Kentucky River Foothills Development Council, Inc.

Powell County
Homeownership Counseling Program
Findings and Results 

Funded by U.S. Department of Housing and Urban Development
Rural Housing and Economic Development (RHED) grant
January 2003 – July 2004

Kentucky River Foothills Development Council, Inc. (KRFDC) a private, non-profit, community action agency, will assist low and moderate-income families in Powell County with purchasing and maintaining a new home.  We will provide credit counseling for families in need of credit repair in order to become homeowners.  Homeownership counseling consists of teaching potential homeowners actions necessary in order to be qualified for a mortgage as well as the importance of credit worthiness, budgeting and savings.

In addition we will provide referrals to services and activities which impact homeownership potential by improving economic positions of participants.  These components will include referral to educational and job training programs, rental assistance, food bank and assistance with energy costs.  We schedule classes as well as individual counseling in order to meet the needs of each applicant.  After completion of the course, KRFDC’s homeownership counselor will still be available for contact if the applicant finds it necessary.

KRFDC would like to share some information regarding homeownership counseling in Powell County.   

• 83 people have applied for assistance in becoming new homeowners through the Powell County Affordable Housing Program.
   
• 8 participants are new homeowners with the assistance of homeownership counseling and the Powell County Affordable Housing Program.
   
• 7 participants have been approved and are on the waiting list for the Powell County Affordable Housing program.
   
• 3 participants have been pre-approved for financing.
   
• 7 participants are new first-time homeowners with the assistance of homeownership counseling in partnership with Whitaker Bank of Powell County.
   
• 14 applicants are currently participating in the homeownership counseling program in order to be creditworthy and financially prepared to become homeowners. 
   
• 16 applicants were not willing to work on cleaning up their credit in order to be approved for financing.
   
• 24 people applied for assistance with homeownership but did not attend a meeting with Rural Development to apply for financing and have their credit reviewed.
   
• 59 credit files were reviewed providing the following information…
•  

• An average of 5 collections was reported for each applicant.
   

• 13 Bankruptcies
   

• Average amount of delinquent debt $2,452.
   

• Average annual income for a 3 person household was $11,227.55.
   

• 899 clients have spoke with the Service Coordinator at our Powell County Outreach office about housing programs ranging from rental assistance to new homeownership opportunities.

These numbers lead to the conclusion that homeownership and credit counseling is a necessity in Powell County.

Look for our billboard August 1^st off of Hwy 15 between Clay City and Stanton.

For more information on our Homeownership Counseling program please refer to the website at www.foothillscap.org or call 606-663-2659 or write to us at Foothills CAP, P.O. Box 729, Stanton, KY  40380.