A proposed residential facility in Owensboro, Kentucky, designed for individuals who have completed addiction recovery programs, has secured a significant financial boost. The Purpose Place will receive a grant of $1.5 million from the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) as part of its 2025 Affordable Housing Program (AHP). This funding aims to support the construction of a site that will feature 44 apartments, providing crucial housing options for residents in need.
Located on 6.1 acres at 1651 Parrish Plaza Drive, the property was recently rezoned from general business to multi-family residential use. The construction will be carried out by Wabuck Development Co., based in Leitchfield, for the Center For Addiction Recovery Of Henderson. This initiative represents a significant step towards enhancing affordable housing in the region.
FHLB Cincinnati allocates 10% of its net income annually to the AHP, which is designed to make housing more accessible for households earning at or below 80% of the area median income. The current year’s allocation has been bolstered by an additional $4.3 million in voluntary funds, reflecting a strong commitment to affordable housing solutions. The total funding for this year’s AHP has reached nearly $52 million, aimed at supporting housing development across Kentucky, Ohio, and Tennessee.
“The affordable housing landscape is changing with many of our members and the organizations they support facing unprecedented challenges in the development and rehabilitation of housing throughout our region,” stated Andrew Howell, president and CEO of FHLB Cincinnati. He emphasized the importance of the grants in creating new housing opportunities and improving existing stock for those in need.
Since its inception in 1980, Wabuck has built approximately 3,000 housing units across Kentucky, utilizing Rural Development Funds. In Owensboro alone, the company has developed 328 units since 1998. The Purpose Place project is still awaiting confirmation on its primary funding source—low-income housing tax credits—which are crucial for its financing.
April Bowman, a development officer with Wabuck, explained that the Internal Revenue Service allows these tax credits to be sold upfront to investors. The expected range for the credits is between $1.2 million and $1.5 million annually for the next ten years, potentially providing between $12 million and $15 million for construction. Bowman anticipates that the decision regarding these tax credits will be made by the end of January 2024.
If all funding is approved, the apartments at The Purpose Place are tentatively expected to be ready by the end of 2028. Should the project not proceed, Wabuck has committed to returning the $1.5 million grant to FHLB Cincinnati, underscoring the importance of securing comprehensive funding for such essential housing initiatives.
