The City of Owensboro is hoping to secure $7 million in federal funds to address the growing need for affordable housing, though the grant is competitive and not guaranteed. The Owensboro City Commission on Tuesday approved applying for a Pathways to Removing Obstacles to Housing (PRO Housing) grant through the U.S. Department of Housing and Urban Development (HUD).
The grant would be used to create affordable rental units in Owensboro, either through new construction or rehabilitation of existing structures.
Abby Shelton, the City’s community development director, emphasized the pressing need for affordable housing in the region, noting that the demand for housing has pushed many low- and even median-income residents into precarious living situations.
“There’s a significant shortage of affordable housing in Kentucky, and Owensboro is no exception,” Shelton said. “The housing supply hasn’t kept up with the demand, and it’s creating competition between middle-income residents and those struggling to afford substandard rental properties.”
Shelton explained that this round of PRO Housing funding follows a previous allocation, which was primarily directed towards larger metropolitan areas. However, Owensboro hopes to be more competitive this year by leveraging local matching funds, including $900,000 from the city’s existing Home ARP funds, which could increase the overall project’s impact beyond the initial $7 million ask.
The city will hold a public comment period from September 30 to October 14, during which residents can provide feedback on the application. The final application is due on October 15.
“We’ve demonstrated a real need through our housing needs assessments, and we’re hopeful that this grant will help us make significant progress toward addressing our housing crisis,” Shelton added.
The city’s efforts come at a time when rising housing costs have led to an increase in homelessness and housing instability. In addition to targeting affordable housing, the project will require a developer match to ensure long-term sustainability.
