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New Incentives Available for Homebuyers and Homeowners

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COVINGTON -Commission approved the following HUD-funded programs to assist homebuyers and homeowners in the City of Covington for the City's new fiscal year that began on July 1, 2014. Some of these programs are also available to homebuyers in neighboring Northern Kentucky cities due to Covington's status as a regional HUD HOME Consortium.

 

For Homebuyers, the newly funded programs include:

 

Homebuyer Assistance - Covington only

Homebuyers may be eligible for this interest free deferred forgivable loan up to $7,500 to cover lender required down payment and customary settlement charges to the borrower. Borrower's gross annual household income must be at or below 80% of the Area Median Income ($38,400 for a single person, $54,800 for a 4 person household).

 

Homebuyer Assistance Program - Ludlow, Newport, Bellevue and Dayton (Northern Kentucky HOME Consortium)

Homebuyers in Ludlow, Newport, Bellevue or Dayton may be eligible for this interest free deferred forgivable loan up to $5,000 to cover the lender required down payment and customary settlement charges to the borrower. Borrower's gross annual household income must be at or below 80% of the Area Median Income ($38,400 for a single person, $54,800 for a 4 person household).

 

For Homeowners, the newly funded programs include:

 

The Code Enforcement Hardship Repair Program - Covington only

Funded through the Community Development Block Grant program (CDBG) and only available through referral by the Code Enforcement Hearing Board, this program assists eligible low-income owner-occupants of single family homes, to address existing violations of Kentucky Building Codes, Property Maintenance Codes, and any other applicable City Codes. Funds are made available city-wide in the form of a deferred forgivable loan and property owners who appeal a code citation to the Code Enforcement Hearing Board may be eligible.

 

The Homeowner Repair Program - Covington only

Funded through the Community Development Block Grant program, this program assists eligible low-income owner-occupants of single family homes, to address repairs such as roof patches, furnace repairs and sewer lateral issues. Funds are available city-wide in the form of a deferred forgivable loan up to $5,000. Due to anticipated high demand, households will be required to submit a completed application packet with required supporting documentation to be placed on a waiting list for available funds.

 

Federal Department of Housing and Urban Development (HUD) CDBG and HOME funds are allocated to Covington on an annual basis due to the City's entitlement status. The City does not spend any money from its general fund on these programs. Program criteria are regulated and these regulations must be followed in all aspects of local application.

 

CDBG and HOME Programs focus on housing and urban development for low to moderate income households. CDBG has many different eligible uses based on the needs of the community. The City sets these priorities each year by eliciting public comment and making evaluations based on these needs. This year, CDBG funds are focused on Public Improvements/Infrastructure, Residential Programs, Economic Development, and Public Services.

 

The goal of the HOME Program is to create affordable, safe and decent housing.

 

Jeremy Wallace, CDBG/HOME Program Coordinator, says, "There is a benefit to the entire community when we promote homeownership. Sometimes the obstacle between a young couple purchasing a property and becoming a long-term investor in the City is the out of pocket expense to close a loan. We help new owners move past this hurdle so they can begin to establish themselves in the community and participate in the local economy".

 

To learn more about the available programs, visit: Housing Development or contact the Department of Development at 859-292-2323.