A proposed multi-family residential facility in Owensboro, Kentucky, aimed at supporting individuals who have completed addiction recovery programs, has received significant funding through a recent grant announcement. The $1.5 million grant comes from the Federal Home Loan Bank of Cincinnati as part of its 2025 Affordable Housing Program (AHP). This funding will aid in the development of The Purpose Place, which plans to offer 44 apartments on a 6.1-acre site at 1651 Parrish Plaza Drive.
The location was recently rezoned from general business to multi-family residential use, marking a crucial step forward for the project. Wabuck Development Co., based in Leitchfield, has been selected to construct the apartments for the Center For Addiction Recovery Of Henderson. This initiative reflects a broader commitment to enhancing affordable housing options for individuals with limited financial resources.
Funding from the AHP is allocated to support housing for households earning at or below 80% of the area median income. The Federal Home Loan Bank of Cincinnati designates 10% of its net income each year for this program, which aims to make housing more accessible. This year, the AHP allocation received an additional $4.3 million in voluntary funds, contributing to a total of $39.98 million aimed at various affordable housing initiatives, including mortgage rate relief and emergency rehabilitation for those in need.
Andrew Howell, president and CEO of the Federal Home Loan Bank of Cincinnati, emphasized the importance of this funding in addressing housing challenges. “The affordable housing landscape is changing with many of our members and the organizations they support facing significant challenges in the development and rehabilitation of housing throughout our region,” Howell stated. He further noted that the nearly $52 million awarded this year aims to foster new housing opportunities and improve existing housing stock across Kentucky, Ohio, and Tennessee.
Wabuck Development Co. has a long history of contributing to housing in Kentucky, having built approximately 3,000 housing units since 1980, with 328 units developed in Owensboro alone since 1998. The Purpose Place is currently awaiting confirmation of its primary funding source, which consists of low-income housing tax credits. April Bowman, a development officer with Wabuck, explained that the Internal Revenue Service allows the sale of these tax credits upfront to investors. The anticipated credits are expected to amount to between $1.2 million and $1.5 million annually for a period of ten years, potentially generating between $12 million and $15 million for the project’s construction.
Bowman expressed optimism about the timeline, indicating that the company expects to know whether it will receive the tax credits by the end of January 2024. If all funding sources are secured, the apartments are tentatively projected to be completed by the end of 2028. Should the project not proceed as planned, Bowman noted that the $1.5 million grant would be returned to the Federal Home Loan Bank of Cincinnati.
As The Purpose Place moves forward, it represents a vital step in addressing the housing needs of individuals recovering from addiction, reflecting a growing awareness of the importance of supportive housing solutions in local communities.
