Community Housing Development Plan targets affordability and economic growth in local neighborhood

Affordable housing initiatives took center stage at the Owensboro Board of Commissioners meeting on May 20, 2025, as city leaders outlined a comprehensive plan to tackle housing challenges in the community. The focus is on creating homes priced between $150,000 and $200,000, with a strong partnership with Habitat for Humanity designated as the Community Housing Development Organization (CHDO).

The proposed initiatives aim to address critical issues such as rent affordability, substandard housing, and limited housing availability. Key components of the plan include the rehabilitation of existing structures through the XO program and new construction of rental units priced under $750 a month, significantly below market rates. Additionally, homes will be targeted for construction at prices below $127,000.

Economic development is also a priority, with plans to provide grants and technical support for small businesses, particularly along Fourth Street, and to foster mixed-use projects in the area. The city will collaborate with the Regional Water Resource Agency (RWRA) to resolve septic issues affecting homes that have not connected to the combined sewer system, aiming to extend pipelines to approximately 12 homes still relying on septic systems.

Accessibility improvements are part of the plan, including new sidewalks and street lighting. The city will also focus on first-time homebuyer education and financial literacy, offering down payment assistance of 10% for eligible buyers.

The draft budget for these initiatives anticipates a total public investment of $4.2 million and a private investment of $5 million, culminating in a total investment of $9.3 million. The city is set to submit its consolidated plan and annual action plan to HUD by May 23, pending allocation announcements.

This ambitious housing strategy reflects Owensboro's commitment to enhancing community safety, sustainability, and economic development, with a clear focus on increasing homeownership and improving living conditions for residents.