Kentucky Housing Affordability
Weaknesses of Housing Affordability Indices
Housing affordability is a prominent concern in Kentucky for multiple reasons. Since around 2007, there has been a decline in house prices, and in some parts of the country a significant depreciation has occurred. There has also been a continued emphasis placed on becoming a homeowner by the United States government with multiple programs being established to help low-income households obtain homeownership. Qualifying guidelines for mortgages became more lenient for a time, contributing to the mortgage crisis. In addition, lenders approved borrowers regardless of the borrowers’ ability to pay the loan, and many of those loans were loaded with predatory features. At the same time, the nation as a whole experienced a negative savings rate and increased levels of debt—a notorious combination that caused concerns for housing instability.
Market Affordability Versus Individual Affordability
Multiple types of housing affordability measures exist. Some approaches compare median housing prices and median household income to define the affordability of housing in communities. A variety of housing affordability approaches exist, e.g, the hedonic approach crafted by economists using several variables to be calculated which are not available to practitioners. On the other hand, the ratio approach is easily computed but is not as accurate. Due to the ease of calculation of these commonly used variables, practitioners need to be aware of the caveats of each and bring up these issues.
In the home mortgage market, there has been deep confusion between what the authors call market affordability and individual household affordability. Market affordability is the general affordability of a given area as measured by the median home price in that area. Market affordability has its purpose and is useful for the industry in predicting how profitable it would be to build and sell new homes in a given area. It could also help local planners and zoning committees decide where affordable housing developments are needed, as well as identifying locales with critical needs for housing subsidies. Individual household affordability, on the other hand, is how much a household can afford on mortgage payments without facing a housing cost burden. For some people, all housing is affordable no matter how expensive it is. For others, no housing is affordable unless it is free. Individual affordability, as determined by a housing payment-to-income ratio, is assessed by housing counselors, educators, loan officers, and others in the housing industry that deal first-hand with an individual household’s financial situation. Collective hysterias about the drop in housing prices coupled with desires of not being priced out may lead individuals to buy a home beyond his or her capacity to sustain it. Read more
- Kentucky Housing Corporation
- Housing and Redevelopment Officials
- Homeless & Housing Coalition
- Kentucky Homelessness Programs
- Northern Kentucky Housing Opportunities
- Kentucky USDA Rural Development
- Habitat for Humanity of Kentucky
- Kentucky Recovery & Reinvestment
- Kentucky Manufactured Housing Institute
- Kentucky Housing Authorities
- Housing and Urban Development
- FHLBank Community Programs
- Community Development Fund
- Making Home Affordable Program
- Housing Equity Fund of Kentucky
- Community Development Block Grant
- Metropolitan Housing Coalition
- Community Action Kentucky
- Kentucky Housing Search
Leading Kentucky in providing safe, quality, affordable housing
Kentucky Housing Corporation, created by the 1972 General Assembly, is a self-supporting, public corporation of the Commonwealth of Kentucky administratively attached to the Finance and Administration Cabinet. A portion of Kentucky Housing's funds are derived from the interest earned through the sale of tax-exempt mortgage revenue bonds.
Other programs additionally offered by Kentucky Housing include rental housing production financing, homeownership education/counseling and a variety of rental assistance, housing rehabilitation and home repair initiatives. Kentucky Housing works with many partners across the state, including lenders, government agencies, nonprofit housing providers, community organizations and developers, to create affordable housing opportunities through an array of programs and services.
“Putting people first and building partnerships that provide safe, quality, affordable housing...”
“Providing education, technical assistance, and newly brokered partnerships with supportive service...”
Working to enhance the affordable housing industry and promote viable communities
The purpose of the National Association of Housing and Redevelopment Officials (NAHRO) is to be the leading housing and community development advocate for the provision of adequate and affordable housing and strong, viable communities for all Americans, particularly those with low to moderate incomes.
NAHRO is committed to representing your interests at the state and regional level, with HUD and other public interest groups. At the national level NAHRO has actively and effectively supported housing and community development issues for more than 75 years. NAHRO is committed to help create a nation in which all people have decent, safe, affordable housing and economic opportunity in viable, sustainable communities.
Education and Counseling
“Professional development training, summits and conferences on housing and community programs...”
“NAHRO is committed to representing affordable housing interests at the state and regional level...”
Working together to increase opportunities for decent, safe, and affordable housing for all Kentuckians
The Homeless and Housing Coalition of Kentucky (HHCK) works to increase opportunities for decent, safe, and affordable housing across Kentucky. As the only statewide advocacy organization for issues of homelessness and affordable housing in Kentucky, HHCK takes the responsibility of educating state legislators and advocating for more affordable housing in Kentucky very seriously.
HHCK was established in 1987 to serve as the unified voice for low income housing issues. In addition, HHCK administers a statewide AmeriCorps program called Build Corps and a statewide Technical Assistance Program funded through federal grants to help housing nonprofits develop the necessary skills and capabilities to become and remain vital.
A Unified Voice
“Working together to eliminate the threat of homelessness and affordable housing...”
“HHCK does not provide direct services, but brings together social service and affordable housing...”
Helping homeless families find their way home
Homelessness programs and services provide support to persons who are homeless, to empower them to find and maintain housing and meet life's critical needs. Providing housing solutions to housing options that are safe, decent, and affordable encompassing prevention, crisis intervention, and permanent housing is critical for empowering individuals.
People dedicated to eliminating homelessness providing services with housing opportunities to help people get off the streets and into sustainable living situations. Housing for homeless initiatives provide a roof overhead, help establish a stable life foundation, find and maintain housing, and meet life's critical needs.
“Eliminating homelessness for people through prevention, education, supportive services and ...”
“Affordable housing initiative provides attainable, safe, long-term housing options for low-income tenants...”
Changing lives, strengthening neighborhoods, building hope one home and one family at a time
Since 1992, Housing Opportunities of Northern Kentucky has witnessed firsthand the lasting impact that homeownership can make on individuals, families, and communities, proving that making affordable housing available does more than just put a roof over someone’s head, it changes lives, strengthens neighborhoods and builds hope, one home and one family at a time.
Homeownership is proven to build wealth, strengthen communities, and promote both educational and employment achievement in areas where affordable housing opportunities are available. Housing Opportunities of Northern Kentucky mission is to elevate lives, strengthen families and neighborhoods by creating the possibility for lower income working families to share in the dream of homeownership.
“Campbell, Kenton & Boone, Covington, Ludlow, Newport, Dayton, Bellevue and Bromley counties...”
Changing The Community
“With the help of volunteers, corporate and community partners, HONK revitalizes distressed properties...”
Financial and technical assistance to rural individuals, families, communities, and businesses
The USDA Rural Development mission goal is to provide or partner with others in providing the financial and technical resources to assist Kentucky private citizens, small businesses, nonprofit organizations, communities, cities and counties in assuring that each rural community has what it takes to improve the quality of life and be successful.
The overall mission of USDA Rural Development is to improve the quality of life for rural Americans. Working closely with profit and non-profit sectors, along with state, tribal, and local governments, USDA Rural Development changes the way in which the Federal government does business. Ensuring rural citizens can participate fully in the global economy and by providing assistance programs to rural Americans for a stronger economy to be built and improving the quality of life for all.
Helping Rural Communities
“Grants are available to qualified organizations to develop programs to assist low-income rural areas...”
“Program assistance is provided in many ways, including guaranteed loans, grants and education...”
Working with Kentucky families, sponsors and communities to build affordable, green, quality homes
Founded in 1976 by Millard and Linda Fuller, Habitat for Humanity International is a nonprofit, ecumenical Christian housing ministry dedicated to eliminating substandard housing and homelessness worldwide and to making adequate, affordable shelter a matter of conscience and action. Habitat has built and renovated over 200,000 houses worldwide since 1976.
Habitat for Humanity’s work is accomplished at the community level by affiliates — independent, locally run, nonprofit organizations. Each Habitat affiliate coordinates all aspects of home building in its local area — fund raising, building site selection, partner family selection and support, house construction, and mortgage servicing.
Strong Housing Values
“Through home sponsors, donations, and volunteer time, building affordable homes in Kentucky...”
Changing Peoples Lives
“Helping build relationships with families and the community that result in a sense of belonging...”
Expanding online government operational procedures at the state level
In February of 2009, President Obama and the U.S. Congress signed the American Recovery and Reinvestment Act to jumpstart the economy, save and create jobs, provide a helping hand to people affected by the recession, stabilize state and local budgets, and make investments that will provide long-term economic benefits.
Kentucky’s taxpayers deserve the ability to see for themselves exactly how their money is being spent and take part in monitoring the distribution and spending of federal stimulus dollars. All Kentuckians can agree that transparency and accountability must serve as the cornerstone concepts in ensuring that Kentuckians share of Recovery Act funds are used in the most effective manner possible.
“Providing transparency of ARRA funds by listing the appropriation of earmarked funds in detail...”
“Kentucky's’ goal is to maximize stimulus dollars in order to strengthen the economy and create jobs...”
Manufactured home news, legislative representation, education and networking
The Kentucky Manufactured Housing Institute (KMHI) was formed in 1966 to preserve and promote the factory-built housing industry in Kentucky. KMHI encourages factory-built home ownership by providing accurate information to both private and public interests. KMHI's mission is make factory-built housing Kentucky's affordable choice to home buying.
KMHI works to promote fair laws and regulations, increase and improve financing options, promote a positive image of manufactured housing, provide technical analysis and counsel, and remove zoning barriers to the use of manufactured housing. Through these various programs and activities, KMHI promotes the use of manufactured housing so that more Kentuckians will be able to realize their dream of homeownership.
Quality Home Choices
“Manufactured homes are built inside a controlled factory environment for quality assurance...”
“Systems-built modular or manufactured homes have an eco-friendly advantage over site-built homes...”
Community property and housing programs for low and moderate income residents
State Housing Finance Agencies (HFAs) are state–chartered authorities established to help meet the affordable housing needs of the residents. Although they vary widely in characteristics such as their relationship to state government, most HFAs are independent entities that operate under the direction of a board of directors appointed by each state’s governor.
Housing programs provide quality, affordable housing opportunities and promote independence for lower income families, elderly and persons with disabilities. Community downpayment assistance funds are provided to low and moderate income residents to provide annual grants on a formula basis to entitlement cities and counties to assist in developing communities.
“Rehabilitation of residential and non-residential structures, construction of public facilities and...”
“Partnering with local organizations and individuals to advocate for positive housing change...”
Kentucky Department of Housing and Urban Development - HUD
HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination. HUD offers many government assisted programs and resources for Kentucky homebuyers and renters.
HUD awards grants to local organizations and groups for a variety of purposes. Working with local nonprofit organizations to invest in their communities through property rehabilitation and resell to first time home buyers and low to moderate income families. HUD programs have helped millions of people from being homeless by supporting local communities initiatives.
Making Homes Affordable
“Tackling the economic, financial, and community development issues of the current environment...”
“Transparency, participation, and collaboration that form Kentuckians affordable low–income housing...”
Federal Home Loan Bank System cooperative bank that offers low-cost banking services
The Federal Home Loan Bank System provides a stable source of funding to federally insured depository institutions. 12 regional banks in the Federal Home Loan Bank System, which raises funds in the global financial markets and distributes the proceeds to members and local communities. Each year 10 percent of annual net income is set aside to provide funding for affordable housing development and down payments and closing costs for eligible homebuyers purchasing a home.
Serving the needs throughout Kentucky, including the homeless, first-time homebuyers, elderly, low-income persons with HIV/AIDS and families making home repairs. The benefits of FHLB extend beyond providing a home for low-income families – the programs ensure affordable housing for future generations, creates jobs and stimulates economic growth.
Making a Difference
“Serving the housing needs of communities by providing community development initiatives locally...”
Low Cost Financing
“Affordable home loans and economic development credit to local communities and neighborhoods...”
Riegle Community Development and Regulatory Improvement Act of 1994
The vision of the Community Development Financial Institutions Fund (CDFI) is an America in which all people have access to affordable credit, capital and financial services. The CDFI Fund's mission is to expand the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States.
Through its various programs, the CDFI Fund enables locally based organizations to further goals such as: economic development (job creation, business development, and commercial real estate development); affordable housing (housing development and homeownership); and community development financial services (provision of basic banking services to underserved communities and financial literacy training).
“Promoting access to capital and local economic growth in urban and rural low income communities...”
“CDFI Fund was created for the purpose of promoting economic revitalization and community development...”
Stabilizing the housing market and helping struggling homeowners get relief
In February 2009, the Obama Administration introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis to get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure.
Kentucky homeowners can connect with free HUD-approved counseling organizations, locate free events in their area, find the application documents necessary to apply for the Making Home Affordable Program, as well as find answers to frequently asked questions and much more. The Making Home Affordable Program includes opportunities to modify or refinance your mortgage to make your monthly payments more affordable.
Help for Homeowners
“Providing eligible home owners the opportunity to modify their mortgages to make them affordable...”
“Provides opportunities for homeowners who can no longer afford to stay in their home but want to avoid...”
Opening doors to more families by investing with purpose
The Housing Equity Fund of Kentucky I, L.L.C. (HEFK I) was formed in 2006 for the purpose of promoting corporate investments through the federal Low Income Housing Tax Credit Program (LIHTC) for development of affordable residential rental properties located in the Commonwealth of Kentucky.
The properties will serve families with a household income at or below 30% to 60% of the area median. VCDC will manage Fund affairs and in conjunction with The Federation of Appalachian Enterprises (FAHE), provide technical assistance throughout the life of the Fund. Equity invested in the Fund totals $17 million. HEFKI affordable housing projects include Lee, Breathitt, Wolfe, Madison and Moorhead areas.
“Redbud special needs housing units situated in Jackson, Beattyville and Campton, KY...”
“Providing efficiency apartments with supportive services for women in recovery in Richmond...”
Development viable communities by providing decent housing and a suitable living environment
The primary objective of Kentucky's Community Development Block Grant Program is to provide assistance to units of general local government in non-entitlement areas for the development of viable communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income.
The goal is to improve the quality of life of the citizens of Kentucky. All project activities must meet at least one of three national objectives: Benefit to low and moderate income persons; Prevention or elimination of slums or blight; Meeting particularly urgent community development needs. Providing assistance programs to communities for use in revitalizing neighborhoods, expanding affordable housing and economic opportunities, infrastructure and/or improving community facilities and services.
“With the participation of their citizens, communities can devote these funds to a wide range of activities...”
“All units to be rehabilitated or replaced must be owned and occupied by low - moderate income...”
Promoting fair and affordable housing through research, education and advocacy
The Metropolitan Housing Coalition (MHC) was formed in the late 1980s by a group of local housing and community leaders responding to two distinct events. The first was the surge in the number of homeless on the streets of Louisville, caused by the de-institutionalization of persons with mental illness in the 1980s.
The MHC has worked tirelessly for over 20 years on behalf of fair, decent and affordable housing in the Louisville metropolitan region. MHC is a private, non-profit organization representing many member organizations and hundreds of individual members. MHC advocates for sound housing policies–in Kentucky and nationally–via research, community education and collaboration-building.
“Bringing together Greater Louisville’s public and private resources to provide housing opportunities...”
“Developing collective strategies and pooling resources in order to affect local affordable housing...”
Removing obstacles and solving problems that block the achievement of self-sufficiency
Community Action Kentucky (CAK) is made up of member organizations in communities across the state of Kentucky. Members are Community Action agencies that offer the last local line of defense for families in need. Community Action changes people’s lives, embodies the spirit of hope, improves communities, and makes America better place to live.
Kentucky's Community Action Agencies offer programs to match the needs of the low-income community served. For 40 years, Community Action has taken the lead in community coordination, emergency services, education, food and nutrition, family development, and employment and training. Each agency provides a mix of programs and services that offer the last local line of defense for families and individuals in need.
“Providing leadership & services that enable the achievement of self sufficiency for low income...”
“Assisting Kentucky low income individuals and families acquire useful skills and knowledge...”
Find your new Kentucky home today
Kentucky Rents is a housing locator service provided by Kentucky Housing Corporation, which allows people to find available housing. Kentucky Rents provides information about rental properties and helps people find housing to best fit their needs. The service can be accessed at no cost online 24 hours a day.
The fast, easy-to-use free search lets people look for rental housing using a wide variety of criteria and special mapping features. Housing listings display detailed information about each unit. Property owners and managers, including Housing Authorities and private landlords, can use this service to manage their property listings free of charge. Listings can include pictures, maps, and information about nearby amenities.
Find or Rent a Home
“Free help for people to list and search for affordable housing property across the state of Kentucky for rent...”
“Providing housing resources and helpful information for renters about rights and responsibilities...”