A new multi-family residential project aimed at supporting individuals recovering from addiction has gained significant financial backing. The Purpose Place, set to be constructed in Owensboro, Kentucky, will receive a $1.5 million grant from the Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) as part of its 2025 Affordable Housing Program (AHP). This funding will facilitate the development of 44 apartments designed for men and women who have completed addiction recovery programs.
The Purpose Place will be built on a 6.1-acre site located at 1651 Parrish Plaza Drive, which has recently been reclassified from general business to multi-family residential use. The construction will be managed by Wabuck Development Co. based in Leitchfield, in partnership with the Center For Addiction Recovery Of Henderson.
Funding Structure and Broader Impact
FHLB Cincinnati allocates 10% of its annual net income to the AHP, which aims to enhance housing affordability for households earning at or below 80% of the area median income. This year, the AHP received an additional $4.3 million in voluntary funds, resulting in a total allocation of nearly $52 million aimed at supporting affordable housing initiatives in Kentucky, Ohio, and Tennessee.
Andrew Howell, president and CEO of FHLB Cincinnati, emphasized the changing landscape of affordable housing. “The affordable housing landscape is changing with many of our members and the organizations they support facing unprecedented challenges in the development and rehabilitation of housing throughout our region,” he stated. The funds awarded this year will also contribute to the creation of 2,990 units of affordable housing across the three states.
Since its inception in 1980, Wabuck Development has successfully constructed approximately 3,000 housing units in Kentucky, including 328 units in Owensboro since 1998. The firm is now awaiting a decision on a critical funding source—low-income housing tax credits.
April Bowman, a development officer with Wabuck, noted that the Internal Revenue Service permits the upfront sale of tax credits to investors. The anticipated tax credits could range between $1.2 million and $1.5 million annually over a period of 10 years, potentially generating between $12 million and $15 million for the project’s construction.
Should all necessary funding be secured, construction of The Purpose Place is tentatively expected to be completed by the end of 2028. In the event that the project does not proceed, the $1.5 million grant will be returned to FHLB Cincinnati, ensuring responsible use of public funds.
This initiative reflects a broader commitment to enhancing affordable housing options, demonstrating the significant role that local development firms and financial institutions play in supporting community health and recovery efforts.
