M I N U T E S - Purchase Area Development District

M I N U T E S - Purchase Area Development District
PURCHASE AREA DEVELOPMENT DISTRICT
BOARD OF DIRECTORS MEETING
AGENDA AND TABLE OF CONTENTS
January 26, 2015
I.
INTRODUCTION
II.
OLD BUSINESS
A. Minutes of the December 15, 2014 Meeting ............................................................................1
III.
B.
Budget Summary for October 2014 ..........................................................................................8
C.
Personnel & Finance Committee Report ..................................................................................9
NEW BUSINESS
A. Administration
...............................................................................................................10
B.
Guest Speaker: Mr. Darrell Link, Executive Director
Kentucky Council of Area Development Districts
C.
Standing Committee Reports
1. Aging Committee
a.
Resolution to Recognize Indirect Cost Requirements ............................................16
b.
Aging Services Report: PADD Unduplicated Persons Served ...............................18
c.
Aging Services Report: Subcontracted Unduplicated Persons Served ...................19
d.
Upcoming Meeting Notice: Purchase Area Mental Health & Aging Coalition .....20
e.
Aging Program Monthly Reports
i.
Consumer Directed Options Program ............................................................21
ii. Title III-B: Legal Services Monthly Report...................................................23
iii. SAMS Report: Aging Services by County ....................................................24
iv. Title III Nutrition (Meals by County) ............................................................41
v.
Long-Term Care Ombudsman Report ...........................................................43
vi. Personal Care Attendant Program .................................................................44
vii. Senior Community Service Employment Program........................................46
viii. State Health Insurance Program.....................................................................47
ix. Title III-E Family Caregiver Program ...........................................................48
x. Kentucky Caregiver Program ........................................................................49
xi. Health Benefits Exchange Program ...............................................................50
C.
2.
Regional Transportation Committee
a.
Minutes of the December 10, 2014 Committee Meeting ........................................51
b.
Section 5310 Funding Availability .........................................................................53
3.
Community and Economic Development Committee
a.
KY Chamber of Commerce Report ........................................................................55
b.
Kentucky Intergovernmental Review Process ........................................................70
Advisory Council/Task Force/Board Reports
1. Commodity and Food Bank Task Force ..........................................................................73
2.
Child Care Advisory Council...........................................................................................74
D.
3.
Water Management Council ............................................................................................75
4.
Business Lending
a.
Loan Request Approval: Freeman Dental, PLLC ...................................................76
b.
Loan Portfolio Overview ........................................................................................77
5.
West Kentucky Workforce Investment Board
a.
Upcoming Meeting Notice: West KY Workforce Investment Board .....................83
b.
Workforce Innovation & Opportunity Act Regional Stakeholder Session .............84
c.
2014 Performance Year Measurements ..................................................................85
b.
Obligated Dollars by Training Facility Report .......................................................86
6.
Human Services Council
Program Implementation / Corporation Reports
1. Purchase Area Housing Corporation
a.
KY Housing Authority’s Houseworks Repair Program .........................................87
b.
KY Housing Authority’s Housing Contract Administration ..................................95
2.
E.
IV.
Jackson Purchase Local Officials Organization
Executive Director Announcements
ADJOURNMENT
PURCHASE AREA DEVELOPMENT DISTRICT
BOARD OF DIRECTORS MEETING
December 15, 2014
The Purchase Area Development District Board of Directors met on Monday, December 15, 2014 at
3:00 p.m. in the conference room of the PADD office. Board members in attendance, asterisk
denotes absence:
Ballard
Judge/Executive Vickie Viniard, Vice Chairman*
Mayor Lynn Hopkins*
Clyde Elrod
Calloway
Judge/Executive Larry Elkins
Mayor Bill Wells
Joe Bolin
Sue Outland
Matt Mattingly
Graves
Judge/Executive Tony Smith
Mayor Teresa Rochetti-Cantrell, Secretary
Mayor Charles Shelby*
Don Simpkins
Pete Galloway
Hickman
Judge/Executive Greg Pruitt
Mayor Tommy Kimbro*
Nancy Pruitt*
Carlisle
Judge/Executive Greg Terry, Chairman
Nancy Henley
Bill Fraser
Marshall
Judge/Executive Mike Miller*
Mayor Steve Cary*
John Ward, proxy for Mayor Lynn Jones
Melonie Chambers*
Fulton
Judge/Exec David Gallagher
Cubb Stokes, proxy for Mayor Elaine Forrester
Johnny McTurner, proxy for Mayor David Lattus
Tommy Hodges, proxy for James O. Butts
McCracken
Judge/Executive Van Newberry, Treasurer*
Josh Sommer, proxy for Mayor Gayle Kaler
Frances Hamilton
Arthur Boykin
Lee King
Pam Wright
Doug Harnice*
Guests Present:
Kenny Wilson, Hickman County Judge Elect
Chris Wooldridge, MSU
Mark Manning, Murray Calloway Economic
Sheila Clark, West Ky WIB
Development
Doug Taylor, KYTC
Representative Richard Heath
Jesse Perry, Graves County Judge Elect
Troy Courtney, Career Solutions Community
Martie Wiles, Senator McConnell office
Jerry Cloyd, Rural Development
Danny Carroll, State Senate District 2 Elect
Jim Martin, Fulton County Judge Elect
Chris Sutton, Peel and Holland
Dee Felts, Paducah
Christina Peterson, Senator Paul Office
Janice Everett, Congressman Whitfield office
Eddie Crittenden, Fulton County Economic Development
Purchase ADD: January 26, 2015
Page 1
I.
CALL TO ORDER
Chairman Greg Terry called the meeting to order at 3 p.m. by introducing the proxies and guests.
Chairman Terry shared the news of Marshall County Judge/Executive Mike Miller’s passing and
asked for a moment of silence.
II.
OLD BUSINESS
A.
Chairman Terry asked for approval of the November 17, 2014 Board meeting minutes.
Mr. Bill Fraser moved for the approval, Mayor Bill Wells seconded and the motion
passed unanimously.
B.
Next, Chairman Terry called on Mr. Andy Bennett who summarized the Budget-toExpense Report for the month ending October 2014.
C.
Chairman Terry called on Mayor Teresa Rochetti-Cantrell for the Personnel and Finance
Report. Mayor Cantrell reported that the Personnel and Finance Committee met at 2 p.m.
on December 15th, 2014, and reviewed the Executive Director’s monthly travel voucher
and timesheet, the office credit card bill, and the twelve page monthly budget-to-expense
report. No new contracts were reviewed for the month of December.
Next, Mayor Rochetti-Cantrell called on Mr. Andy Bennett to discuss a 401(a) plan. Mr.
Bennett explained the new 401(a) match plan available through Nationwide Financial
Services, Inc. and the PADD is asking the PADD board to approve a resolution to accept
the new plan.
Mayor Rochetti-Cantrell on behalf of the Personnel and Finance Committee made a
motion to approve the resolution that was presented to the PADD board and allow
the PADD to adopt the 401(a) match plan available through Nationwide Finance
Services, Inc., Mr. Joe Bolin seconded and the motion passed unanimously.
In conclusion, Mayor Rochetti-Cantrell was pleased to announce that the Personnel &
Finance Committee was able to approve salary increases this year for the first time since
2010. It was a modest increase, not exceeding 2% of total salary costs, but it is a small
acknowledgement of the excellent work done here by the PADD staff during tough
financial times.
III.
NEW BUSINESS
A.
Administration
Chairman Terry called on Mr. Clyde Elrod to report on the PADD Nominating
Committee.
Mr. Elrod began by stating that the Nomination Committee, made up of Frances
Hamilton, Judge/Executive Larry Elkins, and himself, met on Tuesday, December 2nd,
2014, at the PADD office. After a review of current PADD officers and committee
chairmen, as well as a review of the full PADD board membership, the committee
approved to recommend to the board Mr. Arthur Boykin, a McCracken County Citizen
Member, for the office of PADD Board Treasurer, effective January 1st, 2015.
Purchase ADD: January 26, 2015
Page 2
Mr. Elrod made the motion to approve the presented slate for the office of PADD
Treasurer, to be effective January 1st, Mr. Bill Fraser seconded and the motion
passed unanimously.
B.
Guest Speaker
Chairman Terry introduced the guest speaker, Representative Steven Rudy who shared
some of the items on the upcoming 2015 Legislative Agenda.
C.
STANDING COMMITTEE REPORTS
1.
AGING COMMITTEE
Chairman Terry called on Ms. Lee King for the Aging Committee report. Ms. King then
called on Ms. Jennifer Beck Walker to report on several of the on-going and recent
concerns and to announce a career opportunity in the Aging Department.
Ms. Walker shared information about recent correspondence between the Cabinet for
Health and Family Services and the PADD. The Cabinet proposed amendments in the
aging regulations that the PADD has been operating under for years. The Cabinet had
marked out all reference to Area Development Districts and removed some other
requirements that could impact local senior service delivery. The 15 area development
districts drafted a letter and sent it to the Cabinet to request a hearing on the proposed
regulation. Majority Floor Leader Rocky Adkins submitted a letter to the Cabinet on
November 25, 2015, and Chairman Greg Terry also submitted a letter and a copy of both
letters were sent to all PADD board members and was included in the meeting packet.
The Commissioner provided a response stating that DAIL’s intent was to clean up the
regulations and no intentions were to remove the ADD districts from the regulations.
Also, Ms. Walker reminded everyone how invoicing and payment procedures had
changed in recent years, including the loss of the advance funds the Cabinet used to
provide so the PADD could pay the subcontractors as quickly as possible. Ms. Walker
continued by stating that the PADD had thus far been able to continue to pay invoices
from its subcontractors while waiting on reimbursement from the Cabinet. Ms. Walker
stated she was pleased to announce that as of Monday, December 15th, the PADD went
from $400,000 in accounts receivable to $29,000 in accounts receivable. She noted the
ADDs were concerned about the significant changes at the Cabinet and would keep the
board and Legislators aware of all issues. She also noted that the 15 ADD’s had hired a
consultant, Mr. Bob Lloyd, who previously worked with the Office of Management and
Budget in Washington D.C. and currently works as a national consultant, to advise them
on issues relating to the new Federal Register Supercircular.
Next, Ms. Walker announced Vicki Williams is retiring on December 31, 2015 after 21
years of service at the PADD. Everyone congratulated Ms. Williams on her retirement.
Ms. King, reported that the number of unduplicated eligible consumers served by
programs operated within the PADD Area Agency on Aging and Independent Living in
October 2014, and the total number of unduplicated eligible persons served through each
provider agency in October 2014 were listed in the handout packet and in the online
packet as well.
Purchase ADD: January 26, 2015
Page 3
Next, Ms. King announced that the next Aging Committee meeting is scheduled for
Wednesday, December 17, 2014 at the PADD office at 9:30 am.
Ms. King shared that the Survey of Needs for Older Adults was posted on the PADD
website and staff thanked everyone who has responded to the survey. The AAA is
currently working to add the copies received by hard copy into the database and will have
a report shortly. This survey is one method used to help prioritize the needs in the district
as determined by the targeted populations. Ms. King asked if they had not taken the
survey, to please go to the PADD website to do so. If a hard copy was needed please call
on the aging staff at the PADD.
In conclusion, Ms. King reported that the program activity reports for each service
provided are available on the PADD website.
2.
REGIONAL TRANSPORTATION COMMITTEE
Chairman Terry called on Mr. Mark Davis for the Regional Transportation Committee
report. Mr. Davis reported that the transportation committee met on Wednesday,
December 10th at the PADD office and Mr. Charlie Spalding from Kentucky
Transportation Cabinet’s office of planning was the guest speaker. Mr. Spalding discussed
the KYTC Long Range Plan, planning document that was recently released to the public.
The committee also heard updates from the executive directors of some of the multimodal
locations in the region. This included the Paducah-McCracken Riverport and Barkley
Regional Airport. Officials from Fulton County Transit also addressed the committee
about the efforts and plans to make improvements to the Amtrak station in Fulton.
Mr. Davis continued and shared that the Kentuckians for Better Transportation will have
the annual conference on January 21st thru January 23rd, 2015. This year’s conference will
be held at the Marriott Griffin Gate in Lexington. Registration can be completed online at
www.kbtnet.org
In conclusion, Mr. Davis reported that the PADD transportation staff is planning for the
upcoming 2015 prioritization process of the Unscheduled Needs List. Starting in January,
staff will begin contacting the counties and cities to schedule local prioritization meetings
to obtain input for the local rankings for each of the 8 counties and the three Federal
Highway designated urban areas of Mayfield, Murray and Paducah. The current list of
Unscheduled Needs is available in the online packet.
3.
COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE
Chairman Terry called on Judge Greg Pruitt for the Community and Economic
Development Committee report. Judge Pruitt stated that the 2015 Land and Water
Conservation Fund application process is now open. Land and Water Funds can be used
to develop parks, buy recreation equipment, and acquire land for natural recreation areas
and other recreation activities. Communities can apply for up to $75,000 from this
program. The grant does require a 50/50 match of funds. The deadline for applications is
April 20, 2015 and the full application form can be found on Department for Local
Government website. All questions and assistance needed was directed to Brad Davis or
Jeremy Buchanan.
Next, Judge Pruitt announced that that application process has also opened for the 2015
Recreational Trails Program. This program can be used by a city or county to develop or
Purchase ADD: January 26, 2015
Page 4
maintain recreational trails or trailhead facilities. Eligible trails include both motorized
and non-motorized use. This program is also administered by Department for Local
Government and the full application is on their website. The maximum grant amount is
$100,000. The match is 50/50 for non-motorized projects, and 80/20 for motorized ones.
Again, all questions and needed assistance was directed to Brad Davis and Jeremy
Buchanan.
Judge Pruitt continued and shared that on December 3rd, the governor announced projects
that are funded under the 2014 Land and Water and Recreational Trail programs. There
were 34 projects announced, totaling approximately $1.8 million funding
In the Purchase, the City of Paducah received $75,000 in LWCF funding to assist with
Phase I of the 14th Street Park Development. Judge Pruitt asked everyone to join him in
congratulating the City of Paducah on receiving the grant.
In conclusion, Judge Pruitt shared that in the handout packet there is a list of projects
submitted to the state clearinghouse in November.
C.
ADVISORY COUNCIL/TASK FORCE/BOARD REPORTS
1.
COMMODITY AND FOOD BANK TASK FORCE
Chairman Terry called on Mr. Brad Davis for the Commodity and Food Bank Program.
Mr. Davis began by stating the figures for the month of November. The Commodities
and Supplemental Food Program (CSFP) disbursed 50,532 lbs. of commodities to 1525
seniors monthly in the 8 counties of the purchase. The Emergency Food Assistance
Program (TEFAP) disbursed 68,456 lbs. of commodities to 3,296 households and 3,870
meals through one soup kitchen.
Next, Mr. Davis shared that the Food Bank Program disbursed 98,011 lbs. of
commodities to approximately 4,896 households plus served 4,986 meals through 2 soup
kitchens.
Mr. Davis reported that through all three programs, a total of 216,999 pounds had been
distributed in the November 2014.
In conclusion, Mr. Davis reported that the Backpack program is currently serving 417
students in 15 schools.
2.
CHILD CARE ADVISORY COUNCIL
Chairman Terry called on Ms. Frances Hamilton for the Child Care Aware report. Ms.
Hamilton began by sharing that in November, the Child Care Aware staff offered
technical assistance to 80 providers and 2 potential independent trainers.
In conclusion, Ms. Hamilton shared that the CCA staffs also met with 4 collaborative
partners and provided 2 individual with a Getting Started Consultation to guide them
through the process of starting a child care center or home.
3.
WATER MANAGEMENT COUNCIL
Chairman Terry called Judge Larry Elkins for the Water Management Council report.
Judge Elkins shared that PADD staff have recently finished the water and waste water
Purchase ADD: January 26, 2015
Page 5
project ranking based on the guidance provided by the Kentucky Infrastructure Authority.
These rankings were approved by the Water Management Council on December 2nd. The
board meeting handout packet included the rankings. Kentucky Infrastructure Authority
requires that the Board approve these water and wastewater priorities. Judge Elkins
made the motion for the PADD Board of Directors to approve the 2015 priorities as
presented, Ms. Sue Outland seconded and the motion passed unanimously.
4.
BUSINESS LENDING REPORT
Chairman Terry called on Ms. Marta Elliott for the Business Lending Report. Ms. Elliott
began the report by stating that at the SBA KY Lender’s Conference in November, the
PADD was recognized as one of the Top Performing Certified Development Companies
in Kentucky. In 2014, the PADD had 7 SBA 504 loans with the Community Ventures
with 10 loans and Capital Access with 11 loans.
Ms. Elliott shared that since the last board meeting, two new loans were approved to
ACE Compressor Parts & Services located in Mayfield, KY, which included a $68,000
EDA-Recap loan and $50,000 SBA-Microloan. The funds will be used to purchase three
new pieces of equipment that will allow them to expand by hiring an additional three new
full-time employees.
Next, Ms. Elliott reported that a loan approved was an $118,000 SBA 504 loan to The
Paducah Cigar and Tobacco Company LLC located in Paducah, KY. The proceeds will
be used to purchase a 5,000 square foot building in downtown Paducah. Paducah Bank is
providing 50% of the financing with a $159,494 loan. This expansion will create 2 new
full-time jobs.
Ms. Elliott presented the two loans and with no questions being asked concerning the
SBA project, the PADD Board of Directors must affirm the SBA 504 loans approved by
the Loan Review Committee by passing a Resolution allowing the PADD to accept the
gross loan amount on the portfolio; so therefore Mr. Clyde Elrod made the motion to
affirm the Loan Review Committee’s decision to approve the loan to “The Paducah
Cigar & Tobacco Company”, by passing the Resolution, and Judge David Gallagher
seconded and it passed unanimously.
In conclusion, Ms. Elliott shared that all detailed information on current loan portfolio
and other materials can be found in the online board packet on the PADD website.
5.
WORKFORCE INVESTMENT BOARD REPORT
Chairman Terry called on Mr. Clyde Elrod for the Workforce Investment Board Report.
Mr. Elrod called on Ms. Sheila Clark for an update on the Workforce Innovation and
Opportunities Act (WIOA) and the timeline that will occur during the next six months as
each of the Local Workforce Investment Boards, along with the Kentucky Workforce
Investment Board adopts new policies and resolutions supporting the transition to the
new Act.
In conclusion, Mr. Elrod also shared that there are 191 individuals enrolled in
postsecondary training with an obligated cost of $1.3 million.
6.
HUMAN SERVICES
No report
Purchase ADD: January 26, 2015
Page 6
D.
PROGRAM IMPLEMENTATION/CORPORATION REPORTS
1.
PURCHASE AREA HOUSING CORPORATION
Chairman Terry called on Mr. Matt Mattingly for the Purchase Area Housing
Corporation report. Mr. Mattingly began by stating that the Department of Housing and
Urban Development has a special initiative called the Challenge to End Veterans
Homelessness The Kentucky Housing Corporation is working with HUD to provide
housing vouchers to homeless veterans to communities that sign-on to this challenge.
There are also some materials in the on-inline packet hat will help provide additional
resources to homeless veterans.
Mr. Mattingly, continued to share that all information refers to this program as a Mayor’s
Challenge, but counties are welcome to participate also. In the Purchase, Marshall
County is the only community sign up for the project. No resolution is required just send
an email of support to [email protected] All questions were directed to Mr.
Brad Davis.
2.
E.
JACKSON PURCHASE LOCAL OFFICIALS ORGANIZATION
No report
ANNOUNCEMENT
Chairman Terry called on Ms. Jennifer Beck Walker for announcements. Ms. Walker
shared that the PADD office will be hosting a breakfast on January 13th at 8:30 a.m. at the
PADD office for the New Local Elected Officials and the Veteran Local Elected
Officials.
Next, Ms. Walker announced that the Kentucky Council of Area Development Districts
(KCADD) will be holding their Legislative Breakfast on Thursday, January 8th, at 7:30
a.m.in the Capitol Annex cafeteria. Following the breakfast, a KCADD board meeting
will be held in room 111 with Chairman Terry and Judge/Executive Vickie Viniard as the
PADD’s voting representatives on that board.
Finally, Ms. Walker noted that the next PADD board of directors meeting will be held on
Monday, January 26th, at 3:00 p.m. and closed by inviting all those present to stay for a
Christmas BBQ dinner.
IV.
ADJOURNMENT
Judge David Gallagher motioned to adjourn and Mr. Arthur Boykin seconded, and
the motion passed unanimously.
__________________________________
Chairman, Judge/Executive Greg Terry
___________________________________
Secretary, Mayor Teresa Rochetti-Cantrell
Purchase ADD: January 26, 2015
Page 7
PURCHASE AREA DEVELOPMENT DISTRICT
BUDGET TO EXPENSE SUMMARY
FOR THE MONTH ENDING NOVEMBER 2014
Joint Funding Administration
Aging
Consumer Directed Options
Child Care
Commodity & Food Bank
Workforce
Physical Planning
Housing
Business Lending
Finance
Community Projects
Purchase Area Housing Corporation
FY 2015
Budget
210,554.00
1,021,146.00
670,000.00
147,746.00
317,268.00
1,204,817.00
418,654.00
42,500.00
227,604.00
36,430.00
97,186.00
6,000.00
% Budget
FY 2015
Expended
Expense
(STD = 41.66%)
69,618.60
33.06%
348,773.44
34.16%
299,548.09
44.71%
48,939.39
33.12%
153,986.26
48.54%
363,448.48
30.17%
154,864.66
36.99%
35,692.32
83.98%
72,881.55
32.02%
11,994.20
32.92%
65,239.56
67.13%
3,745.84
62.43%
TOTAL
4,399,905.00
1,628,732.39
37.02%
Purchase ADD: January 26, 2015
Page 8
January 2015
PADD Contract List
Dates:
Amount:
FY 2015 Job Driven “KCCGO!” (Kentucky Career Center
Get Opportunity) National Emergency Grant
West Kentucky Workforce Investment Board
Commonwealth of Kentucky, Education and Workforce
Cabinet, Department of Workforce Investment, Office of
Employment and Training
December 1, 2014 to June 30, 2015
$10,057.00
2.
Contract:
Contractor:
Funding Source:
Dates:
Amount:
iwis CDBG Administration Contract
Murray-Calloway Economic Development Corporation
Local/CDBG
January 1, 2015 to June 30, 2106
$35,000.00
3.
Contract:
Purchase Area Regional Industrial Authority
Administration
Purchase Area Regional Industrial Authority
Local
January 1, 2015 to December 31, 2015
$60,000.00
1.
Contract Name:
Contractor:
Funding Source:
Contractor:
Funding Source:
Dates:
Amount:
Purchase ADD: January 26, 2015
Page 9
Purchase Area Development District
Security Policy
Effective Date: January 1, 2015
Effective security is a team effort involving the participation and support of every Purchase
Area Development District (PADD) employee and affiliate who deals with information and/or
information systems. It is the responsibility of every computer user to know these guidelines,
and to conduct their activities accordingly. These rules are in place to protect the employee
and the PADD. Inappropriate use exposes the PADD to risks of virus attacks, compromise of
network systems and services, and legal issues. This policy applies to the use of information,
electronic and computing devices, and network resources to conduct PADD business or interact
with internal networks and business systems, whether owned or leased by PADD, the
employee, or a third party. All employees, contractors, consultants, temporary, and other
workers at PADD and its subsidiaries are responsible for exercising good judgment regarding
appropriate use of information, electronic devices, and network resources in accordance with
PADD policies and standards, and local laws and regulation.
Appropriate measures must be taken when using workstations to ensure the confidentiality,
integrity and availability of sensitive information, including protected health information (PHI)
and that access to sensitive information is restricted to authorized users.
Employees using workstations shall consider the sensitivity of the information, including PHI
that may be accessed and minimize the possibility of unauthorized access. Employees with
access to PHI shall ensure their workstations are used for authorized business purposes only.
Employees with access to PHI shall exit all running applications and close open documents
before securing their workstation when leaving their area to prevent unauthorized access.
Securing Workstations
All computing devices must be secured with a password-protected screensaver with the
automatic activation feature set to 10 minutes or less. You must lock the screen
(
Windows Logo Button + L on your keyboard) or log off when the device is unattended.
User ID and Password Guidelines
Your User ID and Password are an important deterrent to intrusion … the first and sometimes
only line of defense protecting PADD resources. Each user is responsible for every action
initiated by that account.
All passwords should meet or exceed the following guidelines
Strong passwords have the following characteristics:
 Contain at least 8 alphanumeric characters.
 Contain at least one number (for example, 0-9).
 Contain at least one special character (for example,!$%^&*()_+|~-=\`{}[]:";'<>?,/).
Purchase ADD: January 26, 2015
Page 10
Poor, or weak, passwords have the following characteristics:
 Contain less than eight characters.
 Can be found in a dictionary, including foreign language, or exist in a language slang,
dialect, or jargon.
 Contain personal information such as birthdates, addresses, phone numbers, or
names of family members, pets, friends, and fantasy characters.
 Contain work-related information such as building names, system commands, sites,
companies, hardware, or software.
 Contain number patterns such as aaabbb, qwerty, zyxwvuts, or 123321.
 Contain common words spelled backward, or preceded or followed by a number (for
example, terces, secret1 or 1secret).
 Are some version of “Welcome123” “Password123” “Changeme123”
You should never write down a password. Instead, try to create passwords that you can
remember easily. One way to do this is create a password based on a song title, affirmation, or
other phrase. For example, the phrase, "This May Be One Way To Remember" could become
the password TmB1w2R! or another variation.
(NOTE: Do not use either of these examples as passwords!)
Users must not use the same password for PADD accounts as for other non-PADD access.
Passwords must not be shared with anyone. All passwords are to be treated as sensitive,
confidential PADD information.
Passwords must not be inserted into email messages or other forms of electronic
communication. Do not reveal a password on questionnaires or security forms.
Passwords should not be stored in Internet browsers.
Do not share PADD passwords with anyone except supervisors, including co-workers or family
members.
Do not write passwords down and store them anywhere in your office. Do not store passwords
in a file on a computer system or mobile device (phone, tablet) without encryption.
Any user suspecting that his/her password may have been compromised must report the
incident and change all passwords.
Software Installation
To avoid the exposure of sensitive information contained within PADD’s computing network,
the risk of introducing malware, and the legal exposure of running unlicensed software,
employees may not install software on computing devices operated within the PADD network
or belonging to the PADD. Software requests must be first approved by the direct supervisor
and Assistant Director then made to IT staff. All software requests must comply with national,
Purchase ADD: January 26, 2015
Page 11
international, and commercial software license laws along with PADD security policies
regarding proper acquisition, use, duplication and distribution of copyrighted software
Virus Prevention
Antivirus software should be running on your system at all times.
NEVER open any files or macros attached to an email from an unknown, suspicious or
untrustworthy source. Delete these attachments immediately then ‘double-delete’ by
emptying your Trash.
Never download files from unknown or suspicious sources.
Avoid direct disk sharing with read/write access unless there is absolutely a business
requirement to do so.
Always scan a removable device from an unknown source for viruses before using it.
Backup critical data on a regular basis and store the data in a safe place.
Immediately notify IT staff if a virus is suspected. Do not attempt to eradicate a virus or use the
affected machine until IT staff have been notified so the problem can be addressed.
Internet Services
Capabilities for the following standard Internet services will be provided to users as needed:
 E-mail -- Send/receive E-mail messages to/from the Internet (with or without document
attachments).
 Navigation -- WWW services as necessary for business purposes, using a hypertext
transfer protocol (HTTP) browser tool. Full access to the Internet.
 File Transfer Protocol (FTP) -- Send data/files and receive in-bound data/files, as
necessary for business purposes.
 Telnet -- Standard Internet protocol for terminal emulation.
Management reserves the right to add or delete services as business needs change or
conditions warrant. All other services will be considered unauthorized access to/from the
Internet and will not be allowed.
If sensitive information is sent via the Internet or other unsecured media transmission facility,
the information must be sent encrypted.
Bandwidth both within the company and in connecting to the Internet is a shared, finite
resource. Users must make reasonable efforts to use this resource in ways that do not
negatively affect other employees.
Purchase ADD: January 26, 2015
Page 12
Only access Internet websites and protocols that are deemed inappropriate for PADD’s business
environment. The following protocols and categories of websites should be avoided:
Adult/Sexually Explicit Material and Chat & Instant Messaging.
Portable Devices, Media and Cloud Services
The PADD discourages the placement (download, copy, or input) of confidential data on
portable devices. Storage on such devices is permitted only if the following requirements have
been satisfied:
 Use is restricted to specific individuals requiring such data to perform their job duties;
 Storage is for a limited, defined period of time as required to perform specific job
duties;
 Approval has been obtained by the system/data owner for such;
 Information should be abbreviated, if possible, to limit exposure (i.e. last 4 of SSN); and
 Sensitive data has been encrypted.
Unencrypted storage of confidential data on portable devices, media, and/or cloud services is
strictly prohibited.
Mobile Devices
Mobile devices such as smart phone and tablets offer great flexibility and improved productivity
for employees. However, they can also create added risk and potential targets for data loss. As
such, their use must be in alignment with appropriate standards and encryption technology
should be used when possible.
The loss or theft of any mobile device containing PADD data must be reported immediately to
IT staff.
If your PADD email account is setup on your personal smartphone and/or you have PADDrelated data on your personal smartphone, you must have Auto-lock enabled (1 minute) with a
passcode enabled and it must not be jailbroken or rooted.
Voicemail
Voicemail boxes may be issued to PADD personnel who require a method for others to leave
messages when they are not available. Voicemail boxes must be protected by a password
which must never be the same as the last four digits of the telephone number of the voicemail
box.
Voicemail passwords, like computer passwords, must not be shared with anyone. All
passwords are to be treated as sensitive, confidential PADD information.
Purchase ADD: January 26, 2015
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Keyless Entry System
Any keyless entry cards that are lost must be immediately reported to IT Staff to avoid any
potentially unauthorized access to the building. The lost key will be deactivated and a new key
will be issued. If the lost key is found, please return it to IT Staff.
Employee Status Changes
Communicate both employee and non-employee terminations and status changes immediately
to ensure proper deletion/revision of user access.
Backup
Onsite backup will be performed in machine readable format in the event operating data is lost,
damaged, or corrupted and to avoid having to reenter the data from source material. Offsite
backup designed for longer term protection will be in a more sterile format and provide
protection against threats potentially damaging to primary site and data.
Security Incident Handling
Keep a log of pertinent information during security incidents that are under investigation,
including action taken.
Inform appropriate personnel (i.e. IT Staff, Executive Director, Assistant Directors, Finance).
Release of information during a security incident must be authorized by the Executive Director
or Assistant Director.
Follow-up analysis – after an incident has been fully handled and all systems are restored to
normal mode of operation, a follow-up analysis should be performed. All involved parties
should meet and discuss the actions taken and lessons learned. All existing procedures should
be evaluated and modified as needed.
For incidents involving deception and fraud, additional notification may include police
department and others depending upon severity of the incident at the discretion of the
Executive Director.
Following activities are strictly prohibited:
- Violations of the rights of any person or company protected by copyright, trade secret, patent
or other intellectual property, or similar laws or regulations, including, but not limited to, the
installation or distribution of "pirated" or other software products that are not appropriately
licensed for use by PADD.
Purchase ADD: January 26, 2015
Page 14
-Accessing data, a server or an account for any purpose other than conducting PADD business,
even if you have authorized access, is prohibited.
-Introduction of malicious programs into the network or server (e.g., viruses, worms, Trojan
horses, e-mail bombs, etc.).
-Effecting security breaches or disruptions of network communication. Security breaches
include, but are not limited to, accessing data of which the employee is not an intended
recipient or logging into a server or account that the employee is not expressly authorized to
access, unless these duties are within the scope of regular duties. For purposes of this section,
"disruption" includes, but is not limited to, network sniffing, pinged floods, packet spoofing,
denial of service, and forged routing information for malicious purposes.
- Interfering with or denying service to any user other than the employee's host (for example,
denial of service attack).
Purchase ADD: January 26, 2015
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PURCHASE AREA DEVELOPMENT DISTRICT
BOARD OF DIRECTORS
A Resolution to Recognize Indirect Cost Requirements
WHEREAS
The Office of Management and Budget, 2 CFR Chapter I, Chapter II,
Part 200, et al. Uniform Administrative Requirements, Cost Principles,
And Audit Requirements for Federal Awards, was made effective December
26, 2014, in an effort to streamline the Federal government’s guidance
for federal awards.
WHEREAS
The objective is to “ease administrative burden and strengthen oversight
over Federal funds to reduce risks of waste, fraud and abuse.”
WHEREAS
The goals are to 1. Eliminate duplicative and conflicting guidance;
2. Focus on performance over compliance for accountability; 3. Encourage
efficient use of information technology and shared services; 4. Provide for
consistent and transparent treatment of costs; 5. Limit allowable costs to make
the best use of federal resources as related to conference spending, morale
costs, relocation costs, etc.; 6. Set standard business processes using data
definitions; 7. Encourage non-federal entities to have family friendly policies;
8. Strengthen oversight by requiring Federal agencies and pass-through
entities to review risk prior to making an award, requiring disclosures conflict
of interest, relevant criminal violations, etc.; 9. Target audit requirements on
Risk of Waste, Fraud and Abuse.
WHEREAS
This federal directive identifies the calculation of Indirect Costs for local
Units of Government.
Purchase ADD: January 26, 2015
Page 16
WHEREAS
Indirect Costs are recognized as those that have been incurred for common or joint
purposes and benefit more than one cost objective and cannot be readily identified with a particular
final cost objective without effort disproportionate to the results achieved. It is a “device for
determining in a reasonable manner the proportion of indirect costs each program should bear.”
NOW, THEREFORE, BE IT RESOLVED THAT the Purchase Area Development District recognizes
and commits to adhering to the OMB 2 CFR Chapter I, and II, Part 200 of The Federal Register
governing indirect cost allocation plans.
BE IT FURTHER RESOLVED that all contracts entered into with state and federal partners will
accept costs incurred in accordance with the cost allocation plan as formulated by Purchase
Area Development District based on the principles OMB 2 CFR.
PASSED AND ADOPTED this __________ day or ________________________, 2015/
_____________________________________________
Board Chairman
ATTEST:
______________________________________________
Board Secretary
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December 23, 2014
by
Paul Coomes, Ph.D.
senior consulting economist for the Kentucky Chamber of Commerce
[email protected]
and Emeritus Professor of Economics, University of Louisville
[email protected]
502.608.4797
an analysis of the latest state and county‐level employment and wage data from the US Bureau of Labor Statistics Recovery from the Last Recession: How Kentucky’s Nine Regional Economies Performed
1
Purchase ADD: January 26, 2015
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The county‐level data analyzed here come from the US Bureau of Labor Statistics, Quarterly Census of Employment and Wages program. The program covers nearly all economic activity, and is based on employer filings for unemployment insurance. It excludes self‐employed persons, military personnel, domestic workers, and unpaid family members. Estimates for the months and quarters of 2014 are preliminary. See www.bls.gov/cew/cewover.htm
2
 Kentucky as a whole added jobs (5.6 percent) at a slower clip than the US (6.3 percent), but surpassed the growth rate of all border states except Tennessee and Indiana. Kentucky has added manufacturing jobs at over twice the rate seen nationally. And manufacturing average pay in Kentucky has grown faster than the US or any border state.
 Average pay per job continues to be an economic development challenge across Kentucky, with all except the Northern Kentucky and Paducah‐Purchase regions posting slower growth than the United States. Average pay in the Northern Kentucky region grew by 17 percent, while there was only a 1 percent growth in pay in the Mountain region. However, seven of the nine Kentucky regions had stronger growth in manufacturing pay than the US.
 In terms of wages and salaries, four of the regions grew by 17 percent or more. However, payrolls declined in the Mountain region by 11 percent; the Ashland region grew by only 3 percent.
 The Louisville, Northern Kentucky, and Bowling Green‐Hopkinsville regions led the way in growth of manufacturing jobs. The Paducah‐Purchase region has lost manufacturing jobs.
 The Louisville, Lexington, and Bowling Green‐Hopkinsville regions had the highest growth rates in total jobs, surpassing the national average. The Mountain and Ashland areas have fewer jobs than they did five years ago.  Using commuting patterns and television market areas to determine nine economic regions in Kentucky, Coomes organized just‐released county‐level data on jobs and wages through mid‐
2014 to examine economic growth since the last recession. Main Findings
Purchase ADD: January 26, 2015
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‐5,000
0
Muhlenberg
Knox
Pendleton
Owsley
Elliott
McLean
Whitley
Monroe
Casey
Rockcastle
Washington
Oldham
Hancock
Logan
Calloway
Simpson
Campbell
Taylor
Franklin
Hardin
Total statewide job growth is 97,000. Fifty counties have fewer jobs than they did five years ago.
Allen
Daviess, Franklin, Christian, Shelby
Metcalfe
Warren, Bullitt, Madison, Hardin, Scott
Lawrence
5,000
Lee
Boone
Green
10,000
Ohio
Fayette
Fulton
15,000
Greenup
20,000
Wayne
25,000
Johnson
Jefferson
Bell
30,000
Warren
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, from June 2009 to June 2014.
Net Job Growth Since Last Recession, by Kentucky County
Boyd
35,000
Jefferson
3
 Looking at the individual counties, one can see that job growth has been concentrated primarily in the most populated counties. Forty‐five percent of job growth statewide occurred in just two counties – Jefferson and Fayette. Ten counties accounted for 86 percent of statewide growth. Fifty counties, mostly rural, on net lost jobs over the past five years. Harlan
Cumberland
Fleming
Lewis
Garrard
Mercer
Purchase ADD: January 26, 2015
Page 58
‐80%
‐60%
‐40%
‐20%
0%
Washington
Livingston
Barren
Garrard
Todd
Jefferson
Daviess
Franklin
Rockcastle
Jessamine
Warren
McLean
Wolfe
Breckinridge
Livingston, Madison, Marion, Washington
Webster, Hancock, Scott, Bracken
Oldham
20%
Adair
Bullitt
Rowan
Carlisle
Powell
40%
Russell
Hopkins
Graves
Grayson
Kenton
Nicholas
Elliott
60%
Hancock
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, from June 2009 to June 2014.
Woodford
Magoffin
Metcalfe
Johnson
Harrison
Clinton
Boyd
Anderson
Carlisle
Growth Rate, Net Jobs Since Last Recession, by Kentucky Counties
Lincoln
Wayne
Trimble
Knott
Harlan
Henry
 In percentage terms, the greatest growth was in Carlisle County, expanding its wage and salary job base by 46 percent (from 734 to 1,072 jobs) over the last five years. Strong job growth rates, above 20 percent, were also posted in Bullitt, Webster, Hancock, and Scott counties. Robertson
4
Purchase ADD: January 26, 2015
Page 59
3,129
Breckinridge
Calloway
13,708
3,847
1,894
4,014
3,971
1,926
1,686
Clay
Clinton
Crittenden
Cumberland
1,705
3,963
31,879
12,991
3,642
29,851
3,384
Casey
5,672
Clark
6,367
Carter
6,243
1,072
28,783
16,476
4,166
2,752
21,572
3,588
3,224
1,382
13,657
25,936
6,895
79,301
8,663
1,865
16,719
2,234
4,469
4,114
4,599
Christian
734
5,809
Carlisle
Carroll
27,252
15,500
Caldwell
Campbell
2,406
4,246
Butler
15,916
3,356
Bullitt
1,167
Breathitt
14,256
Boyle
Bracken
27,004
6,835
Boyd
70,009
9,542
Bell
Bourbon
1,792
Bath
Boone
2,552
15,907
4,579
Anderson
Ballard
4,222
Allen
Barren
4,494
Adair
June 2009 June 2014
‐2.4%
‐12.5%
‐110
‐318
‐3.1%
‐1.7%
‐124
‐32
1.1%
‐1.3%
‐51
19
5.5%
6.8%
717
2,028
7.6%
‐10.9%
‐695
258
7.5%
46.0%
5.6%
434
338
1,531
6.3%
‐1.9%
976
14.4%
‐80
35.5%
346
5,656
14.7%
‐3.9%
459
18.4%
‐4.2%
‐599
215
‐4.0%
‐1,068
‐132
0.9%
60
13.3%
‐9.2%
‐879
9,292
4.1%
73
5.1%
‐2.6%
‐108
812
2.3%
rate
105
growth
Muhlenberg
Morgan
Montgomery
Monroe
Metcalfe
Mercer
Menifee
Meade
Mason
Martin
Marshall
Marion
Magoffin
Madison
McLean
McCreary
McCracken
Lyon
Logan
Livingston
Lincoln
Lewis
Letcher
Leslie
Lee
Lawrence
Laurel
Larue
Knox
9,328
2,943
9,713
2,740
1,974
6,279
958
4,250
8,618
3,084
10,458
6,723
2,144
28,066
1,719
2,869
37,077
2,186
7,740
2,682
4,614
1,927
5,834
2,034
1,891
3,351
23,325
2,676
8,455
9,271
3,008
10,717
3,069
1,859
6,365
864
4,321
9,025
2,792
11,173
7,932
1,963
33,131
1,948
2,711
37,947
2,513
8,436
3,167
4,090
1,986
4,750
1,801
1,713
3,210
24,555
2,692
8,371
June 2009 June 2014
2.2%
‐0.6%
65
10.3%
12.0%
‐57
1,004
329
1.4%
‐5.8%
86
‐9.8%
‐94
‐115
1.7%
71
4.7%
‐9.5%
‐292
407
6.8%
18.0%
‐8.4%
18.0%
715
1,209
‐181
5,065
13.3%
‐5.5%
‐158
229
2.3%
15.0%
9.0%
18.1%
870
327
696
485
3.1%
‐11.4%
59
‐524
‐18.6%
‐11.5%
‐233
‐1,084
‐4.2%
‐9.4%
‐141
5.3%
0.6%
‐1.0%
rate
‐178
1,230
16
‐84
growth
Total County Employment Covered by Unemployment Insurance Programs, Bottom of Recession and Latest Available
5
Purchase ADD: January 26, 2015
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2,259
1,891
8,157
3,687
41,493
8,464
4,889
4,567
Green
Greenup
Hancock
Hardin
Harlan
Harrison
Hart
2,231
413,291
15,083
6,398
63,925
3,797
Jefferson
Jessamine
Johnson
Kenton
Knott
Hopkins
Jackson
1,100
17,978
Hickman
3,010
Henry
18,732
46,104
7,486
Grayson
Henderson
4,467
10,959
Graves
2,205
2,687
63,831
5,904
16,344
442,520
1,846
17,807
1,101
2,722
19,969
4,825
4,656
6,831
7,845
1,741
7,521
10,811
4,974
2,085
5,047
2,421
Grant
2,152
Gallatin
Garrard
2,531
Fulton
31,994
11,133
12,164
29,746
Floyd
3,087
3,018
Franklin
184,737
170,495
Fayette
Fleming
897
2,388
889
2,383
1,558
44,988
Estill
1,593
42,195
Elliott
Edmonson
Daviess
June 2009 June 2014
‐3.8%
8.4%
‐7.7%
‐0.1%
‐29.2%
1,261
‐494
‐94
‐1,110
7.1%
‐17.3%
‐385
29,229
0.1%
‐1.0%
1
‐288
‐171
6.6%
‐9.6%
1,237
5.6%
‐4.8%
‐233
258
11.1%
‐19.3%
4,611
‐1,633
21.2%
‐312
780
0.5%
‐7.9%
‐148
35
‐1.4%
‐73
‐150
5.8%
‐1.4%
120
12.5%
‐10.7%
‐272
269
7.6%
‐8.5%
‐1,031
2,248
2.3%
8.4%
0.2%
0.9%
69
14,242
5
8
6.6%
‐2.2%
‐35
rate
2,793
growth
Nelson
9,769
1,723,815
Kentucky 1,179
12,094
2,792
5,744
2,788
53,370
5,693
3,287
3,670
2,171
9,802
1,676
7,679
12,964
20,428
6,230
9,550
3,351
310
24,807
2,531
24,426
13,361
2,370
701
1,909
14,134
7,377
900
13,847
Woodford
Wolfe
Whitley
Webster
Wayne
Washington
Warren
Union
Trimble
Trigg
Todd
Taylor
Spencer
Simpson
Shelby
Scott
Russell
Rowan
Rockcastle
Robertson
Pulaski
Powell
Pike
Perry
Pendleton
Owsley
Owen
Oldham
Ohio
Nicholas
1,820,815
8,851
1,333
12,280
3,422
5,132
3,287
59,915
5,836
1,084
3,447
2,291
11,033
1,897
8,745
14,976
24,586
6,121
9,796
3,705
271
25,481
2,583
21,891
12,488
2,361
666
1,760
14,592
7,150
913
14,871
June 2009 June 2014
‐6.1%
143
2.5%
97,000
‐918
154
186
630
5.6%
‐9.4%
13.1%
1.5%
22.6%
17.9%
‐10.7%
499
12.3%
‐612
6,545
‐67.0%
‐223
‐2,203
5.5%
12.6%
13.2%
13.9%
15.5%
20.4%
‐1.7%
2.6%
10.6%
‐12.6%
2.7%
2.1%
120
1,231
221
1,066
2,012
4,158
‐109
246
354
‐39
674
52
‐10.4%
‐6.5%
‐2,535
‐0.4%
‐35
‐9
‐7.8%
‐5.0%
‐149
‐873
3.2%
‐3.1%
‐227
458
1.4%
7.4%
rate
13
1,024
growth
Total County Employment Covered by Unemployment Insurance Programs, Bottom of Recession and Latest Available
6
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Using commuting patterns and television market areas to determine nine economic regions in Kentucky, Coomes organized just‐
released county‐level data on jobs and wages through mid‐ 2014 to examine economic growth since the last recession. 7
Purchase ADD: January 26, 2015
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‐15%
‐10%
‐5%
0%
5%
10%
15%
20%
25%
4.2%
7.3%
‐10.3%
1.0%
1.1%
7.1%
8.2%
13.6%
‐5.4%
3.4%
4.9%
6.6%
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, compiled from county details. Growth is from July 2009 to June 2014. 7.9%
19.7%
6.3%
16.5%
‐4.5%
6.2%
Employment Growth Since Bottom of Last Recession
All Industries, and Manufacturing
5.6%
11.0%
8
4.2%
6.3%
All Industries
Manufacturing
Purchase ADD: January 26, 2015
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‐20%
‐10%
0%
10%
20%
30%
40%
50%
19.0%
17.0%
‐10.8%
‐3.2%
9.9%
27.5%
16.3%
33.4%
13.4%
16.9%
25.2%
17.2%
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages, compiled from county
details. Growth is from 2009 II to 2014 Ii. 20.1%
39.2%
20.9%
37.3%
3.4%
6.5%
Wage and Salary Growth Since Bottom of Last Recession
All Industries, and Manufacturing
16.4%
28.9%
9
18.4%
18.3%
All Industries
Manufacturing
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1,723,815
129,648,129
211,134
11,731,582
All Industries Manufacturing
369,127
50,202
101,318
2,496
97,689
13,835
142,136
26,417
87,705
11,106
109,501
18,357
564,172
63,248
183,558
19,341
47,695
3,963
1,820,815
137,776,364
234,353
12,225,745
All Industries Manufacturing
396,038
52,324
90,847
2,522
98,765
14,817
153,775
30,018
90,647
10,508
114,858
19,562
608,696
75,730
195,165
22,525
45,546
4,209
Employment, June 2014
97,000
8,128,235
23,219
494,163
All Industries Manufacturing
26,911
2,122
‐10,471
26
1,076
982
11,639
3,601
2,942
‐598
5,357
1,205
44,524
12,482
11,607
3,184
‐2,149
246
Growth Since Last Trough
5.6%
6.3%
$23,200
$107,821
$268,392
$134,437
$195,624
$801,612
$226,676
$61,386
$2,483,126
$154,404,699
$938,139
$728,119
$1,191,195
$734,708
$961,400
$5,689,390
$1,742,746
$439,410
Mountains
Cumberland
Paducah ‐ Purchase
Owensboro‐Henderson
Louisville
Northern Kentucky
Ashland
Kentucky Total
$16,199,035
United States $1,413,661,305
All Industries Manufacturing
$640,802
$18,853,383
$1,674,470,211
$454,150
$2,107,173
$6,834,635
$1,127,239
$858,969
$800,257
$1,385,871
$836,980
$4,060,482
$3,201,342
$182,623,430
$65,402
$311,224
$1,116,095
$244,994
$152,412
$137,444
$358,126
$22,454
$762,393
All Industries Manufacturing
Wages and Salaries, 2014 II
‐$746
$2,654,348
$260,808,906
$14,740
$364,427
$1,145,245
$165,839
$124,261
$718,216
$28,218,731
$4,016
$84,548
$314,483
$49,370
$17,975
$29,623
$89,734
‐$101,159
$72,138
$194,676
$121,591
$589,026
All Industries Manufacturing
Growth Since Last Trough
16.4%
18.4%
3.4%
20.9%
20.1%
17.2%
16.9%
9.9%
16.3%
‐10.8%
17.0%
28.9%
18.3%
6.5%
37.3%
39.2%
25.2%
13.4%
27.5%
33.4%
‐3.2%
19.0%
All Manufact‐
Industries uring
Percent Growth Since Last Trough
Source: US Bureau of Labor Statistics Quarterly Census of Employment and Wages ; economic region totals derived from county level data; not all reported payroll statewide was allocated to counties
Bowling Green ‐ Hopkinsville
Lexington
$3,471,456
Economic Region
Wages and Salaries at National Trough, 2009 II
Wage and Salary Recovery from 2008‐09 Recession, by Economic Region of Kentucky, in thousands
11.0%
4.2%
Percent Growth Since Last Trough
All Manufact‐
Industries uring
7.3%
4.2%
‐10.3%
1.0%
1.1%
7.1%
8.2%
13.6%
3.4%
‐5.4%
4.9%
6.6%
7.9%
19.7%
6.3%
16.5%
‐4.5%
6.2%
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages ; economic region totals derived from county‐level data; not all reported jobs statewide were allocated to counties.
Kentucky Total
United States
Lexington
Mountains
Cumberland
Bowling Green ‐ Hopkinsville
Paducah ‐ Purchase
Owensboro‐Henderson
Louisville
Northern Kentucky
Ashland
Economic Region
Employment at National Trough, June 2009
Employment Recovery from 2008‐09 Recession, by Economic Region of Kentucky
Data Tables – Economic Regions of Kentucky
10
Purchase ADD: January 26, 2015
Page 65
$7,772
$10,025
$11,933
$10,557
$12,595
$11,639
$15,533
$7,510
$8,368
$8,385
$8,776
$10,105
$9,499
$9,250
$14,181
$9,396
$10,915
Bowling Green ‐ Hopkinsville
Owensboro‐Henderson
Louisville
Northern Kentucky
Ashland
unallocated
Kentucky Total
United States
$11,651
$13,071
$10,641
$12,520
$15,620
$10,100
$11,113
$11,577
$9,715
$9,986
$9,261
$8,308
$9,336
$10,546
$13,839
$15,212
$12,953
$15,516
$14,093
$15,017
$13,838
$12,462
$12,069
$9,352
$8,985
$15,011
All Industries Manufacturing
Average Pay, 2014 II
$1,246
$1,605
$1,439
$850
$1,614
$1,472
$1,330
$1,209
$892
$798
$123
$1,175
1.3%
$2,188
$2,141
13.3%
14.7%
10.2%
9.2%
‐$16
$2,320
17.0%
14.6%
15.9%
13.8%
10.7%
$2,455
$2,422
$1,905
$1,905
$2,044
10.6%
‐$97
$1,580
12.5%
11
18.8%
16.4%
21.8%
‐0.1%
21.1%
19.2%
16.0%
18.0%
20.4%
20.3%
‐1.1%
19.2%
All Manufact‐
Industries uring
Percent Growth Since Last Trough
$2,416
All Industries Manufacturing
Growth Since Last Trough
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages ; economic region totals derived from county‐level data.
Paducah ‐ Purchase
$10,633
$9,083
$9,213
Mountains
Cumberland
Lexington
$12,595
All Industries Manufacturing
$9,372
Economic Region
Average Pay at National Trough, 2009 II
Average Quarterly Pay per Job, Recovery from 2008‐09 Recession, by Economic Region of Kentucky
Purchase ADD: January 26, 2015
Page 66
‐10%
‐5%
0%
5%
10%
15%
20%
Illinois
1.2%
2.8%
Indiana
7.3%
15.6%
Kentucky
5.6%
11.0%
‐0.2%
Missouri
1.1%
Ohio
4.0%
8.6%
Tennessee
6.2%
7.5%
‐2.5%
Virginia
2.3%
‐4.1%
West
Virginia
2.0%
12
United
States
4.2%
6.3%
All Industries
Manufacturing
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages. Growth is from July 2009 to June 2014. Employment Growth Since Bottom of Last Recession
All Industries, and Manufacturing
Purchase ADD: January 26, 2015
Page 67
0%
5%
10%
15%
20%
25%
30%
35%
Illinois
15.8%
18.2%
Indiana
18.2%
28.8%
Kentucky
16.4%
28.9%
Missouri
11.6%
13.0%
Ohio
17.4%
20.0%
Tennessee
19.4%
19.2%
Virginia
12.0%
11.0%
West
Virginia
9.7%
13.6%
All Industries
Manufacturing
13
United
States
18.4%
18.3%
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages. Growth is from 2009 II to 2014 II. Wage and Salary Growth Since Bottom of Last Recession
All Industries, and Manufacturing
Purchase ADD: January 26, 2015
Page 68
129,648,129
11,731,582
All Industries Manufacturing
5,606,372
572,047
2,701,663
430,602
1,723,815
211,134
2,641,511
254,901
4,978,847
616,553
2,565,095
304,096
3,586,616
238,201
697,589
50,465
137,776,364
$1,674,470,211
$182,623,430
All Industries Manufacturing
$74,361,497
$8,913,130
$29,605,612
$6,968,480
$18,853,383
$3,201,342
$28,691,715
$3,366,554
$57,232,883
$9,237,417
$29,931,103
$4,395,472
$46,706,550
$3,174,908
$7,291,173
$654,228
Wages and Salaries, 2014 II
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages .
$154,404,699
All Industries Manufacturing
$64,213,914
$7,538,775
$25,039,364
$5,409,906
$16,199,035
$2,483,126
$25,712,745
$2,980,229
$48,756,042
$7,694,989
$25,119,637
$3,680,583
$41,720,067
$2,861,319
$6,418,218
$596,596
Wages and Salaries at National Trough, 2009 II
United States $1,413,661,305
Illinois
Indiana
Kentucky
Missouri
Ohio
Tennessee
Virginia
West Virginia
State
8,128,235
494,163
All Industries Manufacturing
155,206
6,738
196,609
67,025
97,000
23,219
28,748
‐481
200,535
52,874
191,136
18,964
82,638
‐5,920
13,622
‐2,089
Growth Since Last Trough
$260,808,906
$28,218,731
All Industries Manufacturing
$10,147,583
$1,374,355
$4,566,248
$1,558,574
$2,654,348
$718,216
$2,978,970
$386,325
$8,476,841
$1,542,428
$4,811,466
$714,889
$4,986,483
$313,589
$872,955
$57,632
Growth Since Last Trough
Wage and Salary Recovery from 2008‐09 Recession, by Kentucky and Border States, in thousands
12,225,745
All Industries Manufacturing
5,761,578
578,785
2,898,272
497,627
1,820,815
234,353
2,670,259
254,420
5,179,382
669,427
2,756,231
323,060
3,669,254
232,281
711,211
48,376
Employment, June 2014
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages .
United States
Illinois
Indiana
Kentucky
Missouri
Ohio
Tennessee
Virginia
West Virginia
State
Employment at National Trough, June 2009
Employment Recovery from 2008‐09 Recession, by Kentucky and Border States
Data Tables ‐ States
4.2%
18.4%
14
18.3%
All Manufact‐
Industries uring
15.8%
18.2%
18.2%
28.8%
16.4%
28.9%
11.6%
13.0%
17.4%
20.0%
19.2%
19.4%
12.0%
11.0%
13.6%
9.7%
Percent Growth Since Last Trough
6.3%
All Manufact‐
Industries uring
2.8%
1.2%
7.3%
15.6%
5.6%
11.0%
1.1%
‐0.2%
4.0%
8.6%
7.5%
6.2%
2.3%
‐2.5%
2.0%
‐4.1%
Percent Growth Since Last Trough
Purchase ADD: January 26, 2015
Page 69
$10,915
$13,071
$12,520
$15,212
All Industries Manufacturing
$13,227
$15,506
$10,507
$13,981
$10,641
$13,839
$10,981
$13,363
$11,340
$13,919
$11,100
$13,660
$13,001
$13,826
$10,567
$13,772
Average Pay, 2014 II
Source: US Bureau of Labor Statistics, Quarterly Census of Employment and Wages .
United States
State
All Industries Manufacturing
Illinois
$11,481
$13,067
Indiana
$9,226
$12,400
Kentucky
$9,396
$11,651
Missouri
$9,742
$11,625
Ohio
$9,795
$12,273
Tennessee
$9,757
$11,934
Virginia
$11,691
$11,970
West Virginia
$9,225
$11,687
Average Pay at National Trough, 2009 II
$1,605
$2,141
All Industries Manufacturing
$1,747
$2,438
$1,281
$1,581
$1,246
$2,188
$1,238
$1,738
$1,544
$1,646
$1,343
$1,726
$1,310
$1,856
$1,342
$2,085
Growth Since Last Trough
Percent Growth Since Last Trough
14.7%
15
16.4%
All Manufact‐
Industries uring
15.2%
18.7%
13.9%
12.7%
13.3%
18.8%
12.7%
15.0%
15.8%
13.4%
13.8%
14.5%
11.2%
15.5%
14.5%
17.8%
Average Quarterly Pay per Job, Recovery from 2008‐09 Recession, by Kentucky and Border States
1/12/2015 9:49:27 AM
Brad, Davis
Reviews:
Comments
Project entails construction of an above-ground overflow tank within the Homewood Avenue Pumping
Station’s drainage basin to achieve compliance with JSA’s Consent Judgment with KY DOW and EPA.
Narrative:
MCCRACKEN
Area
Homewood Avenue Overflow Tank
John, Hodges (270) 575-0056
Contact
CFDA #:
EPA
Federal Agency
Kentucky e-Clearinghouse
Project Summary
Project Title:
Status:
Applicant
Paducah McCracken County Joint
Sewer Agency
Complete
KY201412231197
State/DLG
Identifier
Purchase ADD: January 26, 2015
Page 70
1
$0.00
TOTAL FUNDS:
PROGRAM INCOME:
OTHER FUNDS:
of
3
$600,000.00
$0.00
$0.00
$600,000.00
LOCAL FUNDS:
STATE FUNDS:
$0.00
$0.00
APPLICANT FUNDS:
FEDERAL FUNDS:
Funding
City of Paducah
Applicant
Sheryl, Chino (270) 444-8690
Contact
MCCRACKEN,City of
Paducah
Area
Comments
Comments
CFDA #: 20.205
DOT
Federal Agency
Kentucky e-Clearinghouse
Project Summary
The Riverfront Redevelopment Project Phase 1-B, Gangway, Transient Dock and Land Mass is being
partly funded through the Federal Highway Administration (FHWA) administered by the Kentucky
Transportation Cabinet Project and by a Boating Infrastructure Grant Program (BIG-P) administered by
the Kentucky Department of Fish and Wildlife Resources. Land Mass location: 400 N. Riverfront - Lat: 88
35' 48" Long: 37 05' 31" Transient Dock loction: 500 N. Riverfront - Lat: 88 35' 51" Long: 37 05' 34"
{TAB}This Project will be located along the Ohio Riverfront within the general vicinity from the extension of
Madison Street to the extension of Harrison Street, downtown Paducah, Kentucky. The Riverfront
Redevelopment Project Phase 1-A, Piles and Mass Fill, completed in fall of 2013, consisted of the
construction of the twelve steel pile guide structures for the future gangway construction and the
placement of the majority of the stone fill in the Ohio River to create a land mass. The Phase 1-B
Project will complete the overall Riverfront Redevelopment Project Phase I and will consist of the
following items: •{TAB}Construction of a three-acre lawn area covered Land Mass within the Ohio
River. The completion of the Land Mass will consist of the installation of approximately 52,500 tons of
stone fill, 18,600 cubic yards of earth fill and 2,500 cubic yards of topsoil. The placement of 315,000 tons
of stone fill in the Ohio River was completed Fall 2013 •{TAB}Included with the Land Mass construction
will be miscellaneous improvements such as asphalt installation, curb and gutter, sidewalks, concrete
stairs, stone work, lighting, etc. •{TAB}Construction of a new three section Gangway system. The twelve
steel pile guide structures for the gangway were installed-driven in the Ohio River Fall 2013.
•{TAB}Construction of a new 400 linear foot Transient Dock - Wave Attenuator for short term boat
dockage will be connected to the new Gangway system. The Transient Dock will have steel piling
anchorage system installed adjacent to the Transient Dock in the Ohio River for stability. •{TAB}Included
with the Transient Dock construction will be miscellaneous improvements such as lighting, railings, fueling
station, sanitary sewer pump-out, electrical pedestals, water hook-ups, navigational aids, etc.
•{TAB}Utilities will be installed to serve the Transient Dock and Land Mass Area such as: water, electric,
sanitary and storm sewer systems. •{TAB}Installation of a 5,000 gallon Fuel System to serve the
Transient Dock with two compartment tanks, piping for gas and diesel fuels, dual dispensers with hose
reels, transition sumps, credit card reader system, etc.
Paducah FHWA Waterfront Development
Complete
1/12/2015 9:49:27 AM
Mark, Davis
Brad, Davis
Reviews:
Narrative:
Project Title:
Status:
KY201412181185
State/DLG
Identifier
Purchase ADD: January 26, 2015
Page 71
TOTAL FUNDS:
PROGRAM INCOME:
OTHER FUNDS:
LOCAL FUNDS:
STATE FUNDS:
APPLICANT FUNDS:
FEDERAL FUNDS:
Funding
2
of
3
$5,650,000.00
$0.00
$0.00
$0.00
$0.00
$500,000.00
$5,150,000.00
1/12/2015 9:49:27 AM
Brad, Davis
Reviews:
Comments
Project would entail construction of a 1.5 MGD wet weather storage tank, along with associated influent
pumping station and collection line size improvements
Narrative:
MCCRACKEN
Area
Reidland Collection System Above Ground Storage Tank
John, Hodges (270) 575-0056
Contact
CFDA #:
EPA
Federal Agency
Kentucky e-Clearinghouse
Project Summary
Project Title:
Status:
Applicant
Paducah McCracken County Joint
Sewer Agency
Complete
KY201412231196
State/DLG
Identifier
Purchase ADD: January 26, 2015
Page 72
3
$0.00
TOTAL FUNDS:
PROGRAM INCOME:
OTHER FUNDS:
of
3
$2,385,000.00
$0.00
$0.00
$2,385,000.00
LOCAL FUNDS:
STATE FUNDS:
$0.00
$0.00
APPLICANT FUNDS:
FEDERAL FUNDS:
Funding
COMMODITY & FOOD BANK TASK FORCE REPORT
Thank you Mr. Chairman. We would like to present the figures for the 2nd Quarter of FY15.
The CSFP (Commodities and Supplemental Food Program) disbursed 162,815 lbs. of
Commodities to 1525 seniors monthly in the 8 counties of the Purchase.
TEFAP (The Emergency Food Assistance Program) disbursed 184,947 lbs. of commodities to an
average of 3016 households monthly and 24,860 meals were served through one soup kitchen.
The Food Bank program disbursed 351,309 lbs. of commodities to approximately 4474
households plus served approximately 32,125 meals through 2 Soup Kitchens.
Through these three programs, a total of 699,071 lbs. have been distributed.
The Farms to Food Banks program, sponsored by the Kentucky Association of Food Banks
finished this growing season, by receiving and distributing 118,741 lbs. of fresh, Kentucky
grown produce. This was achieved by $500,000 allocated to the program through Governor
Beshear’s last budget. An additional $100,000 was added to the original budget which was to be
used for the Hunters for the Hungry program. During this deer season, we received and
distributed 4,230 lbs. of ground venison which was distributed to all our pantries in all 8 counties
of the Purchase.
The Feeding America Backpack program is currently serving 431 needy children through 15
schools.
If there are no questions Mr. Chairman, this concludes our report.
Purchase ADD: January 26, 2015
Page 73
Purchase Area Development District
Child Care Aware Agency
Core Services Report for December 2014
Ballard
Calloway
Carlisle
Fulton
Graves
Hickman
Marshall
McCracken
TOTAL
Child Care Providers by Type and Capacity
Type I
Type II
Certified Homes
Number
Capacity
Number
Capacity
Number
Capacity
3
209
0
0
0
0
20
1788
0
0
0
0
1
20
1
10
0
0
3
102
0
0
0
0
20
1349
0
0
0
0
3
96
0
0
0
0
9
571
0
0
0
0
34
2894
0
0
1
6
93
7029
1
10
1
6
"Type I": State-approved licensed child care program for 13+ children.
"Type II": State-approved licensed child care home for 7 - 12 children.
"Certified Home": State-approved home certified for up to 6 children.
Technical Assistance Report (by county)
Ballard
Calloway
2
Carlisle
Fulton
Graves
3
Hickman
Marshall
1
McCracken
3
Email,Phone, etc…
36
Total
45
"Getting Started" in Child Care
Ballard
Calloway
1
Carlisle
Fulton
Graves
Hickman
Marshall
McCracken
Total
1
Collaborative Partner Activities (by county)
Ballard
Calloway
1
Carlisle
Fulton
Graves
1
Hickman
Marshall
McCracken
2
Regional
2
Total
6
Child Care Aware Core services are funded through a subcontract with the University of Kentucky.
Purchase ADD: January 26, 2015
Page 74
ASSET INVENTORY REPORT FORM
Kentucky Division of Water’s Asset Inventory Report,
as required by 401 KAR 5:006
In accordance with 401 KAR 5:006, regional planning agencies are required to submit an asset inventory report to the Cabinet, if: (a) It has
been ten (10) years since the regional planning agency submitted a regional facility plan or asset inventory report; and (b) the regional
planning agency does not meet the requirements established in Section 2(2) of the regulation. The asset inventory report requires regional
planning agencies to take inventory of the physical assets of their wastewater system(s), assess their condition, prioritize capital needs,
and develop a plan for funding those needs. By incorporating this planning tool into their daily operations, the Cabinet expects regional
planning agencies to achieve the following benefits:
a. Reduce overall cost of system operation and maintenance;
b. Target capital investments toward critical assets;
c. Improve compliance record and remediate or correct illegal overflows or bypasses;
d. Acquire a better understanding of treatment and/or collection system components;
e. Reduce borrowing costs. Funding agencies prefer lending to municipalities which properly manage and operate their assets;
f. Potentially improve bond credit ratings;
g. Make a sound case for rate increases to local governing boards and rate payers;
h. Prolong the useful life of their assets. Knowing the condition of assets allows regional planning agencies to make timely repairs; and
i. Reduce duplication of efforts and improve the allocation of staff time and other resources.
A complete report consists of this form and copies of supporting documentation. All regional planning agencies that wish to use this report
to demonstrate compliance with the requirements of 401 KAR 5:006, Section 4 must complete all seven sections of the report and provide
copies of the supporting documentation required under section VI. This report form consists of seven (7) sections:
I.
REGIONAL PLANNING AGENCY DATA
II.
REVENUES AND EXPENSES
III.
ASSET INVENTORY
IV.
PROJECT PRIORITIZATION
V.
FUNDING PLAN
VI.
COPIES OF SUPPORTING DOCUMENTATION
VII.
CERTIFICATION
Most of the information required in the form is self-explanatory. The instructions in some of the sections are given to highlight some of the
information that may require interpretation or additional clarification. You may add extra pages for entering additional asset inventory
information especially ft you are a regional planning agency with multiple treatment plants. If you need to include additional information,
attach the extra pages and put the question number next to your answers and/or copy and paste the asset inventory tables on the
additional pages. It’s quite likely that all of the details of the asset inventory presented in this report will not apply to every wastewater
system. If the parameter does not apply then indicate by entering N/A in the blank or modify the worksheets so they conform to the
particular needs of your system. For additional information or assistance, contact the Kentucky Division of Water, Wastewater Planning
Section (502) 564-3410.
1
Purchase ADD: January 26, 2015
Page 75
PURCHASE AREA DEVELOPMENT DISTRICT
LOAN REVIEW COMMITTEE - MINUTES
DECEMBER 4, 2014
The Purchase Area Development District Loan Review Committee met on Thursday,
December 4, 2014 at 9:00 a.m. at the Purchase Area Development District.
Members Present
Greg Terry
Darvin Towery
Gary Clark
proxy for
Betsy Hudson Flynn
Judge Mike Miller
Clyde Elrod
Joe Bolin
Tony Smith
Mark Manning
David Gallagher
Teresa Rochetti-Cantrell
Members Absent
Van Newberry
Greg Gunter
Vicki Viniard
Marty Nichols
Staff and Guests
Marta Elliott
Brad Davis
Sheila Rogers
Jennifer Beck Walker
I. Call To Order
Chairman Greg Terry called the meeting to order by welcoming members to the
committee as well as staff.
II. Old Business
Minutes
Chairman Terry directed the Committee’s attention to the minutes of the October 16,
2014 Loan Review Committee meeting printed on pages 2 through 4 of the packet.
Clyde Elrod made a motion to approve the minutes of the previous meeting. The
motion was seconded by Mayor Teresa Cantrell Rocketti and passed
unanimously.
A. CLOSING/PORTFOLIO/SERVICING
1. Clarks Feed Servicing Request (EDA-RLF Recap & IRP #3)
Chairman Terry requested Marta Elliott discuss the request. Ms. Elliott first referred the
committee to page 5, which is a letter from Mr. Fuller requesting the PADD to release his
horse trailer. Two separate times the request has been brought before the committee
and both times the request was denied. Mr. Fuller discussed the need for the business
to sell the trailer in order to give him additional cash to buy discounted inventory. Mr.
Tony Smith wanted to know if the client is current on all his payments and Ms. Elliott
responded with a yes.
After a long discussion, Mr. Towery made a motion to approve the release of the
trailer on the condition that a sales contract for the sale of the trailer is given to
Page 1 of 3
Purchase ADD: January 26, 2015
Page 76
the PADD and proof be provided to the PADD that shows the use of proceeds.
Joe Bolin seconded the motion and passed unanimously.
B. Loan Requests
1. ACE Compressors (EDA & SBA Microloan)
Chairman Terry requested Marta Elliott discuss the request. Ms. Elliott first referred the
Committee to page 7 of the packet, which is a request from ACE Compressors for a $50,000
SBA Microloan and $68,000 EDA-Recap loan. ACE is a Veteran Owned Small Business that
is looking to expand their operations by purchasing three new machines that will make the
repair of compressors more efficient.
The loans will be secured by a co-1st on the Scanner, Grinder and Balancing Machine, Co-2nd
on all inventory, Accounts Receivable, Equipment and Furniture & Fixtures, Personal
Guarantee of Johnnie Lee and Paula Lee, and Corporate Guarantee of ACE Compressor Parts
& Service, Inc.
ACE has been a client of the PADD since early 2014 and they have always paid the PADD on
time. Ms. Elliott referred the committee to page 9, which is the historical cash flow of the
business. Based on the historical financial statements, the company can easily cash flow
with the new debt. Sales have increased by 59% from 2012 to 2013 and sales are on track
to increase by 11% from 2013 to 2014. The SBA microloan of $50,000 will have a term of 6
years at 4% fixed and the EDA-Recap loan of $68,000 will have a term of 7 years at 4%.
Following Committee discussion, Darvin Towery made a motion to
approve the PADD-RLF Recap $68,000 loan and PADD SBA Microloan of
$50,000 as presented. The motion was seconded by Gary Clark and
passed unanimously.
2. Paducah Cigar & Tobacco Company (SBA 504)
Chairman Terry requested Marta Elliott discuss the request. Ms. Elliott first referred the
Committee to page 29 of the packet, which is a request from Paducah Cigar & Tobacco
Company for an $118,000 SBA 504 loan. The proposed funds will be used to purchase a
4,950 square foot building in a prime location in Downtown Paducah. The company has
been renting the building and now has the opportunity to purchase the building. The
building has a 2nd floor 2 bedroom and 2 bathroom luxury apartment that rents for
$1,200/month and is on a two year lease. The retail space is 2525 square feet and has
some outdoor space. The total project cost for the business is $318,988.
The Paducah Cigar & Tobacco Company is a retailer of 60 brands of cigars that range in
price from $5 to $30 and above. They also carry cigarettes and accessories. They offer
lounges in the store with big leather chairs and flat screen TVs so customers can enjoy their
purchases in comfortable seating. The store opened September 2013.
Paducah Bank will be providing 50% of the financing at $159,494 and SBA will be providing
35% of the financing at $118,000 and the borrower is injecting $47,849 into the project.
The SBA loan will be secured by a 2nd on the Real estate, 2nd Security Interest on
Equipment, personal guarantee of Lisa Mead, collateral assignment of life insurance of
$118,000 on the life of Joaquin Hilton and corporate guarantee of L& J Development, LLC &
Paducah Cigar & Tobacco Company.
Page 2 of 3
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Page 77
Following Committee discussion, Tony Smith made a motion to approve
the $118,000 SBA 504 loan as presented. The motion was seconded by
Darvin Towery and passed unanimously.
C. OTHER
1. SBA 504 Rankings—INFORMATION ONLY
Ms. Elliott next referred the committee to page 61, which is a Kentucky SBA state office
newsletter that lists PADD as the #3 Top Certified Development Lenders in KY.
D.
REPORTS
Chairman Terry asked Ms. Elliott to review with the Committee the Current Loan
Reports; Financial Reports, Business Lending Reports printed on pages 63-77.
E. ADMINISTRATION
Mr. Terry stated that the next meeting of Loan Review Committee is
Thursday, January 15th at 9:00am
F. ADJOURNMENT
There being no further business, the meeting was adjourned at 10:15 a.m.
Respectfully submitted:
Judge/Executive Vicki Viniard
Page 3 of 3
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Page 78
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Page 79
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Page 80
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Page 81
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Page 82
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Page 83
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Page 84
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Page 85
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Page 86
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Page 87
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Page 88
Obligated Dollars by Training Facility
January 2015
Name of Training Facility
West KY Community & Technical College
Transportation
Business Services/Research
Healthcare/Social
Assembly/Manufacturing
Non-Sector
Murray State University
Transportation
Business Services/Research
Assembly/Manufacturing
Healthcare/Social
Non-Sector
Shawnee Community College
University of Kentucky, Paducah
Western Kentucky University
Madisonville Community College
CDL Training Services
CDL Training
Austin Peay State University
Woodman of the World
University of the Cumberlands
American Gunsmithing Institute
Adjuster Pro
US Career Institute
PennFoster
Eastern KY University
TOTAL
Dollars
Obligated
Number of
Students
$111,069.00
$124,629.00
$259,327.00
$192,836.00
$112,789.00
15
22
43
30
18
$16,192.00
$253,770.00
$10,448.00
$69,106.50
$90,730.50
$6,000.00
$8,350.00
$13,770.00
$7,964.00
$8,000.00
$12,345.00
$7,800.00
$116.10
$25,372.80
$30,894.00
$18,085.00
$2,198.00
$800.00
$12,671.00
$1,395,939.25
1
24
1
7
9
1
1
1
1
2
3
1
1
5
2
1
1
1
1
194
The above covers training costs for Fall Semester 2014, Spring Semester 2015, and Summer Semester 2015.
Purchase ADD: January 26, 2015
Page 89
HouseWorks Repair Program
January 2015
Draft for Review and Comment
Kentucky Housing Corporation
1231 Louisville Road
Frankfort, KY 40601
(502) 564-7630
Kentucky Housing Corporation prohibits discrimination based on race; color; religion; sex; national origin;
sexual orientation; gender identity; ancestry; age; disability;
or marital, familial or veteran status.
Purchase ADD: January 26, 2015
Page 90
Contents
Program Overview .........................................................................................................................................................3
Eligible Applicants ........................................................................................................................................................3
Maximum Funding Requests .........................................................................................................................................3
Eligible Households .......................................................................................................................................................3
Program Match Requirement .........................................................................................................................................3
Terms of Affordability...................................................................................................................................................4
Insurance........................................................................................................................................................................4
Eligible Improvements (Health and Safety Issues) ........................................................................................................4
Incidental Improvements ...............................................................................................................................................5
Manufactured Housing/Mobile Homes (HUD Code Homes) ........................................................................................6
Handicapped Accessibility ............................................................................................................................................6
How The HouseWorks Repair Program Works .............................................................................................................7
Page 2 of 8
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Page 91
Kentucky Housing Corporation
HouseWorks Repair Program
Program Overview
Kentucky Housing Corporation’s HouseWorks Repair Program is designed to provide funding resources
to nonprofits and units of local government that are working to address the repair needs of low -income
homeowners across the state. This program offers funding on a first-come, first-served basis until the
funds are depleted.
Eligible Applicants
The HouseWorks Repair Program (HouseWorks) is available to nonprofits and units of local government
that are eligible to receive funds from the Affordable Housing Trust Fund [KRS.198A.175(3)].
To be eligible to apply for the HouseWorks Repair Program, previous applicants must meet the following
thresholds:
 Applicants must have received HouseWorks funds between 2011-2014.
 Applicants must have successfully committed and expended funds as outline in their
Memorandum of Understanding.
Maximum Funding Requests
Applicants that have been awarded KHC HouseWorks in the past 4 years, are limited to the maximum
amount $100,000 of HouseWorks funds, inclusive of administrative fees. KHC recommends applicants
review their prior HouseWorks expenditures and program activities to determine a manageable amount
of funds to be requested. KHC reserves the right to reduce the amount requested due to the applicant’s
capacity and program history.
Administrative fees are provided to recipients in the form a grant and cannot exceed 7.5% of the total
project costs.
Eligible Households
Households eligible to receive assistance must be at or below 60 percent of the area median income for
the participating county. All funds will be provided in the form of a forgivable loan. The maximum
amount of HouseWorks Repair assistance that a household can receive is $10,000 throughout the life of
the program. The minimum amount of assistance a household can receive is $1,000.
Program Match Requirement
Applicants/grantees are required to match at least 50 percent of the requested HouseWorks Repair
Program funds. For example: If an organization is requesting $10,000 in HouseWorks Repair Program
funding, it would be required to provide at least $5,000 in matching resources.
The following is a list of resources that an applicant may propose to meet the program match
requirement:



Cash
Volunteer Labor (valued at $10 per hour)
Donated Materials
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

In-Kind Administrative or Support Services
Weatherization Funds
Terms of Affordability
HouseWorks Assistance funds will be secured by the following KHC provided documents:


A mortgage
Five-year deed restriction
The administrating agency is responsible for preparing the mortgage and deed restriction and recording
both the mortgage and deed restriction in the county in which the property is located. Additionally, any
costs associated with the recording of these documents will be the responsibility of the administering
agency.
If the property is sold, leased, refinanced or no longer used as a primary residence of the assisted
homeowner, the unforgiven portion of the loan is repayable to KHC as program income.
Insurance

The homeowner must maintain all risk, fire and extended coverage, in form and with companies
acceptable to Applicant for each activity in an amount not less than the AHTF investment in the
property. Each policy must include appropriate loss payable clauses in favor of Applicant, as
beneficiary, and without right of cancellation or change except upon thirty (30) days’ written
notice to Applicant. Homeowner will deliver proof of all insurance to Applicant prior to the
investment of funds in the property.
Eligible Improvements (Health and Safety Issues)
Eligible improvement and/or repairs include the following:



Plumbing
o Funds may be used for modest but complete functioning plumbing facilities, including
adapting existing plumbing facilities for use by person with disabilities. Funds are
limited to one full bath per household. Eligible activities include: water wells, water
pumps and public water supply hookups. All plumbing installed or repaired under this
program must be in compliance with the Kentucky Plumbing Code. Inspections must be
made by the appropriate authorities (authority) and the contractor must supply
Recipient, KHC and the participant family with a copy of the plumbing permit and proof
of final inspection. For projects where the state plumbing code does not require a
permit or inspection, KHC reserves the right to require an inspection.
Water Quality
o Funds may be provided to upgrade existing individual sewage treatment systems.
Funds may be used for Health Department-approved septic systems or Division of
Water-approved individual sewage treatment systems, or hookups to Division of Waterapproved community sewage treatment facility. Permits and inspections are required.
Energy Efficiency Guidelines
o Funds may be used to provide adequate insulation in ceilings, walls, floors (in order of
priority); replacement of single-glazed windows with insulated glass windows; and
replacement of up to two exterior doors (no greater than one-half glass). French doors,
Page 4 of 8
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Page 93



sliding glass doors and patio doors are not permitted. Funds may be used to provide
new heating systems, including those fueled with gas, oil, propane, coal, wood or
electricity. For replacement of central systems, the participant family must provide
documentation from a certified HVAC contractor demonstrating why repair to the
existing heating system would be cost prohibitive or – after repair – would be
inadequate to meet needs during winter months. Any existing heating system less than
five years old is not eligible for replacement. Exceptions to this rule include: conversion
to a central heating system from a coal, oil, gas or wood-fired space heater (non-central
system).
o All newly-installed central systems must be energy efficient. Gas furnaces must have a
90 percent or higher efficiency rating. Heat pumps must have a “HSPF” of 8.5 and
“SEER” efficiency rating of 14.5 or higher respectively. Central systems of straight
electric resistance heat, such as baseboard heaters or electric furnaces, must be avoided
whenever possible. Existing ductwork must be tested for air tightness and must meet
the minimum leakage rate prescribed in the current mechanical code. All flues must be
visually inspected for compliance with the current applicable NFPA code.
Air Conditioning
o KHC funds may not be utilized to provide window-type air conditioning units. However,
KHC funds may be utilized to provide central air conditioning serviced by a heat pump.
Exceptions would be made to provide reasonable accommodation for participant
families who provide documentation by a licensed Kentucky physician or advanced
registered nurse practitioner that the participant family has a medical condition that
requires air conditioning.
Roof Repairs
o Roof systems deteriorated to a point that the roof covering admits rain or fails to
prevent dampness in the interior structure may be replaced with KHC funds. Wind, hail,
or otherwise damaged roofs in need of minor repairs, not covered by insurance, may be
patched and repaired as needed. Soffits, fascia, gutters and downspouts are eligible for
funding with roof repairs.
Smoke Detectors
o Every unit assisted with funding from HouseWorks shall be equipped with an existing
functioning smoke detector or be furnished with new battery operated smoke detectors
during the repair process
Incidental Improvements


Bathroom Additions
o In the event space is required to provide room for a bathroom and washer/dryer
hookups, KHC funds may be utilized to build a modest addition to an existing structure.
Typical bathrooms may not exceed 40 square feet and utility rooms may not exceed 50
square feet. Handicapped-accessible bathrooms may be up to 90 square feet. All work
performed on a newly-constructed addition must meet the requirements of the
Kentucky Residential Code and any successor code in effect in the Commonwealth of
Kentucky at the time the construction is performed. A thermostat-controlled source of
heat must be provided to the bathroom and utility room either via a central system or
individual space heater.
Electrical Wiring
Page 5 of 8
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Page 94
o
Wiring incidental to any of the above-mentioned repairs is eligible including new main
service. All new wiring must be inspected by a Commonwealth of Kentucky-certified
electrical inspector. The contractor must furnish the owner, recipient and KHC a copy of
the inspection reports regardless of the level of electrical wiring provided.
Manufactured Housing/Mobile Homes (HUD Code Homes)
Repair of HUD Code Homes is an eligible activity if they meet recipient minimum requirements. In
addition, the home must be attached to a permanent foundation, featuring poured concrete footers per
code requirements under all bearing piers. The dwelling must have a permanent set of steps at both the
front and rear doors which meet the requirements of the Kentucky Residential Code. All homes must
employ strategies to prevent freezing of water lines. All exposed water pipes located outside the
conditioned space must be insulated to further prevent freezing.
Handicapped Accessibility
KHC funds may be used to physically adapt a home for handicapped accessibility including wheelchair
ramps, door widening, bathrooms, kitchens and other rooms as necessary for accessibility.
Page 6 of 8
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Page 95
How The HouseWorks Repair Program Works

To be eligible, organizations must have received HouseWorks funds between 2011 – 2014.
Eligible organizations are required to submit a HouseWorks Repair Program Application through
the Universal Funding Application.

Applicants will be evaluated on the following review criteria:
o Capacity
o Program Design
o Agency Experience
o Households Assisted
Applications will be reviewed on a first-come, first-served basis, prioritized by the date and time
submitted.

After the application review is complete, a letter will be sent to the applicant indicating one of
the following:
o The application has been selected for funding.
o The application was not selected for funding. The applicant may resubmit an
application as long as the application round remains open.

Once an applicant is approved for funding, a grant agreement will be executed by the applicant
and Kentucky Housing Corporation.

Applicants/grantees can request funds for qualified homeowners, on a case-by-case basis, by
submitting a HouseWorks Repair Program set-up packet, once the homeowner is deemed
qualified by the agency. There is not a limit on the number of set-up packets that may be
submitted at one time for eligible homeowners.

Final approval of the HouseWorks Repair Program set-up packet will be made by KHC staff and
will depend on the availability of funding.

Once KHC has approved the set-up packet, KHC will issue an activity number for the eligible
household.

The applicant/grantee will be responsible for completing the KHC approved mortgage and deed
restriction documents and having them recorded. Recorded documents must be returned to
KHC with the Project Completion Packet.

Draw Request. Disbursement will be made to the applicant/grantee. Applicant/grantee will be
responsible for obtaining a lien waiver from the Contractor.
o

Participating organizations are limited to two (2) draws per unit. These draws must be
submitted on the KHC universal draw form located at www.kyhousing.org.
Expiration of Funds. Any funds uncommitted/unexpended by the project completion deadline
in the funding agreement will be automatically recaptured.
Page 7 of 8
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
Inspections. KHC will inspect a minimum of 20 percent of the total units in the project. The
program representative will determine whether the unit is subject to inspection by KHC. Each
program representative/specialist will notify the applicant in advance of inspections.
o
o
KHC reserve the right for the KHC construction specialist to randomly select units for
inspection for quality control measure. Units selected for quality control must be
inspected before the final draw for the unit is released.
Units selected for inspection must have a representative from the applicant agency
attend each inspection and bring a copy of the draw form.

Final Inspection Report. A final inspection report, if applicable and pictures of the completed
work must be submitted with the final draw request.

Re-Inspection Fee.
circumstances:
o
o
o
o
KHC will charge a “re-inspection fee” of $200 under the following
Units that a KHC inspector must perform more than one final inspection due to the
project not being 100% complete.
Failure by the agency to provide an agency representative on the project site during the
inspection
Unsuccessful attempts due to the agency not coordinating the inspection with
homeowners or other involved parties which renders the unit inaccessible for
inspection.
A hazard exists on the project site at the time of inspection which endangers the welfare
of the inspector. Examples: Bed bug infestation, poisonous snake infestation,
uncontrolled animals, etc.

Quality of Work. All work completed must meet state and local government safety and
sanitation standards and building codes. The participating organization, homeowner, and
contractor must comply with all applicable local, state, and federal flaws, including but not
limited to lead-based paint abatement regulations.

Rehabilitation Standards. The total scope of work must meet the Kentucky Residential Code
(KRC), and local zoning, residential, and building ordinances (Local Ordinances), in force at the
time of funding, regardless of what funding source is used when other funds are
leveraged/matched to complete the work. KRC regulations shall apply to the construction,
alteration, movement, enlargement, replacement, repair, equipment, use and occupancy,
location, removal, and demolition of detached one- and two-family dwellings.
Page 8 of 8
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Page 97
Housing Contract Administration
HOME INVESTMENT PARTNERSHIPS PROGRAM
AND
AFFORDABLE HOUSING TRUST FUND
JANUARY 2015
ABBREVIATED FUNDING APPLICATION
GUIDELINES
Draft for Review and Comment
SINGLE-FAMILY PRODUCTION
Kentucky Housing Corporation
1231 Louisville Road
Frankfort, KY 40601
(502) 564-7630
Kentucky Housing Corporation prohibits discrimination based on race; color; religion; sex;
national origin; sexual orientation; gender identity; ancestry; age; disability;
or marital, familial or veteran status.
Purchase ADD: January 26, 2015
Page 98
Contents
Section I - Introduction ................................................................................................................................. 5
Available Funds ......................................................................................................................................... 5
Program Purpose ...................................................................................................................................... 5
Affordable Housing Trust Fund................................................................................................................. 6
Program Definition ................................................................................................................................... 6
Community Housing Development Organization Set-Aside..................................................................... 7
Non-CHDO HOME and AHTF Applicants ................................................................................................... 7
Section II – Minimum Thresholds .............................................................................................................. 7
HOME and AHTF Application Thresholds ................................................................................................. 7
Section III – Funding Sources Available .................................................................................................... 8
Maximum Funding Requests .................................................................................................................... 8
Match and Leverage Requirements ......................................................................................................... 8
Eligible Forms of Matching Contributions ................................................................................................ 9
State Clearinghouse Review ................................................................................................................... 10
Section IV – Eligibility ............................................................................................................................... 10
Eligible AHTF Applicants ......................................................................................................................... 10
Eligible HOME Applicants ....................................................................................................................... 10
Eligible CHDO Set-Aside Applicants ........................................................................................................ 11
Eligible Project Types (HOME and/or AHTF)........................................................................................... 12
Eligible Beneficiaries ............................................................................................................................... 12
Eligible Activities ..................................................................................................................................... 13
Home Buyer Programs............................................................................................................................ 13
Homeowner Rehabilitation Programs .................................................................................................... 13
TBRA........................................................................................................................................................ 13
HOME CHDO Set-Aside ........................................................................................................................... 14
Ineligible Activities .................................................................................................................................. 14
Section V – Abbreviated Application Process ......................................................................................... 14
Application Preparation and Minimum Submission Requirements ....................................................... 15
Single Family Application Review ........................................................................................................... 16
Applicant Notification ............................................................................................................................. 16
Section VI – Program Guidelines .............................................................................................................. 17
HOME...................................................................................................................................................... 17
HOME TBRA ........................................................................................................................................ 19
AHTF ................................................................................................................................................... 22
JANUARY 2015 Application Guidelines
Page 2
Purchase ADD: January 26, 2015
Page 99
Maximum Subsidy Per Unit .................................................................................................................... 23
Home Buyer Assistance ...................................................................................................................... 23
Homeowner Rehabilitation Assistance .............................................................................................. 23
Structure and Repayment of KHC Subsidy ............................................................................................. 23
Home Buyer or Homeowner Rehabilitation Programs ...................................................................... 23
TBRA Programs ................................................................................................................................... 24
Collateral................................................................................................................................................. 24
Insurance ................................................................................................................................................ 25
Recapture of Funds ................................................................................................................................. 25
Developer Fee ......................................................................................................................................... 26
Development Subsidy ............................................................................................................................. 26
Direct Subsidy ......................................................................................................................................... 26
Written Underwriting Standards ............................................................................................................ 27
Limit on Investment ................................................................................................................................ 27
Capacity .................................................................................................................................................. 27
Market Assessment ................................................................................................................................ 27
Financial Commitments .......................................................................................................................... 27
What Requirements Apply ................................................................................................................. 27
Front- and Back-End Ratios .................................................................................................................... 28
Income Documentation and Determination (24 CFR §92.203) .............................................................. 28
Liquid Assets ........................................................................................................................................... 28
Subsidy Analysis ...................................................................................................................................... 29
Home Buyer Value Limits ....................................................................................................................... 29
Home Buyer Counseling ......................................................................................................................... 30
Counseling Costs ................................................................................................................................ 30
Provider .............................................................................................................................................. 30
Project Completion ................................................................................................................................. 31
Section VII – Program Policies ................................................................................................................. 31
Program Policies ..................................................................................................................................... 31
Recordkeeping (24 CFR §92.508)............................................................................................................ 32
Program Administration ......................................................................................................................... 33
Compliance Monitoring .......................................................................................................................... 34
Conflict of Interest .................................................................................................................................. 34
Section VIII – Construction Criteria ......................................................................................................... 34
Construction Criteria .............................................................................................................................. 34
Construction Management..................................................................................................................... 35
Construction Contingency ...................................................................................................................... 36
JANUARY 2015 Application Guidelines
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Page 100
Inspections.............................................................................................................................................. 36
Draw Requests ........................................................................................................................................ 37
Universal Design Standards .................................................................................................................... 37
Minimum Design Standards ................................................................................................................... 38
Construction Code Standards ................................................................................................................. 38
New Construction and Reconstruction................................................................................................... 38
Rehabilitation Standards ........................................................................................................................ 39
Green Building Techniques ..................................................................................................................... 40
Single-Family Plan Review ...................................................................................................................... 41
Archaeological Surveys ........................................................................................................................... 41
Phase I Environmental Surveys............................................................................................................... 42
Section X – TBRA Scoring.......................................................................................................................... 42
Section XI - Resources ............................................................................................................................... 44
Section XII – Quick Facts ........................................................................................................................... 47
JANUARY 2015 Application Guidelines
Page 4
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Page 101
Section I - Introduction
Kentucky Housing Corporation (KHC) is pleased to offer an Abbreviated Application process to
affordable housing developers, builders, and organizations across the state.
Through this funding process, KHC provides financial resources and technical support to enable the
development and rehabilitation of safe, quality, affordable housing to benefit Kentucky families and to
provide Tenant-Based Rental Assistance (TBRA) to very-low income (less than 60 percent of area median
income) households throughout the Commonwealth. The primary goals of the Abbreviated Application
process are to ensure that the most viable projects are funded expeditiously and to enhance the state's
capacity to create and preserve affordable housing by effectively blending resources.
This guide informs applicants on how to apply for Housing Contract Administration resources available
through the KHC Abbreviated Application process for single-family projects. This guide further explains
program criteria and basic requirements, application expectations, and review processes. KHC reserves
the right to amend these guidelines in order to fully implement and utilize the HOME Investment
Partnerships Program (HOME) or Affordable Housing Trust Fund (AHTF) resources and to administer the
programs as efficiently as possible.
When applying for HOME Program or AHTF funds, applicants should consider this guide as part of the
application. Applicants are expected to be familiar with the information contained in this guide, as well
as all applicable federal regulations, state and local requirements, the HOME Program, and AHTF
administrative certifications, and to incorporate them into their project design and implementation
procedures.
If funded, single-family projects will be governed by the cumulative information contained in these
guidelines, the HOME Program regulations, the applicant’s application for funding, the grant
agreements, and the HOME/AHTF Administrative Certifications. Recipients of funds will be expected
to be familiar with and adhere to the guidelines and project design requirements described in the
aforementioned documents.
Available Funds
Funding Source
Amount Available
HOME Regular
Continuation^
HOME – CHDO
Set-aside
AHTF
$2,578,740
$1,577,224*
$2,879,273
Please note: Amount of available funds is approximate.
*Community Housing Development Organization (CHDO) set-aside funds may also be allocated to rental
production projects.
^Includes home buyer, homeowner rehabilitation, and Tenant-Based Rental Assistance activities.
Program Purpose
Through KHC’s Abbreviated Application process, applicants for single-family may apply for funding from
the AHTF or HOME Program. No applications for TBRA will be accepted for funding at this time. Both
sources of funding have specific purposes, which are explained below. When structuring a funding
JANUARY 2015 Application Guidelines
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Purchase ADD: January 26, 2015
Page 102
request, applicants are encouraged to review and consider how their request supports the purpose of
the funds requested.
Affordable Housing Trust Fund
The AHTF was established by the Kentucky State Legislature to provide housing for very low-income
Kentuckians. The fund was created in response to economic conditions, federal housing policies, and
declining resources, which adversely affected the ability of very low-income persons to obtain safe,
quality, and affordable housing. State leaders decided it was in the public’s interest to establish the
AHTF to assist very low-income persons (at or below 60 percent area median income) in meeting their
basic housing needs.
There are four priorities for use of AHTF financing.
1. New construction projects for families (as defined in 24 CFR 5.403) submitted by nonprofits or local
governments.
2. Projects using existing, privately-owned housing stock.
3. Projects using existing, publicly-owned housing stock.
4. Applications from local governments for projects that demonstrate effective zoning, conversion, or
demolition controls for single-room occupancy units.
As noted in KRS 198A.720 (6), a minimum of 40 percent of all funds received is for used rural areas of
the Commonwealth. Those areas are defined by the board of directors of KHC. KHC reserves the right
to make funding decisions to meet this requirement. Projects must be located in areas defined as rural
by USDA Rural Development (RD). Applicants can determine if the property is in a rural area by
accessing the RD Property Eligibility Site, “Single family” and then enter the property address. A copy of
the eligibility determination must be provided with the project set-up.
KHC has allocated approximately $2,879,273 of AHTF funds for single-family applications in this funding
round.
Program Definition
Created by Congress in 1990, the HOME Program provides funding to applicants for various types of
affordable housing production and rehabilitation. KHC administers and monitors the program for the
U.S. Department of Housing and Urban Development (HUD), awarding funding to eligible applicants,
including local governments, housing authorities, private developers, and nonprofit housing providers.
The purpose of the HOME Program is to expand the supply of quality, affordable housing for low- (at or
below 80 percent area median income) and very low-income (at or below 60 percent area median
income) families. The HOME Program can be utilized to expand the supply of decent, safe, and sanitary
housing through either new construction or rehabilitation of existing structures with forgivable deferred
grants or by providing TBRA to address local housing needs and priorities. The HOME Program's
flexibility empowers local communities to design and implement strategies tailored to their own needs
and priorities.
To request HOME Program funds, applicants may apply for funding within the following categories:
JANUARY 2015 Application Guidelines
Page 6
Purchase ADD: January 26, 2015
Page 103
Community Housing Development Organization Set-Aside
The HOME Program regulations require that participating jurisdictions set aside a minimum of 15
percent of the annual allocation to fund applications submitted by Community Housing Development
Organizations (CHDOs) on a statewide basis. Only CHDOs designated by KHC prior to the application
submission date are eligible to apply under this set-aside. KHC has allocated $1,577,224 of HOME
Program funds for eligible CHDO set-aside applications in this funding round; however, a portion of
these funds may also be allocated to rental production projects.
CHDOs may apply for home buyer new construction and/or acquisition/rehabilitation/resale projects
from the CHDO set-aside. CHDOs acting in the role of sub-recipients may also submit an application for
TBRA or homeowner rehabilitation activity, but these are not CHDO set-aside eligible activities.
KHC’s CHDO Certification Manual is currently being revised. The manual will be available on KHC’s Web
site, www.kyhousing.org, under Development, Single Family, Community Housing Development
Organization (CHDO), Resources, CHDO Certification Manual. Until the revisions are posted, CHDOs are
expected to comply with all HUD requirements, as defined in 24 C.F.R. §§ 92.300- 92.303.
Non-CHDO HOME and AHTF Applicants
Applicants that do not meet the criteria for the CHDO set-aside may apply for funding in the general
Abbreviated Application process. KHC has allocated $2,578,740 of HOME Program funds for singlefamily in the Abbreviated Application round. Available funds will be awarded on a first come first served
basis until all available funds are awarded.
KHC reserves the right to use recaptured funds to assist a HOME-eligible project that lies within another
participating jurisdiction's area, if deemed necessary by KHC and if HOME funds are available. In
addition, KHC may, at its discretion, reallocate HOME Program funds from the abbreviated allocation to
the CHDO set-aside allocation, or vice versa, to meet funding demands.
Section II – Minimum Thresholds
HOME and AHTF Application Thresholds
To be eligible to apply in the Abbreviated Application round, previous applicants must meet the
following thresholds:

Applicants must have been awarded funds for Homebuyer or Homeowner Rehab between 2011
and 2014 in order to be eligible.

HOME and/or AHTF funds awarded in 2011 or earlier (project numbers beginning with HB11 or
HR11): 100 percent committed and 100 percent expended. All project completion report
packets must be submitted to and approved by KHC no later than the application submission to
KHC.
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HOME and/or AHTF funds awarded in 2012 (project numbers beginning with HB12 or HR12):
100 percent committed and 100 percent expended.
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HOME and/or AHTF funds awarded in 2013 (project numbers beginning with HB13 or HR13):
100 percent committed and 50 percent expended no later than the application submission to
KHC.
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
HOME and/or AHTF funds awarded in 2014 (project numbers beginning with HB14 or HR14): 50
percent committed and 15 percent expended no later than the application submission to KHC.

Applicants requesting HOME or a combination of HOME and AHTF funds must propose HOMEeligible match of at least 10 percent of the total HOME request, except for TBRA projects.
Applicant may use proposed AHTF to meet this match requirement.
Section III – Funding Sources Available
The following funding sources are available for single-family homeownership opportunities through the
Abbreviated Application process:

HOME Investment Partnerships Program (HOME)

Affordable Housing Trust Fund (AHTF)
In general, KHC will divide its total allocation of funding resources equally for single-family
homeownership and multi-family projects, and will periodically review balances and move funds, as
needed, to the activity generating the greatest demand.
Maximum Funding Requests
Applicants must meet minimum thresholds as described in Section II.
Applicants must have been awarded funds for Homebuyer or Homeowner Rehab between 2011 and
2014 in order to be eligible.
KHC limits the amount of funds an applicant may request:
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AHTF-Only Projects
Maximum request is $200,000 of AHTF funds, inclusive of administrative fees.
HOME and AHTF Combined Projects (non-CHDO)
Maximum request is $500,000 of HOME and AHTF funds, inclusive of HOME developer fees,
HOME administrative fees, and/or AHTF administrative fees, with a cap of $200,000 of AHTF
funds.
CHDO Set-Aside Projects
Maximum request is $600,000 of HOME and AHTF funds, inclusive of HOME developer fees and
AHTF administrative fees, with a cap of $200,000 of AHTF funds.
TBRA Projects – NO APPLICATIONS WILL BE ACCEPTED AT THIS TIME
Maximum request is $200,000 of HOME funds, exclusive of HOME administrative fees. KHC
reserves the right to reduce requests based on capacity of the applicant or administrator. TBRA
applications are for a two-year period.
Match and Leverage Requirements
All applicants must meet the minimum match requirements if requesting HOME funds for home buyer
or homeowner rehabilitation projects.
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All applicants requesting HOME or a combination of HOME and AHTF funds for home buyer or
homeowner rehabilitation activities are required to contribute HOME-eligible matching funds of at least
10 percent of the total HOME request. HOME applicants may use the AHTF to meet the match
requirement. Commitment letters will be required for match funds.
HOME matching funds are permanent, non-federal contributions to the project. All funding sources not
HOME-match eligible are considered leverage. Leverage funds include all federal dollars, loaned funds,
and owner cash.
Contributions, i.e., donated materials, volunteer labor, or donated real property to be considered match
contributions to the development of single-family housing may be credited as a match only to the
extent that:
1. It enables the unit to be sold for less than the cost of development (if the development cost of
a unit exceeds the market value).
2. The sales price of the housing is reduced by the amount of the contribution or, if the
development costs exceed the fair market value of the housing, the contribution may be
credited to the extent that the contributions enable the housing to be sold for less than the
cost of development.
Eligible Forms of Matching Contributions
Matching contributions must be made from nonfederal sources and may be in the form of one or more
of the following:
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Affordable Housing Trust Fund, if granted to a HOME project.
Cash contributions, not provided by the assisted household.
Reasonable value of donated site-preparation and construction materials;
Reasonable rental value of the donated use of site-preparation or construction equipment.
Waived fees and taxes.
Property donation or below-market sale. A copy of the appraisal and/or purchase contract
must be submitted. The donor/seller of the property must also provide a statement certifying
that the property was donated or sold for affordable housing purposes and an
acknowledgement that the donor/seller received the URA Guide Form Notice Disclosure to
Seller, as well as the HUD booklet, “When a Public Agency Acquires Your Property.” If the
property was originally acquired with federal funds, the value of the property is not matcheligible.
The direct cost of donated home buyer counseling services provided to families that acquire
properties with HOME funds under the provisions of 24 CFR §92.254, including ongoing
counseling services provided during the period of affordability. Counseling may not be valued
at more than $40 per hour.
Reasonable value of donated or volunteer labor or professional services. Unskilled volunteer
labor may not be valued at more than $10 per hour; skilled volunteer labor may be valued at the
documented going rate.
Value of sweat equity may also be eligible if every assisted household is required to perform
sweat equity. Sweat equity may not be valued at more than $10 per hour.
Cost of onsite or off-site infrastructure that is directly required.
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
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Proceeds from multifamily and single family affordable housing project bond financing issued by
a state or local government, or an agency or instrumentality of a state or local government or a
political subdivision of a state and repayable with revenues from the affordable housing project.
Cost of supportive services provided to families residing in HOME-assisted units during the
period of affordability or receiving HOME tenant-based rental assistance during the term of the
tenant-based rental assistance contract.
All match and leverage funds must be expended before completion of the project, i.e., submission of the
project completion reports.
Recognition of Matching Contribution (24 CFR 92.219). KHC will monitor HOME match-eligible housing
to ensure continued compliance with the requirements of §§92.203 (income determinations), 92.252
(Qualification as affordable housing: rental housing), 92.253(a) and (b) (tenant protections) and 92.254
(qualification as affordable housing: homeownership).
State Clearinghouse Review
(HOME HOMEBUYER and HOMEOWNER REHAB PROJECTS ONLY - Not applicable
to HOME TBRA)
The Kentucky State Clearinghouse has been designated as the state Single Point of Contact (SPOC) and is
charged with providing state and local input to the appropriate federal agency. At the state level, this
task is accomplished by identifying those state agencies that should be involved in the planning and
development of activities by Executive Order 12372 and providing these agencies with the opportunity
to evaluate proposals in a timely, effective fashion.
For the Clearinghouse review, go to https://kydlgweb.ky.gov/, then print and follow the directions. If
you need help or have questions, please call Lee Nalley at (502) 573-2382 or e-mail [email protected]
Section IV – Eligibility
All applicants for housing funds must be in good standing with the Kentucky Secretary of State’s office.
Eligible AHTF Applicants
Organizations eligible for funding from the AHTF include local governments, local government housing
authorities, nonprofit organizations, faith-based and community service organizations, and regional or
statewide housing-assistance organizations.
Eligible HOME Applicants
Funds may be provided to private developers, nonprofit organizations, Community Housing
Development Organizations (CHDOs), faith-based and community service organizations, and units of
local government in Kentucky. Please note, however, that private developers are ineligible to apply
for owner-occupied rehabilitation projects.
The city of Owensboro, the merged governments of Lexington/Fayette and Louisville/Jefferson counties,
and the consortia consisting of the cities of Covington, Ludlow, Bromley, Newport, Bellevue, and Dayton
receive a direct allocation of HOME funds from HUD. Projects within these areas are not eligible to
apply for state HOME funds.
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Eligible CHDO Set-Aside Applicants
Only nonprofit organizations that receive CHDO designation from KHC at the time of application will be
allowed to receive funds from CHDO set-aside category. Organizations approved for CHDO designation
will be required to certify CHDO eligibility for the specific type of project per 24 CFR §92.300 - §92.303
with each individual project set-up.
1. CHDO Staff Capacity. A CHDO must certify that it has capacity, demonstrated by CHDO having paid
staff with demonstrated capacity to perform the role for which CHDO is being funded. CHDO staff
can be full-time or part-time and can be contract employees. CHDO cannot count the experience of
board members, donated staff, parent organization staff, or volunteers to meet the capacity
requirement. A CHDO can only count capacity brought to the table by a consultant in the 1st year of
participation. After that, the CHDO must demonstrate capacity based upon paid staff. The staff must
have experience/capacity relevant to the specific project and its role as owner, developer or
sponsor. If the CHDO is the owner, its staff must have the capacity to act as the owner (this may
mean the ability to oversee development). If the CHDO is the developer or sponsor, its staff must
have development experience on projects of similar scope or complexity.
2. CHDO as Owner. A CHDO can now own and operate rental housing it did not develop. In these
cases, the CHDO will be the owner in fee simple or have a long-term ground lease during the
development and affordability period. HUD changed the role of a CHDO rental owner so that the
CHDO owns the rental property in fee simple during the affordability period, but does not directly
undertake development of the property. The CHDO will acquire standard housing, or hire a project
manager or contract with a developer to perform rehabilitation or construction. Assistance must be
provided to the entity that owns the Project.
3. CHDO as Developer. In the developer role, the CHDO must own (in fee simple absolute or via the
holding of a long-term ground lease) and directly develop the property. The CHDO, in its role as
developer, will arrange financing and be in sole charge of construction or rehabilitation of the
Project. In the case of rental projects, the CHDO will own the project during development and
throughout the period of affordability, and will perform all development activities. For Homebuyer
projects, the CHDO will own, rehabilitate or construct the Project, then will sell the Property. The
written agreement with the CHDO must specify (1) the actual sales price or method for determining
it; and (2) the disposition of proceeds of the sale (i.e., whether it will be returned to KHC or whether
KHC will permit the CHDO to retain it). A nonprofit to which ownership of a rental project is
transferred cannot be an organization created by a government entity.
4. CHDO as Sponsor. CHDOs can sponsor rental housing in two ways:
a. It can develop rental housing on behalf of another nonprofit or CHDO and transfer title
after construction is complete (title will be conveyed at a pre-determined time to a preidentified nonprofit/CHDO); or
b. The rental housing is owned or developed by a (a) for-profit or nonprofit entity that is a
wholly-owned subsidiary of the CHDO; (b) limited partnership (LP) of which the CHDO or
its subsidiary is the sole general partner; or (c) a limited liability company (LLC) of which
the CHDO or its subsidiary is the sole managing member.
i. The written agreement must be signed by KHC and the entity that will own the
project.
ii. If the partnership agreement permits removal of the CHDO as the sole
managing member or partner, removal must only be permitted for cause. The
partnership agreement must specify that the CHDO must be replaced with
another CHDO.
5. Organizations that create CHDOs.
a. Organizations that create CHDOs may include for-profit and governmental entities.
These organizations cannot appoint more than one-third of board members and those
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appointed board members may not appoint the other two-thirds of the board. In
addition, neither officers nor employees of the organization that created the CHDO can
serve as officers or employees of the CHDO.
b. Neither officers nor employees of a governmental or public organization that creates a
CHDO may serve as an employee of the CHDO. “Governmental or public organizations”
include participating jurisdictions, public housing agencies, HFAs, redevelopment
authorities and Indian tribes.
6. Recertification. Each time KHC commits HOME funds, it must recertify a nonprofit’s qualifications to
be a CHDO and its capacity to own, sponsor or develop housing. The CHDO will be required, with each
set-up, to certify that it still qualifies and is eligible to receive funding according to these guidelines.
Eligible Project Types (HOME and/or AHTF)
The following project types are eligible for funding:
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New construction.
Acquisition, rehabilitation, and re-sale of existing single-family dwellings.
Site development combined with new construction.
Construction financing.
Minor rehabilitation of owner-occupied units ($1,000 to $9,999 per unit).
Moderate rehabilitation of owner-occupied units ($10,000 to $24,999 per unit).
Substantial Rehabilitation of owner-occupied units ($25,000 or more per unit).
Demolition and reconstruction of owner-occupied units.
Tenant-Based Rental Assistance (HOME Only) NOT ELIGIBLE AT THIS TIME
Relocation expenses (when combined with other HOME eligible activities).
Reasonable administrative and planning costs.
Conversion of existing affordable housing.
Manufactured housing.
Eligible Beneficiaries
Single-Family Programs
All program beneficiaries must be Kentucky residents. AHTF assistance may be provided to households
with gross incomes at or below 60 percent of the area median income for the county in which the
household resides. HOME assistance may be provided to households with gross incomes at or below 80
percent of the area median income for the county in which the household resides.
TBRA Programs
NO APPLICATIONS FOR TBRA FUNDING WILL BE ACCEPTED AT THIS TIME.
KHC requires 100 percent of the units to serve households at or below 60 percent of the area median
income. Additionally, 20 percent must serve households at or below 50 percent of the area median
income, adjusted for household size as defined by federal Section 8 income guidelines.
A household qualifies for TBRA assistance if its annual gross income does not exceed the Section 8 limit
for 60 percent of area median income. Income of participating tenants must be verified before
assistance is provided and re-examined annually thereafter. Income limits are established by household
size and revised annually by HUD. If at annual re-examination a household’s income exceeds the Section
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8 Low-Income Limit, i.e., exceeds the 80 percent area median income, the household is no longer
eligible for HOME TBRA and assistance must end.
HUD’s income limits are typically updated each spring. Before submitting your application, please verify
that you are using the most recent limits for Kentucky. A Web link to the current income limits can be
found on KHC’s Web site, www.kyhousing.org, under Development, Single-family Programs, Reference
Material, HOME Income Limits.
Eligible Activities
Applicants may submit multiple applications; however, the total allocation any one applicant can receive
for all applications is limited to $500,000 for non-CHDO applicants and $600,000 for CHDO applicants.
The following project activities are eligible for funding:
Home Buyer Programs
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New construction.
Acquisition, rehabilitation, and re-sale of existing, vacant single-family dwellings (minimum
of $5,000 in rehabilitation costs).
Construction financing, including land acquisition and site development (may convert to
permanent financing, based on the assisted household’s need).
Homeowner Rehabilitation Programs
Owner-occupied rehabilitation that involves one or more of the following activities:
 Minor rehabilitation – rehabilitation between $1,000 and $9,999 per unit.
 Moderate rehabilitation – rehabilitation between $10,000 and $24,999 per unit.
 Substantial rehabilitation – rehabilitation over $25,000 per unit.
 Demolition and reconstruction of existing owner-occupied, single-family dwellings.
 Reconstruction of units that are not standing at the time of commitment provided the funds
are committed within 12 months of demolition of the unit. Prior approval by KHC is required.
Please Note:
 For-profit organizations are not eligible to request HOME funds for owner-occupied
rehabilitation projects.
 Owner-occupied rehabilitation projects must address a minimum of $1,000 in code
violations.
TBRA
NO APPLICATIONS FOR TBRA FUNDING WILL BE ACCEPTED AT THIS TIME.
TBRA funds may be used:
 To provide rental assistance to help pay the cost of monthly rent and utility costs.
 To pay security deposit assistance to tenants regardless of whether rental and utility subsidies
are being provided.
 To pay security and utility deposit assistance only.
Ineligible uses of TBRA Funds:
 Application fees for housing units.
 Applicant background checks.
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
Telephone and cable deposits.
Utility deposit assistance may be provided only in conjunction with rental assistance and/or security
deposit assistance. TBRA funds can cover related soft costs for a TBRA project which include unit
inspections and income determinations. HOME TBRA funds may be used to pay for reasonable planning
and administrative expenses associated with operating a TBRA program. Administrative funds are
limited to 10 percent of the project amount. For example, a $50,000 project allocation would support a
$5,000 administrative fee for a total award of $55,000.
HOME CHDO Set-Aside
For organizations that are applying for CHDO set-aside funds, the activity proposed must include one of
the following:
 Acquisition and moderate-to-substantial rehabilitation of existing home buyer housing
(minimum of $5,000 in rehabilitation); or
 New construction of home buyer properties.
HOME CHDO set-aside funds must be used during the construction or rehabilitation.
Ineligible Activities
Homeownership funds may not be used for:
 Finished basements. However, partial unfinished basements may be permitted on a case-bycase basis if the existing topography of the site would yield a sub-surface area large enough to
be usable by the assisted household (new construction or reconstruction units only – requires
prior approval).
 Luxury items including, but not limited to:
o Swimming pools.
o Garages, unless required by a neighborhood or subdivision covenant, or are an existing
attached structure.
o Fences (other than those required for security).
o Television satellite dishes.
o Upgrades to surfaces, furnishings, fixtures, appliances, etc.
 Nonessential landscaping (unless installed as part of green building design) and other yard or
nonstructural improvements, except fences.
 Rehabilitation of accessory structures, unless specifically authorized by the agency for health
and safety reasons.
 Additional rooms, except as required by the Kentucky Residential Code.
 Rehabilitation damaging to the historical character or value of a structure as determined by the
State Historic Preservation Officer of the Kentucky Heritage Commission.
 Refinancing of existing debt.
 HOME-assistance of less than $1,000.
 Down payment, closing costs and/or principal reduction without construction financing.
 Reconstruction of a unit that was not standing at least 12 months prior to the commitment of
HOME funds.
Section V – Abbreviated Application Process
All applicants are required to submit an application to KHC. The application focuses on the overall
concept of the proposed project, as well as the more technical components, such as project design, site
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information, community need, financial underwriting, ready-to-proceed issues, and capacity to
undertake the project, anticipated budget, and funding requests.
The application checklist should be used as a guide for the applicant to ensure that all required
documentation is included with the application. Any application that is missing one or more of the
required sections will be considered incomplete.
Application Preparation and Minimum Submission Requirements
The application is created and submitted through KHC’s online application system. A complete
application must be transmitted to KHC. KHC will send an e-mail notification to the applicant once the
application has been transmitted successfully.
Applications that do not meet the following minimum submission requirements will not be eligible for
application review. Applications will be reviewed and funded in the order they are submitted to KHC.
The application will remain open until all funds are committed and KHC closes the application process.
All applications must meet the following criteria:
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Be submitted in the current application version and all applicable attachments must be
uploaded to KHC’s system as part of the application submittal.
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Be limited to the applicable caps for funding.
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Be proposed by an eligible applicant type for an eligible activity.
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Not include funding from any previous KHC-approved HOME and/or AHTF projects,
including awards made to any other applicants.

There is a $100 non-refundable application fee for nonprofit organizations and units of local
government and a $250 non-refundable application fee for for-profit applicants. KHC must
receive the appropriate application fee along with the application at the following address:
Kentucky Housing Corporation
Housing Contract Administration
1231 Louisville Road
Frankfort, KY 40601

Applicants are strongly encouraged to submit their application fee prior to submitting
their application. If the fee is not received within 24 hours of the date and time the
application is received through the UFA, the application will be rejected.

Applications must be submitted in the current application version and all application
attachments must be uploaded to KHC’s system as part of the application submittal.

Each application must be for an eligible project type and propose an eligible activity.

All applicants must request all KHC funds required for the project in one application.
Previously-funded projects cannot access additional funds through the abbreviated
application process.
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
Applicants requesting HOME Project funds for Homebuyer and Homeowner Rehab, must
also submit to the State Clearinghouse via the Department of Local Government’s online
system, at https://kydlgweb.ky.gov. Successful submission to the online Clearinghouse
system will generate a confirmation that includes the State Application Identification (SAI)
number. A copy of this confirmation is a required checklist attachment for the KHC
application. It is recommended applicants contact the State Clearinghouse as soon as
possible to ensure an official confirmation from the clearinghouse system.

Applicants must upload all required attachments via the online application system. No new
plans and specifications will be accepted during this abbreviated application.

For the application to be complete, the Cost Summary in Excel format must be uploaded to
the electronic application. The application attachments must be identified with the name of
the attachment and uploaded in the order in which they are listed on the application
checklist.

If the application does not meet the minimum submission requirements, the applicant will
be notified that the application has not been accepted for review. Applications that are not
accepted may be resubmitted during the open application period and will be reviewed in
accordance as received. Applications will be reviewed first-come, first-served, based on
date and time submitted.

Applicants will be notified via weekly eGrams of the amount of funds committed and the
remaining funds available.
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In the event that contradictory statements appear in the application, KHC reserves the right
to request clarification from the designated applicant contact person.
Single Family Application Review
NOTE: During the January 2015 Abbreviated Application Round, applications submitted will be
reviewed on a first-come, first-served basis. Funding allocations will be made in the order the
application is received until all funds have been disbursed. If an applicant is applying for more than
one activity, each application will be reviewed independently.
During this application round the following sections will be reviewed:
 Capacity Scorecard
o Thresholds
o Outstanding delinquent HOME loans serviced by KHC
 Project Summary
o Number of units proposed
 Cost Summary
 Match/Leverage Commitments
 Ready to Proceed
 Underwriting Criteria
Applicant Notification
After the application review is complete, a letter will be sent to the applicant indicating one of the
following:
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The application has been selected for funding.
The application was not selected for funding. The applicant may resubmit an application as long
as the Abbreviated Application round remains open.
Execution of the HOME and/or AHTF funding agreement will occur after the successful review of
application and availability of funds.
If you have any questions, you may contact your current program representative directly. If you do not
have an assigned program representative, you may contact Davey King, managing director of Housing
Contract Administration, toll free in Kentucky at 800-633-8896 or 502-564-7630, extension 412; TTY 711;
or email at [email protected]
Section VI – Program Guidelines
HOME
At the time of publication, the following guidelines are available for program implementation. KHC is
updating policy and procedures that will be available at www.kyhousing.org. All recipients must
comply with HUD’s Final Rule. HUD’s Final Rule is available at www.hud.gov.

The minimum HOME permanent investment is $1,000 per assisted unit (not applicable to TBRA).

Administrative fees are provided to recipients in the form of a grant and should not be secured
in the promissory note with the end beneficiary. Administrative fees are a grant to the
administrator.
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The administrative fee requested cannot exceed 10 percent of the total HOME request.
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Administrative fees are allocated for homeowner rehabilitation projects or when a home buyer
program is being administered by a third-party administrator. To be eligible for a "developer
fee," an applicant must be "developing" housing.

State recipients, i.e., city or county applicants, of HOME funds for a home buyer program will
receive administrative funds and are not eligible for a developer fee.

KHC will review proposed administrative or developer fees and may award amounts less than
those requested by the applicant. Administrative and developer fee funds must be prorated
according to the number of units stated in the funding agreement. KHC will hold 10 percent of
the funds until receipt of the project completion report packet for each unit. Applicants must
draw administrative or developer fees only in direct proportion to the expenditure of project
funds. An increase in the number of units due to program income or additional funding sources
will not increase the amount of administrative or developer fee funds.
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KHC reserves the right to reduce administrative funds or developer fees on a pro rata basis if a
project does not complete the number of units as proposed in the application. If a
homeownership unit is not complete by the deadline imposed in the funding agreement and the
applicant has not requested or received an extension from KHC, all or a portion of the HOME
developer fee for that unit or administrative fee may be recaptured.
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
Acquisition of vacant land or demolition must be undertaken only with respect to a particular
housing project intended to provide affordable housing. Note: the use of HOME/AHTF funds
must result in a unit of affordable housing. Land acquisition or demolition that does not result
in a unit of affordable housing is ineligible.

HOME funds may be used to purchase and/or rehabilitate a manufactured housing unit or
purchase the land where a manufactured housing unit is located. Except for existing, owneroccupied manufactured housing that is rehabilitated with HOME funds, the manufactured unit
must, at project completion, be on a permanent foundation, be connected to permanent utility
hook-ups, and be located on land that is owned by the manufactured housing unit owner or
land for which the manufactured housing owner has a lease for a period at least equivalent to
the applicable period of affordability.
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Manufactured housing must meet all applicable state and local construction standards. The real
property on which the manufactured home is located must also meet all zoning requirements.
o
The use of manufactured housing may qualify as an eligible CHDO activity, provided the
CHDO is acting as the owner, developer, or sponsor of a project in accordance with all
HOME Program requirements. To be a CHDO-eligible activity, the CHDO must undertake
the final development of the housing unit by removing the drawbar and coupling
mechanism, running gear, assembling, tires, and lights. Additionally, the CHDO must
install the unit on a permanent foundation, finish the interior, install the flooring
systems, HVAC systems, plumbing system, and roofing system, as well as adhere to all of
KHC’s Minimum Design Standards.

A manufactured home that is built on a chassis (as opposed to modular, which is constructed off
site and delivered by truck) is issued a motor vehicle title. Recording a mortgage against the real
property to secure a loan does not automatically secure the home in these cases. Recording a
mortgage and a motor vehicle lien perfects the lien. Alternatively, provided the manufactured
home is permanently attached to a foundation (with axles and towing gear removed), the
applicant and homeowner may surrender the Kentucky Certificate Title and file an Affidavit of
Conversion to Real Estate with the county clerk where the property is located. By doing this, a
mortgage is the only lien required. The manufactured home becomes “real property” instead of
“personal property.”
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Replacing existing housing with like housing is considered a homeowner rehabilitation activity
(24 CFR 92.205). For example, replacing a manufactured housing unit with another
manufactured housing unit or replacing a stick-built unit with another stick-built unit.

Replacing existing housing with unlike housing is considered a home buyer activity (24 CFR
92.205). For example, replacing a manufactured housing unit with a stick-built unit.

Applicants are responsible for ensuring that HOME and/or AHTF units are properly insured
during the construction/rehab process. Applicant’s mortgage document must contain
provisions that requires for assisted property to remain insured throughout the period of
affordability. For all properties assisted with HOME and/or AHTF funds, the homeowner must
maintain all risk, fire and extended coverage, in form and with companies acceptable to
Applicant for each homeowner or homebuyer activity in an amount of not less than the HOME
or AHTF investment in the property. Each policy must include appropriate loss payable clauses
in favor of Applicant, as beneficiary, and without right of cancellation or change except upon
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thirty (30) days’ written notice to Applicant. Homeowner will deliver proof of all insurance to
Applicant prior to the investment of HOME or AHTF funds in the property.

All households assisted must be income eligible based on the anticipated gross income as
determined by the Section 8 method (24 CFR, Part 5) of income determination. All income and
assets must be third-party verified. The income of the applicant includes all household income
and the actual or imputed income from assets of all household members. Imputed asset income
must be determined using current passbook savings rate, as published by HUD.

Income and asset verifications are valid for 180 days prior to the execution of the HOME written
agreement. If more than 180 days elapse after the verifications are completed, but before the
HOME written agreement is executed, the recipient must re-verify all household income and
assets using the Section 8 method.

When determining income eligibility, at least 2 months’ worth of source documentation must be
reviewed.

The income of ALL adult household members must be counted.

All programs must comply with the HOME regulations in effect at the time of this application,
the Consolidated Plan, the Action Plan, and other items as required.

Units of local government must submit an Environmental Review Record (ERR) prior to release
of funds. KHC will review for concurrence with its findings.

KHC will perform the review for nonprofit and for-profit organizations.

No funds may be committed or expended on any unit until environmental clearance is given.

Units must have a viable sales contract at the time the unit is submitted to KHC for set-up.

KHC does not allow HOME funds to be provided for units that are not pre-sold (spec houses).
Any unit not sold within nine months after completion, the HOME funds must be returned to
KHC. A ratified sales contract can be used to demonstrate a sale.

All other funds must be secured and committed (evidenced by a commitment letter) prior to
entering into a HOME contract with any buyer.

If a non-governmental lending agency is providing both the first mortgage financing and the
HOME assistance, KHC will be required to verify the income eligibility of the end-beneficiary and
must inspect the housing for compliance with applicable property standards.

KHC must review the terms and conditions of private loan documents to ensure they are
sustainable and not predatory per 24 CFR §92.254(f).

Lenders cannot charge fees for HOME dollars.
HOME TBRA
NO APPLICATIONS FOR TBRA FUNDING WILL BE ACCEPTED AT THIS TIME.
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
KHC will review proposed administrative fees and may, at its discretion, award an amount less
than that requested by the applicant. Applicants must draw administrative fees in proportion to
the expenditure of project funds. KHC reserves the right to reduce administrative funds if a
project does not complete the number of units as proposed in the application.

All programs must comply with the HOME regulations, Consolidated Plan, the Action Plan and
other items as required.

Recipients must immediately report to KHC any real, potential, or perceived conflict of interest,
as outlined in 24 CFR Part 35 and 24 CFR Part 84 and or 85, as applicable, regarding the receipt
of, assistance provided with, or expenditure of HOME funds. For example, a potential or
perceived conflict of interest may exist when a relative (sibling, cousin, parent, etc.) of the
applicant’s staff, developer’s staff, etc., applies for housing assistance through a HOME-assisted
program or in a HOME-assisted property.

Units of local government must submit an environmental review record prior to release of
funds. KHC will perform the review for nonprofit and for-profit organizations. In either case,
this type of program is normally exempt and the environmental review is solely for
documentation that the determination has been made.

All projects must comply with 24 CFR, Part 58, Environmental Regulations, regarding activity
within a floodplain.

100 percent of TBRA households must be at or below 60 percent of the area median income.
Additionally, 20 percent must serve households at or below 50 percent of the area median
income.

Utility deposit assistance may be provided only in conjunction with either a rental assistance or
security deposit program.

Applicants proposing to administer a HOME TBRA program must design their program so that
portability of the assistance is only transferable within the applicant’s service area.

HOME TBRA programs cannot provide assistance application fees, background checks, or
landlord vacancy and/or damage claims.

The applicant understands that the client cannot be receiving rental assistance elsewhere. For
example, a client that receives TBRA cannot receive Project-Based Rental Assistance also.

Applicants must establish a minimum tenant contribution to rent.

TBRA funds may be used for a lease purchase program, but TBRA funds may not be used for
down payment or closing costs in conjunction with the lease-purchase program.

TBRA may be conditioned on successful participation in a self-sufficiency program.

TBRA may NOT be conditioned on participation in medical- or disability-related services, and
cannot be administered in a manner that limits opportunities for persons with disabilities.
Tenant Selection
HOME TBRA programs must have a written tenant selection policy that clearly specifies how families to
be assisted will be selected. This policy must be maintained on file and available to KHC, HUD, and the
public upon request. If funded, it will be submitted to KHC as a part of the Technical Submission packet.
Local preferences outlined in the tenant selection policy cannot be administered in a manner that limits
the opportunities of persons based on race, color, religion, sex, national origin, disability, sexual
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orientation, gender identity, marital status, or familial status. A person given a preference for the HOME
TBRA program may not be prohibited from applying for another program for which he or she might
qualify.
TBRA-Eligible Units
HOME TBRA voucher holders may select units that are publicly or privately owned, but TBRA may not be
provided to a household that proposes to rent a unit that receives Project-Based Rental Assistance
through federal, state, or local programs, if the HOME assistance would provide a duplicative subsidy.
Only units located within the agency’s TBRA service area are eligible to be leased.
Units must rent for a reasonable amount compared to rents charged for comparable, unassisted units.
The HOME TBRA applicant shall establish a rent comparable book. The applicant may either contact
their local public housing authority to copy their book or create their own.
Tenants may only use HOME TBRA in units that meet Section 8 Housing Quality Standards. Inspections
must be made at initial occupancy and annually during the length of TBRA.
TBRA Deposit Assistance
HOME TBRA recipients may provide security and/or utility deposit assistance provided there is a
separate determination of need. HOME regulations allow the security deposit payment to be made to
the tenant or the owner and the utility deposit payment to be made to the tenant or the appropriate
utility company. KHC recommends that deposit payments be made directly to the owners and utility
companies.
The amount of security deposit paid should be based upon local market practice. However, the
maximum amount of HOME funds that may be provided for a security deposit is the equivalent of two
months’ rent for the unit. Only the prospective tenant, not the owner or landlord, may apply for HOME
security deposit assistance. Please note: Must be in the form of a grant to, or on behalf of, the tenant.
Utility deposits may be made in conjunction with the provision of rental assistance or security deposit
programs, but cannot be operated separately as a “stand alone” program. Utility deposits may be paid
for any of the tenant-paid utility services included on the utility allowance schedule. Telephone and
cable deposits are ineligible. Please note: The funds must be in the form of a grant to, or on behalf of
the tenant.
TBRA Payment Standards
The HOME Program offers three choices for setting the payment standard:

The payment standard may be based upon the Section 8 Existing Housing Fair Market Rent
(FMR). Using this method, the payment standard for each unit size may be no less than 80
percent of the published FMR and not more than the published FMR or HUD-approved
community-wide exception rent in effect at the time. This method is attractive because it
requires little market analysis on the part of the HOME recipient.

Because HUD’s FMR market areas are quite large, the published FMR may be dramatically high
or low for a specific jurisdiction within the FMR area. For this reason, the HOME Program offers
a second option for establishing the payment standard. The payment standard may be
established at any level (higher or lower than the FMR), based upon the applicant’s own market
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analysis. To exercise this option, the applicant must document the results of the market
analysis.

For the counties that KHC’s Rental Department serves, the applicant may use KHC’s Payment
Standards, which are updated in October each year. Those Payment Standards are available on
KHC’s Web site, www.kyhousing.org. If the applicant is proposing to serve a county outside of
KHC’s jurisdiction, they may contact the local public housing authority for those counties and
use their Payment Standard.
HOME TBRA funds cannot be used:

To make commitments to specific owners for specific projects. Tenants must be free to use the
assistance in any eligible unit.

To assist resident owners of cooperative housing that qualifies as homeownership housing.
Cooperative and mutual housing may qualify as either rental or owner-occupied housing under
the HOME Program, depending upon the provisions of the agreement applying to the unit.

To prevent displacement of or provide relocation assistance to tenants as a result of activities
other than the HOME Program.

To provide TBRA to homeless persons for overnight or temporary shelter. The HOME TBRA
subsidy must be sufficient to enable the homeless person to rent a transitional or permanent
housing unit that meets Housing Quality Standards (HQS).

Provide assistance for more than 24 months.
Tenants may choose any eligible unit within the applicant’s proposed service area. Applicants should
clearly indicate the service area in their applications and should verify that the proposed service area
does not extend beyond any such area stated in the agency’s by-laws.
HOME TBRA programs will use the Section 8 Part 5 Housing Choice Voucher method of subsidy
calculation (amount of housing cost paid by the applicant on behalf of the tenant). All applicants must
use the Section 8 Part 5 method of income verification.
AHTF

The maximum amount of AHTF funds that can be used for administrative purposes is 7.5
percent of the total AHTF request.

Administrative fees are provided to recipients in the form of a grant.

The minimum AHTF permanent investment is $1,000 per assisted unit.

All single-family households assisted must be income eligible based on the anticipated gross
income, as determined by the Section 8 (24 CFR, Part 5) method of income determination. All
income and assets must be third-party verified when possible. The income of the applicant
includes all household income and the actual or imputed income from assets of all household
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members. Imputed asset income must be determined using current passbook savings rate, as
published by HUD.

Income and asset verifications are valid for 180 days prior to the execution of a written
agreement. If more than 180 days elapse after the verifications are completed, but before the
AHTF legal documents are executed, the recipient must re-verify all household income and
assets using the Section 8 Part 5 method.

AHTF funds cannot be used for Tenant-Based Rental Assistance.
Maximum Subsidy Per Unit
Home Buyer Assistance
HOME and/or AHTF funds may be requested to provide 100 percent of the construction financing
needed for the project. HOME and/or AHTF funds, up to $40,000, may be used to assist home buyers in
direct subsidy. However, the HUD HOME Final Rule prohibits over-subsidizing a property. As a means
of determining that too much subsidy has not gone into a property, KHC requires that a minimum of 20
percent of the homeowner’s gross monthly income should go toward the payment of total monthly PITI.
(For example, if the household income is $2,000 per month, the homeowner must spend a minimum of
$300 toward total PITI, including repayment of the HOME loan.)
The maximum amount of subsidy per home buyer shall be determined by:
HOME funds may be used for development subsidy. However, development subsidy paid by the HOME
funds or AHTF funds may not exceed $10,000 on any one unit. In the event the development subsidy
exceeds $10,000, the applicant may use other funds with HOME or AHTF funds to cover the
development subsidy. HOME funds cannot be used solely for development subsidy; there must be a
minimum of $1,000 of HOME funds used as direct subsidy to the end beneficiary.
Please note, for construction projects, KHC-administered funds, with the exception of mortgage revenue
bond financing, may not be used to take out another KHC-administered construction source.
Homeowner Rehabilitation Assistance
The maximum amount of rehabilitation/construction financing per unit that can be requested is $60,000
of HOME and/or AHTF combined. All or a portion of the HOME and/or AHTF construction financing, up
to $60,000, may remain in the unit as direct subsidy to the family.
Structure and Repayment of KHC Subsidy
Home Buyer or Homeowner Rehabilitation Programs
For this Abbreviated Application ONLY, all HOME subsidy will be forgivable on a pro-rata basis per year
over the term of the applicable affordability period. The funds must still be secured by a mortgage in
favor of KHC and a due-on-sale clause to ensure repayment to KHC in the event of a transfer of
ownership any time during the affordability period.
Agencies that are permitted to retain CHDO proceeds or program income, and have the ability to service
or contract with a servicer, may retain the proceeds or program income for use in another HOMEeligible activity. Those agencies must establish and comply with the following criteria:
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
The maximum interest rate that can be charged is 5 percent per annum.

The HUD HOME Final Rule prohibits over-subsidizing a property. As a means of determining that
too much subsidy has not gone into a property, KHC requires that a minimum of 20 percent of
the homeowner’s gross monthly income should go toward the payment of total monthly PITI.
(For example, if the household income is $2,000 per month, the homeowner must spend a
minimum of $300 toward total PITI, including repayment of the HOME loan.)
TBRA Programs
There is no repayment of HOME assistance for HOME TBRA activities by the individual households to the
sponsoring agency. All HOME TBRA assistance to individual households will be in the form of a grant. In
the event of non-compliance by a sponsoring agency, repayment of HOME TBRA funds to KHC will be
required.
Collateral
Excluding administrative fees, environmental fees, TBRA assistance, and development subsidy, all KHC
funds invested, regardless of amount or activity, must be secured by a first or second position mortgage
lien, or, in the case of manufactured homes, secured by a mortgage lien on the real estate, and a title
lien on the manufactured home. In all cases, a promissory note for the full amount of KHC funds is
required as evidence of the obligation to repay the debt. Further subordination less than second
position must be approved by KHC in writing prior to closing. The lien position of the KHC mortgage
must be in direct relation to the amount of KHC funds invested, i.e., if the KHC mortgage is providing the
majority of funds, it should be in first lien position.
KHC requires the incorporation of deed restrictions to ensure the affordability period when HOME or
AHTF funds are in a project. The deed restriction must be recorded in the office of the county clerk of
the county in which the property is located. The deed restriction must remain in place for the entire
affordability period as outlined below.
All applicants are required to use the KHC-provided mortgages and promissory notes unless otherwise
pre-approved in the Funding Agreement to use other legal documents.
If the project includes Community Development Block Grant (CDBG) funds, KHC may remove this
requirement if it is an involuntary relocation program.
Furthermore, KHC requires that all recipients of HOME funds have a written agreement with the end
beneficiary that meet the requirements of 24 CFR 92.504(c)(5). This agreement must be a standalone
agreement. Sample documents are available at www.hud.gov.
DIRECT SUBSIDY INVESTED
AFFORDABILITY
PERIOD
HOME and AHTF
$1,000 - $14,999
5 years
HOME and AHTF
$15,000 - $40,000 (HB or HR)
10 years
HOME and AHTF
$40,001 - $60,000 (HR)
15 years
SOURCE OF FUNDS
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Insurance
For all properties assisted with HOME and/or AHTF funds, the homeowner must maintain all risk, fire
and extended coverage, in form and with companies acceptable to Applicant for each homeowner or
homebuyer activity in an amount not less than the HOME or AHTF investment in the property. Each
policy must include appropriate loss payable clauses in favor of Applicant, as beneficiary, and without
right of cancellation or change except upon thirty (30) days’ written notice to Applicant. Homeowner
will deliver proof of all insurance to Applicant prior to the investment of HOME or AHTF funds in the
property.
Recapture of Funds
KHC reserves the right to:

Withdraw its conditional funding commitment if technical submission items are not submitted by
the applicant by the date referenced in the commitment letter.

Recapture funds if funds are not committed and/or expended and construction completed by the
dates referenced in the funding agreement, or if the project substantially changes after funding
commitment.

Periodically review the applicant’s progress toward timely commitment and expenditure of the
HOME allocation. If KHC determines that the project is no longer feasible or is not progressing
timely so that the imposed deadlines will be met, funds may be recaptured.

KHC will recapture funds for any applicant who becomes suspended or debarred in accordance
with KHC Suspension and Debarment Policy.

KHC requires that applicants have all funds committed and expended within 24 months.
Commitment means that the applicant must have a signed contract with the builder/contractor
and homeowner. A set-up report must be submitted to KHC and entered into the HUD IDIS
system. All funds (HOME and AHTF) must be committed within one year of the date of the
funding agreement and completed within two years of the funding agreement date.

KHC may recapture funds if the applicant has not met the commitment and expenditure
deadlines as referenced in the funding agreement. However, KHC reserves the right to extend the
date if extenuating circumstances prevented the commitment. KHC's goal is to avoid any federal
recapture of funds and KHC will take the necessary steps to ensure this does not occur.

In the event that KHC recaptures funds or has funds uncommitted, those funds will be made
available through a reallocation process, the design of which will be determined by KHC.

KHC may award additional funds to applicants who wish to continue projects within the same
activity for which they were previously funded and who are using the same project design,
provided the applicant has been monitored by KHC and no significant monitoring issues have
been identified nor findings made.

If the property is sold, leased, refinanced, or no longer used as the primary residence of the
assisted homeowner, KHC may recapture the HOME funds. In the event the net proceeds from a
sale are insufficient to repay KHC, the HOME investment and the agency, KHC will recapture the
net proceeds. In the event of foreclosure, if the shared net proceeds are insufficient to repay the
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HOME funds, the HOME affordability may be terminated, subject to 24CFR Part
92.254(a)(5)(ii)(A).
Other examples of situations that constitute recapture are included in the funding agreement.
Applicants are advised to read those requirements carefully to avoid recapture of HOME funds.
Developer Fee
For new construction (which includes demolition/rehabilitation) projects, the maximum amount of
HOME funds that can be requested as developer fee up to 15 percent of total development costs.
Additionally, the amount of developer fee is limited to the amount of funds used as direct subsidy to the
buyer, not including the developer fee; e.g., if $1,000 is used to assist the home buyer, the maximum
amount of developer fee allowed would be $1,000.
For acquisition/rehabilitation/resale projects, the developer fee is determined as follows:


$1,000 to $50,000 in rehabilitation costs* – up to 20 percent of total rehabilitation costs;
More than $50,001 in rehabilitation costs* – up to 20 percent of total rehabilitation costs
capped at $15,000.
* For the purposes of determining allowable developer fee in acquisition/rehabilitation/resale
projects, “rehabilitation costs” include any necessary and customary development hard and soft
costs, but exclude the developer fee, permanent financing fees, and the cost to acquire the unit.
Developer fee may not be paid from AHTF funds. The developer fee is a soft cost (24 CFR 92.206(d)2)
and is considered part of the total development cost. Any increase in project costs must be paid first
from developer fee prior to requesting additional funds from
KHC.
Development Subsidy
Development subsidy is only permitted for those entities that undertake development activities and are
allowed to retain CHDO proceeds assuming the role of developer.
In the event the total development costs exceed the appraised value, the house may not sell for more
than the appraised value. The difference between the total development costs and the appraised value
is development subsidy. KHC is permitting HOME and AHTF funds to be used to cover development
subsidy up to $10,000 on any HOME/AHTF unit. However, if a unit has a HERS rating of 65 or below, the
allowable development subsidy is increased to $15,000; for any unit with a HERS rating of 55 or below,
the allowable development subsidy rating is increased to $20,000. Recipients will be required to submit
documentation to KHC to support the necessity of a development subsidy. This may include but is not
limited to an appraisal, a Certified HERS report, and a detailed final cost breakdown.
Direct Subsidy
The total amount of HOME funds that enabled the home buyer to buy the dwelling unit is considered
the direct subsidy. This includes any HOME assistance that reduces the purchase price from the fair
market value to an affordable price but excludes development subsidy. All HOME funds that are a direct
subsidy to the home buyer must be secured as noted in the “Collateral” section above.
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Written Underwriting Standards
KHC has developed and implemented written homebuyer policies that do more to ensure the
sustainability of the HOME ownership situation for the low-income buyer over time. These underwriting
standards for the homebuyer take into account housing debt, total debt, household’s recurring
expenses and assets that are available for the purchase. KHC will also require every HOME applicant to
have a minimum of $250 in cash reserves at the time the loan is closed. Every applicant will not receive
the same amount of down-payment assistance.
KHC adheres to sustainable lending procedures and requires other lenders of HOME recipients to
provide sustainable lending products as well. KHC will examine the terms of private first mortgages that
homebuyers secure (homebuyers who are receiving, for example, down payment assistance or buying a
property) to ensure the terms of the loan are reasonable and sustainable. If the private first mortgages
contain terms and conditions that are predatory or harmful to the homebuyer or homeowner (such as
excessive fees or interest rates, balloon payments, adjustable interest rates, etc.), the homebuyer or
homeowner will not be eligible to receive HOME funds from KHC.
KHC will also look at the terms of refinanced/new mortgage to ensure terms that are reasonable,
standard for the industry and not predatory or unsustainable. KHC will not subordinate its existing
HOME loan(s) in the event of a refinance.
KHC has also established written underwriting standards for the HOME Program that ensures that
HOME investment and developer return is not excessive. The underwriting standards evaluate the
home buyer’s housing debt, overall debt, monthly household expenses, assets available to acquire
housing, and the financial resources available to the household to ensure that the appropriate amount
of federal and state assistance being provided is appropriate in order to afford and sustain
homeownership.
Limit on Investment
KHC will not invest more HOME funds, alone or in combination with other government funding, than is
necessary to provide quality affordable housing that is financially viable. To this end, KHC will examine
the sources and uses to determine whether costs are reasonable. In order to limit the amount of HOME
investment, KHC will require a minimum front-end ratio (the minimum amount of gross monthly income
a homeowner must spent toward principal, interest, taxes, and insurance (PITI) of 20 percent.
Capacity
KHC will assess the capacity of the developer to complete the development process and their fiscal
soundness to ensure they have adequate resources and liquidity to make it through the development
process and get the project completed.
Market Assessment
KHC will assess the current neighborhood market demand for the project before committing HOME
funds.
Financial Commitments
KHC must receive and will assess firm, written financial commitments associated with the Project.
What Requirements Apply
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


Owner-Occupied Rehabilitation. When assistance is provided as an amortizing loan, subsidy
layering requirements, if applicable, apply.
Homebuyer Assistance (Down Payment Assistance Only). Underwriting analysis and subsidy
layering requirements, if applicable, apply.
Homebuyer and Rental Projects Involving Development. Underwriting, analysis, marketing
analysis and plan evaluation of developer, and subsidy layering requirements, if applicable,
apply.
Front- and Back-End Ratios
For all applicants, the maximum front-end ratio for principal, interest, taxes, and insurance (PITI) is 29
percent of the assisted household’s gross monthly income. The maximum back-end ratio for total longterm debt (six months or longer) plus PITI is 41 percent of the household’s gross monthly income.
KHC has established a minimum front-end ratio of 20 percent (minimum PITI to gross monthly income
cannot be less than 20 percent) to ensure the household is only receiving enough KHC assistance to
complete the transaction and is not being over-subsidized. Based on this review, KHC may require the
applicant to decrease the amount of KHC assistance and increase the amount of borrowed funds. If the
review indicates that the household is being provided housing that is excessive in size or amenities, KHC
may also require the applicant to reduce the size and scope of the project to provide more suitable
housing as it relates to the household’s current needs. The goal of the HOME program is to assist lowincome persons to obtain safe, quality, and affordable housing that meets their basic housing needs.
Income Documentation and Determination (24 CFR §92.203)



The census long-form definition of income has been eliminated. KHC will use a single definition
of income for each type of program it runs. Ex: KHC must utilize one definition of income for the
down-payment assistance program.
For rental projects, KHC can use different definitions for different projects, but KHC must
determine which definition of income (e.g., Part 5 or Section 8 or IRS Adjusted-Gross-Income
definition) it is going to permit a rental owner to use in a specific project. KHC will want to use
the Part 5 definition for a low-income housing tax credit project and the IRS Adjusted Gross
Income definition for a duplex or triple-decker with a small or individual owner. KHC has a
choice, but the definition must be consistent.
When KHC, a sub-recipient, or a state recipient project owner does an income determination to
use in determining the eligibility of an applicant for HOME assistance, it must look at two
months of income documentation.
KHC does not allow “grossing up” non-taxable income for the purpose of determining ratios.
Liquid Assets
All applicants must establish a method to evaluate liquid assets and the ability of assisted households to
financially contribute to the acquisition, construction, or rehabilitation of their housing to ensure that a
minimum amount of KHC funds are used. All households utilizing HOME funds must contribute a
minimum of $250.00 to the transaction. Additionally, each household must have a minimum of $250 of
liquid assets (cash) in the bank at the time of closing
KHC will allow an exception to the minimum $250.00 contribution and the minimum $250.00 liquid
asset requirement if the ONLY source of household income is SSI or SSDI.
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Subsidy Analysis
Before investing HOME and/or AHTF funds in a single-family dwelling, the applicant must assess if other
assistance has been, or is expected to be, made available to that unit. In performing this evaluation, the
recipient should consider the aggregate amount of assistance from other sources that is necessary to
ensure the feasibility of the assisted project. Applicants should not provide a standard amount of
HOME and/or AHTF funds for each assisted unit. Instead, the household’s ability to pay and availability
of other loan and grant funds should be evaluated on an individual-unit basis. Only enough HOME
and/or AHTF funds should be used to ensure the housing is affordable to the assisted household.
Applicants must develop a written policy for this analysis and apply it uniformly to all clients.
Additionally, applicants should consider the population being served when conducting the subsidy
analysis review. For instance, if the targeted population is 60 percent of area median income, that
results in one level of assistance; if the targeted population is very low-income, e.g., below 30 percent of
area median, that will result in an increased level of assistance.
Home Buyer Value Limits
The Final Rule published on July 24, 2013, established new homeownership value limits for the HOME
program. These new limits apply to homeownership housing when HOME funds are committed on or
after August 23, 2013, and remain in effect until HUD issues new limits.
For newly constructed housing, KHC has further restricted the purchase price/after-rehabilitation value
limits to $150,000.
Homeownership Cost Containment
For existing housing, the new HOME homeownership value limit is the greater of:
 95 percent of the median purchase price for the area based on Federal FHA single-family
mortgage program data and other appropriate data that are available nationwide for sale of
existing housing in standard condition,
 Or the minimum limit (or floor) based on 95 percent of the statewide, nonmetropolitan area
median purchase price using this data. This limit encompasses the total purchase/rehabilitation
price, regardless of source of financing.
 The current limits are:
$142,000
Shelby County
$138,000
Madison County
$135,000
Lexington-Fayette, Lyon County
$134,000
Perry County
$133,000
Bowling Green MSA
$131,000
Louisville Metro, Nelson County
$128,000
Boyle and Calloway Counties
$127,000
Elizabethtown MSA, Anderson and Garrard Counties
$125,000
McCracken County
$124,000
Cincinnati MSA, Christian, Johnson, Laurel, Mercer, and Pulaski Counties
$123,000
Grant and Meade Counties
$121,000
Pike County
$119,000
All other counties in Kentucky.
THESE LIMITS ARE SUBJECT TO CHANGE IN JANUARY OF 2015. FOR CURRENT INFORMATION, PLEASE
CHECK: http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/index.cfm.
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Please note: the purchase/rehabilitation price is the contract purchase price and does not include
settlement charges.
Cost effectiveness must be considered. KHC, at its discretion, may review work write-ups and cost
estimates to ensure cost reasonableness and reserves the right to reduce funding on projects KHC
deems not to be cost reasonable. KHC may also require additional supporting documentation for any
activity that appears to have unusual or elevated costs.
Home Buyer Counseling
Housing Counseling is required for all home buyers receiving HOME assistance or purchasing a unit
developed with HOME Funds or AHTF funds.
Counseling Costs
Counseling costs may be charged:
1. to HOME administration set-aside;
2. as a project-related soft cost; or
3. to the homebuyer, if the fee is reasonable.
KHC has not set a policy on the number of hours or length of such counseling, but will review each
application for reasonableness as a part of the application review.
Provider
KHC may determine the provider (KHC- or HUD-approved counseling agency, or other provider), content
and length of the counseling. The counseling curriculum must prepare homebuyers not only for the
process of purchasing the home, but also for budgeting, maintaining the home, and everything else
during the affordability period.
KHC recommends, but does not require, that all counseling components meet the current National
Industry Standards for Homeownership Education and Counseling. In the near future, the Consumer
Finance Protection Bureau will be issuing regulations that will apply to HOME Program. Once issued,
recipients will be required to comply with the regulation. The current voluntary national standards can
be found at www.homeownershipstandards.com.
All housing counselors must comply with the requirements of Subtitle D of Title XIV of the Dodd-Frank
Wall Street Reform and Consumer Protection Act and the regulations implementing this Act, including,
but not limited to:



Ensure counseling covers the entire process of homeownership, from the purchase of a home to
disposition.
Ensure homeownership counseling is administered in accordance with procedures established by
HUD.
Require all HUD-related counseling is provided by HUD-certified counselors.
Information about KHC’s post-purchase education is available on KHC’s website, under Homeownership,
Education/Counseling, Post-Purchase Education and Predatory Lending.
KHC’s post-purchase education guide in both Spanish and English may be downloaded, free of charge.
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Project Completion
If a homeownership project is not complete by the deadline imposed in the funding agreement (using
the agreement’s definition of completion), all or a portion of the HOME project funds, developer fee, or
administrative funds may be recaptured.
Homebuyer units rehabilitated or constructed with HOME funds must be sold to a HOME-eligible
homebuyer within nine months of construction completion. Units that remain unsold for more than 9
months will result in the HOME funds for those units being recaptured by KHC. A ratified sales contract
can be used to demonstrate a sale.
If the project does not meet the commitment and/or expenditure deadlines as noted in the funding
agreement, any uncommitted or unexpended HOME project funds are subject to recapture.
For each unit assisted with HOME funds, a project completion report (PCR) must be submitted with the
final draw request. For all units assisted with AHTF funds only, the AHTF closeout form and recorded
deed restriction and mortgage must be submitted with the final draw request. All project completion
documentation must include the required attachments.
Section VII – Program Policies
Program Policies

KHC may, at its discretion, award an amount of funds less than that requested by the applicant.
KHC reserves the right to reduce or limit professional fees, developer fees, or any fees that KHC
deems excessive.

No applicant will be allowed to change the type of activity for which they were funded.

Applicants are responsible for retaining legal counsel on any legal matter pertaining to the
administration of the project.

KHC reserves the right to:
o
o

Recapture funds if funds are not committed and/or expended and construction
completed by the dates referenced in the funding agreement, or if the project
substantially changes after funding commitment.
Periodically review the applicant’s progress toward timely commitment and expenditure
of the HOME allocation. If KHC determines that the project is no longer feasible or is
not progressing timely so that the imposed deadlines will be met, funds may be
recaptured.
KHC requires that applicants have all funds committed by June 30, 2015. Construction must
start within 12 months of commitment and expended within 12 months of the construction
start. Commitment means that the applicant must have a signed contract with the builder/
contractor and homeowner. A set-up report must be submitted to KHC and entered into the
HUD IDIS system. All funds (HOME and AHTF) must be committed within one year of the date of
the funding agreement and completed within two years of the funding agreement date.
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
KHC may award additional funds to applicants who wish to continue projects within the same
activity for which they were previously funded and who are using the same project design,
provided the applicant has been monitored by KHC and no significant monitoring issues have
been identified nor findings made.
Recordkeeping (24 CFR §92.508)
Applicants are responsible for ensuring that the required financial records are maintained for the
appropriate period of time for all HOME-assisted projects, including but not limited to the following.
Such documentation must be available for review by KHC’s Compliance Monitoring staff or program
staff.
1. General. KHC must establish and maintain sufficient records to enable HUD to determine whether
KHC has met the requirements of §92.508. At a minimum, KHC must maintain the following records:
(a) Records concerning KHC’s designation as a participating jurisdiction;
(b) Program records;
(c) Project records;
(d) CHDO records;
(e) Financial records;
(f) Program administration records;
(g) Records concerning other Federal requirements, including (i) equal opportunity and fair
housing records; (ii) affirmative marketing and MBE/WBE records; (iii) records
demonstrating compliance with environmental review requirements; (iv) records
demonstrating compliance with the requirements of § 92.353 regarding displacement,
relocation, and real property acquisition; (v) records demonstrating compliance with the
labor requirements of § 92.354, including contract provisions and payroll records; (vi)
Records demonstrating compliance with federal lead-based paint requirements; (vii)
records supporting exception to the conflict-of-interest prohibition in § 92.3546; and
(viii) records demonstrating compliance with debarment and suspension requirements.
2. State Recipients. KHC must require state recipients to keep the records required by 24 CFR
§92.508(b).
3. Record Retention. All records pertaining to each fiscal year of HOME funds must be retained for 5
years, with the following exceptions:
(a) For rental housing projects, records may be retained for five years after the project
completion date; except that records of individual tenant income verifications, project
rents and project inspections must be retained for the most recent five year period,
until five years after the affordability period terminates.
(b) For homeownership housing projects, records may be retained for five years after the
project completion date, except for documents imposing recapture/resale restrictions
which must be retained for five years after the affordability period terminates.
(c) For TBRA projects, records must be retained for five years after the period of rental
assistance terminates.
(d) Written agreements must be retained for five years after the agreement terminates.
(e) Records covering displacements and acquisition must be retained for five years after
the date by which all persons displaced from the property and all persons whose
property is acquired for the project have received the final payment to which they are
entitled in accordance with § 92.353.
(f) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has
been started before the expiration of the required record retention period records
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must be retained until completion of the action and resolution of all issues which arise
from it, or until the end of the required period, whichever is later.
Applicants
State and Local
Governments
Nonprofit Organizations
General
Administrative
Costs
Audit
24 CFR Part 85
2 CFR Part 225
OMB A-133
24 CFR Part 45
2 CFR Part 215
24 CFR Part 84
2 CFR Part 230
OMB A-133
24 CFR Part 44
Program Administration
This includes but not limited to:

If the project proposes demolition and reconstruction, the dilapidated structure must be
demolished. In the case of mobile home replacement, the dilapidated mobile home must be
demolished or salvaged (a salvage title must be obtained) and the salvage value should be
reinvested into the new unit. For all demolition and reconstruction projects, a demolition
agreement must be executed with the property owner.

Each applicant must develop and utilize a standard program application form. Each household
must complete the standard application form. If necessary, the agency will provide assistance in
preparing the form, especially to the elderly, handicapped, non-English speaking persons and
persons who are unable to read and/or write. A Uniform Residential Loan Application is not
considered a program application and cannot be used as such under this program.

All households deemed ineligible for assistance must be notified in writing of such
determination and the reasons for such determination. The household should also be notified
of other potential resources in rehabilitating or acquiring the property for which the household
may be eligible and where to apply for such assistance.

Applicants should document their efforts to ensure clients are complying with the requirements
of the mortgage, loan agreement, and promissory note. The HOME Program requires the
assisted household occupy the assisted property as its principal residence during the applicable
affordability period. KHC has further restricted the principal residency to be the same number
of years of the affordability period in written agreements. Applicants should also outline the
steps their agency will take to ensure compliance with the requirements set forth in their
application and funding agreement.

Applicants must disclose all real, potential, or perceived conflicts of interest to KHC as outlined
in 24 CFR Part 35 and 24 CFR Part 84 or 85, as applicable, regarding the receipt of, assistance
provided with, or expenditure of KHC funds. All conflicts of interest must be disclosed and
resolved prior to providing KHC assistance to the household.

A Truth-in-Lending Statement and Good Faith Estimate must be prepared and given to each
household assisted with amortized or forgivable loan funds, in accordance with the Real Estate
Settlement Procedures Act (RESPA).
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
A Right of Rescission statement must be given to all households assisted in home buyer or
homeowner rehabilitation projects in which the household owns the lot.

HOME applicants must comply with the requirements of the Uniform Relocation Act.

All funded projects are assigned to a KHC program representative or specialist, who will provide
technical assistance to recipients on an as-needed basis. Technical assistance visits are
conducted onsite for all open projects to ensure compliance with the HOME and/or AHTF
regulations as well as KHC imposed requirements. The recipient’s adherence to the terms of the
funding agreement(s) will be reviewed annually.

Applicants may not begin construction on any unit until the project has been approved by KHC
program staff. Any unit started (defined as any on-site construction activity) before approval by
KHC may make the unit ineligible for KHC assistance.
Compliance Monitoring
KHC is responsible for conducting monitoring reviews for all projects. KHC conducts on-site visits of
funded projects to test for compliance with the applicable program regulations. This includes ensuring
funds were used for eligible costs and assisted households meet income eligibility requirements. The
compliance staff maintains a tracking system to ensure reviews are completed as required by the
program regulations. Each recipient of HOME and AHTF funds is required to make available all
documentation requested by KHC’s monitoring staff.
Conflict of Interest
All applicants must establish a Conflict of Interest policy that adheres to 24 CFR Part 35 and 24 CFR Part
84 or 85, as applicable.
Potential conflicts of interest may arise from many situations. Some of the more common examples are:
 Requests for program assistance from employees, families of employees or board members, or
families of board members of recipients or sub-recipients

Recipients or sub-recipients contracting with or procuring materials from employees, families of
employees or board members, or families of board members of recipients or sub-recipients.
All HOME and /or AHTF recipients are responsible for identifying situations in which a conflict of
interest, whether real or perceived, may exist. If a conflict of interest is identified, the agency must seek
an exemption.
Section VIII – Construction Criteria
Construction Criteria
All construction will comply with appropriate construction standards adopted by the Commonwealth of
Kentucky. Information for purchasing adopted codes and standards is available through the Kentucky
Department of Housing, Buildings, and Construction web site at
http://dhbc.ky.gov/bce/bc/Pages/default.aspx.
Applicants may not begin construction on any unit until the project has been approved by KHC program
staff. Any unit started (defined as any on-site construction activity) before approval by KHC may make
the unit ineligible for KHC assistance.
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Housing that is newly constructed with HOME funds must be constructed as to mitigate the impact of
potential disasters, e.g., earthquakes, floods, wildfires, in accordance with state and local laws.
Construction Management

Applicants must develop construction management procedures that outline contract provisions
for the contractor and subcontractors, payment requests, forms to be completed, inspection
procedures, and project completion procedures.

Applicants must establish and maintain a current listing of qualified contractors based on
experience (unless the applicant utilizes only in-house crews) who are interested in doing new
construction and/or rehabilitation work financed through the HOME Program. At a minimum,
agencies should annually advertise a request for qualifications. Every effort must be made to
ensure that the bidding is fair and open. (Not applicable to private developers.)

Applicants must maintain documentation of the bid opening, bid award (unless the applicant
utilizes only in-house crews), and pre-construction conference. Documentation must be
maintained in the files, according to the requirements of 24 CFR Part 92.508. (Not applicable to
private developers.)

A full work write-up with line item cost estimates must be submitted to KHC prior to project set
up. KHC will determine the feasibility and cost reasonableness of the project.

Only preapproved plans and specifications are accepted for this funding round.

All variances from KHC’s design and construction standards must be submitted to KHC prior to
project set up. KHC will determine the feasibility of the variance and issue a written response to
any variance request.

Rehabilitation projects must comply with applicable building and residential codes along with
KHC’s Minimum Design for Rehabilitated Single Family structures, which may be located on
KHC’s website, www.kyhousing.org.

For owner-occupied rehabilitation, there must be a written contract between the contractor
and the owner/applicant. The contract should reference and include the work write-up,
specifications, drawings, and appropriate code references.

Contractors must submit a request for payment that is signed by the homeowner/buyer, along
with lien waivers and affidavits to the applicant with each pay request. The applicant must
inspect the property to determine that the work completed is valued at an amount equal to the
progress payment requested. If the work completed is not in compliance, it is the responsibility
of agency staff to obtain appropriate corrective action from the contractor before requesting
payment from KHC. The contractor must be notified at the time of the inspection of any
necessary corrective action to enable the agency to make a progress payment. This notification
must be included in the case file.

To notify KHC when construction will begin on a unit, the applicant must submit a construction
start-up notice to their assigned program representative/specialist at least three weeks prior to
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the start of construction. A notice must be submitted for each unit. Failure to submit this
notice in a timely manner may result in delays in accessing funds.

Change Orders – Any changes in the approved plans and scope of work must be approved by a
KHC construction specialist before the change of work scope occurs. Proposed changes should
be submitted to KHC in the form of a detailed Change Order submitted on proper forms and
executed by all parties. Change Orders must be approved by KHC prior to completing the work
and include the Change Order amount in the Draw Request.

Housing that is newly constructed with HOME or AHTF funds must be constructed as to mitigate
the impact of potential disasters, e.g., earthquakes, floods, wildfires, in accordance with state
and local laws.
Construction Contingency

KHC will allow applicants to incorporate up to 10 percent of the total development cost to be
used as a construction contingency. However, if a construction contingency is added to the cost
estimate, it should not be considered an automatic project cost. Construction contingency is
designed to help applicants pay for unforeseen cost overages.

If KHC funds are budgeted for construction contingency, the applicant must seek approval from
their assigned project representative prior to accessing these funds. If the amount budgeted for
construction contingency on a particular unit is insufficient to meet the cost overage, the
applicant must then use their developer fee to meet these costs before requesting additional
funds from KHC.
Inspections
Recipients of HOME and AHTF funds are required to have 100 percent of their units inspected by a
qualified staff or third party inspector. All units are to be inspected for code compliance as well as
reviewed to meet all KHC design requirements. Inspection reports for all project units must be kept on
file by the recipient. The final inspection report shall be provided to KHC representatives in the close
out documentation.
Additionally, KHC will inspect a minimum of 20 percent of the total units in the project. The program
representative will determine whether the unit is subject to inspection by KHC. Each program
representative/specialist will contact the applicant to give notification of upcoming projects requiring
inspections. KHC may require fewer or more units to be inspected as a quality control measure.
New construction units selected for inspection will be inspected a minimum of three times each. For
new construction these inspections will be at the following stages:
 Footing (after excavation of footings and before footing concrete is poured)
 Interim (any time between completion of wall insulation and hanging of drywall)
 Completion (100% complete including landscaping and site work and before move in)
Rehabilitation units selected for inspection will be inspected a minimum of one time each. For
rehabilitation projects, based on work scope, inspections will be at the following stages as applicable:
(Contact your KHC Construction Specialist for guidance)
 Under-roof/weatherization
 Interim (any time between completion of wall insulation and hanging of drywall)
 Completion (100% complete, including removal of waste materials)
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Please note: The inspection stages and percentage of work completed may not directly correspond to
the percentage of KHC funds that may be requested.
Units selected for inspection must have a representative from the applicant agency attend each
inspection and bring a copy of the draw form. Once the KHC inspector has approved the construction
activity and signed the draw request form, it may be submitted for processing. KHC inspectors or
program representatives/specialists have the authority to approve unequal draws if appropriate.
KHC will charge a "re-inspection fee" of $200 under the following circumstances:
 Units that a KHC inspector must perform more than one final inspection due to the project not
being 100% complete.
 Failure by the agency to provide an agency representative on the project site during the
inspection.
 Unsuccessful attempts due to the agency not coordinating the inspection with homeowners or
other involved parties which renders the unit inaccessible for inspection.
 A hazard exists on the project site at the time of inspection which endangers the welfare of the
inspector. Examples: Bed Bug infestation, poisonous snake infestation, uncontrolled animals,
etc.
The fee must be paid to KHC prior to any additional funds being drawn from KHC. This fee cannot be
paid using HOME and/or AHTF funds. A re-inspection fee will not be charged for follow up inspections
to verify correction of deficiencies observed during any inspection.
Draw Requests
KHC will allow a maximum of three draw requests per unit for home buyer and homeowner
rehabilitation projects. In extenuating circumstances, KHC may allow additional draws. For units
inspected by KHC, each draw request must be signed by KHC’s construction specialist.
Draw requests shall be presented to the KHC inspector on the project site by the agency representative
for consideration of approval. The agency shall be responsible to submit the signed draw request to KHC
using the required process and procedures. KHC inspectors are not responsible for submitting signed
draw requests.
Draw amounts should be proportionate to the percent of completion of the unit. KHC reserves the right
to reduce any draw that is requesting excessive funds compared to the construction completion of the
unit.
At completion of each unit, the agency may submit a final draw to KHC. No funds will be paid by KHC on
a unit deemed non-compliant of any applicable code or KHC standard by KHC’s construction specialist.
The final draw request must also include required closeout documentation. This includes a deed
restriction or agreement for AHTF projects and a project completion report for HOME projects.
Inspection reports generated by qualified staff or other qualified third party inspectors must also be
included for all HOME and/or AHTF project units
Universal Design Standards
Universal Design is a building concept that incorporates products, general design layouts, and
characteristics into residences to:
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


Make the residence usable by the greatest number of people.
Respond to the changing needs of the resident.
Improve marketability of the residence.
Universal Design is applicable to all single-family units whenever KHC is providing 50 percent or more of
the funding based on the total construction cost per unit, including all hard and soft costs. It is also
applicable to all modular and manufactured homes.
The goal of Universal Design is to build housing that meets the needs of the greatest possible portion of
a community’s population. It differs from Accessible Design, which is primarily intended to meet the
needs of persons with disabilities. It is, however, inclusive of adaptable design as it strives to
incorporate structural features that will allow a residence to be adapted to an individual or household’s
changing needs.
KHC’s Universal Design Standards are available on KHC’s Web site, under Development, Design and
Construction, Universal Design Standards.
Minimum Design Standards
Minimum Design Standards apply to new construction and reconstruction of homes built with funds
from the HOME Program or AHTF.
Minimum Design Standards are required when funding from KHC is 10 percent or more of the cost per
unit. Please Note: KHC’s Minimum Design Standards are to be used as a guideline to meet and exceed
all local, state, and national codes.
Minimum Design Standards also provide a way to enforce above-average construction and design for
builders, contractors, and design professionals who wish to use KHC funding. Other methods of
construction and design may be acceptable on a case-by-case basis. KHC’s Minimum Design Standards
are available on KHC’s Web site, under Development, Design and Construction, Minimum Design
Standards, and then select the appropriate type of housing.
If you have questions about KHC’s Minimum Design Standards, please contact the Department of
Design and Construction Review for further assistance.
Construction Code Standards
All construction will comply with appropriate construction standards adopted by the State of Kentucky.
Information for purchasing adopted codes and standards is available through the Kentucky Department
of Housing, Buildings, and Construction website at http://dhbc.ky.gov.
New Construction and Reconstruction
All newly-constructed or reconstructed units must meet the requirements of the most current
version of the Kentucky Residential Code.
Construction contracts and other documents must describe the work in adequate detail so that
inspections can be conducted.
Cost estimates for construction must be reasonable.
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Rehabilitation Standards
Minimum Design Standards for Rehabilitation: KHC’s Minimum Design Standards for Rehabilitation of
Single-Family Detached Dwelling Units are to be used as a guideline to assist in meeting or exceeding all
local, state, and national codes. These standards also provide a way to enforce above-average
construction and design for builders, contractors, and design professionals who wish to use HOME and
AHTF funding.
Non HOME-funded units: For non-HOME funded units and units using KHC funding of $10,000 or less,
the total scope of work must meet the Kentucky Residential Code (KRC), and local zoning, residential, and
building ordinances (Local Ordinances), in force at the time of funding, regardless of what funding source
is used when other funds are leveraged to complete the scope of work.
KRC regulations shall apply to the construction, alteration, movement, enlargement, replacement, repair,
equipment, use and occupancy, location, removal, and demolition of detached one- and two-family
dwellings.
HOME-funded units: Any HOME-funded unit and units where any KHC funding is over $10,000 but less
than $30,000; KHC Minimum Design for Rehabilitation Standards (MDR), Kentucky Residential Code
(KRC), and Local Ordinances, as applicable, shall apply to the total scope of work, regardless of what
funding source is used when other funds are leveraged to complete the scope of work.
a. KRC and MDR regulations and Local Ordinances shall apply to the construction, alteration,
movement, enlargement, replacement, repair, equipment, use and occupancy, location,
removal, and demolition of detached one- and two-family dwellings all rehabilitated singlefamily detached housing.
b. Items identified in the work write-up and incorporated in the project shall comply with the
correlating sections of the KRC, MDR, and Local Ordinances, and shall not require full
compliance of the entire standard(s) unless specifically required by MDR, KRC, or Local
Ordinances.
c. Completed units shall not contain Health/Safety or Level 3 issues identified in the Federal
Uniform Property Condition Standards, Unit-Inspectable Items, available at:
http://www.hud.gov/offices/reac/products/pass/PDFs/appendix2-finaldictionary.pdf
*See website: http://www.kyhousing.org
Rehab projects exceeding $30,000 in rehab cost (from all KHC funding sources), excluding acquisition
costs, must have the completed unit meet the requirements of the Kentucky Residential Code (KRC) and
Local Ordinances.
a. Any structure requiring more than $40,000 of total rehab construction costs to comply with
MDR, or the adopted KRC, are encouraged to consider demolition/rebuild.
b. KRC regulations shall apply to the construction, alteration, movement, enlargement,
replacement, repair, equipment, use and occupancy, location, removal, and demolition of
detached one- and two-family dwellings.
c. Completed units shall not contain Health/Safety or Level 3 issues identified in the Federal
Uniform Property Condition Standards, Unit Inspectable Items, available at:
http://www.hud.gov/offices/reac/products/pass/PDFs/appendix2-finaldictionary.pdf
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*See website: http://www.kyhousing.org
Green Building Techniques
The Leadership in Energy and Environmental Design (LEED) Green Building Rating System™ is the
nationally-accepted benchmark for the design, construction, and operation of high performance green
buildings. LEED gives building owners the tools they need to have an immediate and measurable impact
on their building’s performance. LEED recognizes performance in five key areas of human and
environmental health sustainable site development, water savings, energy efficiency, materials
selection, and indoor environmental quality. For additional information, please visit
http://www.usgbc.org/.
Projects that incorporate green building techniques in their plans and specifications may receive points in
application scoring. To receive the bonus points in this category:

Projects proposing new construction or demolition/reconstruction must incorporate at least
seven of the LEED Green Building criteria in the specifications.

Projects proposing owner-occupied rehabilitation or acquisition/rehabilitation/resale must
incorporate at least three of the LEED Green Building criteria in the work write-up.
The LEED Green Building criteria are:
a)
All adhesives, sealants and primers used on the interior of the building shall comply with South
Coast Air Quality Management District Rule #1168. Acceptable volatile organic compound (VOC)
limits are listed in the table at http://www.arb.ca.gov/DRDB/SC/CURHTML/R1168.PDF.
b)
Use of 50 percent of wood-based materials and products that are certified in accordance with
the Forest Stewardship Council’s (FSC) Principles and Criteria for wood building components.
c)
Open space. Provide vegetated open space area equal to 1) 20 percent of the project site area
or 2) equal to the building foot print. Vegetated open space is defined as gardens, plant beds,
and fish ponds with plants, shrubs, or trees.
d)
Install compact fluorescent light bulbs (CFLs) throughout the units.
e)
Utilize rapidly-renewable floor materials, such as bamboo, cork, or eucalyptus.
f)
Provide an easily accessible area dedicated to the collection and storage of non-hazardous
materials for recycling, including (at a minimum) paper, corrugated cardboard, glass, plastics,
and metals. Homeowners are responsible for disposal and removal of recyclables.
g)
Install a programmable thermostat. Please note: If a heat pump is installed in the unit, a
programmable thermostat specifically designed for heat pump systems must be utilized.
h)
Develop and implement a construction waste management plan that recycles or salvages at
least 50 percent of non-hazardous construction and demolition debris.
i)
Install a tankless water heater. Please note: Proper installation requires that the heating unit
satisfies demand capacity and that the manufacturer’s energy requirements be followed.
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j)
Use recycled, salvaged, refurbished, or reused materials such that the sum of these materials
constitutes at least 10 percent of the total value of the project materials.
k)
Use building materials that have been extracted, harvested, recovered or manufactured within
500 miles of the project site for a minimum of 10 percent of the total material costs.
l)
Use carpeting that meets the product testing requirements of the Carpet and Rug Institute’s
Green Label Plus program, which can be found at: http://www.carpet-rug.org/about-cri/crisignature-programs/green-label-plus-carpet.cfm.
m)
Install all lavatory faucets with an average flow rate of < 2.0 gallons per minute.
n)
Install all showers with an average flow rate of < 2.0 gallons per minute.
o)
Install all toilets that have one or more of the following (counts as one feature):
 Average flow rate of < 1.3 gallons per flush.
 Dual-flush and meet the requirements of ASME A112.19.14.
 Meet the U.S. EPA Water Sense specification and be certified and labeled accordingly.
p)
Install compact hot water supply line design with no run over 20 feet from water heater.
q)
Install central hot water manifold trunk no more than 6 feet, insulated to R-4, with no branch
line exceeding 20 feet.
r)
Installation of all domestic hot water piping shall have R-4 insulation. Insulation shall be
properly installed on all piping elbows to adequately insulate the 90-degree bend.
s)
Prior to construction, create detailed framing plans or scopes of work and accompanying
architectural details for use on the job site. Indicate the specific locations, spacing, and sizes of
all framing members in the floors, walls, roof, and ceiling (if different from roof).
t)
Prior to construction, create a detailed cut list in lumber order that corresponds directly to the
framing plans and/or scopes of work.
Single-Family Plan Review
Only KHC pre-approved plans and specifications will be accepted for use for this application round.
Archaeological Surveys
This section is currently under review and is subject to change in the final application.
Nonprofits and Local Governments
Projects utilizing HOME funds: If an archaeological survey is required, the developer may request
reimbursement through HOME administrative funds. These funds are above and beyond the amount of
HOME originally awarded to the project. KHC reserves the right not to pay for additional surveys if they
are required and reserves the right to withdraw the commitment.
Nonprofit organizations must complete a bid process consistent with the applicable procurement policy.
The environmental specialist is the contact person and can provide the developer names of agencies
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that the State Historic Preservation Officer has approved for these services. The developer is
responsible for submitting a copy of the bill or invoice to the environmental specialist to receive
reimbursement for these services. If for some reason the project falls out or KHC decides not to go
forward with the development, KHC reserves the right to request a refund of all archaeological-related
payments made to the developer by KHC.
For-Profits
Projects with less than 12 units requesting HOME funds: If the proposed project includes HOME funds
and contains less than 12 units, the developer may receive reimbursement for the survey costs in the
same manner as is described above. Even though for-profit organizations are not subject to
procurement policies like nonprofit organizations, they will still be required to follow a bid process,
requesting at least three bids, to demonstrate they received the best possible price.
All projects of 12 or more units and all projects not requesting HOME funds: If an archaeological survey
is required, the developer is responsible for payment and cannot receive reimbursement from HOME
administration funds. However, payment may be absorbed through soft costs already included in total
project cost.
Phase I Environmental Surveys
This section is currently under review and is subject to change in the final application.
KHC’s environmental risk management policy requires a Phase I environmental assessment performed
to American Society for Testing and Materials standards for the following:

Projects containing a group of more than four HOME-assisted units within 2,000 feet.

All land development loans in excess of $200,000.

All homeownership neighborhood/subdivision development loans in excess of $200,000.
KHC may waive the Phase I requirement where federal funds are not involved and there is sufficient
information available to document the nonexistence of hazardous materials.
Section X – TBRA Scoring
TBRA Scoring – NOT APPLICABLE FOR THE JANUARY 2015 ABBREVIATED FUNDING ROUND
KHC may, at its discretion, request information from applicants to address and resolve issues identified
during application review. The application will be scored as submitted and supplemental information
provided for clarity will not be considered for scoring purposes.
Following are the maximum point values for each section of the application (application total = 100
points), along with some of the criteria application reviewers will consider in the review process:




Community Need
Ready-to-Proceed
Program Performance
Project Design
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
Capacity of the Applicant/Administrator
Ready-to-Proceed
 Is the plan for client outreach and referral in place, and is it thorough and well documented?
 Has the agency determined that there are enough units that will pass HQS in the service
area?
 Will there be a sufficient number of landlords involved in the program to ensure that
eligible units will be available to program participants?
 Are waiting list maintenance procedures reasonable and compliant with fair housing laws?
 How many clients are identified as eligible and are income-verified?
 How many clients are identified as eligible and are disability/special need verified?
 Do identified clients match the proposed program design?
 For security and utility deposit assistance-only programs, is there a well-established and
concrete mechanism to ensure households can afford rents and units will remain affordable?
Program Performance
 Is the intake process clear and reasonable?
 Are preferences within the eligible populations (homeless and/or special needs) proposed and
are they in accordance with the overall project design?
 Is the voucher management reasonable and well thought out?
 How much assistance do clients receive in finding affordable, eligible units?
 What is the rental subsidy/utility deposit payment structure? Has the applicant proposed the
most cost effective method of providing rental assistance (payment standards, fair market rents,
etc.)?
 What efforts are made to ensure households remain in affordable housing once the TBRA ends?
 Are there any potential delays in implementing the project?
Project Design
 Are support services appropriate for the targeted population (if applicable)?
 What is the range of services offered? Are there gaps in service that are not addressed?
 How long will services be provided?
 How will they be delivered?
 Are adequate HQS units available versus number of vouchers proposed? How do you know?
Describe past and future initiatives to notify landlords of your HOME TBRA program.
Capacity of Applicant/Administrator
 Is the experience of the applicant/administrator clearly described?
 Are qualifications relevant to the proposed project?
 Is the size of the project appropriate based on agency experience?
 KHC will conduct an internal capacity review based on prior experience with the applicant, and
for prior grantees will consider success in administering similar projects, overall performance,
adherence to deadlines and original program design, quality and timeliness of paperwork, staff
turnover, and project management. In addition, staff will consider compliance and/or audit
findings and whether such findings have been addressed. The amount of HOME TBRA funding
that the applicant has on-hand at time of application and projected to the end date of the grant
will also be considered.
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Section XI - Resources
HOME Definitions and Resources

HOME defines homeownership as fee simple title (title must be clear and free from defects) or a
99-year leasehold interest in a one- to four-unit dwelling, or equivalent form of ownership
approved by KHC or HUD.

Inherited property with multiple owners, life estates, inter vivos trust, living trusts, and
beneficiary deeds are all considered eligible forms of ownership, even though they do not meet
the definition of homeownership in 92.2.

Ownership must be proven and title searches must be completed prior to the investment of
HOME funds. NOTE: Property assisted with HOME funds will not be eligible for additional
assistance during the affordability period.

Land contracts are not an eligible form of ownership.
HOME Definition of Dependent
When determining eligibility of the household, please refer to the HOME Final Rule.
HOME Definition of Commitment
For a full definition of commitment, click on the following link: HOME Final Rule
Commit to a specific local project means:
(i) If the project consists of rehabilitation or new construction (with or without acquisition) the
participating jurisdiction (or State recipient or sub recipient) and project owner have executed a written
legally binding agreement under which HOME assistance will be provided to the owner for an
identifiable project for which all necessary financing has been secured, a budget and schedule have
been established, and underwriting has been completed and under which construction is scheduled to
start within twelve months of the agreement date. If the project is owned by the participating
jurisdiction or State recipient, the project has been set up in the disbursement and information system
established by HUD, and construction can reasonably be expected to start within twelve months of the
project set-up date.
(ii)(A) If the project consists of acquisition of standard housing and the participating jurisdiction (or State
recipient or sub-recipient) is acquiring the property with HOME funds, the participating jurisdiction (or
State recipient or sub-recipient) and the property owner have executed a legally binding contract for
sale of an identifiable property and the property title will be transferred to the participating jurisdiction
(or State recipient or sub-recipient) within six months of the date of the contract.
(B) If the project consists of acquisition of standard housing and the participating jurisdiction (or State
recipient or sub-recipient) is providing HOME funds to a family to acquire single family housing for
homeownership or to a purchaser to acquire rental housing, the participating jurisdiction (or State
recipient or sub-recipient) and the family or purchaser have executed a written agreement under which
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HOME assistance will be provided for the purchase of the single family housing or rental housing and the
property title will be transferred to the family or purchaser within six months of the agreement date.
(iii) If the project consists of tenant-based rental assistance, the participating jurisdiction (or State
recipient, or sub-recipient) has entered into a rental assistance contract with the owner or the tenant in
accordance with the provisions of §92.209.
HOME Homeownership Definition of Elderly
Elderly is defined as 62 years of age or older and can be the head of the household or the spouse.
HOME Homeownership Definition of Disability (See Below)
For more information, click on the following link: HOME Final Rule.
Person with disabilities means a household composed of one or more persons, at least one of whom is
an adult, who has a disability.
(1) A person is considered to have a disability if the person has a physical, mental, or emotional
impairment that:
(i) Is expected to be of long-continued and indefinite duration;
(ii) Substantially impedes his or her ability to live independently; and
(iii) Is of such a nature that such ability could be improved by more suitable housing conditions.
(2) A person will also be considered to have a disability if he or she has a developmental disability, which
is a severe, chronic disability that:
(i) Is attributable to a mental or physical impairment or combination of mental and physical
impairments;
(ii) Is manifested before the person attains age 22;
(iii) Is likely to continue indefinitely;
(iv) Results in substantial functional limitations in three or more of the following areas of major life
activity: self-care, receptive and expressive language, learning, mobility, self-direction, capacity for
independent living, and economic self-sufficiency; and
(v) Reflects the person's need for a combination and sequence of special, interdisciplinary, or
generic care, treatment, or other services that are of lifelong or extended duration and are
individually planned and coordinated. Notwithstanding the preceding provisions of this definition,
the term “person with disabilities” includes two or more persons with disabilities living together,
one or more such persons living with another person who is determined to be important to their
care or well-being, and the surviving member or members of any household described in the first
sentence of this definition who were living, in a unit assisted with HOME funds, with the deceased
member of the household at the time of his or her death.
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A household could qualify as disabled if the head of household or spouse meet the following criteria:


Has a disability, as defined in 42 U.S.C. 423 (by the Social Security Administration).
Is determined, pursuant to HUD regulations, to have a physical, mental, or emotional
impairment that:
o Is expected to be of long-continued and indefinite duration,
o Substantially impedes his or her ability to live independently, and
o Is of such a nature that the ability to live independently could be improved by more
suitable housing condition; or
o Has a developmental disability as defined in 42 U.S.C. 6001.
HOME Income Limits
http://www.hud.gov/offices/cpd/affordablehousing/programs/home/limits/income/index.cfm
Click on the most current year and then on “Kentucky” to find the applicable income limits.
HOME Homeownership Value (Will be revised in January of 2015)
HOME Maximum Purchase Price/After-Rehab Value - HUD Exchange
Guidelines for ENERGY STAR Qualified New Homes:
http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.homes_guidelns
U.S. Green Building Council:
http://www.usgbc.org/
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Section XII – Quick Facts
AHTF and HOME Quick Facts
HOME (federal dollars)
AHTF (state dollars)

Eligible
Activities





Eligible
Applicants


Eligible
Beneficiaries



Match and
Leverage
Requirements
Minimum
Subsidy

Matching funds for federal
housing programs
Acquisition, rehabilitation,
and/or new construction of very
low-income housing units
Permanent financing, including
down payment, closing costs,
and principal reduction
Matching funds for technical
assistance directly related to
creating low-income housing
project
Administrative costs (up to 7.5
percent of total AHTF-funded
project costs)
Nonprofit organizations,
including faith-based
organizations
Local governments
Public housing authorities
Kentucky residents
Households whose income does
not exceed 60 percent of area
median income
Applicants for AHTF funds only
are not required to contribute
other matching funds.
A minimum of $1,000 of AHTF
funds must be permanently
invested.

New construction, reconstruction, or
rehabilitation of low-income housing
units.
 Acquisition of property or vacant land.
 Site improvements
 Permanent financing, including down
payment, closing costs, and principal
reduction.
 Rehabilitation of owner-occupied
housing
 Administrative costs (up to 10 percent of
total HOME-funded project costs –
homeowner rehab or acquisition
projects only)
 Developer fee
 Development subsidy
 Nonprofit organizations, including faithbased organizations
 Community Housing Development
Organizations (CHDOs)
 Local governments
 Public housing authorities
 Private developers
 Kentucky residents
 Households whose income does not
exceed 80 percent of area median
income
 Applicants for HOME or HOME and AHTF
blended projects are required to
contribute HOME-eligible matching
funds of at least 10 percent of the total
HOME request.
 A minimum of $1,000 of HOME funds
must be permanently invested.
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
Maximum
Subsidy



Cost
Containment


Home Buyer Projects: a maximum of $40,000 per unit, contingent to the
limitations established in this document under “Maximum Subsidy.”
Homeowner Rehabilitation Projects: maximum HOME and/or AHTF subsidy
provided to the household is $60,000 per unit.
HOME developer fee is considered part of the subsidy to the household and
capped at $10,000.
HOME and AHTF funds should be considered “gap financing,” and the actual
amount of the HOME and/or AHTF permanent investment must be based on
the household’s need, after all other available sources of financing and subsidy
have been maximized.
KHC restricts the purchase price limits for new construction to $150,000 for all
newly-constructed houses.
For existing units, the purchase price/after-rehabilitation value limits are as
follows, based on the counties:
$142,000
Shelby County
$138,000
Madison County
$135,000
Lexington-Fayette, Lyon County
$134,000
Perry County
$133,000
Bowling Green MSA
$131,000
Louisville Metro, Nelson County
$128,000
Boyle and Calloway Counties
$127,000
Elizabethtown MSA, Anderson County, Garrard County
$125,000
McCracken County
$124,000
Cincinnati MSA, Christian, Johnson, Laurel, Mercer, and
Pulaski Counties
$123,000
Grant and Meade Counties
$121,000
Pike County
$119,000
All other counties in Kentucky.
 These amounts are subject to change in January of 2015.
HOME Maximum Purchase Price/After-Rehab Value - HUD Exchange
Affordability
Period
SOURCE OF FUNDS
DIRECT SUBSIDY INVESTED
AFFORDABILITY PERIOD
HOME and AHTF
$1,000 - $14,999
5 years
HOME and AHTF
$15,000 - $40,000 (HB or HR)
10 years
HOME and AHTF
$40,001 - $60,000 (HR)
15 years
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