Covington is planning to sell a city-owned vacant lot at 1323 Russell St. to a local housing nonprofit.
The property was sold to Housing Opportunities of Northern Kentucky, known as HONK, after the Board of Commissioners heard a proposal from the city’s Neighborhood Services Department on Tuesday night.
The move occurs amid a citywide effort to bolster the affordable housing stock. In fact, a neighboring property at 1321 Russell is already being rehabbed by HONK.
“So, we’ll have two houses right next to each other on formally unused space, which is great,” said Covington Community Development Manager Jeremy Wallace.
The sale was placed on the board’s consent agenda for the legislative meeting next week, meaning it will not undergo further discussion before a vote is taken. Items placed on legislative consent agendas usually pass.
The nonprofit will purchase the lot for $16,000 and use it to build housing for buyers earning less than 80% of the median income of the region’s metropolitan statistical area, or MSA, according to HONK’s development plan. MSAs are used by the federal government for statistical and analytical purposes, and the exact figures for the local MSA vary depending on household size.
Covington’s median household income was $58,814 per year, as of 2023, according to the U.S. Census Bureau. The city’s own internal metrics put the most recent median household income at $63,717 per year.
HONK specializes in rehabbing old properties and then selling them on a lease-to-own basis to families whose incomes can’t penetrate typical market-rate housing prices. The lease period usually lasts between 12 and 18 months, with payments roughly equal to a mortgage payment.
“This time gives them a chance to work with HONK’s full-time Housing Counselor to build their credit, develop savings, reduce debt and otherwise prepare for the financial responsibilities of owning a home,” according to the development plan from David Hastings, HONK’s executive director.
As of early October, 118 people have achieved home ownership through HONK’s programs. The organization is a long-time partner with the City of Covington and is the beneficiary of some of the city’s pass-through federal grant funding.
Upon acquiring the property, HONK expects to invest about $315,000, according to city documents. HONK is aiming to complete construction by the end of next year.
HONK’s development plan calls for the construction of a two-story, single-family home with a full patio, a full (unfinished) basement, a laundry room, four bedrooms, two bathrooms, central HVAC and a full slate of appliances.
Parking will be available in the alley behind the property. Studer Residential Designs, which has worked with HONK to develop sites in Ludlow, will head up the development of the property.
“This is a win for our city,” said Mayor Ron Washington. “We’re taking a vacant piece of land, and we’re going to put a house on it… for people in need.”
The board will cast its final vote to approve the sale at the legislative meeting on Dec. 16.