- Covington will issue $200,000 in federal HOME funds to Habitat for Humanity to build two affordable housing units in the Botany Hills neighborhood
- The houses are part of the Pope Leo Village, a special affordable housing project launched last year
- Buyers must meet certain criteria to quality for purchasing one of the houses
The Covington Board of Commissioners approved an issuance of $200,000 in federal funding on Tuesday to Habitat for Humanity for the construction of two, single-family affordable housing units in the city’s Botany Hills neighborhood, just north of Devou Park.
The construction of these units will serve as the capstones in the Pope Leo Village, a special affordable housing project launched by Habitat for Humanity last year.
“One of the things that this board of commissioners has set as a priority (is) to have workforce, affordable housing,” said Mayor Ron Washington on Tuesday. “And this is one of the items that we’re doing to improve that.”
The village is a multi-city initiative that arose after an anonymous donor gave to Habitat for Humanity in response to Pope Leo XIV’s injunction to public service. The project broke ground in the winter and was attended by one of the homes’ new owners.
“This home means the world to me and my children–it represents stability, safety and a place we can forever call our own,” said Pope Leo Village resident Ayana Turner last year. “Habitat didn’t just help us build a house, they helped us build a future, a foundation and a legacy, and we are truly grateful.”
“I truly believe that the gift that we received when we took our leap of faith here in Covington was the Holy Spirit sending us a message,” said Joe Hansbauer, CEO of Habitat for Humanity of Greater Cincinnati, at the ground breaking.
All of the homes in the village are located on infill lots where historic properties once stood. The two approved this week are the final homes in the project. Three of the homes have been completed and sold, Covington Community Development Manager Jeremy Wallace informed the board last week. Two have secured owners and will be completed in June. Two more will be completed in July but don’t yet have owners.
The two homes approved Tuesday will be located on John Street.
The money will come from federal HOME funding, which Covington automatically receives every year as a federal entitlement city. The exact amounts vary from year to year, depending on the federal budget. HOME funding can be used for housing programs, including funding rental assistance, home repair programs, housing nonprofits and the local HOME Consortium, which provides forgivable loans to qualifying home buyers.
The $200,000 will be provided as a loan to the organization. Habitat for Humanity must legally repay the city at least $70,000, or $35,000 per house. It can use proceeds from selling the house to repay the $70,000. City documents put the average sale price for the houses at $235,000. The houses vary in design based on the constraints of the individual lots, but each is either one or two stories tall and has at least three bedrooms.
Buyers must meet certain criteria in order to purchase a house with Habitat for Humanity, but if they’re approved, their mortgage will be at or below 30% of their income with 0% interest.
To qualify, buyers must be between 30% to 80% of the area’s median income. Covington’s median household income is $63,717, according to the city, so buyers would need to make between $19,115.10 and $50,973.60 annually to qualify. Buyers must also be first-time home buyers, have a debt-to-income ratio of under 40%, and be living in overcrowded, unaffordable or unsafe conditions.
Learn more about Pope Leo Village at habitatcincinnati.org/popeleovillage.