methamphetamine on the premises of federally assisted housing.

For more information on the waiting list, please contact KHC’s Waiting List Administrator Sandy Hatchett toll-free in Kentucky at (800) 633-8896 or (502) 564-7630, extension 749; TTY 711: or e-mail shatchett@kyhousing.org.

KHC-Certified Real Estate Agent Program Proves Successful As It Enters Second Year

To further demonstrate their commitment to presenting affordable home-financing solutions to their home buyers, real estate agents are becoming KHC certified.  KHC certification educates real estate agents to every option available for their customers.  For certification, they attend one of KHC’s free real estate continuing education classes.  These classes are approved for three elective credit hours by the Kentucky Real Estate Commission. 

“The real estate agents are hungry for programs and products to help their clients get into homes.  Kentucky Housing Corporation (KHC) is a viable option for many of their clients,” said Jamie Swindler, regional account manager at KHC.

In 2011, 406 agents received this designation.  Combined with 2010 certifications, a total of 1,018 real estate agents in 108 counties have already become KHC certified.  Agents receive free advertising and exposure to lenders and home buyers by being posted on KHC’s web site.  This allows potential homebuyers to access a list of certified real estate agents in their counties.

“[It was a] great class that was very informative to me…will be an aid for my real estate business,” said Laroscoe Dion Boyd of Remax Realty Group.

Pamela Bottoms, from Coldwell Bank Purchase Realty, also found the class helpful, “Very informative.  I learned a lot more about what is available through KHC.” 

Watch KHC's eGrams to learn about KHC-Certified Real Estate Agent training opportunities.

Counting Kentucky’s Homeless

On Wednesday, January 25, agencies across Kentucky conducted the 2012 Point-In-Time Count of the homeless, primarily through the Homeless Management Information System (HMIS), a statewide database used by KHC to better gauge what homeless services are needed, and where. 

“This count allows us to monitor the true extent of homelessness in the Commonwealth,” said KHC Chief Executive Officer Richard L. McQuady.  “Without the count, Kentucky would not be able to acquire the funding which allows agencies across the state to provide safe places for thousands of Kentuckians to seek shelter.”

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.  To better serve Kentucky’s homeless needs, Kentucky Housing Corporation (KHC) conducts the homeless count every year, staying informed of changing service needs throughout the state.

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

By fully utilizing the HMIS, data collection is more efficient, allowing for real-time reporting on program type, bed utilization, and client entry and exit.  The HMIS reduces the workload on KHC and partner agencies by simplifying outreach and community coordination efforts, and there is no additional cost for generating the Point-In-Time Count through the HMIS.