LEGISLATIVE UPDATE
State Representative Randy Bridges
The Path to Affordable Housing
In the last 10 months, Kentucky has been hit by two massive natural disasters: the Western Kentucky tornados and the flash flooding in Eastern Kentucky. Each of these events revealed unique challenges in how we can work to rebuild these devastated communities. Meanwhile, our state is facing housing affordability challenges including eviction and foreclosures stemming from the pandemic against a backdrop of historical disinvestment. Despite the barriers Kentuckians face, there is one common theme that unites us all, the need for flexible capital that allows us to tackle immediate projects, keeping people safe, and laying the foundation for the long-term building.
Last week, I co-chaired the meeting of the Affordable Housing Caucus. In the meeting we discussed, Kentucky Housing Corporation's (KHC) role, the Affordable Housing Trust Fund, multifamily housing deals, housing related disaster relief needs, and affordable housing in the context of the Program of All-Inclusive Care for the Elderly (PACE) healthcare initiative.
Presenters from the KHC discussed Kentucky’s Affordable Housing Trust Fund (AHTF), which was established in 1992 by the General Assembly. AHTF is funded by a $6 flat fee per real estate transaction, collected by the county clerks where the transaction occurred and transmitted to the Kentucky Housing Corporation on a quarterly basis. Transactions have generated an average of $4-$5 million annually since the fee schedule was established in 2007.
KHC deploys AHTF for low-income Kentuckians by granting funds to non-profit housing organizations for three types of projects: development of multifamily apartments, development of single-family homes for new homebuyers, and home repairs for existing homeowners. Additionally, AHTF helps with disaster recovery, such as repairing existing housing and building new homes, program flexibility, rapid deployment, and leveraging other housing programs.
As a legislator and the co-chair of the Affordable Housing Caucus, I promise to be your voice in Frankfort for affordable housing as it is vastly important to families all over the state. Certainly, housing fulfills a basic human need for shelter, but it also contributes to the well-being of both parents and children. Studies show that children in stable housing do better in school and are less likely to experience disruption in their education due to unwanted moves. Decent, affordable housing reduces stress, which leads to improvement in both physical and mental health. Affordable housing also frees up funds within families’ tight budgets to spend on health care and food.
Affordable housing also is important to the economic vitality of our community. Affordable homes can attract and retain employees - a selling point and a competitive advantage for businesses looking to locate here. Affordable homes also support the local workforce so they can live in close proximity to their jobs. Shorter commutes allow workers to spend more time with their families while the community benefits from reduction in traffic congestion and gasoline expenditures. In revitalizing communities, the construction of affordable homes can also help to stimulate economic growth in our community.
As always, I hope you will feel free to contact me with any questions or issues. I can be reached here at home anytime or through the toll-free message line in Frankfort at 1-800-372-7181. Please feel free to email me at Randy.Bridges @LRC.KY.GOV. If you would like more information about interim committees or legislative actions, you can visit the Legislative Research Commission website at legislature.ky.gov.
